The United Kingdom highlights strict prerequisites for commodities compared to other countries.
So if you choose to import from China to UK , The best thing is to have complete information about these things. The capacity of the product, laws, labeling terms, and so on.
Being a prospective shipper, we recommend you hire an expert freight forwarder.
If you know the basic requirements.
Then, finding a reliable freight forwarder will not cause any issues.
This is since you have the sense to strain out those you want to work with.
Besides, when you get the idea of the time consumed and the range of prices in the procedure of transportation.
Then you can get a rough calculation of the prices of the commodities you import along with the import cycles.
So let’s get started to learn how to import from China to UK.
The business of import is turning into one of the most gainful industries in the United Kingdom. Though it is annoying to not do any research before importing from China.
Hence, taking some time to collect adequate information, for example. The things included, the tips mentioned, and the strategies described in this guide.
Following them, you will discover a rewarding experience for yourself. Now, the initial thing you must do is decide on the product you want to sell.
Later on, you can move to the upcoming steps.
Once selecting the product you want to import, now it is time to do an important thing. Check that the products require a license or are allowed.
There are some products that you can import freely into your country without needing a license.
But you may be asked in a few instances to obtain a license so as to import the products.
You must, yet, consider that certain goods are fully banned, hence if your products come under this category. The good thing will be to think of a substitute.
The 3 vital kinds of limitations are Bans, Inspection, and Quotas.
In Bans, you cannot ship the commodity in any circumstances. Under the inspection, you should have a license for shipping goods.
Also, it is free to send any number of products when you have a license. Whereas, for quota, you can deliver certain products.
But the quantity of the products should not be more than quoted.
To ensure, you can get in touch with the Department for International Trade in the United Kingdom. So you can verify if your products are not banned or if you need to have a license.
The banned products for importing are the following. Asbestos, torture gears, firearms, military tools, animal skin, perishable items, and ivory.
Certain goods you can deliver freely are these. Toys, computers, home appliances, furniture, clothes, vehicles, and so on.
When you have checked if your products are allowed or if they need licenses, you can continue to the other step.
Every import should be certified and assigned with a commodity code. This is important to know the commodity code for your products to fill in the declarations and finish the paperwork.
Moreover, the commodity code is also used to verify the VAT and other fees.
On the off chance that you use the wrong code, that may lead you to fines on your products.
Also, your goods can be delayed, so when you come across a problem, use the UK government Trade Tariff. It is a tool that will assist you in getting the proper commodity codes for your products.
You can also use the HMRC import, duty calculator. For more help, you can contact HMRC via an email with your query, and they will respond in 3 working days.
Now, please check if you have to register for VAT and the amount you need to pay. If your VAT taxable income rate is more than £85,000, you have to register for it as per law.
For questions or issues with VAT, email to HMRC. They will respond to you in 3 working days. The next step is to get registration on EORI.
While importing business freight from China, every business in the EU must have the EORI. The EORI also assists in freight forwarding.
If you use the chief system or submit some electronic export forms. EORI helps you because it is a business invoice as well.
You can apply for the EORI number online, it is very easy, and you will get the registration ID in about 3 days.
There are various production firms in China giving cheap rates due to manufacturing. This also gives rise to more affordable products as well as a variety to choose from.
People are importing goods from China that are the following. Mobiles, lights, clothes, furniture, electronics, and so on.
Furthermore, the good thing is to ship goods to many clients and vendors, choose quality goods with great design. That you can sell at a better rate to get benefits against your competitors.
Here are the best goods to import from China to UK.
Electronics are simple to sell and in great demand due to their affordable rates and quality. Most brands are importing goods from China to UK.
But before buying, ensure the goods work fine with the UK’s voltage system. Because China’s voltage system is different for their electronics.
Also, ensure the electronics fulfill the standard of use in the United Kingdom. To get the idea, visit the websites to note down the products containing huge sales.
China owns the biggest mobile market with a great variety of phones. The branded phones may cost you a lot, but Chinese brands offer half the price.
When you import mobiles from China, you will save not only money but make huge sales as well. But the things you need to ensure are:
There are various electronic-imported goods from China to UK that you can buy at cheap rates. When you make sure the product is enabled to import.
Now, ensure if the product complies with the legal standards in the UK. Because it is important to get customs clearance UK.
Fill up safety conditions and get licenses necessary for the products to reach the UK.
There are various laws to follow for cosmetics import from China to UK. There are certain elements in cosmetics that are not allowed in the UK.
The rules are for body creams, face masks, hair products, perfumes, shaving kits, and so on. For more information for the rules; check the Cosmetics Product Enforcement Regulation page.
