I know importing from China to the U.K. is a profitable business.
However, you can only achieve this by adopting cost-effective and reliable importation procedures.
And, in this guide, I am going to walk you through the tricks and tips to successfully get your products from China to the U.K.
You learn what U.K. imports from China, calculating importing cost, importation documents, compliance standards, shipping modes, customs clearance process, etc.
Let’s dive right in.
What is the Role of China to UK Freight Forwarder in Importing from China to the UK?
1. Provides advice
2. Preparation of import documents
3. Tracking the cargo
How to Find Goods to Import from China to UK?
· Searching online
· Referrals
· Online outlets
How to eveluate the cost of Importing Goods from China to UK?
1. Estimate cost of a shipping container from China to U.K
2. Evaluate Cost of Goods to Import from China to U.K.
3. Calculate importing from China to U.K. Duty & VAT Charges
What is the UK Import Documentations?
· Commercial invoice
· Packing list
· Certificate of origin
· Bill of lading
· Commodity code
· CHIEF
· EORI Number
· CR Number
· UK import license
- Calculate the Cost of Importing Goods from China to UK
- United Kingdom Import Documentation
- Understand United Kingdom Quality Compliance Standards for Imports
- Role of China to UK Freight Forwarder in Importing from China to the UK
- Importing from Alibaba to UK Step-by-step Process
- Choose Mode of Shipping from China to U.K
- Importing from China to UK Customs Clearance Process
- Case Study – How will BREXIT Affect Importing from China to U.K
Chapter 1: What Does UK Import from China?
Well, what we must all agree on is that China for the longest time has been one of the leading producers of numerous products in the world.
Nevertheless, UK has also for a long time been one of the largest markets for Chinese products.
For your information, China is the second largest non-EU UK’s import partner.
Presently, Chinese imports to the UK accounts for close to 10%.
Therefore, it makes perfect sense to have this kind of discussion right now in this guide.
It is imperative to know that the UK offers a significant market for Chinese commodities, but there are those which are majorly imported.
For that matter, let’s find out in much details regarding some of these major import commodities to UK from China.
Main Imports from China to U.K.
UK is also known for quite a number of manufacturing and processing industries.
It means that this country produces most of its commodities to use locally and also export.
However, they also import several products from China, which as stated earlier on, accounts for almost 10%.
Now, most of the main commodities that UK imports from China include the following;
· Office machines
Most of the equipment that different businesses and institutions in the UK use are mainly imported from China.
One is that a number of office machines from China that the UK import is somewhat of high quality and meet the necessary expectations.
So it has always been easy for UK to purchase such items from China given that the market is also responsive in a positive way.
Some of the office machines that UK import from China includes printers, photocopying machines, and other relevant equipment.
· Data Processing equipment
It also forms a more significant percentage of the goods that China export to the UK.
In most instances, you’ll find that equipment such as computers and other such machines in UK come from China.
In fact, we can sum it up that most of the technology-oriented equipment in the UK are majorly imported from China.
In most instances, such products are widely accepted in the UK hence making it easy to sell them once they arrive in the country.
Electrical machinery
These are the other types of commodities that UK imports largely from China.
You see most of the industrial, commercial as well as residential establishments use different types of electrical equipment.
And since they use them in large quantities, the only ideal way of making sure that they have enough is by importing from China.
Of course, the quality of such machinery that the UK imports from China have to meet the minimum necessary standards.
The bottom line nonetheless is that China exports a large percentage of electrical machinery to the UK.
Clothing and accessory
These commodities also form a large percentage of the total imports that UKobtains from China.
The Chinese clothing industry is magnificent, andUK offers a ready market for such and related items.
The UK apparently import different types of clothing and accessory including men’s, women’s as well as kids’ apparels.
Of course, some of the clothing and related accessories get to the UK as unfinished products.
Industrial machinery
You see, as much as the UK also manufacturers most of her products, it also requires the machines and components to do so.
And China is one of the leading manufacturers of such industrial machines.
So in most instances, you’ll find that UK imports most of these machines from China to go and use them in furthering manufacturing needs.
