Importing from China, what costs should I be aware of?

QuinnA98

I'm thinking about trying out a couple of items to sell over here that I can get on a Chinese wholesale website for 1/20th the price of anywhere else. I've never ordered like this before so I would only be willing to spend up to $200 but it does seem like this website is designed for people who are spending over 2000 etc on goods to sell.

It has in the details of my item "FOB price 16.5-28.35$ sq.m", I've no clue what this means. If I did get it delivered to Dublin Port, would I be able to collect it myself or would I have to arrange for a company to collect it? Does the weight of my items make a difference? What other costs should I be aware of?

durtybit

http://www.boards.ie/vbulletin/showthread.php?t=2055250211

QuinnA98

Do you know if theres any outdated info in that thread?

BorneTobyWilde

Hard to trust any price you see.
Is it on Alibaba website?

durtybit

Some of the costs could be higher but you would need to look into it.

What type of item are you trying to import?

I looked into it a while ago and when the numbers add up along side of the risk of getting a delivery of rubbish the idea dwindled away fast.

myshirt

You'll pay customs and vat on the cost (23-35%) and the implied shipping charge (23-35%) (I.e doesn't matter if shipping was free or not); when you receive it you then add what you want to make on it, then have to charge vat yourself on top of that at 23%.

Whatever profit you make you will pay up to 52% tax on it as a sole trader.

That's a whistle stop view.

QuinnA98

@BorneTobyWilde

Yeah, it's from Alibaba

@Durtybit

I'm feeling the same, at first, the prices were amazing but the more I look into it, the more extra costs and charges I'm seeing added on and it's beginning to make me think twice. I'm importing a type of mat that I think will be in demand over here soon that is extremely expensive on every website I've checked but cheap on these chinese sites, would be good if I could get these prices figured out.

durtybit

QuinnA98 wrote: »

@BorneTobyWilde

Yeah, it's from Alibaba

@Durtybit

I'm feeling the same, at first, the prices were amazing but the more I look into it, the more extra costs and charges I'm seeing added on and it's beginning to make me think twice. I'm importing a type of mat that I think will be in demand over here soon that is extremely expensive on every website I've checked but cheap on these chinese sites, would be good if I could get these prices figured out.

Low price does not mean good quality either or even a guarantee that they will deliver anything. You could end up with a delivery of plastic cups.

Price on those sites too can be a bit iffy, you don't have in your hand what you would be purchasing.

Try aliexpress.com to see if the same item is on there for a comparison, it might be interesting to see prices.

durtybit

myshirt wrote: »

then have to charge vat yourself on top of that at 23%.

Only if you are in the business of charging VAT

Bandara

durtybit wrote: »

Only if you are in the business of charging VAT

Disregarding the legal aspects of avoiding vat ...

I'd firstly suggest that ordering a large amount of anything from overseas, having it processed through the revenue and customs systems, delivered to your name/address, isn't the most clever way to proceed if someone was going about trying to avoid paying vat.

durtybit

Bandara wrote: »

Disregarding the legal aspects of avoiding vat ...

.

Not sure what you are implying?

If you are below the thresholds for registration you don't have to register / charge VAT

Edit: I think you might not have read the reply post correctly - the response was to after it was landed in the country the now importer (OP) selling on to his customer would normally have to charge VAT (if of course he/she is registered to do so) and not that VAT charged by our lovely government on import.

TripleAce

200$ is very little for an order on Alibaba. You may want to check if the same supplier sells on sites like Aliexpress (free shipping) and see how the items looks like first and then if you are happy with it contact them offline and see how to move forward. For orders under 20$ you don't pay any tax and often on Aliexpress you get free shipping to your door.

QuinnA98

Unfortunately there is nothing like what I am looking for on aliexpress. Any other options that anybody knows about?

TripleAce

QuinnA98 wrote: »

Unfortunately there is nothing like what I am looking for on aliexpress. Any other options that anybody knows about?

wish.com ?

myshirt

Op, you could consider doing some dropshipping.

Water John

The whole new option of bringing goods from western China on the new silk road rail connection to London might be suited to the type of enterprise you are considering.

durtybit

Water John wrote: »

The whole new option of bringing goods from western China on the new silk road rail connection to London might be suited to the type of enterprise you are considering.

Might be an additional cost as rail will be expensive.

Water John

It is supposed to be cheaper. Takes 16 days versus 5 weeks. Seems to be very suitable for retail goods. Coming from western China, has a lower cost base.
Area trades already connected to other European cities. London is anew connection.

durtybit

Water John wrote: »

It is supposed to be cheaper. Takes 16 days versus 5 weeks. Seems to be very suitable for retail goods. Coming from western China, has a lower cost base.
Area trades already connected to other European cities. London is anew connection.

Be great if it was cheaper, usually when something gets a job done faster it becomes very popular, people see $$ signs and then jack up the price higher

RUDOLF289

Water John wrote: »

It is supposed to be cheaper. Takes 16 days versus 5 weeks. Seems to be very suitable for retail goods. Coming from western China, has a lower cost base.
Area trades already connected to other European cities. London is anew connection.

Hello Water John,

Regret to advise that rail is not cheaper than Oceanfreight.

Also, if you ship by rail, the absolute minimum quantity is a 20' container. I recently investigated rail services from a number of points in China to Rotterdam and the cost came to about Us$ 8500.00 from Rail Terminals in China to Rail terminal Duisburg, Germany per 40' container. I expect a 20' container to be about Us$ 1000/1200 cheaper.

