Pitfalls about importing from china

John101

Hi

I have noticed a low bulk branded product which retails at a fairly high price and most people complain about this price. This product is retailing at half the price on ebay than in the shops and there are only two or three other people selling it and they are located in America. I have got a quote from china for this product and it works out at about half the price they are being sold on ebay. The smallest amount i can buy is one crate weighing about 14kg costing about $700 including shipping which is about $5/KG. They want me to pay via money transfer western-union/MoneyGram/Travelex.

The thing is i know it is notoriously dangerous buying stuff from china how can i be sure these guys are on the level and the product is up to standard.

What is the procedure for importing goods tax etc?

any other thoughts on stuff i should look after

Thanks

stepbar

John101 wrote:

They want me to pay via money transfer western-union/MoneyGram/Travelex.

Thats why is so cheap...... Scammers

TabulaRasa22

stepbar wrote:

Thats why is so cheap...... Scammers

Well if you are trying to wire money directly via the bank to some parts of asia, it can take anywhere up to three weeks, going through Hong Kong, while the international banks sit on it and hope the exchange rates push it up in their favour.

Western Union tacks a stiff fee on your transaction, unless you are sending to certain "sanctioned" countries (like the Philippines, think vast emigrant population getting bulk rates because they send money home every week), and they generally come in under the exchange rate by about three points, depending on your currency. However they are fast and dependable, 30 minutes later the recipient has the money.

However on this deal I would definetely think long and hard about it. The golden rule in asia, yes means no, and they never say no. While you are getting the China Price, you might be getting low quality goods or no goods at all. If you do manage to get the goods, you need to declare them to customs and excise, who will charge around 20% on top. Get the suppliers to swap the delivery charges and product charges on the invoice, that usually saves a few quid. I wouldn't make too much of a habit of it though.

Oho yes and if you are talking about clothes or textiles, the EU has serious tarriffs and quotas for imports on these items from China.

Cathal Conaty

Your judgement is correct. China does have low prices!
The quality however is a serious means of concern. Our company connects companies in Europe with manufacturers in China, so perhaps I can offer you some advice. You are either serious about your business or not. If you want to make long term profits, you must research deeply into the product that you are purchasing. It is simply not good enough to get quoted for a "football" or a "radio". The fact is the only way that you can buy properly from China is if you know all about your product from raw materials to the finished product. If you do not know this, you are playing with fire. Sure you can take a chance and order what you like, but even if the first small order is adequate I have found that when you give in a large order, they employ more untrained people who annihilate the standard. My advice is if you want to purchase successfully from China, do not do it direct. Think of the long run and work with experts who have the know how. In relation to import duties, that will depend on the product.
If you want to give me some more details on your product, I would be delighted to offer a helping hand. Perhaps this will put your mind to ease.