Why are we here? To find out how to import wholesale products from China to UK.
Compared with other countries, Britain has many strict requirements for products. Therefore, if you are considering importing from China to the UK, it is better to have a clear understanding of import restrictions and regulations.
Additionally, if you know the time spent and range of costs in the process of import from China, then you will be able to have a rough estimate of the cost of the product you’re importing as well as the import cycle.
The content table downbelow is today’s topic:
5 Basic Principles before Everything:
What to Do after Confirming the Product Niche:
Here we go.
5 Basic Principles before Everything
1. Register an Economic Operator Registration Identification (EORI) Number
The EORI number is short for Economic Operators Registration and Identification Number. UK customs uses the EORI number as a means of keeping records of imports and exports.
An EORI is essential for all enterprises in the EU when importing commercial goods from China to the UK.
Applying for an EORI number is easy, you can apply it online and it will take you approximately three days to get the number.
If you have registered for VAT, to obtain the EORI number, you need to submit an application Form C220.
If you have not registered for VAT, you will need to submit Form C220A to obtain the EORI number.
All the forms above can be downloaded online. Just fill in the trading and shipping details, then email the form to HMRC’s EORI department.
The form will be dealt with within 48-72 hours. After that, your EORI number will be delivery to you. Or you can contact them via eori@hmrc.gsi.gov.uk.
2. Check If You Need a License to Import from China to UK
After selecting the product you want, it is important to check whether the goods are allowed to be imported or whether you will need a license.
Although some goods can be imported to the country free of charge without a license, in some cases you may be required to obtain a license to import certain goods.
However, you should note that some products have been completely banned. So if your product falls into that category, it is best to find an alternative.
The 3 major types of restrictions are：
Bans – This is where no import is allowed;
Quotas – This is where there is a restriction in the volume of goods;
Surveillance – Ensures that the importation is monitored using licenses.
3. Find the Right Commodity Code for the Goods You’re Importing
Legally, all imports must be declared and classified using a commodity code.
The commodity code is essential to the classification of your imports. With the correct merchandise code, you can
• Check to see if there are any duty reliefs
• Complete declarations as well as other paperwork
• Find out if you have to pay for any VAT or duty fees
While using the wrong code can result in fines or product delays, even impounded.
Some products can be easily classified, but others are hard to tell. If you encounter any problems, you can check how to find the right commodity code.
4. Check If You Need to Register for VAT When Import from China to UK
If you are importing from a non-EU country to the UK (such as China), you will have to pay VAT as well as import duties and customs value.
In this case, customs value equals the total cost of the imported products including any import duty fee, product costs that you pay to your supplier and shipping costs from China to UK.
Remember that you must pay VAT if you are VAT registered. However, you can claim it back through your standard VAT return.
To do that, please ensure that you include full details on all the invoices and labels.
Details of the receiver and sender should be contained in all the invoices and labels you use. Other details include the number of goods and their value, a complete description of the contents being imported and the commodity codes. Make sure that your invoice is typed and avoid making manual changes.
5. Obtain a Customs Registration (CR) number and Power of Attorney (POA)
When importing from China to the UK, you’re required to have CR number and POA for goods that are non-documented regardless of their value apart from personal effects.
Both exporters and importers in China are required to register with customs authorities. This is for the purpose of getting an exporter or importer CR Number which must be detailed on the commercial invoice for clearing customs.
The advantage of using a freight forwarder is that he will advise you on all the aforementioned thus making shipping from China to UK hassle-free and simple. Therefore, it is advisable that you get a good and reliable freight forwarder company which you can always consult about the custom limits of imported goods.
What to Do after Confirming the Niche You Want to Import:
1. Find the Right China Suppliers for Your Projects
China Wholesale Websites for Online Sourcing
This includes wholesale platforms like Alibaba.com, Global-sources.com, Made-in-China.com, Dhgate, Aliexpress, Chinabrands and Yiwugo for online sourcing.
Though this might seem easy, you still need to dig deep to get real manufacturers who specialize in making your desired product. For more information, please refer to 7 Best China Wholesale Websites for Distributors & Retailers Oversea.
Social Media
Most suppliers will have media accounts for publicity. The most popular social medium is Facebook and Linkedin. And you can get access to suppliers through those applications.
Usually, people will also leave reviews on the Facebook page, that you should read before selecting any company.
Search Engines
You can also locate manufacturers by making a search on the internet. The recommended search engines are Google, Yahoo, and Bing.
Please remember, you should use very simple keywords to get the best results when making a search. For example, your products + manufacturer/factory, maybe plus China as well.
Recommendation
You can get recommendations from other people who have information about the business, usually friends, family or business partners.
Trade Fairs
Many exhibitions are held in China every year, including professional and comprehensive ones. If you have a lot of time, you can attend the trade fairs by investigating online which Chinese cities are hosting professional fairs.