Power-generating equipment
These also form a better part of the types of items that UK imports from China.
In most industries, commercial and residential settings in the UK use different types of power generating equipment.
And China has always been at the forefront as the leading manufacturers of such equipment.
For that reason, UK always sees it reasonable to import such units from China for the betterment and efficiency of many processes.
Indeed, there are other types of equipment which the UK obviously import from China, albeit on a small scale.
But the ones described above form better percentage of the items that China export to the UK in most instances.
U.K. Prohibited Imports from China
Probably you didn’t know about this, but the truth is that UK is one of the countries with the highest levels of standards.
What I mean here is that the civilization level in this country is among the leading all over the world.
And for that reason, you can be pretty sure that you can never import particular items to this country, regardless!
Well, of course, several reasons contribute to the fact that the authorities in this country prohibit the importation of particular products.
In most instances, the prohibition of such imports always arises as a result of strategic economic concerns.
However, other reasons could be due to health measures, environmental conservation and general wellbeing of the residents among others.
Therefore, as an importer, you ideally need to understand all the reasons for importing prohibited commodities as well as the restricted goods too.
You see, there are always severe repercussions for failure to adhere to such set rules.
And I bet you never want to get into such inconveniences.
So let’s first look into some of the prohibited goods to import to UK from China.
a) Illegal drugs
You can never import banned drugs substances to the UK not only from China but from any destination in the world.
The UK has put stringent measures at the customs to ensure analysis of every consignment that gets into the entry points.
And trust me should your consignment contain illegal drugs, then it shall be seized and further actions were taken against you.
In other words, what I’m saying here is that the UK authorities do not accept the importation of any form of illegal drugs from any country.
b) Obscene materials
This is also another category of imports that is prohibited in the UK.
Ordinarily, the UK government ensures that all the materials that get into the country match the moral standards and civilization.
So anything that contravenes such standards are never accepted to get into the country.
And believe me, even if you try to import such materials, the authorities will seize them accordingly.
c) Meat and dairy products
What often happens with the UK is that you can never import personal dairy and meat products if not from specific non-EU nations.
And China is apparently one of the non-EU nations that UK cannot import such products from.
In simple words, meat and dairy products from China are prohibited for importation in the UK>
The essence here is that the cultural differences matter significantly hence the prohibition of such imports.
Also, the need to promote local and regional agricultural products also contributes to a prohibition of importing such products from China.
d) Rough diamonds
UK bans the importation of rough diamonds not only from China but from all countries.
It is a commodity which the authorities do not deem ideal for importing, and they attribute several reasons for that directive.
e) Counterfeit Goods
These refer to the types of goods which are either imitation, forged or fake.
Like I did mention earlier on, UK has strict standard measures which help in making sure that only quality products get into the country.
Of course, the key reason is for prohibiting such goods in this country is because they limit the economic growth of respective industries.
Furthermore, importation of counterfeit products also limits the growth of the local industries which subsequently derail revenue collection.
Also, the counterfeit products lower the quality standards of commodities which are superlatively is the most significant concern in the UK.
f) Hazardous waste
You see, hazardous wastes are often associated with high health risks as well as environmental degradation.
They also cause adverse effects to the plants and animals in the country.
And so it is quite apparent why the UK authorities prohibit the importation of such products, be it from China or anywhere else.
Definitely, there are quite a number of other prohibited import goods to UK from China.
And that’s why it would be ideal to ensure that you carefully check all of them before finally deciding to make a move.
Also, and I don’t want this to sound like a threat.
But the truth is that the UK customs authorities are stringent.
Therefore, you should never have anything in mind that you can perhaps sneak in a restricted or prohibited import.
Incidentally, it is next to impossible because of the well-established structures, facilities, and technology.
Nonetheless, you should also be aware of the fact that the penalties for importing prohibited consignments to UK vary.
The bottom line, however, is that some penalties may never be favorable to you and perhaps the inconveniences may be extreme.
So to be on a safe side as a UK importer, you must make sure that you read all the regulations surrounding importation of prohibited goods.