With this, there are some labeling prerequisites for cosmetics. For example, production date, usage terms, manufacturer, expiry dates, and so on.
Moreover, you may be asked to give a sample of the cosmetic for trial. The rules are strict, so you have to follow them anyhow.
These are the strict rules. EU Cosmetic Directives, the New EU Cosmetic Product regulation and registration, Assessment, License, and limitation of Chemical (REACH) directives.
Clothing products are in huge demand because everyone wears them. Clothes are also one of the cheapest products to import from China to UK.
As for clothes are duty-free, so importing goods from China to UK is easy.
You only have to get the EORI number and pay the tax and choose reliable producers to get your items from China.
Buying from China to UK is not as easy as you think when it comes to toys. Because there are certain rules you have to follow. The first rule is to prohibit importing licensed toys.
Such as the toys that are trademarked and not from the licensed producer. Further, toys must be secure and meet the child-safety measure and show the address of the producer.
Toys must have the proper labels for warnings (if any).
The UK buys over $450 million ornaments from China each year. These products should also comply with chemical as well as physical tests to ensure they are secure to wear.
The EC mark is, in fact, a label, which shows the product is following the applicable directives of the CE.
Also, products that do not follow the rules, are not marked with EN label. The mark is pasted to the unit along with the instructions, packaging, and must be done by a Chinese vendor.
The important thing is that the vendor may not know the precise labeling rule for the product.
So it is necessary that you provide the vendor with an appending spot, dimension, and other files on the unit.
Here are the EU directives in which CE labeling is necessary:
EN 71 is for all kid’s products. It regulates mechanical, physical, inflammatory, heavy, and chemical properties. This derivative is segmented into 13 unique categories.
It even specifies the rules for optical symbols, for example, age warning.
This rule relates to electronic components having the input of fifty to a hundred volt AC.
Whereas, the output of seventy-five to fifteen hundred volt DC. So the LVD rule carries a variety of products. Such as cables, chargers, sockets, home appliances, but not battery devices.
This rule applies to home appliances as well as bulbs and non-electronic items.
For example, insulation substances used to reduce the radiation of the gases in the greenhouses.
This rule applies to machines and replaceable components as well as equipment. But except for motors and consumer home items.
This rule is applicable for restricting the quantities of some material used in electronics.
For example, lead as well as mercury. In short, dangerous substances are not allowed.
This rule controls radio items as well as telecommunication. Such as Bluetooth, Wi-fi, mobiles, tablets, and so on.
The goal of this rule is to ensure that electronic devices do not impede other signals. So it only applies to fixed electric devices, such as LED lights.
If you are a amazon seller on amazon.co.uk,You can ship goods into the EU member province.
But you must present the goods for a declaration to clear them from the customs. You can submit the declaration form utilizing the ATLAS for electronic clearance.
Note that declaration formality is only carried out by the company in the EU registration. For submission of the customs declaration, you need a shipping agent China to UK or forwarding agent.
But you have to pay VAT in UK, which you can reduce using your VAT return.
It is among the most significant features of the import business. Since you don’t want to get low standard items. So getting a reliable manufacturing company is important.
Let’s have a look at how you can find a reliable manufacturing company to import from China to UK.
Websites like Global-sources.com, Dhgate, Alibaba.com, and Made-in-China.com. This looks easy but you will have to research a lot to find authentic producers.
Those who are a pro at creating the products of your desires.
Many producers use social media, so you can have access to them. As a rule, individuals also leave feedback that you must read before choosing a company.
You may also find producers by searching on the web. But you must write small keywords to get the finest results when searching online.
You may also get tips from various people. Those who have information about the company, inclusive of your friends, family, or others.
No matter if you cannot be present in a physical manner. You can see the trade fairs on the web to know the famous and valid brands.
There are many business centers in China. Such as in Shenzhen, Nantong, Zhongshan, and so on. You may view the size of every factory and its product features to ensure they meet your needs.
Also, the company must have a safe line of communication. Besides, they should be okay to give you samples before you order a large volume of goods from them.
You need to pay import tax along with import duty when you import from China to UK. Every importer must pay the UK duty as well as VAT if the products are not eligible for tax-free.
What is the rate of import duty from China to UK?
The import charges from China to UK duty percentage is 0% to 8% on the total number of products.
How to calculate UK import duty and taxes?
There are actually two methods of import duty calculator.
How to avoid paying import tax from China to UK?
Though inapplicable, a few importers might save some money by shipping products in smaller volumes. Thus, staying under the least requirements.
Declare your goods by registering with the CHIEF system
The shipping agent China to UK, importers, and exporters make use of the Custom Handling of Import & Export Freight. This is known as the CHIEF system.
