Importing Beginner

[damian_molloy]

Hi,

I am considering starting up a small business and I currently sourcing goods and suppliers.

I have had some really good quotes from Chinese suppliers but I am concerned about the potental risks this may invlove?

Can anyone give me advice on how to protect myself and any other issues I should be aware of when importing?

Thanks,

Damian

[Bluey]

Hi,

I am considering starting up a small business and I currently sourcing goods and suppliers.

I have had some really good quotes from Chinese suppliers but I am concerned about the potental risks this may invlove?

Can anyone give me advice on how to protect myself and any other issues I should be aware of when importing?

Thanks,

Damian

I regularly import from China.

The first thing I would say is that you need to "know" your supplier. For sure the profit margins look tempting fom abroad but this is a tiny part of the business picture.

If you can be more specific as to what your importing, I may be able to help you.

I have to be honest though, unless you know your product and VISIT suppliers you are taking big RISK.

[PremierPDS]

Be EXTREMELY careful is all I'll say! I know lots of people who've been stung by rip off goods and some don't even deliver at all. If you're using the likes of alibaba.com choose suppliers with caution and follow the due dilligence guides. Pre shippment inspection is an absolute must and well worth the expense of a trip over there and a few nights in a hotel. alternatively there are UK companies who will do this for you and also look into other things while they are there such as making sure they have a business license and are registered with the relevant business authorities.

[damian_molloy]

I want to import 100 hand trucks. I have a quote from a well known UK Tool supplier from £1750 including VAT & delivered.

I have been in regular daily email contact with the chinese supplier I found on trade key website. I have been in daily contact with the firms 'export manager' and I know have a quote of $1700-1800, or £1120 (plus a $50 document fee?) FOB or CFR delivery, By L/C at sight or T/T(30% Deposit), shipping within 30 days after receipt of L/C or Deposit.

Not sure which of these terms is best for me?

So i would be saving around 35% but would I also have to pay an import duty or tax on this?

The fact that I have limited start up finance, being risk averse at this stage I may opt for the security of the established UK firm. I simply could not afford a loss of this size if things went wrong.

As I said I am a complete beginner to business never mind importing!

Whats you think?

Any help or advice would be much appreciated.

Thanks,

Damian

[PremierPDS]

Hi Damian

If I were in your shoes as a new business with a small start up budget and a lot to lose then I'd definitely advise you stick with the trusted UK supplier for the foreseeable future until you are making enough profit to invest time and money into looking into things more thoroughly with Chinese suppliers- meaning trips out there and or getting legitimate UK companies to do this on your behalf. You'll be taking major risks if you don't look into it thoroughly before handing over cash or even details of any sort. Incidentally, you say you've been talking to their import manager daily...have you asked them what other companies they supply to in the UK and if you can have names, addreses and telephone numbers of these companies? If they refuse to give you this info then it's almost certainly a scam. I can't stress how important it is to get UK business references and for you to call and have a list of questions at the ready. Don't forget though to also check out the UK companies legitimacy too through Companies House!!! Import taxes are another hurdle and differ depending on what the goods you're importing. You might well find that the 35% you think you're saving is swallowed up in import taxes and shipping charges. Use this site to enter the description of the goods you'll be importing to get what is called a TARIC code and then enter the TARIC code into the database here and it will tell you how much tax you'll expect to pay on the import.

[damian_molloy]

I think I am going to take your advice!

Do you think I could bargin down the price with the UK supplier based on the Chinese quote?

I suppose if you dont ask, you dont get!

Thanks a lot for your help, its been invaluable.

Damian

[Scarthingwell]

Hi we have been importing from China for nearly ten years and all of the above advice is good. Things seem so cheap until you start to add on ALL the additional costs of shipping and taxes that are your responsibiliy, not the supplier. Also if anything is faulty you will get zero after sales service unless you buy more from the same supplier. Think carefully before you do this but dont be totally put off. Thousands of people import from China and profit from doing so!

[perri1]

Hi,

When ordering from china/ abroad be careful of the Import tax.
The products are cheap but when they get deliverd to your door they will not be relised in some cases unless you pay the Tax there and then this is a high unexpected cost. I learnt the hard way.

[avikogan]

Damian, there is a way of sourcing and purchasing items from China without having to travel there, and that is to work with a company that takes care of all those risky factors for you, i.e. quality control, lead times, money transactions etc'. if you are interested i might be able to recommend who to speak with.