Importing from China to Ireland

cormee

Hi

I'm hoping to import products from China to Ireland to sell here. The products will be shipped to Dublin. What's the process after that? Do I just drive down the docks and collect them? Or is there some sort of process I've to follow (VAT, taxation etc.) any guidance would be great as this would be my first time doing anything of the sort, thanks. :pac:

rainbowdash

Somebody should make a sticky as this topic seems to come up every week. Anyway there is a guy who posts on here called Rudy who has all the answers. Just do a search in this forum for the word China and you will find loads of information.

Basicly you get a FOB price from the China supplier and then get an import agent here to prequote you the freight from the dockside in China to Dublin. Otherwise you will probably get stung.

When the stuff gets here you pay a series of fees and charges a bit like Ryanair, which your import agent will have prequoted you for.

You won't get any credit along the way so you will have to pay all the taxes, fees and duty up front then you can collect from a warehouse somewhere in Dublin.

RUDOLF289

cormee wrote: »

Hi

I'm hoping to import products from China to Ireland to sell here. The products will be shipped to Dublin. What's the process after that? Do I just drive down the docks and collect them? Or is there some sort of process I've to follow (VAT, taxation etc.) any guidance would be great as this would be my first time doing anything of the sort, thanks. :pac:

Hello Cormee,

I would strongly recommend to agree FOB Chinese port with your supplier and to make the shipping arrangements yourself by using an Irish based forwarder.

I refer to some of the posts on boards.ie where people left the arrangements to their supplier and ended up paying enormous charges on arrival here in Ireland. Some of the posts below give you an idea of the problems faced by importers in that situation.

http://www.boards.ie/vbulletin/showthread.php?p=67893959

http://www.boards.ie/vbulletin/showthread.php?p=69081985

In relation to the importation process please note the following ;

1) If you have never imported before and if your are registered for VAT you also need to register for EORI.
2) If you are registered for VAT, the VAT paid on importation is a deductible input (i.e. you can claim it back through your VAT return)
3) Depending on the classification of your product you will be liable for import duty.

I would suggest to have a look at the attached Import / Customs / Logistics document to give you an overview of some of the steps to take and things to be aware of.

Feel free to post again if you require any further assistance

Cheers,
Rudolf289

QWERTY234

Can you recommend a good import agent??? Thanks

RUDOLF289

QWERTY234 wrote: »

Can you recommend a good import agent??? Thanks

Hello Qwerty234

At the risk of self promotion, please have a look at the threads I have posted on Boards.ie, including the one above.

I am a freight forwarder and can offer independent advice and where required organise the shipping from or to Ireland.

I would recommend, especially if you import from China not to leave the shipping arrangements to your supplier. If you search the term : China Import Service Fee on boards.ie you will see why.

PM me if you need any assistance

Cheers,
Rudolf289

SeanSouth

Cormee, No offense but given the fairly basic nature of your question, I would be a bit worried about you importing goods from China. I import about thirty containers a year from there and believe me its high risk at all times.

Here's what I would advise you :

Whatever the product is, first of all make sure that you have a market for that product in Ireland and make sure that your channels to market are well prepared in advance. Dont buy products on a whim and hope for the best.

Once you know clearly which product you have a market for, Make a plan
for sourcing that product. If you can buy it in Ireland Europe or USA you will probably get the best product available. Dont rush to China because its cheap. Thats a huge mistake.

If you decide that China is the way to go, then to have any level of success you need to understand everything about the product that you are going to source. You need to understand how it is made. You need to know what machines are used to make it. You need to know what parts are needed to make it and the quality of these parts. You need to know which materials are used to make those parts. You need to have a clear and detailed specification of the product and what makes it up. You need to tell the factory clearly which parts and the quality of the parts to be used in the manufacture, otherwise they will use the cheapest rubbish they can find. If you dont know your product inside out. You will face HUGE problems.

Dont fool yourself that you're a great negotiator and you can negotiate lower prices than the next guy. In China a lower price is always possible but it ALWAYS means inferior goods. This is why it is essential to specify individually each nut and bolt that makes up the product, or you will not get what you're expecting. The goods will be rubbish

Remember : Chinese factories are excellent at copying products from Western Countries. On day 1, they will look exactly the same as the "real thing" and they will appear hugely cheaper but unless you have specified
the product in huge detail, it will be nothing close to the "real thing" in terms of quality and inferior parts,

Dont part with your money too quickly. Use letters of credit for payment
and make sure the goods are inspected by you before they are loaded in the container and shipped.

Make sure you do a full due diligence on any factory that you are ordering from. Bigger factories that deal extensively with Europe and USA are usually the best. Very often bigger factories will have investment from Taiwan, Hong Kong or Australia or even Europe. If the factory deals with Walmart, Office Depot, Ikea, Marks & Spencer, or similar take it as a huge positive.Try and avoid smaller factories that have no other Western customers or connections

Remember as a small customer of a Chinese factory you are very vulnerable.
If you're perceived as a small 'spot' customer you might sometimes find that your container is being loaded up with product previoiously rejected by a larger and more important customer. In a chinese factory, nothing goes to "waste" Something rejected by one customer needs to find a home "elsewhere"

Never negotiate on price alone. Negotiation must always be with reference to the detailed spec and constituent parts of the product. If you negotiate on price alone. the end product will have the cheapest and most inferior qulaity parts available and probably wont last until the next wet day.

Don't try to do this on your own. Make sure you have a professional sourcing company to take care of the Soucing / Purchasing

RUDOLF289

Hello Sean,

That was a great post and sound advice. I tend to steer people who are importing for the first time towards sourcing companies I know and have dealt with. As you put so eloquently, China can be a minefield from a suppliers point of view and a shipping point of view.

I am wondering, are you paying VAT at the point of entry on your container imports from China ? Are you aware you can structure your container imports to eliminate the requirement to outlay the VAT at time of import? Depending on the frequency of your VAT returns, paying VAT at the point of entry and then having to claim it back may be drain on your cashflow.

Have a look at the attached document. PM me if you require any further information on this aspect of your imports.

Cheers,
Rudolf289