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Alibaba - Receving goods to the UK and duty TAX

Discussion in 'Dropshipping & Wholesale Hookups' started by myk33, Jan 22, 2011.

  1. myk33

    myk33 Junior Member

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    hi there,

    I have managed to find a good suppler in China on Alibaba that is a lot cheaper than my current supplier in the UK for the same product. I have done hours of talking and research on the company and even spoke the to them on the phone so i am happy to order some trial orders.

    Now the chances are the trial orders will get through UK customs and not be slapped with Duty TAX. The items are relatively small (LxHxW 50mm x 5mm x 15mm).

    When we are ordering bulk 100 at a time i am worried that they will be slapped with duty and VAT in to the UK.

    The supplier says that they will significantly lower the invoice value on the declaration form which will in the event of being slapped with duty releave a big load.

    I just would like some advise from others who have done the same thing ordering items into the UK from Chinese manufactures.

    thanks,

    Mike
     
  2. mobai

    mobai Junior Member

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    What products are you importing then?
     
  3. turbohacker

    turbohacker Regular Member

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    Get them to label as a gift and get them to send smallers orders every couple of days until you meet your quota... thats what I do
     
  4. myk33

    myk33 Junior Member

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    ok thanks, have you ever been slapped with duty or been fine every time?
     
  5. ahiddenman

    ahiddenman Elite Member

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    It really depends on which courier you use . DHL are the worst as they charge duty on nearly everything transferred by them.

    Make sure that you dont send packages labelled as gifts to often as HMRC will pick up this trend and slap a tax duty on everyone even if its labelled as gift.

    I have had experience importing goods from alibaba and DHgate. So just make sure that you spread the gift parcels out over a few days and not 12 packages in one day.

    Hope that helps.
     
  6. turbohacker

    turbohacker Regular Member

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    For me they've been fine everytime. Just make sure the packages being sent are smaller. Like I said, if you;re ordering 90 items, perhaps get 30 sent one day, another 30 3 days later, and the last 30 another 3 days later.
     
  7. myk33

    myk33 Junior Member

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    im using fedex! The good news is that items are small. And I will be ordering by the 500ish each time.

    Does it not cost a lot more to ship 3 x smaller items?

    We do declare the items 5 x cheaper than the buy price. The risk is that this will be the amount that we are covered for If damaged or lost. They are however strong items and not electrical.

    The items are also parts that most people won't know the value of. Do they ever charge you or duty and vat for a value higher than on the waybill?

    Thanks for all your comments so far!
     
  8. zverr

    zverr Regular Member

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    If you pay your taxes is it still cheaper than your current provider ?? The main danger is when you pay your income taxes. You must prove where you got your inventory from and it will look really suspicious that you received 1000 gifts and sold them all. Best thing to do is to pay your tax. Thats what I think.
     
  9. Patrickx

    Patrickx Newbie

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    There is a little trick for this, lets say you bought 50 pcs of some item, and paid 1000 USD for it. You pay your supplier in 2 payments, first will be 50 USD and the second 950. Make your supplier write price for 1 pc/1 USD and the total price on commercial invoice 50 USD. Customs will ask for invoice too and for proof of payment, so you just send them paypal or account statement screenshot with the amount of 50 USD, and the same commercial invoice they received with the package. You will only pay tax from the 50 USD which is a very low amount. This is illegal though, careful. If they ask what is it for, just say its a sample/gift and for personal use. Make sure you talk about this with your supplier first though. Good luck.
     
    Last edited: Jan 23, 2011
  10. johnboyz26

    johnboyz26 Newbie

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    hi i have been doing this for years and i live in the northern ireland which is part of the uk,

    all you need to do is get the supplier to put the item through as a gift on the customs form, and the value has to be 18 usd or lower,

    this way uk customs cant charge you anything, and dont worry this has worked for me for years, only thing is you might want to chage shipping addresses, and use ems for the shipping, cheapest and shipping is tracked


    sure email if you want to chat about anything else,
     
  11. Gold Hat

    Gold Hat Regular Member

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    Good tips, in what ways are you guys selling your goods.
     
  12. bwman

    bwman Power Member

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    at OP you mentioned that you checked out your supplier to see if he is legit, aside calling up their phone number. How else did you verify his/her legitimacy ?

    This is not directed at the OP alone but anyone who can help answer this. Thanks in advance
     
  13. GiorgioB

    GiorgioB Supreme Member

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    Use EMS
    Declare low value
    Pay your tax


    That is the only safe way to get your merchandise at low prices. Trying to circumvent the tax thing can be risky, especially if you order hundreds of products.

    Or else, as everyone says, label as gift (or commercial sample, also tax free) and tell supplier to split it into 6-7 parcels which you ship to different adresses in the UK. Use EMS.

    If anyone needs some supplier verifications etc.. I run my sourcing/trading agency here in China (I'm in Shanghai), and might be able to help you. drop me a PM!
     
  14. scallen37

    scallen37 Junior Member

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    Best thing to do is to split it up into several really small packages, and even then, at least one of them will be picked up by customs.

    Customs can figure out the value of the item and see what it is declared to be worth on your forms. If your supplier sends out something like a video game controller, and you say its only worth $1.00 - then they can hold your items. It's not what you Paid for the item, its the items retail value. (among several other factors, like country of origin, transaction value which is what you paid, etc) If you lie, you can actually be blocked from importing or exporting goods from the country - which Does happen.

    However if the retail value is less than $29 (whatever that is in pounds) then you won't have an issue unless your package is inspected and the items are on the exempt list. I'd post a link to the list but I do not have 15 posts.

    (This is one of the reasons why most small importers have factories send packages out in small packages on different days.