By comparission, Oceanfreight China Main ports to arrival Dublin are in the region of Us$ 1400 per 20' container and Us$ 1800 per 40' container.

Rail is significantly faster, especially if the factories are a significant distance from the port. Based on what is moved todate via Rail from China to Europe, it is high value products - like laptops / computers (e.g. Hewlett Packard is a significant supporter running two or 3 trains exclusively per week) and other high value goods. In some cases it takes as little as 11 days to get to Hamburg / Duisburg.

Bearing in mind that these commodities would normally move by air (high value, longer transit times costs more in finance), Rail becomes viable.

I gather from the OP that he is unlikely to ship full load quantities and that the cost would be prohibitive to use rail.

Cheers,
Rudolf289

davindub

You may need to consider some sort of product liability insurance as well.

China has a vast array of quality, but the incidents caused by poor quality tends to be publicized a lot, so its hard to get cover. The product may be perfectly fine, but it is a lot to risk.

RUDOLF289

QuinnA98 wrote: »

I'm thinking about trying out a couple of items to sell over here that I can get on a Chinese wholesale website for 1/20th the price of anywhere else. I've never ordered like this before so I would only be willing to spend up to $200 but it does seem like this website is designed for people who are spending over 2000 etc on goods to sell.

It has in the details of my item "FOB price 16.5-28.35$ sq.m", I've no clue what this means. If I did get it delivered to Dublin Port, would I be able to collect it myself or would I have to arrange for a company to collect it? Does the weight of my items make a difference? What other costs should I be aware of?

Hello QuinnA98,

some things to consider ;

1. FOB is an INCO term (INternational COmmercial terms) that stands for Free On Board. Have a look at the following link http://www.incotermsexplained.com/the-incoterms-rules/the-logic-of-the-rules/ or https://en.wikipedia.org/wiki/Incoterms

Under FOB Terms, your supplier is responsible to deliver the cargo, export cleared to the port of shipment and is responsible for any port / loading fees.
You are responsible to move the shipment from the port of shipment in China to final destination.

2. Because under FOB terms it is your responsibility to take the cargo from port of shipment to Ireland, you would need the services of a (Irish based) freight forwarder. The forawder would look after the shipping and customs clearance, and if required can deliver it from the port.

3. Apart from the shipping costs the following charges would arise
- Import Duty, charged as a percentage over the cost of the product, plus
freight cost, plus Marine / Transport insurance
- VAT, usually 23% charged over the combined total of Import Duty plus
cost of the product, freight cost plus insurance

In order to establish the rate of duty you would need to provide a detailed description of the goods and most freight forwarders would be able to assist you in establishing the correct customs classification and rate of duty payable.

4. Marine / Goods in transit insurance is an important aspect that is often overlooked. Many people expect that if damage or loss occurs during transit of the shipment, the carrier will make good that loss. That leads to great disappointment if goods are damaged or lost. It especially becomes challenging if an event like General Average is declared. The cost of insurance is usually a minimum of € 25.00 per shipment or € 4 to € 5 per €1000 declared, whichever is greater.

I would recommend to be cautious when dealing for the first time with potential suppliers in China. A couple of things to be aware of ;

- English is at best a second language. Things get lost in translation ........ So be very clear, short sentences, easily understood phrases. KISS

- Do some due diligence on the supplier. Ask them if they do any business already in Ireland, UK or EU and if so, can they provide references. If they decline to provide references, that should be a red flag! If they do provide references, follow up on them

Another way to go, depending on quantities, values etc is to take advice from specialist sourcing companies. There are a number of Irish companies, based in China that provide sourcing services. They know the way business is conducted in China, speak the language and can help you avoid some of the pitfalls of doing business in China.

Feel free to post again or PM me if you have any further questions.

Cheers,
Rudolf289

Water John

Rudolf, I was only going on an article written about it. I bow to your superior knowledge.

kevin212

<snip>
There will be customs duty depending on the items you are importing. Vat will also be applicable
you will be able to collect the goods provided you have an adequate sized vehicle to handle your shipment.
Terminal handling charges €100-€170 and custom clearance €65 (approx) also insurance for goods will all apply
If you have good enough margin and can justify Airfreight you can receive the Items within 2-3days but size and weight 
of goods would be required to check if these would be a feasible option.
I hope this helps best of luck!

RUDOLF289

Water John wrote: »

Rudolf, I was only going on an article written about it. I bow to your superior knowledge.

Hello Water John,

herewith a link to an article you may find of interest

http://theloadstar.co.uk/new-china-europe-rail-services-track-steal-air-sea-freight-volumes/

Cheers,
Rudolf289

RUDOLF289

Hello Water John,

another article on the subject of the Silk Road (One Belt On Road - OBOR).

My earlier contention that Rail is more expensive than Seafreight is perhaps true in the absolute sense (comparing rail cost to seafreight costs). However, this article indicates some trends that would undermine that contention in the not too distant future. The article also gives an insight into the medium to long term aims of China and the objective / strategy to place China at the top / center of the world (and re-take it's rightful place - according to Chinese thinking) .......

http://splash247.com/singapore-friends-cannot-ignore-new-silk-road/

Cheers,
Rudolf

reginafisenko

Hi Rudolf!

My name is Regina.
We want to buy furniture in China, in Foshan and glass mosaic too.
The furniture will made from birch and fabric/leather.
Do you know how much will cost custom charge, if all furniture will cost 1000-2000 usd.
What have we pay else here in Ireland before we will get it?
Can we avoid use broker?
Where is the best way to find LCL from China?
All what we plan to buy are about 10 m3.

Regards,
Regina.