If you think it’s too much trouble, you can go straight to the Canton Fair in Guangzhou.
The Canton Fair is a comprehensive exhibition. You can almost find suppliers of all kinds of products here.
The fair is held twice a year, first in April in the spring and then in October in the autumn.
China Local Industrial Zones & Wholesale Markets
There are also many industrial zones in China, for example, the Electronics zone in Shenzhen, the Home textile supply in Nantong, LED Lighting in Zhongshan, etc.
You can also check the size of each manufacturer and their product specifications to make sure they suit your requirements.
The company should have a reliable communication line and must be ready to provide samples before you sign a contract with them.
2. The Essential CE Mark for Importing from China to UK
Generally speaking, the CE mark is a label indicating that the items are compliant with all the applicable directives from the CE or EN. The trademark shall be affixed to the product unit and its user description and packaging and shall be completed by the Chinese supplier.
However, keep in mind that some suppliers may not be aware of specific labeling requirements applicable to imported products. To avoid unnecessary trouble, you must provide the supplier with the fixed position, size and graphics files on the product in advance. Here are some EU directives that require CE marking:
EN 71 – Toy safety directive – This not only regulates toys but also other children’s products. It used to regulate physical and mechanical properties, flammability, heavy metals, and chemicals. EN 71 is an umbrella standard that can be divided into 13 different ones. It also stipulates the requirements for graphical symbols such as age warnings.
Low Voltage Directive (LVD) – This applies to electronics and electrical components that have an input or output of 50 to 1000 volts AC and 75 to 1500 volts DC. Because of this, the LVD requirement covers a myriad of products including home appliances, cables, sockets outlets and chargers with an exception of battery-powered devices.
European Eco-design Directive – applicable to domestic electrical appliances, and light bulbs as well as non-electrical products such as insulation materials, this was put in place to decrease the emission of greenhouse gases.
Machinery Directive (MD) – This is applicable to machinery as well as interchangeable parts and equipment excluding motor vehicles and a wide range of consumer electronic appliances.
RoHS 2 – restrictions of hazardous substances – This restricts the amounts of certain substances in electronics such as mercury and lead. Even though they’re a few exceptions this labeling requirement is compulsory for all electrical items with a CE mark.
Radio Equipment Directive (RED) – This is used to regulate telecommunication and radio equipment such as Bluetooth and WiFi receivers and transmitters, radio, wifi routers, and some smartphones and android tablets.
Electromagnetic Compatibility (EMC) – This directive whose aim is to make sure that electrical equipment does not interfere with other signals and electronics, is only applicable to fixed electronic appliances like LED displays.
3. Calculations of UK tariff and VAT
Goods imported from China to the UK are subject to certain taxes. When calculating the cost of the wholesale import process, you should also include this part of the cost. All importers are required to pay UK tariff + VAT unless the goods are eligible for tax exemption.
Let’s do the math here for example. Let’s say you pay your supplier £1,000 for your goods, £200 for the shipping cost. And let’s suppose the UK tariff ratio is 3.5% then the tariff fee will be 3.5% of 1,000 which is £35.
And the VAT will be 20% of {cost of the goods (£1,000) + shipping cost (£200) + UK tariff fee (£35)},
which is £247. The calculation formula is as follows,
(£1,000+£200+£35) *20%=£247
And the total cost for products from China to the UK will be,
Goods (£1,000) + UK tariff (£35) + VAT (£247) + Shipping cost (£200)= £1,587
4. Shipping from China to UK for Importing
China is about 775 kilometers from Britain. Generally speaking, to transport products from China to the UK, you can choose to transport by air, sea, rail or sea according to your own needs.
There is no doubt that the quickest way is by air. However, air shipping is also limited by several factors, including the size of the goods, cost-effectiveness, the nature of the consignment and the freight forwarder.
In addition, air transportation is also the most expensive mode of transportation. It costs 4-6 times more to transport the same quality of goods from China to the UK by air than by sea.
Although the cost of shipping by sea is much lower than that by air, sea shipping is often very slow. It takes more time for goods to ship from China to the UK.
All the above modes of transportation need a customs broker to help you with customs clearance. To make the whole process easier, many freight companies offer door-to-door services from China to Britain.
In terms of time, though, the service doesn’t save much time. But it does help you simplify the entire shipping process.
Many Amazon sellers love the service. Because your freight forwarder will take care of everything for you in the whole process, you only need to wait for the goods to arrive at home or in the designated warehouse.
Conclusion
It is safe to say that importing from China to the UK is quite simple and straightforward. You may make a few mistakes especially for the first time, don’t be a shame with that. You would gain experience from the process.
I hope with the help of this guide, you are able to understand the basics of importing from China to the UK, the rules and regulations, evaluating costs and choosing the right mode of transport for you.
Finally, if what you need is not covered here, feel free to comment below or contact us directly. We are happy to help.