Nevertheless, let’s move on to the next section and find out more ways of determining the goods to import to UK from China.
How to Find Goods to Import from China to U.K.
Now, as you already know China is arguably one of the leading industrialized countries in the world.
This is to mean that you can virtually find any type of commodity that you’re looking for if at all you need to import to UK.
However, given that this nation is somewhat vast, geographically, it poses a significant challenge to find the specific commodity anywhere.
What I mean here is that as much as China produces various commodities, there is a manner manufacturing is regionalized.
That is to say, that specific cities or towns are known for production or manufacturing of particular types of products.
So you need to be diligent when seeking goods to import from China to UK because the search alone can be tedious more than the importation process.
That notwithstanding, I’m here to give you a few ideas of how to find some of the goods in China which you’d want to import to UK.
First of all, you need to determine the kind of products you’re looking for.
You see, there’s no way you can just come to China and you start looking for goods randomly.
One of the most critical elements is making sure that you identify what you need.
Once you identify this aspect, then you can go ahead and start looking for how you can find it.
Some of the ways of finding the best goods to import from China to UK include the following;
· Searching online
Well, in this day and age, one thing that you can never run away from is the internet.
This platform provides an opportunity for anyone to search for anything regardless of where they are.
Ideally, before you even think of what to import from China and how to import it, you need to peruse the internet exhaustively.
This platform has rich information, resources and materials like this particular guide to help you in determining the different commodities.
So doing random searches online will undoubtedly enable you to come across some if not all of the best products you need to import.
It is also ideal since it provides you with as many options as possible.
Therefore, making an informed choice becomes easy depending on your preference and other surrounding factors.
The other good thing with online search is that you tend to get more information than you ever had before.
· Referrals
This is unquestionably one of the best techniques which you can use to find any type of item in China to Import to UK.
What you need to know is that several people have been in this kind of business before.
So they understand all the aspects surrounding finding and importing goods from China to UK.
These types of people are the ones you can get in touch with to assist you in getting the particular items you’re searching for in China.
Referrals work excellently given that the individual you deal with has the knowledge, experience, and networks.
Listen, referrals in this case simply mean that you get in contact with an individual who has previously imported goods from China.
In this case, they direct you to specific places where you get such commodities, buy and the ship them to the UK.
The good thing with referrals is that chances of getting precisely what you need are always high.
And for that reason, it makes it possible for you to obtain them as well as making your general work relatively easy.
· Online outlets
Nowadays, several online sites that offer a wide range of goods have come up and are available on the internet.
So you don’t necessarily need to scratch your head too much about it.
In most cases, such as online vendors like Alibaba and AliExpress have a comprehensive database of Chinese manufacturers.
And so it becomes easy for you because you’ll find a list of several suppliers that supply various types of product categories.
Therefore, the most important thing that you ought to do in this case is making sure that you countercheck their credentials keenly.
This is necessary since it will enable you to prevent incidences of purchasing poor quality products. Better still, it also enables you to prevent issues todo with fraud.
The bottom line nonetheless is that you ought to search on such sites to get a general idea of how to find the particular products.
Chapter 2: Calculate the Cost of Importing Goods from China to UK
The number of importers ferrying products from China to UK is increasing day by day.
And this is a clear indication that trade relations between these two countries are also expanding.
Of course with this influx, there have to be control measures in place to ensure that the entire process moves smoothly.
As an importer, however, one of the core elements which you must always have in mind is understanding all the cost involved in shipping goods.
There is no way you can merely wait for everything to take place and just decide to make your payments.
It doesn’t matter whether you use an agent, which incidentally is preferable.
You need at all times to ensure that you understand all the processes and the costs involved.
So in this chapter, I want to shed some light in regards to the understanding of the shipping cost when bringing in goods to UK from China.
As you’ll find out in this guide, the costs tend to vary depending on a wide range of elements revolving around the entire process.
But before we discuss that, let’s first learn about the common incoterms when shipping products from China to UK.
