Can I just ask and thanks so much for the video is I get my products FOB from the seller do I then not have to pay any port costs going out, so like you say container loading, of course they take it to the port first and they take care of the export /customs documents ?
There is a benifit to getting items FOB and thats from an export licence perspective. An export license in China is a document issued by the Chinese government that allows a supplier to legally export certain products out of the country. It is a mandatory requirement for all products exported from China, regardless of the type of product or the destination country. The process of obtaining an export license can be complex and time-consuming, and it is the responsibility of the supplier to obtain the license. The Chinese government has implemented the export license requirement to ensure that all products exported from the country comply with relevant regulations and standards. This includes health, safety, and environmental regulations, as well as regulations related to intellectual property and export controls. The export license also acts as a proof that the product is legal and conforms to all relevant regulations and standards. For buyers, it is important to verify that their suppliers have the necessary export licenses for the products they are importing. This can be done by asking for a copy of the export license, which should include details such as the product name, HS code, and the supplier's name. Without a valid export license, suppliers may not be able to deliver the product, causing delays or even cancellation of the order. Additionally, importing products without a valid export license can lead to issues with customs and potential fines or penalties. Furthermore, an export license also acts as a proof that the products are of good quality and it's important for buyers to ask for the export license before making any purchase. Obtaining these licenses is not only beneficial for the buyer but also for the supplier as it increases their credibility in the international market. Having an export license also means that the supplier has met the necessary quality standards and regulations, which can be an important factor for buyers looking to import products from China. In addition, many Chinese suppliers are not familiar with the export license requirements, and may need assistance from a freight forwarder or a customs broker to obtain the license. Buyers should also be aware of the expiration date of the export license, as it is only valid for a certain period of time. In conclusion, export licenses are an important consideration when buying products from China. It is mandatory for all products exported from China, and it is the supplier's responsibility to obtain the license. By verifying that their suppliers have the necessary export licenses, buyers can ensure that the products they are importing comply with relevant regulations and standards, avoid potential issues with customs, and also ensure that the product is of good quality.
Hi thanks for your sharing you knowledge. I am in the process of doing a new self build house and I have been making inquiries from Alibaba regarding importing a 20ft container full of WPC fencing and cladding panels. When doing a new build(house) I can claim back all my VAT, all i need to do is give my accountant all my VAT receipts. If i do DDP will i get a VAT receipt or will i need to do FOB. TIA
It's not a bad idea, and if you are VAT registered you will be able to claim your VAT back if it's for business. If doing DDP it will be harder to distinguish the import VAT as you will not be in control of the figures listed. So probably better doing FOB or Exworks. Have a look at our importing video on how to claim VAT and calculate it.
Really appreciate such a great video. Could you answer very loosely. What would you expect to pay for shipping FOB Xiamen to the U.K.. just a rough guide. For a 20ft vs a 40ft. I understand that prices have increased major lately and have no stable benchmark to know what’s a reasonable price. Thanks in advance
And if I am buying from multiple suppliers let's say 4 ,is it more cost effectibe to buy purchase the product from them exw and take care of all the above using another method or is it best to buy from all FOB ,generally speaking
It entirely depends on how much you are shipping. If you want to ship a large amount then its better for you to ship EXW and organise the shipping yourself. If its a small amount FOB is a good route forward. It just depend on the supplier, their export licence situation and how much you are shipping. Drop me a message on our website if you want to discuss more.
Thanks. May be an obvious question but can I ask, on ddp incoterms, when sending a bottle of spirits from Uk to Rest of world, the duty is paid on the bottle by the supplier before it is collected by the courier?
When entering into a DDP agreement with a supplier its usually the understanding that all charges are covered by the supplier. Duty on spirits should be no different, however the rate of import duty into your country of residence may be higher. The supplier (if say for example a distillery) should be able to export the spirits and not have to pay UK duty on it (hence why certain spirits state for export only). Regardless; yes if DDP then the duty is covered by the supplier. Duty wont be paid before its exported though, it will be paid after its landed in its destination country. It will be then charged to the supplier.
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Can I just ask and thanks so much for the video is I get my products FOB from the seller do I then not have to pay any port costs going out, so like you say container loading, of course they take it to the port first and they take care of the export /customs documents ?
