Tips to pay less importing fees to source from China
Suppliers around the globe provide their clients with different types of goods that can perfectly suit your business. You can also find a lower-priced supply for a competitive edge, or you can also go for new supplies that can allow you to sell different products. In 2017, China became the second-largest importer into the United Kingdom.
For the United Kingdom, the desire to import from China to UK is vast. However, this also comes with a cost, and some businesses may find the import fees costlier. In general, import duties are crucial in international trade.
But it has been seen that some businesses or companies are paying more import duties. This can greatly affect the business’s profit. So, you should try your best to keep it low. So, let’s discuss this in detail.
Cost to import from China to UK?
The import tax and import duty from China to the United Kingdom can greatly affect the total cost of imports. All the parties have to pay a certain percentage of UK duty along with VAT. However, for importing duty-free goods, you don’t have to pay these fees. For example, if you are paying £4,000 for your goods to the china product supplier, £600 for the shipping, and there is 3.5 percent of UK duty, then the duty fee for that shipment will be 4000’s 3.5 percent, i.e., £140. On the other hand, VAT is 20 percent of the duty fee + shipping + the total cost of goods. That means 20 percent of £4,740, i.e., £948. Based on that, the total shipping cost will be total cost + UK Duty + VAT, i.e., £5,088.
Lowering the Import Duties
Well, there are different ways you can lower the import duties while importing goods from China. The amount that you pay for import duties will depend on different factors, and if you can control those factors, you can make a better profit margin. The source country can generate different paperwork and forms, and dealing with that can be very challenging. However, it is crucial to keep everything ready before shipping your goods.
While keeping up with the paperwork, make sure that you have properly filled out all the required forms and keep them correctly. If you lose any paper accidentally, then there can be a delay in the shipment. Well, here are some tips that you can follow to keep the importing fees low.
Understand your objectives
Before you can begin importing goods, it will be a good idea for you to know what you are trying to achieve. For instance, you might be looking for a cheaper source of supplies. Or you want to import a certain type of product that is not available in your country. Besides, you should make sure that importing should fit in with your business strategy. So, before start working with a Product sourcing agent in China, first decide your objectives.
Make sure that the goods you are importing are allowed in your country
There are certain goods that are not permitted to be imported. This can vary from one country to another. On the other hand, you need to make sure that the goods that you are importing are subject to any regulations, restrictions, and permits by the governments.
Choose your cargo transport
Broker fees, packaging, terminal handling, container fees, etc., can increase the costs related to Importing China Products. So, consider all these factors. Besides, you need to choose the best way while shipping from China. You can opt for air freight or sea freight. Sea freight can be the cheapest option for you.
Apart from these things, you need to find the current commodity codes for the goods; such codes are used by the customs authorities to know the types of products you are exporting. If you use the wrong code, then you may have to pay duty and tax for those goods. Besides, you should get the EORI number by registering with the United Kingdom tax authorities.