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    1. elektrobits is offline

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      #1

      Imported items from China for online resale UK - Public Liability Insurance

      Hi guys,

      I am new to this forum and was hoping for some advice....

      I have been importing from China for a while now and have been selling on Ebay smalltime in order to get a business model together and go full time importing/selling. Supply isnt an issue, but I have questions about the legalities of what i'm doing.

      Firstly, If I am getting products from China how can I know if they are suitable for sale in the UK? Eg: if I was looking at getting Xbox power leads, they would have to be UK spec and kite marked, yes? I see others selling exactly the same items that I can get so there must be a way.

      Secondly, Would you need liability insurance for selling these products? Consumer and trade electronics are what I will be specialising in so someone has to be liable for the product.

      If anyone has any info on this, I'd greatly appreciate any advice.
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    2. WholesaleMod's Avatar
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      #2
      Hi Elektrobits,

      Welcome to Wholesale Forum

      Quote:

      Eg: if I was looking at getting Xbox power leads, they would have to be UK spec and kite marked, yes?
      Yes, the Kitemark is one indication that that product can be safely resold in the UK, but manufacturers are not legally required to display a Kitemark on their products.

      The direct importer of any product into the EU/UK is responsible for ensuring these products meet the product regulations and have CE & RoHS testing/certification, otherwise the goods are illegal to resell in the EU/UK.

      If you want to resell your goods in the EU/UK you could get together a small order and have them tested at the SGS, they can test the goods for conformity to European and UK standards. SGS has an office in Guangzhou, China.

      We also want to stress the fact that branded goods can not be sourced from China. The brand name manufacturers in China have tight contracts with the brand holders they produce for. These contracts do not make it possible for them to sell to any other company besides that brand holder.

      Quote:

      Would you need liability insurance for selling these products? Consumer and trade electronics are what I will be specialising in so someone has to be liable for the product.
      Being the direct importer of the goods we highly recommend applying for product liability insurance. You'll be liable for compensation claims and therefor would need Product liability insurance if

      - Your business' name is on the product
      - Your business had repaired, refurbished or changed it
      - You imported it from outside the European Union
      - You cannot clearly identify the manufacturer
      - The manufacturer has gone out of business

      In any other situation other than the ones mentioned above, the manufacturer or the processor is liable. For the manufacturer to be held liable you would need to

      - Show that the products were faulty when they were supplied to you
      - Show that you gave consumers adequate safety instructions and warnings about misuse
      - Show that you included terms for return of faulty goods to the manufacturer or processor in any sales contract you gave to the consumer
      - Make sure that your supply contract with the manufacturer or processor covers product safety, quality control and product returns
      - Have good quality control and record-keeping systems

      For more information on product liability have a look at Product liability insurance | Business Link

      We also recommend you set up as a Limited company (If you are not yet set up) this will limit your liability to Ltd.'s assets. Being Ltd. will not be a full protection in case of any incidents, but you won't be personally held responsible, just your company and its assets. Read more about setting up as a limited company here Set up and register a limited company (private or public) | Business Link

      Hope this helps
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    3. Thank you for this post:

      elektrobits (13 Jun 2011)

    4. elektrobits is offline

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      #3
      Thanks for that great advice Wholesalemod

      I will look into test facilities on my items in future. I assume, if say it was an electronic item (like an MP3 player for instance) these would need some sort of electrical safety test? What do you know about non-electrical? For example, laptop bags...is it ok to sell this sort of thing just by importing and reselling?
      I am very much aware of the black market of branded goods from china and source useful manufactured items without any brand names attached so I am liable for these items as a uk re-seller. I am getting my business model together soon as I am just using ebay as a testing ground for market research before I become liable for VAT etc.

      Really appreciate all of your advice on these matters, it seems you know your stuff!

    5. Thank you for this post:

      Conhis Motor (03 Dec 2011)

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