In recent years China has become a fantastic source of products for international sellers to export goods. In 2021 China exported a total of 331 billion USD in goods worldwide, with 61 billion exported to the UK. Due to the mass growth of China’s export capabilities, many organizations have begun developing their supply chain. However, importing goods from China is a strict process due to regulations in place by China and the United Kingdom.
This article aims to correctly guide how to import goods from China into the United Kingdom.
What Products Does the UK Import From China?
Within the United Kingdom, many goods are exported from China depending on the industry. However, the top products which were imported in 2021 were:
- Electrical and electronic equipment at $19.73B
- Machinery, nuclear reactors, and boilers at $17.58B
- Furniture, lighting signs, prefabricated buildings $6.72B
- Miscellaneous chemical products $6.00B
- Toys, games, sports requisites $5.39B
These statistics show that the main import into the United Kingdom is Electrical equipment. This can come from various organizations such as physical stores and E-commerce businesses. The second largest is business-focused machinery for manufacturing and engineering projects.
As shown above, there is a split between corporate construction goods and consumer products imported into the United Kingdom, showing the range of available goods and allowing flexibility for organizations to expand their product offerings.
Get Your EOIRI Number
To begin the importing process, an EOIRI number is required. EOIRI stands for Economic Operators’ Registration and Identification System. This number becomes a reference point for dealings with the customs authority. The requirements to obtain this include:
- A registered office within the United Kingdom (referred to as being “established”)
- Unique Taxpayer Reference (UTR)
- business start date and Standard Industrial Classification (SIC) code
- Government Gateway user ID and password
- VAT number and effective date of registration
- National Insurance number (only if sole trader/self-employed)
Getting an EOIRI number is essential if you use the United Kingdom as a transfer country to ship elsewhere. To apply for this number, you must visit the Government website and fill in the application. Once this step has been completed and the number has been issued, you may move into the next step.
Find the Ideal Supplier
When searching for products to import from China, finding a supplier that suits your business needs is key. Within China, several vendors and platforms allow for the streamlined sourcing of suppliers. These can include:
Alibaba
Alibaba is a B2B platform for suppliers to sell goods globally. This platform has a vast range of products. It enforces a minimum purchase amount. Therefore, bulk buying is required.
Trade shows
Trade shows are a fantastic way to see products and develop supplier relationships. This, however, will involve traveling to China. Guangzhou’s Canton Fair, Shanghai Import and Export Fair, and Zhejiang’s Yiwu Commodities Fair.
United Kingdom trade shows:
As well as Chinese trade shows, many suppliers also participate in fairs within the United Kingdom, depending on niches such as the China British trade expo.
Third-party sourcing organizations
Organizations exist within China that are specialists in sourcing quality suppliers for sellers to find suppliers that match their needs completely. These organizations build deep relationships with several factories to develop a network to provide sellers with quality choices without the stress of developing relationships, traveling to China, or dealing with potential low-quality suppliers.
Make Sure Your Product Can Be Exported to the UK
When dealing with products in china, two significant factors must be considered, the first being finding a supplier who can legally export goods from China to the U.K. Businesses within china must have the correct certifications and licenses in place for goods to follow the regulations. As well as this, they must be able to export declarations (a type of form submitted at the port, providing details about the goods that are bound for export.)
Check the Commodity Code
Certain taxes must be paid when bringing items to the UK for business purposes. This amount is dependent on the item in question. To do this, the government has provided a list that associates a code in-line with product tax which must be stated in the import documentation. This guide is called the trade tariff tool. It will also give guidance on whether you need additional licenses for goods such as chemicals.
VAT and Import Duty
As stated above, if you import items into the United Kingdom, you must pay the VAT with the total sum of import duty and customs value. When goods have been sent from outside of the EU, and the value exceeds £135.00, they will incur what is known as Customs duty.
Once the commodity code is found for the goods you are importing, you will be able to figure out which import duties you must pay. A simple way to work out how to pay VAT is to add up the total value of your products and then include any freight costs, insurance, import duty, and any additional costs. And then multiply it by 20% (the United Kingdoms VAT rate).
Ensure Compliance With UKCA Mark and Other Regulations
Goods imported to the UK must be safe for consumers. Because of this, regulations are in place, such as the UKCA mark. This ensures conformity with UK legislation regarding safety and quality. Other products will have other rules.
This can be pretty difficult for organizations to organize independently due to the intricate nature and need for comprehensive lab testing to ensure goods conform. Because of this, third-party quality assurance organizations (much like us at AQM BD) are in place to help with the full range of needs, from product testing to shipment inspections and labeling. Having a third-party organization allows for a streamlined approach to the supply chain, eliminating the chance for goods to fail inspections or not comply with the abovementioned regulations.
Ensure the Quality of Your Products
When importing goods to the U.K, the most important thing is that the products have excellent quality. This ensures more minor issues with complying with government regulations and protecting your brand’s image with consumers.
Suppose the quality of your products is of low quality or even potentially dangerous. In that case, this could damage your brand’s perception and cause delays within the supply chain with goods being held at customs or even sent back, causing monetary issues.
We at AQM BD exist to assist organizations in avoiding this. We have over 25 years experience in industry-leading quality control. We have been helping organizations importing goods into the U.K by providing rigorous testing, inspections, and consulting to ensure organizations’ supply chains are up-to-date with the latest regulations. Contact us today.