Understand Shipping Incoterms
Like I did mention earlier on, you ought to know that there are specific international policies which guide every aspect of shipping consignments.
What this means is that you have to meet all the stipulated rules, terms and conditions that guide shipping goods to UK.
Indeed importing goods from China to UK is an international affair.
Therefore, it is a clear indication that it derives its policies from the International Chamber of Commerce.
At the moment though, let’s first explain some of these common incoterms in brief;
First of all, incoterms refer to a set of rules and regulations which outline the responsibilities of businesspeople for goods delivery.
In most instances, they vary from a number of commercial transaction, contracts, and means of shipping.
Comprehending the shipping incoterms gives you the foundation for international shipping.
Some of the shipping Incoterms when importing items from China to UK include the following;
· EXW Shipping to UK from China
It is one of the key incoterms you’ll always encounter when shipping consignments from China to UK.
Essentially, it refers to factory price for items which do not include shipping.
In other words, EXW shipping, therefore, means that you have to arrange for your transportation as the importer.
Also, remember that this transportation has to be all the way from the factory floor or supplier’s warehouse to your location in the UK.
It is imperative to understand this incoterm because it enables you to make rather quick decisions, especially when transporting the containers.
Furthermore, you also need to know that this particular incoterm also doesn’t require or involve several documents.
FOB Shipping to UK from China
This is also another common shipping incoterm that many importers bringing in good to UK from China have to understand.
Apparently, it is an abbreviation for Free on Board.
Well, what you need to know regarding this particular incoterm is that it somewhat requires or involves a number of documents.
What this obviously implies is that several costs, responsibilities, as well as risks involved in the importation process, are equally and fairly shared.
In most instances though, it is always the responsibility of the seller or supplier to cover for all costs involved in shipping the consignment.
But you also need to know that this can be to a limited point where the container is loaded on a vessel at the port.
In simple words, it means that your supplier will be responsible for the transportation of goods from their floor to the port of loading.
However, the responsibility shifts back to you as the importer the moment the vessel leaves the dock in China.
Additionally, FOB shipping terms also indicate that as the buyer, you must also take care of all the charges revolving around export clearance.
By the way, this is way important since the Chinese customs authority can seize your shipment if you fail to produce clear export information.
CFR Shipping to UK from China
It is also another common incoterm that you’ll always come across as an importer shipping good from China to UK.
CFR shipping is an abbreviation for cost and freight, and it is also a legal term in international commerce.
Nevertheless, it is a term that is strictly used for consignments transported by sea or inland waterways.
In general, CFR explains stipulates that it’s the responsibility of the seller to arrange for transportation of the container to port of destination.
So all you need to do as the importer is to obtain the necessary documents from the supplier to enable you to get the goods from the carrier.
Also, the seller should not necessarily purchase marine insurance to cover the risks of loss or damage of shipment during transit.
Still, this does not vindicate the seller from taking responsibility for any risk, loss or damage before clearing and loading the goods at the port.
Well, these are the common incoterms that you’ll possibly come across upon deciding to import goods from China to UK.
Of course, you may also come along other ones that are not mentioned here.
However, all you need to do is to ensure that you understand every detail of that particular shipping policy before appending your signature on it.
The most significant thing to do is ensure that you determine a specific incoterm which guarantees efficiency and reducing cost.
The bottom line is to ensure you get an incoterm which is simple, transparent and offer reasonable cost control.
On the other hand, you also need to be conscious of the fact that the particular incoterm you choose also depends on various factors.
Of course, you can use several ways to obtain the ideal incoterms as long as you get value for your money, efficiency, and convenience.
For instance, you may choose to obtain let’s say FOB from your seller and maybe DAP shipment from your freight forwarder.
It is all dependent on how you look at it and whichever way you deem ideal, convenient and cost-effective for the entire process.
Estimate cost of a shipping container from China to U.K
Let make it clear; shipping cost for containers from China to UK is dependent on a wide range of factors.
Also, it is something which involves many aspects that tends to alternate on a daily basis also depending on various elements.
The truth, however, is that you’ll find many costs involved when you’re importing products from China.
