Importing from China

Hi

I have identifed a manufacturer of good quality sports shoes in China. We will be placing an order with them shortly. First order is 1500 pairs of shoes. As this is new territory for me I am looking for some info from anyone who is or has imported from China.

I want to knwo how shipping is handled. Does the manufatcurer in China organise shipping and delivery direct to my premises or just to the port. Do i Need to organise my own delivery from Port. If so what are the costs of getting a container unloaded and is there other costs involved.

Any advice on what I need to be aware of getting the products from China to my door would be gratefull accepted. I m getting lots of conflicting info from people to date and have found this forum provides accurate info in the past.

Many Thanks in advance.

Buzz any freight company and they will advise re vat and containers etc

Thanks for the info

Olatc

I imported from India and can inform you that the shipping was covered in the purchase price to Dublin port.

I had to deal with the customs clearance and pay the excise duty in Dublin before the goods would be released. This can be done through the shipping company for a fee.

Then I paid for delivery from Dublin port to my own storage and had a set period of time to unload, again at my cost.

If the goods are held in Dublin port this will be to your cost as the container is taking up valuable time and space. There are daily charges for this.

The shipping company MSC were the carriers all the way through which made it easier as there was one point of contact.

Payment was set up that once the delivery hit the port and acknowledgment was confirmed, payment by IBAN went through from our own bank.

I used to import from China, you pay money for goods and delivery / courier / - transfer to manufacture. They organize delivery. They should give you tracking number to let you track your goods. You can see on DHL/TNT/UPS etc. website where actually is package. When the goods arrived to Ireland than like DHL call to you to let you know how much you have to pay for VAT and other fee. TNT and UPS they never call before delivery to me. So you may be surprised that you have to pay at door if you don't know where is package. I recommend to track package. If you want to have the same courier for long time you can sign contract with them. Courier should give you VAT an fee bill or post to you.
I always have delivery door to door. For big containers you can call courier and ask for details.

Generally the manufacturing company in China can arrange the ocean freight cheaper than you can from here, especially if they are an experienced exporter. Ask for a price based on CIF Icoterms to Dublin port. Freight costs are high at the moment. You are then responsible for all costs from when the ship docks - ie unloading, storage, moving around the docks, customs clearance charges and delivery to your premises. This alone could be up to €500 for a Dublin delivery so be aware. Under CIF, vendor insures the goods until the goods are unloaded to the storage area in the docks. You need insurance to cover the time from then until goods reach your warehouse or you could take the risk.... You also pay the import duty and VAT - check the rate on the Eu tariff website or revenue.ie. Duty is based on invoice value plus freight cost.

Ask a few freight forwarders here for a price - it may vary as the charges in Dublin will vary depending on the freight liner that your vendor in China chooses - sometimes they give a cheaper price at the China side and allow their agent here to bump up the costs at Dublin side.

Price will also depend on transport cost from China comapny to the China port - this can be suprisingly high so another reason to let them arrange all costs to Dublin port.

Also consider how you manage the currency risk from buying in China (Usd) and selling in Euro. Talk to your bank about a forward exchange contract. 30 + days transit can see a big movement in exchange rates.

I would recommend talking to local Chamber of Commerce if you will be doing this on a regular basis - they have great experience with International trade.

Also check if there are special punitive import tariffs for shoes - I think there are/was for textiles so footwear may be included also.

Hello Olatc,

I have dealt with shoe imports.

1) 1500 pairs of shoes is likely be a Less than Container Load (LCL/Groupage) or maybe a 20' container. The mode of transport would be Ocean as it would not make sense to use a courier like DGL/UPS/TNT or FEDEX for anything larger than sample shipments. I suggest to be carefull and check the arrangements the shipper is making to move the goods to Ireland. I have seen it happen many times ; the shipper gets a very low rate to Dublin from a Chinese Forwarder / Carrier. The problems start on arrival in Dublin when the charges you then face are likely to be off the scale. I would suggest the following ;

A) Obtain a CIF price and an FOB (named port) price from your supplier.
B) Ask your supplier to confirm the weight and measurement (cubic meters) of the shipment
C) Ask your supplier to confirm who the agent in Ireland is of the Chinese Forwarder / Carrier he intends to use
D) Check with that agent what his charges are for Depot Handling / Unloading, Agency, ISPS, Customs Clearance and delivery
E) Ask your supplier to confirm the insurance details. Best would be a copy of the policy for review. Important to ensure it is an "All Risks" policy and includes "General Average"
F) Based on the answers to B and E source pricing for shipping from FOB to your door here in Ireland. I would be happy to assist with same.

2) Shoes are likely to attract a rate of duty of 17%. There may be an "Anti Dumping" Duty in addition to that. I can help you to classify the shoes from a customs point of view, confirm the rate of duty and if there is an Anti Dumping duty. Would need to know what type of shoes they are. What material the "uppers" are and materials the soles are made of.

3) Your chinese supplier is likely to demand a deposit on placing the order with the balance payable before the goods are shipped, or the documents are sent forward through the bank on a Cash Against Documents basis. You will get release of the documents (including the Original Bill of Lading which gives you title to the goods) upon settlement of the balance due.

It may sound very complicated, but it is in reality very straight forward if all the arrangements are made prior to the goods leaving the factory. I have a document that you may find helpful. If you PM me your e-mail address, I will e-mail it back to you.

If there is anything not clear or your need more information, let me know.

Best regards,
Rudolf289

JoeRoberts said:

Generally the manufacturing company in China can arrange the ocean freight cheaper than you can from here, especially if they are an experienced exporter. Ask for a price based on CIF Icoterms to Dublin port. Freight costs are high at the moment.

Click to expand...

As you describe, often leaving the shipping arrangements to the Chinese exporters can lead to higher costs this end. Also, probably a typo ; INCOTERMS (?)

JoeRoberts said:

Duty is based on invoice value plus freight cost

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Duty is based on invoice value plus freight cost to first European Port plus Marine / Cargo insurance. The cost from the point of transhipment (usually Rotterdam / Antwerp or Felixstowe) to Ireland is not to be included when calculating duty.

JoeRoberts said:

Also check if there are special punitive import tariffs for shoes - I think there are/was for textiles so footwear may be included also

Click to expand...

There never was a "punitive import tariff" for clothing. There was an anti-dumping tariff for shoes. However, most of these - if not all - have been eliminated as far as I can see.

Regards,
Rudolf289

make sure to double check samples before paying. I have imported and goods came in with a slight miscolour that caused a lot of problems. Could have been solved had i spent a little more time and been a little more cautious.

get the best exchange rate by calling the banks and also call transfermate.com to see who offers the best rates.

Thanks for all the advice

100% agree with Rudolf that leaving freight to the Chinese supplier to arrange looks great on paper but when the goods arrive often the costs stack up to get them out of the Irish port and to your door. You'll probably have already paid the supplier for hte goods at this stage (in order to get them shipped and in accordance with business practice in China) so you have no leverage to resolve these issues and will end up paying unexpected additional costs just to get your goods. Often much better to order on FOB basis (to the port in China) and then arrange with an Irish Freight Forwarder ( get lots of quotes and compare like with like) to take the goods from the Chinese port to your door. Then the goods are under your control and under your insurance (via the FF) from the point at which you pay over the balance of the goods price to the Chinese supplier. And next time, if you can try to take a full container load - makes a lot more sense and is a lot smoother than an LCL shipment.