China Importing - What am I missing

Jonny303

Hi,

I am currently trying to source prefab buildings overseas.

I have made contact, gotten a FOB price and that is that.

I have gotten rough shipping costs, but need to find out what exactly I need on this end. My understanding is FOB is delivered to the port, everything after that is my own. I need shipping to Ireland, transport from Dublin, quick unloading here and then insurance. Am I missing anything?

It is a group HS code 9406, from which I understand is 2.7% import tax.

VAT on the whole lot, thats straight forward.

Am i missing anything in the delivery line here, cost perspective that is?

Thanks

SeanSouth

All your effort needs to go on the Chinese end. Thats where all the challenges and problems will be !!

Jonny303

Well understood. Sorry if I came across as wet behind the ears, believe me, I know its not a case of getting an online price and pressing the button, I am just trying to cost it as correctly as possible before I go any further.

Because it is prefab buildings I am looking at, transport is a huge cost on it, so at the moment I am trying to decide weather to keep using local options or go looking elsewhere.

Thanks for the feedback

ironclaw

If you are doing anything in China, you must go and see the factory, the product and make contact with the people you will be dealing with. China is very much face to face and can take ages to do anything. Its who you know, who you pay and how your pay respect in some cases. Quality is extremely hit and miss, and there will be zero hesitation from some contractors to send you poor quality, broken or half made product.

I really cannot urge you enough to go and do the deal in China if you are considering any sort of reasonably sized investment.

meijin

ironclaw wrote: »

I really cannot urge you enough to go and do the deal in China if you are considering any sort of reasonably sized investment.

A colleague deals with Chinese suppliers, and from his experience it looks like you need an independent person to inspect all goods before shipping. Otherwise you might receive not exactly what you've ordered.

ironclaw

meijin wrote: »

A colleague deals with Chinese suppliers, and from his experience it looks like you need an independent person to inspect all goods before shipping. Otherwise you might receive not exactly what you've ordered.

Absolutely. Most people dealing in China employ a local fixer or two, it really is essential as you could easily be sent broken, scratched or otherwise unmerchantable goods.

BorneTobyWilde

How is transport huge cost. Transport from where to where with what?

ted1

BorneTobyWilde wrote: »

How is transport huge cost. Transport from where to where with what?

I hope he isn't shipping them pre built !!

Do the pieces fit in a 40ft container?

RUDOLF289

Jonny303 wrote: »

Hi,

I am currently trying to source prefab buildings overseas.

I have made contact, gotten a FOB price and that is that.

I have gotten rough shipping costs, but need to find out what exactly I need on this end. My understanding is FOB is delivered to the port, everything after that is my own. I need shipping to Ireland, transport from Dublin, quick unloading here and then insurance. Am I missing anything?

It is a group HS code 9406, from which I understand is 2.7% import tax.

VAT on the whole lot, thats straight forward.

Am i missing anything in the delivery line here, cost perspective that is?

Thanks

Hello Jonny

Jonny303 wrote: »

Hi,

I am currently trying to source prefab buildings overseas.

I have made contact, gotten a FOB price and that is that.

I have gotten rough shipping costs, but need to find out what exactly I need on this end. My understanding is FOB is delivered to the port, everything after that is my own. I need shipping to Ireland, transport from Dublin, quick unloading here and then insurance. Am I missing anything?

It is a group HS code 9406, from which I understand is 2.7% import tax.

VAT on the whole lot, thats straight forward.

Am i missing anything in the delivery line here, cost perspective that is?

Thanks

Hello Jonny301

you seem to have most bases covered.

Just a few things that you may not be aware of.

1. EORI
If you are importing for the first time from outside the EU, you need to register for EORI. Have a look at this link on the Revenue.ie site ; http://www.revenue.ie/en/customs/ecustoms/eori-aeo.html

2. You are buying on FOB terms. That allows you to appoint the forwarder that will act on your behalf and make the shipping arrangements. You seem to have an approximate cost, my recommendation is to tie that down before you issue any shipping instructions. I would strongly advise not to leave the shipping arrangements to your Chinese supplier. My experience suggests that the Oceanfreight element is often very competitive but that the landing/arrival costs can be quite high. And often those charges only become apparent well after the shipment has left China, which means that at that stage you are on the hook.

3. Marine / Transport insurance. Often overlooked on the basis that "sure if the cargo gets damaged or is lost in transit, the carrier is responsible". First of all the shipping contracts have limitation and exclusion clauses. For Ocean carriers the maximum liability is Us$ 500 per package. If you ship a full container load, the "package" is the container .......... Also, in case of an incident causing the owner of the vessel declaring "General Average", if you don't have marine/cargo insurance you need to cover that yourself. For an understanding of General Average, have a look at the following wikipedia link https://en.wikipedia.org/wiki/General_average

4. VAT on Imports. If you are a VAT registered trader, the VAT you pay on arrival to Revenue is a deductible input in your periodic VAT return. However, you have to pay it up front (together with the import duty). If you are shipping a full container load (FCL) as opposed to a Less than Container Load (LCL), you have the opportunity to clear the goods at the European transshipment point (usually Rotterdam or Antwerp). You can appoint a Fiscal Representative who can clear the goods into the EU (you would settle the import duty at that point). From that point onward, you can treat the transaction as an Intra EU Aquisition. The VAT liability incurred on import into the EU is transferred to your VAT registration and you account for the VAT in your periodic VAT return. Like the VAT you normally pay on imports, you claim the VAT liability back in the same return. The net effect is that there is no outlay of VAT to Revenue. That is likely to have a positive impact on your cash flow.

5. Making sure you get what you ordered / paid for. It is unlikely to be possible for you to visit the supplier and inspect the goods before they leave. I would however recommend that you have the goods inspected before they are loaded. I have some (Irish) contacts in China that source products on behalf of Irish/UK/European importers. They offer pre-shipment inspection. It may cost a few dollars, but it provides some assurance that the goods are as per specification. Also, often, once Chinese suppliers realise there is somebody acting on behalf of the consignee on their doorstep, they smarten up their act .....

Those are some of the things I can think off. Feel free to PM me or post again if you need any further assistance.

Cheers,
Rudolf289

masker

very good adv from @Rudolf289, try to get few samples first and ask them for CIF prices to dublin port, also get in touch with some shipping companies, They offer custom clearance and transport to your desired place.