It thus makes perfect sense to ensure that you understand all the varying costs to ensure you have a clear insight into your actual price.
You see, understanding the shipping cost is fundamental since it enables you to price your products accordingly.
So that at the end of the process, you’ll be able to record reasonable profit margins to run your business.
Basically, the main determinants of shipping cost from China to UK include the size of the container, size of product, insurance, duties and cartage costs.
The cost also depends on the distance from the port of loading to port of destination as well as the mode of shipping.
In most cases though, many goods from China to UK are often shipped by sea.
But there are instances where some use railway transport as well as plane carriers.
For the sake of this guide though, I’ll give you a general overview of the cost of shipping a container from China to UK.
For example, shipping a 20” FCL container from Shanghai to let’s say Felixstowe is approximately $750.
And shipping a 40” container over the same distance may cost approximately $1400.
But as I always say, the cost can vary depending on several factors.
In this case, the port of loading and that of destination is what significantly determines the general shipping cost.
You also need to factor in the cost for hiring a freight forwarder.
By the way, if you want to make all the shipping process smooth, it’s imperative to work with a freight forwarder.
Of course, the charges for their services are also dependent on numerous factors.
Still, you need to find one that offers cost-effective services given that this is also business.
An ideal way would probably be to get referrals from your networks.
Better still, you can search online and read reviews of some of the well-established entities which offer such services.
The good thing with freight forwarders is that they always provide room for negotiation depending on the nature and load of work.
So you should never at any specific time rule out seeking their services for fear of cost.
Evaluate Cost of Goods to Import from China to U.K.
Well, different goods available for importation from China to UK have varied rates.
What happens typically is that suppliers and manufacturers often price their goods differently.
So the truth of the matter is that there is no specific or fixed amount of a particular product available for importation.
And to make it better, the availability of the several goods in different parts of the country also makes it necessary for you to get the best deals.
The secret in getting these best deals is to ensure that you search for the product exhaustively in various possible outlets.
You can also choose to use the services of an agent who can help you in getting the best prices for the goods you want to import.
You see, if you’re a first timer, it becomes somewhat difficult to know all the points where the particular products are manufactured.
So when you choose to deal with a local agent, it becomes easy to maneuver around and find such products at better rates.
The upshot nonetheless is that you need to carry out due diligence if at all you have to get the best prices for goods you’re importing from China to UK.
Calculate importing from China to U.K. Duty & VAT Charges
Listen, for you to import products from China to the UK, you have to know how to calculate the total costs surrounding the process.
Whether you’re shipping the items merely for residential or commercial use, you have to determine the total cost.
But the trick here often arises when it comes to calculating the charges and coming up with the correct figure.
In short, what I’m trying to say here is that for any business to thrive, it’s necessary to understand all the aspects revolving around it.
It is imperative to understand first how the tax system in UK works.
This, of course, gives you an idea of the approximate cost you might incur.
Understanding how to calculate the tax is also essential as it allows you to know the price which conforms to the UK market.
As a first-timer, you’ll always find it difficult to calculate the import tax.
However, you need to know that it is a simple task as long as you understand the basics.
So let’s look at how to do it, and we start with the understanding of what duties and taxes involves;
What do import duty and taxes involve?
In the UK, whenever you bring in goods outside the EU region, you have to pay duty and tax to the UK customs department.
The authorities will only release the goods once you pay the amount.
In other words, when calculating the cost of importing goods from China, you have to take UK duty and VAT charges into account.
The UK customs department have provided a duty and VAT tax estimator which indeed simplifies the entire calculations.
Furthermore, you may find yourself importing goods from China but still uncertain of how to pay the duty and VAT.
In most instances, it is the company that you use for shipping that shall contact you to inform you of the amount you need to pay the HMRC.
You also need to note that there are specific goods which have different duty and VAT charges from others.
Therefore, you may find that perhaps this time you bring in some products and the cost becomes lesser or higher than another time.
In a nutshell, it is significant to ensure that you research thoroughly on how the tax system works in the UK.
It is what will