UKC

My friend and I have just registered a company and we are looking to make a purchase of equipment from China to the value of around £2000.

Anyone got any advice on the best way to send money i.e. bank transfer, western union, paypal etc?

Also, what can I expect from customs in terms of them wanting their cut for import?

Anything else to watch out for?

BW

In reply to Baron Weasel:


The spanish inquisition - nobody expects it!

In reply to Baron Weasel:

Would it be 20% of £2000 for importing the equipment?

In reply to Baron Weasel:

We export and occasionally import from the far east, including china. I think we do bank transfers. Otherwise:
- Expect to get a bill for VAT at 20%. You may be able to reclaim that if you're VAT registered, and the purchase is eligible. But if it's for your use, as opposed to going on to a customer, it probably won't be.
- Expect to get a bill for import duty, which depends what the equipment is. Typically 2-5% but could be as much as 20%. See also: https://www.trade-tariff.service.gov.uk/trade-tariff/sections
- Expect the import shipper (e.g. fedex) to sort the above out, and charge another £10-50 for the service.
- If it is electrical, and/or comes under any of the other EU Directives, it is your responsibility, as the importer, to make sure it is compliant and to CE mark it if necessary.

In reply to Baron Weasel:

Check it is allowed to be imported, you´ d be suprised what isn´ t.
As said above you are responsible for any conformity requirements and marking etc. You are also responsible for all claims against the goods (defective, unfit for the purpose, accidents caused etc).
The import tarif is on the CIF value (goods, freight, insurance) and the VAT on the CIF value plus the duty paid.

In reply to Baron Weasel:

The best way to send the money is after you've received the goods.

In reply to Baron Weasel:


Import duty depends upon what you are importing.
https://www.gov.uk/goods-sent-from-abroad


VAT & handling fee.

In reply to Removed User:


The best way to send goods is after you've received the money.

In reply to Timmd:

It's not the way it normally works. You give someone a purchase order, they send you the goods and if the goods are what you expected you pay them after you get an invoice.

I remember though, we dealt with some Korean companies who wanted paid in advance. It was a nightmare. If they sent you a pile of crap you had no comeback. One company just took the money and disappeared off the face of the earth.