There is a benifit to getting items FOB and thats from an export licence perspective. An export license in China is a document issued by the Chinese government that allows a supplier to legally export certain products out of the country. It is a mandatory requirement for all products exported from China, regardless of the type of product or the destination country. The process of obtaining an export license can be complex and time-consuming, and it is the responsibility of the supplier to obtain the license.
The Chinese government has implemented the export license requirement to ensure that all products exported from the country comply with relevant regulations and standards. This includes health, safety, and environmental regulations, as well as regulations related to intellectual property and export controls. The export license also acts as a proof that the product is legal and conforms to all relevant regulations and standards.
For buyers, it is important to verify that their suppliers have the necessary export licenses for the products they are importing. This can be done by asking for a copy of the export license, which should include details such as the product name, HS code, and the supplier's name. Without a valid export license, suppliers may not be able to deliver the product, causing delays or even cancellation of the order. Additionally, importing products without a valid export license can lead to issues with customs and potential fines or penalties.
Furthermore, an export license also acts as a proof that the products are of good quality and it's important for buyers to ask for the export license before making any purchase. Obtaining these licenses is not only beneficial for the buyer but also for the supplier as it increases their credibility in the international market. Having an export license also means that the supplier has met the necessary quality standards and regulations, which can be an important factor for buyers looking to import products from China.
In addition, many Chinese suppliers are not familiar with the export license requirements, and may need assistance from a freight forwarder or a customs broker to obtain the license. Buyers should also be aware of the expiration date of the export license, as it is only valid for a certain period of time.
In conclusion, export licenses are an important consideration when buying products from China. It is mandatory for all products exported from China, and it is the supplier's responsibility to obtain the license. By verifying that their suppliers have the necessary export licenses, buyers can ensure that the products they are importing comply with relevant regulations and standards, avoid potential issues with customs, and also ensure that the product is of good quality.
Hi thanks for your sharing you knowledge. I am in the process of doing a new self build house and I have been making inquiries from Alibaba regarding importing a 20ft container full of WPC fencing and cladding panels. When doing a new build(house) I can claim back all my VAT, all i need to do is give my accountant all my VAT receipts. If i do DDP will i get a VAT receipt or will i need to do FOB. TIA
It's not a bad idea, and if you are VAT registered you will be able to claim your VAT back if it's for business. If doing DDP it will be harder to distinguish the import VAT as you will not be in control of the figures listed. So probably better doing FOB or Exworks. Have a look at our importing video on how to claim VAT and calculate it.
Best of luck!
So helpful, thank you
Glad it was helpful!
Really appreciate such a great video. Could you answer very loosely. What would you expect to pay for shipping FOB Xiamen to the U.K.. just a rough guide. For a 20ft vs a 40ft. I understand that prices have increased major lately and have no stable benchmark to know what’s a reasonable price. Thanks in advance
Hi Jack, glad you enjoyed the video. Current prices - FOB are around 16,000 USD for a 40ft container.
And if I am buying from multiple suppliers let's say 4 ,is it more cost effectibe to buy purchase the product from them exw and take care of all the above using another method or is it best to buy from all FOB ,generally speaking
It entirely depends on how much you are shipping. If you want to ship a large amount then its better for you to ship EXW and organise the shipping yourself. If its a small amount FOB is a good route forward. It just depend on the supplier, their export licence situation and how much you are shipping. Drop me a message on our website if you want to discuss more.
Thanks. May be an obvious question but can I ask, on ddp incoterms, when sending a bottle of spirits from Uk to Rest of world, the duty is paid on the bottle by the supplier before it is collected by the courier?
When entering into a DDP agreement with a supplier its usually the understanding that all charges are covered by the supplier.
Duty on spirits should be no different, however the rate of import duty into your country of residence may be higher. The supplier (if say for example a distillery) should be able to export the spirits and not have to pay UK duty on it (hence why certain spirits state for export only). Regardless; yes if DDP then the duty is covered by the supplier.
Duty wont be paid before its exported though, it will be paid after its landed in its destination country. It will be then charged to the supplier.
@@merchsprout - Thanks for getting back to me.
great video
Thanks!
Get in touch with us if you need any assistance in anything China manufacturing, sourcing or inspection Our China-based team can conduct product inspections, quality control investigations, assist with eComm consolidation shipping and translation. Find out more at merchsprout.com