Importing from China vs US

jesster2k10

I'm looking to import some custom made tracksuit bottoms from either china or the US.

It cost's about 16.8$ to make with one supplier in China; including shipping with an MOQ of about 100 totalling up to 1,680$ with DHL Express Shipping

It cost's about 12.8$ to make with another supplier in China; including shipping with an MOQ of about 100 totalling up to 1,280$ with DHL Express Shipping.

Finally, in the US it costs 32$ including shipping to product totalling up to about 3,200$ with an MOQ of 100.

The supplier in the US seems to be a well-known one. Working with brands like Supreme, Obey.
The other two suppliers in China I found on Alibaba. They've got all the certifications you can have on the website including the ground check and I have been in contact with them on Skype, Email and the Trade Manager.

What I want to know is if there are any other unforeseen charges to do with this kind of products like will I have to pay customs and if so how much. Also, I would like your advice on which one would be the better option.

I'm only starting out with little funds so we need to be as cost effective as possible.

ironclaw

You'll certainly have to pay import tax from either, as you are coming in from outside the EU. You can look up the exact rates but I'd add 20% to whatever you estimate the total cost to be to give yourself some realistic working margin.

Its doubtful the US supplier is manufacturing in the US. I'd wager they are actual manufacturing in China or Mexico.

Certainly insist on a sample of anything before you place a large order. The quality from some of these places can be utterly terrible. Which leads me to your price per unit. Its 13$ before landing, add 20% for tax / expense / overhead so $15.6, then double so you can turn a profit so 30$. I'm curious how you plan to sell no brand tracksuits for €30 when you can pick up a branded set in Lifestyle or similar for the same money? Or a pair in Pennys for half that?

jesster2k10

the tracksuits will be branded and they're not typical cotton ones but fair enough point there. Do you have any experience importing from china? Say Alibaba? Any tips?

dusty207

Tracksuit bottoms only?

jesster2k10

Yeah from US or China

RUDOLF289

Hello Jesster2k10,

The rate of import duty is 12%. That is calculated over the cost of the product plus the freight cost.

The rate of VAT is 23%, that is calculated over the above plus the import duty. If you are a VAT registered trader you claim back the VAT paid on imports through your periodic VAT return. If you are note registered for VAT you have to include it in your cost price.

I would try and do as much due diligence on the suppliers in China as possible. I would certainly do an internet search, check their web registration and cross reference that against any scams that are out there. I also would ask the question if they have any references of clients they do business with in Europe or the UA and follow up on those references. Not providing references would be a red flag in my view.

You indicated that the clothing you intend to import is branded. Be careful. If this is your own brand, no real problem. However, if the brand is owned by somebody else, you could run foul of intellectual property issues. You would need permission of the brand owner or their representative in Ireland. Customs are becoming more alert on IP issues and, should they take an interest in the shipment, they will look for confirmation that you are allowed to bring the product in.

Best of luck with your venture

Cheers,
Rudolf289