Importing goods to resell

bbam

OK so we're in negotations with two suppliers in China Via Alibaba.
The products don't have much competition here and none within the price range we're looking at... Not electrical goods of any type.

I do however have a raft of questions which need answering..

Alibaba offer a service where they handle the money and it is only released when the goods are inspected and approved.. Sounds a no brainer for a small fee until a supplier is vetted, any comments on this...

The price includs shipping to Dublin.. Are there port handling charges on this side? Can I collect myself or must I get a courier?

I'll be liable for VAT @ 21%.. Are all products liable for Excise duty?? Is there a list of rates per product??

If I register a business name, contact revenue to let them know I'll be trading as a sole trader, do I need to do anything else..

Are there any Irish online resources where I could get a general grip of VAT and providing VAT invoices...

Lots of questions there for starters

Help appreciated

RUDOLF289

Hello bbam,

There are some really good stories about Alibaba, then there are some not so good stories and then there are outright scams. So be ware, do your homework and try to check the suppliers through different sources.

I would urge you not to leave the shipping arrangements to your supplier(s). Please see two links to threads on boards.ie below that give you an idea of what happens when the supplier - who gets an absolute incredible deal for the shipping - organises the shipping. The "fun" starts on arrival in Dublin. The Chinese Forwarder recovers a socalled Chinese Import Service Fee through the agent in Dublin, who adds his own very high costs to boot. I am working with a consignee at the moment who brought in a shipment of 7.8 cbm. His supplier paid (and charged) Us$ 250 for the shipping to Dublin. The client is being asked to pay over € 1000 to get release of the shipment :eek:.

http://www.boards.ie/vbulletin/showthread.php?p=67893959

http://www.boards.ie/vbulletin/showthread.php?p=69081985

I would recommend to ask a number of Irish forwarders to quote you from FOB Chinese port to your door. In order to do that they would need the following information ;

1) Port of Shipment
2) weight of the shipment
3) dimensions of the indvidual pieces (e.g cartons), lebgth x width x height
4) place of delivery in Ireland

You are able to collect the shipment but you need a customs broker to prepare the customs entry. Shipments from outside the EU are generally subject to import duty and VAT. Excise only applies on items such as tobacco and alcohol.

Duty is calculated over the cost of the product plus Marine / Cargo Insurance plus freight cost (CIF Value) VAT is the charged over the foregoing plus the duty.

I also attach a shipping / logistics overview which gives you some guidance on the critical issue when importing (or exporting). In it there are contact numbers for the Customs classification Unit in Nenagh. They will be able to ascertain the classification / tariff number and advise the rate of duty.

Feel free to post again if you require additional information

Best regards,
Rudolf289

bbam

Thanks Rudolf...
I have received the information from one supplier..

FOB , XINGANG, China
5.3CMB
Gross Weight 1020Kg
Is that enough information to bring to a freight company??
Could you hazard a guess yourself on the costs??

The supplier was quoting me $90 shipping to Ireland but I presume I'd be for a shafting if I went with that option..

RUDOLF289

bbam wrote: »

Thanks Rudolf...
I have received the information from one supplier..

FOB , XINGANG, China
5.3CMB
Gross Weight 1020Kg
Is that enough information to bring to a freight company??
Could you hazard a guess yourself on the costs??

The supplier was quoting me $90 shipping to Ireland but I presume I'd be for a shafting if I went with that option..

Hello bbam,

The information provided is sufficient to appoach freight forwarders.

In relation to your supplier making the shipping arrangements and paying Us$ 90.00 from Xiamen to Dublin, just for a laugh, ask him for the name of the agent in Ireland. I suggest you then contact the agent in Ireland to get the arrival costs. This is the likely cost you will be quoted (give or take a few Euro) on the basis of the details you posted ;

Agency € 85.00
Customs clearance € 75.00
Handling/THC/Loading/Unloading € 150.
ISPS € 14.00
China Import Service Fee ........ In all likelyhood they will tell you that they can only confirm that charge AFTER the shipment has left ........ ! I estimate that if you let the shipment go with the arrangements your supplier would make, you would look at aprox € 500.00 (but as I said, they will only (be able to) tell you that after the shipment has left.

NB : The above estimate is on the low / average side. It really depends on the agent that you end up dealing with.

