Welcome to the WholesaleForum.com! Sign in or Register Free to benefit from our full range of free services

Welcome to Wholesale Forum.comWelcome ToWholesale Forum.comFind wholesale buyerstrade buyers and wholesale offers free

For Buyers

Wholesale Forum is the fastest growing online business community dedicated to retailers, auction sellers, surplus and overstock buyers needing a quick and safe solution for sourcing trade stock. Join our free and friendly forums today and gain knowledge, offer your advice, and discover new partnership opportunities:

For Suppliers

For wholesalers, dropshippers, manufacturers, distributors and trade services providers. Advertise your business today on WholesaleForum.com for free to reach potential trade buyers on a more personal level. Promote your latest offers, interact with buyers in real time, distinguish yourself as an expert in your field, and attract sales instantly.

Sign up now More benefits for Buyers
Sign up now More benefits for Suppliers
    1. angelicmarina is offline

      Join Date
      Apr 2011
      Location
      Australia
      Australia
      Posts
      1
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #1

      Dropshipping Legalities and Custom Fees - Chinese Dropshipper Invoices

      Hi Can you please help?! I am starting an online store selling via dropship. Is it legal for the dropship supplier (based in China) to send the package goods without a label or invoice?! They have no label not even their own and will not put my label on either. They send the invoice to me via email then I send an invoice to my customer.

      Also they say you do not have to pay customs I think because it's selling low cost items and one package at a time and not wholesale in bulk?!

      ALSO when do you start paying Australian taxes (I am based in Australia)? Do you start paying taxes only when you sell a certain amount?! and how do you do that?!

      Please help!! your help and guidance is greatly appreciated!

      Much Love!!!!!!!!! xo
      Want To Be An eBay Powerseller?
      This is the Service You Need.

    2. WholesaleForum's Avatar
      WholesaleForum is online now

      Join Date
      Sep 2009
      Location
      United States
      United States
      Posts
      2,742
      Thanks
      83
      Thanked
      732 Times in 303 Posts
      #2
      Hi Marina,

      Welcome to Wholesale Forum

      Let's start from your custom duties / GST query. The bottom line is that, if your involvement in the transaction is interpretable as being the importer, you cannot mark the imported goods as gifts. Let us clarify this. If the goods are sent by the Chinese drop shipper to the end user, but you receive the cost invoice from the Chinese drop shipper and reissue a commercial invoice (with your mark up and business details) to the end user, you are classed as the importer (even if you never get to see the goods). Therefore, in this scenario, you are legally required to class the goods as imports, and not as gifts.

      To mark the imports as gifts, the Chinese drop shipper would have to issue the end user with an invoice for the full amount you charged to the end user, and then you would invoice the Chinese drop shipper for your mark up. The end user would have to receive the invoice in the name of the Chinese drop shipper, and then you invoice the Chinese drop shipper for your mark up. This is the only scenario where you can legally mark the imports as gifts, because you are not the importer but acting as an agent for the Chinese drop shipper. The moment you invoice the end user for an imported product, you become the importer, and you are therefore liable for custom duties / GST.

      Since your imports are below A$1,000, and there are no custom duties or GST for imported products below this threshold, you could persuade your Chinese drop shipper to include your invoice in the parcels, mark the parcels as imports (and not gifts), and then let the parcel follow the standard imports process. This is the only legal way to get the order directly to the end user with your invoice inside the parcel. The procedure you are following at the moment is, strictly speaking, illegal, even if the end result is the same.

      Hope this helps For details on Australian custom duties and regulations please visit http://www.customs.gov.au/webdata/resources/files/importinggoodsbypostfaq.pdf
      How a New Online Retailer Made Over 3 million Sales in 1yr With These Sources

Sign Up Now

Got something to say? Sign up now and join the discussions.

Tags for this Thread

Similar Threads

  1. How to compile invoices and pro-forma invoices
    By Lewis 23 in forum Accounting & Tax Discussion
    Replies: 26
    Last Post: 05 Aug 2010, 08:49 AM
  2. Dropshipping fees and shipping?
    By Newtome in forum Dropshipping Discussion
    Replies: 3
    Last Post: 02 May 2010, 08:55 PM
  3. Sell on eBay using dropshipping - How to calculate profit, listing & final value fees
    By nathanmx in forum eBay, Amazon & Online Marketplaces Discussion
    Replies: 3
    Last Post: 13 Dec 2011, 09:21 PM
  4. International Dropshipping - Custom Duties Notification / Warning
    By Exillim in forum Dropshipping Discussion
    Replies: 2
    Last Post: 11 Aug 2010, 09:26 PM
  5. Replies: 1
    Last Post: 22 May 2011, 01:48 PM
  6. Replies: 2
    Last Post: 30 Nov 2012, 07:15 AM

My Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
All times are GMT -4. The time now is 06:28 AM. - Fixed Width