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. Plunky97 is offline

      Join Date
      Dec 2010
      Location
      United Kingdom
      United Kingdom
      Posts
      53
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #1

      Importing from Chinese suppliers to the UK Shipping Terms FOB, CIF and C&F Prices?

      Ive been looking at shipping goods from China into the UK and there are a lot of different requirements and terms out there. What do I need to know about importing from China into the UK in order to figure out costs?
      Over 150,000 Verified Sources + Deals 95% Off MSRP + Free Website!

    2. lyndonb is offline

      Join Date
      Oct 2010
      Location
      United Kingdom
      United Kingdom
      Posts
      297
      Thanks
      0
      Thanked
      8 Times in 8 Posts
      #2
      Importing from other countries does add another dimension to the learning curve. Each distributor that you deal with might use a different process, and, as a result, have different terms of sale.

      There are three basic aspects that importing is based upon:

      Cost: this determines who is actually responsible for various costs involved with shipping at all points in the process.
      Control: this outlines the ownership of the goods during shipping.
      Liability: this concerns damage and risk of loss during shipping.

      It’s important to know these three shipping options that you’ll definitely come across.

      1. FOB

      FOB means “Free On Board.” A manufacturer uses this term to show that the buyer assumes responsibility for all the costs, risk of loss, or damage to goods from the time it reaches the means of transportation. FOB is only used for shipping via sea or inland waterway. The seller also clears the shipment of goods for export.

      However, once the goods are onboard, that’s where your responsibility comes in for all the aforementioned: cost of shipping, potential damages, etc.

      The FOB price includes: the actual cost of goods + transportation costs + insurance costs + the costs of loading goods onto the vessel.

      FOB does not include shipping freight or insurance.

      2. CIF

      CIF, or “Cost, Insurance, and Freight,” means the seller is responsible for the goods once they are onboard the ship. In this case, seller pays cost and freight to transport the goods to the destination port (as opposed to FOB where their responsibility is to bring it to the departure port).

      However, the buyer is still responsible for risk of loss, damage to goods, and any other potential surprises that come up that would add additional costs after departure. CIF “transfers” these responsibilities to the buyer after departure. In this case, the seller is responsible for insurance as well for any loss or damage the goods acquire during shipping.

      The cost breaks down like this: cost of goods + shipping freight + insurance.

      3. C&F

      C&F stands for “Cost and Freight.” It is determined by adding the value of the goods with the costs and freight for shipping to reach the final destination.

      The price breakdown looks like this: cost of goods + shipping freight.
      Want To Be An eBay Powerseller?
      This is the Service You Need.

    3. Plunky97 is offline

      Join Date
      Dec 2010
      Location
      United Kingdom
      United Kingdom
      Posts
      53
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #3
      Are there any other costs I can expect to incur besides shipping and insurance? What can I expect once it reaches the UK?

    4. NeilG is offline

      Join Date
      Dec 2010
      Location
      United Kingdom
      United Kingdom
      Posts
      89
      Thanks
      3
      Thanked
      4 Times in 2 Posts
      #4
      You’ll want to check the mode of transportation, because you can be charged additionally for road freight.

      Otherwise, once the shipment reaches the UK, there are standard charges for clearing customs.

      1. VAT

      These charges vary, depending on the cost of goods. You can find out the VAT percentage by visiting the HMRC website here:

      HM Revenue & Customs: Introduction to VAT

      If items are zero-rated, of course, you won’t be charged VAT; however, it is the buyer’s responsibility to let the supplier know if your goods are zero-rated.

      2. Duty

      C&E (Customs and Excise) duty can change, so double check the fees every time you ship. HMRC’s website continually releases updates on rate changes. I found this out the hard way. Last year, I was charged on goods that I’d been bringing in for years without any charge.

      You can find the Tariff codes on C&E’s website to figure out excise tax and duty. The website is here:

      HM Revenue & Customs

    5. lyndonb is offline

      Join Date
      Oct 2010
      Location
      United Kingdom
      United Kingdom
      Posts
      297
      Thanks
      0
      Thanked
      8 Times in 8 Posts
      #5
      Other fees you should be aware of:

      • Fees to clear customs.
      • A customs search fee, if applicable.
      • If your goods are held up for any reason beyond 7 days, expect rather expensive charges to incur. Customs holds goods free up to 7 days.
      • There is a separate charge for road freight, if that mode is used.

    6. pnr1211 is offline

      Join Date
      Jan 2011
      Location
      United Kingdom
      United Kingdom
      Posts
      1
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #6
      im also thinking of importing goods from china. the supplyer has specified FOB. would it be better to get a shipping agent to do all the paper work and costs. also is it better to get an agent in the uk or from china?
      many thanks pete.

    7. WholesaleForum's Avatar
      WholesaleForum is offline

      Join Date
      Sep 2009
      Location
      United States
      United States
      Posts
      2,924
      Thanks
      83
      Thanked
      775 Times in 307 Posts
      #7
      Hi Pete,

      Welcome to Wholesale Forum

      Get a UK based agent to start with, that way you are sure they will comply with local regulations and, if anything goes wrong, they are local to you and can deal with any disputes through the UK legal system.

    8. kaileebutton is offline

      Join Date
      Feb 2011
      Location
      China
      China
      Posts
      4
      Thanks
      1
      Thanked
      0 Times in 0 Posts
      #8
      I agree on the upstair, because you are the importer, definitely to work with UK shipping agent, they know rules and regulations for import to UK. As a Chinese factory person, we always quote FOB price, if CIF, insurance we will also handle, not only oversea freight. You can get lower price if do EXW but only for the buyer who work with Chinese shipping agent, pls compare shipping cost and profits.

Sign Up Now

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

Tags for this Thread

Similar Threads

  1. What is CIF Pricing? Definition of Cost, Insurance and Freight prices
    By T.Seller in forum Import & Export Discussion
    Replies: 2
    Last Post: 21 Jan 2011, 05:58 AM
  2. FOB Pricing- Definition of Free On Board prices
    By T.Seller in forum Import & Export Discussion
    Replies: 2
    Last Post: 22 Jan 2011, 05:20 AM
  3. Chinese Fireworks Suppliers - Importing fireworks from China to the UK
    By thekeusfamily in forum Wholesale Discussion
    Replies: 1
    Last Post: 27 Sep 2011, 10:10 AM
  4. Replies: 1
    Last Post: 19 Oct 2011, 04:52 AM
  5. Shipping Abbreviations and Terms
    By Sammie in forum Shipping & Shipping Documents Discussion
    Replies: 1
    Last Post: 17 Jul 2013, 07:56 PM
  6. Trying to figure out my payment and shipping terms on Ebay
    By LukeL89 in forum eBay, Amazon & Online Marketplaces Discussion
    Replies: 7
    Last Post: 24 Nov 2010, 05:08 AM
  7. Chinese suppliers overcharging shipping rates - How do I prevent overpaying
    By Antonio_lister in forum Shipping & Shipping Documents Discussion
    Replies: 4
    Last Post: 20 Jul 2011, 04:52 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 06:37 PM. - Fixed Width