If I were to make arrangements on your behalf from FOB Xiamen I would quote you as follows ;

Oceanfreight Us$ 636.00 (aprox € 454)
Agency € 55.00
Customs clearance € 55.00
Handling/THC/Loading/Unloading € 97.17
NO ISPS
NO China Import Service Fee

You can only do the comparisson after the shipment has left (as I said I reckon the agent in Ireland can not tell you what the China Import Service Fee is going to be). However, I am fairly certain of my ground here. Taking the above figures between what your supplier pays and the estimate I outlined the cost would be € 888. My quote would come to € 661.

Just to put the Us$ 90 into context, based on current rates for 40' HiCube containers from Mainports in China to Dublin the consolidator in China would need to ship between 110 and 120 cubic meters to break even. The nominal capacity of a 40' HC is aprox 75 cubic meter .............. You wouldn't need a calculator to figure out that the figure your supplier is working with is going to lead to tears for somebody.

Cheers,
Rudolf289

gregorybradley

Rudolf,

Can you help me with these terms? ordering some samples through a company I am fairly confident is legit. they sent an email with the following terms in it in a PDF file:

I am writing you a samples order for these three items. Please kindly pay us for the sample charge and air freight by EMS.
We are able to send you samples accordingly immediately after receive your payment. I also need to confirm if the following address is correct?
We need you to sign back for order confirmation and will send you payment notice through paypal for sample fee.

TERMS AND CONDITIONS:
1. Price: The price above is based on our standard package by Min Order Qty (MOQ) at FOB Taiwan US Dollars.
Price is subject to change according to order qty before order confirmation.

2. Surcharge: If order qty is less than one 20' container (CFS/LCL), there will be US$250.0 for custom service charge,transportation,

3. Validity: The price above is valid for 30 days since offer date.

4. Sample Charge Existing samples per small amount value can be paid by paypal plus 15% tax charge.
New trial sample shall be charged per tooling quotes.

5. Sample Freight: Freight collected at buyer's end, please provide valid express account number to sender (DHL, FedEx, UPS...)

6. Payment: Paypal for sample shipment
PayPal Account: sales@orangestar.com.tw for the amount under US$1000
Bank T/T Transfer: for the amount US$1000 and above

Does that sound that legit?

RUDOLF289

gregorybradley wrote: »

Rudolf,

Can you help me with these terms? ordering some samples through a company I am fairly confident is legit. they sent an email with the following terms in it in a PDF file:

I am writing you a samples order for these three items. Please kindly pay us for the sample charge and air freight by EMS.
We are able to send you samples accordingly immediately after receive your payment. I also need to confirm if the following address is correct?
We need you to sign back for order confirmation and will send you payment notice through paypal for sample fee.

TERMS AND CONDITIONS:
1. Price: The price above is based on our standard package by Min Order Qty (MOQ) at FOB Taiwan US Dollars.
Price is subject to change according to order qty before order confirmation.

2. Surcharge: If order qty is less than one 20' container (CFS/LCL), there will be US$250.0 for custom service charge,transportation,

3. Validity: The price above is valid for 30 days since offer date.

4. Sample Charge Existing samples per small amount value can be paid by paypal plus 15% tax charge.
New trial sample shall be charged per tooling quotes.

5. Sample Freight: Freight collected at buyer's end, please provide valid express account number to sender (DHL, FedEx, UPS...)

6. Payment: Paypal for sample shipment
PayPal Account: sales@orangestar.com.tw for the amount under US$1000
Bank T/T Transfer: for the amount US$1000 and above

Does that sound that legit?

Hello Gregorybradley,

Just to clarify, my expertise lies in shipping and customs formalities. The fact that the supplier spells out his terms and conditions, suggests a certain level of competence / professionalism.

I will attempt to clarify the terms and conditions as you have listed them.

1. They are imposing a minimum order quantity (MOQ) if you want to place an order. The price they have quoted is based on you taking a minimum number of units. If you order less than the MOQ they reserve the right to adjust the quote.

2. In the price for the MOQ they have an allowance for customs formalities in Taiwan and transport to the port of shipment. If you order less than the MOQ stipulated they will charge Us$ 250.00 to recover their expenses for customs and transport to the port of shipment

3. I suppose that is self explanatory

4. Not sure about the 15% tax charge. Would suggest to ask for clarification, e.g. is that to cover import duties and taxes on the Irish side ? I am sure you are familiar with Paypal.

5. For future samples they want you to organise and pay for the shipping. In that respect they expect you have an account with the likes of DHL, FEDEX etc and are suggesting to use that account so that the courier charges will be collected from you by the courier company.

6. Self explanatory

I hope this is of assistance. If I can be of any further assistance, especially in the shipping / Logistics / customs area, feel free to post again or PM me.

Cheers,
Rudolf289