This is used to input custom information, check for inaccuracies, and is a China to the UK import duty calculator.
Also, it lets you know of the parcels that need certifications to allow quicker entry.
Pay the required VAT fee
When you import goods from China to sell in UK. You have to pay the VAT with the total amount of the Import Duty and Customs Value.
The Customs Value is the complete cost of the goods, which includes shipping, import duty, and development costs. If you have registered in VAT, you have to pay it, but you can also claim it anytime.
Also, you will get a C7 license from HMRC to verify you are a VAT payer.
Get a Customs Registration (CR) number and Power of Attorney (POA)
You also need a CR number as well as POA for your non-document products. Excluding the quantity of delivery.
Every importer and exporter in China needs to enroll in customs clearance authorities for a CR number. The number has to be listed on the commercial statement for clearing customs.
Whereas, POA is, in fact, a letter of authorization provided by the exporter to the shipping agent. So they clear the consignment via customs.
Pay any duty required
Lots of products imported to UK will need to pay the complete cost of Customs duty. It is also known as import duty, import tax, import tariff, and customs tariff.
Also, some products produced in China are subject to protective tariffs. So you may need to pay high duties; hence, verify it first.
Include full details on all the labels and invoices
Every label and invoice you employ must have the details of the receiver and sender. Along with a number of products, their costs, the commodity code, and a full description of the goods.
Make sure the invoice is printed and do not make any changes in it.
China is situated about 7,775 km away from the United Kingdom.
But the distance becomes longer if the route is taken by water. The quickest method for the products to arrive in UK is via air freight.
Yet before opting for a method, you need to consider the weight of your products. Airfreight is about 6 times more costly compared to sea freight but that is slow. Every carrier gives different costs.
Let’s learn about them.
To make sure your goods are shipped to you safely, you must choose the reliable carrier service.
Among the most reliable carrier services are DHL, TNT, UPS, and FedEx. These carriers are famous for providing services for importing products and other services.
Sea freight means delivering your products via the ocean. It is useful when you have lots of products and you can wait for a long time for shipping.
It takes around 38 days to deliver goods by ocean from Guangzhou to UK. Sea freights offer lower prices than other transportation services.
It is useful when you want to import a few numbers of products and want to get shipped as soon as possible.
But this method is a bit costly. There are 2 kinds of air freight methods, classic and express. The classic is a bit slower than the express, and express shipping from Guangzhou takes 2-3 days only.
The classic air freight from China to UK takes 7-8 days. Also, the customs clearance is automatic in express freight.
Rail freight means shipping products by rail. It provides a balanced cost as well as speed. When you import from China to UK, it will take only 18 to 27 days.
4.Door to door shipping from China to UK
Though it is an efficient method to import from China to UK. Also, door-to-door shipping may consume a lot of time.
But the shipping agent involved in this procedure will deal with everything on your behalf.
The Value Added Tax is a consumption duty in the EU. In Business-to-consumer exchanges, the VAT is included in the cost.
But you cannot pay it straight to the vendor when you import from China to UK. Also, when you pay additional VAT on the imports, then, you added in your sale cost.
Hence, you will obtain a refund.
In the EU, the customs value refers to the total value of the products (with development costs added) and shipping at the border.
Incorporated in the customs Value:
Often incorporated in the customs value:
Not incorporated in the customs value:
Here is an example:
VAT is the percentage of customs value. You only have to make sure that the right customs value is shown on these. The bill of lading, commercial bill, packing list, and necessary documents.
Yes, because in the EU, the customs values incorporate shipping costs as well.
But logistics expenses that emerge in the EU. For example, customs clearance and unloading will not be included in the customs value.
Also, the shipper adds VAT on the bill, which is paid apart.
No. because they are not VAT-enrolled in the EU. Also, you don’t need to pay VAT in China. Since the vendor in China gets a VAT refund for exporting goods.
Here are the VAT rates for a few states of the EU. For a full list, click here.
These are the two ways that you can use to import from China to UK.
There are two types of VAT for E-commerce and Amazon Sellers in the EU.
Bringing in your goods from China is not always an easy ride. There are dangers included and you ought to get ready to confront a few issues.
Also, you need to figure out how to handle them in an effective way. These dangers and issues are:
Vendor Scams: You may run over certain providers who may either cheat you by overcharging you. Or they can send you an inappropriate product or even escape with your money.
This is the reason we are assuming the job as merchants’ by being attentive in China.
A lot of trading firms have English talking sales staff. But that is not the case with many production companies or wholesale markets.
