Importing goods into the UK from China

Sandtree

martindow said:

Kcolle said:

Where can I find out about clearing fees? 

Assuming this is a courier it will vary from one to another, but typically around 15 Pounds per consignment.  

Most are a % of total taxes charged with a floor around the £15 mark... so DHL Express is 2.5% with a floor of £11

Kcolle

Thankyou that’s very helpful. £15 sounds a reasonable handling fee, when it was first mentioned I imagined 100s. 

I had no idea there would be a more fees involved getting the goods from the port to me, I assumed all fees related to getting the goods to me would be included in the delivery price. So thanks for the heads up, Definitely something I need to investigate.

Kcolle

Thanks for everyone’s help I really appreciate it.

Another question…
My total cost of goods is around $3000.
I’ve been quoted by the seller/manufacturer in China $530 for shipping the goods to my door via sea on DDU terms. Which seems ok.

they also quoted me the same delivery service but with DDP for $680 which seems crazy cheap considering the vat would be $600+ once it gets here plus the 2% import tax. Surely this is too good to be true andsome how they aren’t paying the full tax?

Thrugelmir

The import costs are calculated on the value of the goods, and transportation charges. Agents work as unpaid tax collectors. There's no funny business going on.

Kcolle

Ok so paying an extra $150 dollars for all the vat and import charges with DDP is ok? I don’t understand how it’s so cheap

if I had them delivered with DDU it would cost me at least $600? 

martindow

The figures do seem odd.  DDP despite being delivery duty paid normally includes duty and VAT, but it looks as if they may have only included the 2% duty.  It can't clear customs without both being paid.

Thrugelmir

They probably excluded VAT from their quote. A registered business can recover the VAT but not the import duty. The charge will be dependent on the exchange rate the day the goods land. You'll be paying in GDP not $. 

Kcolle

I’m not vat registered so wouldn’t be able to claim any vat back. It’s only a very small business.

Ive asked the supplier/manufacturer and they said both vat and import tax are paid with ddp but couldn’t give me a reason as to why ddp seemed so cheap.

is there a chance they claim the vat back which is why the ddp seems so cheap?

or does it sound like they’ve avoided paying the true vat and import tax somehow? 

Thrugelmir

No avoidance. Until the import duties are paid the goods will remain in a bonded location. 

martindow

I might be tempted to go with DDP.  Most likely you will be asked for extra to cover tha VAT, but there is a (slim) possibility that the carrier will assume it's all paid and it will just be delivered for what you will had already paid.