Vendors ignore the standard of the items. Some vendors might not give importance to item certificates and standards to use in the United Kingdom.
You might be sent inadequate products. This is the reason you ought to verify the item quality before paying the amount. Also, it has container stacking surveillance.
You might be cheated now and again, to forestall this. Ensure you construct a valuable relationship with the producer or vendor.
You might need to invest a ton of energy and cash scanning for the correct producer and vendor. Appoint somebody who is local and expert to support you.
So you can concentrate on promoting to develop your business.
NDA is a successful strategy when you’ve hired a fair vendor. Ensure you’ve used the IP security strategy before administering a lot of data to your providers.
When you want to import from China to UK,You require a dependable and expert specialist to assist you.
LeelineSourcing will assist you in overseeing everything. With regards to sourcing items from China to organizing delivery to your destination.
We provide the below-mentioned services. To deal with the whole importing procedure for you.
Along these lines, you would have extra time as well as energy to manage your business. In case, you’re wondering why you should collaborate with LeelineSourcing.
Here’s the reason. At LeelineSourcing, we have a solid and quality client support team. That is prepared to respond to you in a brief timeframe.
Our organization has been in the supply chain management industry for more than 10 years now. We have knowledge of some particular industries.
We take a guarantee that they provide you quicker services of your prerequisites.
We contain the finest expertise to source your merchandise from China to ship to any destination on the planet. And that too, in an efficient and cost-effective manner.
Likewise, our rates are reasonable. Our administration is proficient and dependable. In the last 2 years alone, we have successfully assisted over 2,000 happy clients.
We stand by our clients and maintain our top standards in customer satisfaction. It is our main focus to see you achieve an abundance in business success.
Get in touch with us now to get a free quote!
It is okay to express that bringing in goods from China to sell in UK is the very basic and direct method.
With the assistance of this article, you can comprehend the nuts and bolts to import from China to UK. This guide concludes the guidelines, assessing costs, and the correct method of shipment for you.
Also, recall that employing an expert cargo forwarder is a smart decision to make. Hence, choose LeelineSourcing.
Get ready to receive high-quality products at the best rate via a transparent process!
Earlier to get rich there was a popular phrase “Go West, young man” but now the statement has seen a little change.
So to give wings to your business the latest phrase of 21st Century is “Go East, entrepreneur”. Many people including the experts are predicting China as the biggest market and hence the largest economy which will in no time from now overtake US.
Due to high demand in the country, though it has seen a steep rise in the relative production cost but it is still far lower than the other countries to source or manufacture goods.
Inexperienced or unskilled sourcing agent is nothing just welcoming loss to the books of your accounts. But hiring a highly reputable agent agency with the impressive results is not the cup of tea for small companies or start-ups.
Sourcing through the companies also puts you in a condition where your liability of the sourcing fee is much higher than your profit earned.
Moreover, we all know that, good service will not always be cheap and cheap service will not always be good.
So, if you are owning a small company or start up and want to outsource from China then it would be better to get up, pack your bags and land in the China itself.
It will a bit hectic and tiresome but it will keep you far from the unorganized or looting sourcing agencies.
So, we have brought you some advice or tips to keep in mind when you are thinking of outsourcing from China:
Prior to the inquiries which you put out regarding the suppliers in China, it will be wiser and beneficial to know about the parts of the products which you require.
This may include its quality, performance, and function.
You should be well acquainted with the certification or quality standards of one or more goods you are seeking to outsource as Chinese suppliers (not all of them) are bad certification and quality standards, moreover, they are hardly going to do any research for you.
Also, you should confirm the certificate or standard which is applicable to the product and get to know whether the supplier is capable to provide you with that standard of the product.
The only way you can get to know about the supplier is you can check his or her previous certificates issued by his or her clients.
Learning more about the supplier will be the next priority. You will have to get in the field yourself and get to know about the supplier’s products, cost, processes, and market.
For this, you will have to be good at the negotiation in the local language which you can develop by talking to some of the vendors and can also expertise in the way of the business.
It is better to visit the factories itself in China than to believe on what the agents are saying.
The heading in another way means to become a value-added customer of the supplier.
Prior to entering into the contract with the supplier try to make that transaction to turn into a strategic relationship by making him realize the value in other aspects of the business.
Unfortunately, this won’t work in China as the factory owners there already have experienced unfulfilled promises of future large orders and they might take it lightly or ignore it.
So, this type of partnership can be established by an agent.
If you want to work on your abilities without the help of the sourcing agent then obviously all the management process will fall on your shoulders.
You would have to keep a lot of information about them to compare them. Following are the basis on which they can be compared:
Keep all the other records related to them as no one knows when you need them.
To give you an idea, most of the agents have around 50 suppliers in the list to compare and of which they have the data.
If you want and if you think that you might require one then do inspect your suppliers’ product quality with prior notice.
Instead of setting up a hidden inspection let the supplier know and make him clear you are doing so to ensure the qualification of the product according to the requirement in your country.
Don’t get panicked or surprise if some of the suppliers you contacted, stop replying.
It is better as you get to know that their products were not to the mark which you required to purchase.
Do make changes in the demand pattern. What you can do is to make an aggregate order of all the goods you require rather than authorizing individual departments.
This would affect the price and would help you earn a good discount.
As we have read above, Chinese factories are no that reliable and they are not good at yielding the products if the required deposits are made.
So, make the deposit you will make the safer you will be. Depositing according to their terms like 50 percent, 70 percent, and 90 percent may lead you to lose.
So, if you are managing the outsourcing without any agent then you would have to keep this point in your mind
Getting into a contract with the supplier will be both safer as well as lawful. It would ensure the quality and safety requirements and the inspection rights.
This would help you play safely in the market. If the contract mentions you responsible for the inspection then you should get inspected. It would be better if you would make contact in Chinese.
Implementing a bidding process before entering into a contract will make you play smarter. You can call for bidding from the list of all those suppliers who are ready to meet all your requirements.
This would ensure competitive pricing and will also make the companies clear that you would buy products from the supplier with the lowest bid.
Don’t ever implement the bidding process among all the suppliers.
Call only those who are agreeing on your requirements and then chose one with the most competitive bid.
If you are planning to manage the outsourcing yourself rather than hiring an agent then do make it clear that you may have to visit China at least twice a year to get your relationships to rebuild and to recheck the production process going on.
However, if you hire an agent then the tension of visiting will come to an end and you can get to know the whole condition even once a month.
Hiring an agent or going yourself won’t make a bigger difference financially but it would make difference on the basis of trust.
You have trust in your eyes but believing an agent or on another person is likely difficult.
For exporting from China and importing in your country you might have to do a lot of paperwork.
Despite that every time you want to import the products you would like it to be done smoothly which may also require good political relations on both sides.
Considering the above situations it might not be possible for everyone to do that on his or her level so that person may have to hire an agent-agency which has already established itself into the political sector properly and have completed the all the paperwork.
You also have to decide over your first priority means you have to think that whether you want to save money or save time.
If you want to save time and it is more important to you than you should go with hiring an agent and if money has more value for you than you should roll up your sleeves and get your hands dirty.
However, for the small business or startups, it is obvious that money will be their first priority so hiring an agent is not their cup of tea.
But for a large business or well-established business, there is a choice or priority between time and money.
Being a fresher and entering directly into the market requires one to have that skills so that he can negotiate that is why most of the well established business hire an agent.
But if you have a small business or start up then you might have to learn the skills by any means possible to grab the best deal by visiting there.
As agents are into this business and it is their routine so the required skill get developed into that and moreover they have the required relations developed in the market as they have to contact almost every supplier every time for a different order.
Considering the above mentioned points we can conclude that getting yourself into the may require a lot of time, skills, patience but once you did it will be your lifetime investment as the efficiency and results of the work person does in his own interests are always better.
If you are an owner of a small business or start up then you will be recommended to do it yourself as you time would be your second priority placing money at the first.
Putting time will not hurt you more than putting your money which may get into loss.
On the other side if you are an owner of a large business you will be recommended to hire an agent as your time is more precious than money.
You are acting as an ambassador of the company and the company requires more of your time than your business. This is being recommended with a warning because believing on everyone in the 21st Century on anyone may lead you towards loss.
If it can be possible you can train any of your trustees for the outsourcing and can ask him or her to visit so that you can have a sound sleep at night.
Jumping into the market yourself or making jump of any of trustee will allow you to get the best out of the benefits of outsourcing in China.
As we all know China is known for its outsourcing because of cheap availability of products, its relatively cheap labour, the expansion opportunities available there, the diversified and mass market.
All these pros of outsourcing in China can be exploited better only if your take decision of doing it yourself rather than hiring an agent.
And if you hire an agent who might not be trustworthy may lead you to towards all the cons of outsourcing in China which are like you may have to face the issues with quality, there might be arising copyright issues and another maybe language issues.
Agents won’t bother about all these things and they will hardly do any research for you. They will provide you the type of service they are providing others and then hand you their fee bill with huge amount written on it.
Hope you might have got clear about the outsourcing in China, whether you will do it yourself or you hire an agent.
Do make a wiser decision with keeping all the conditions, situations and the above points in your mind.