Hi there and thank you in advance for your help.

I am very new to import export and have a few questions if you kind people can find the time to answer it.

I understand and have the ability to calculate my import duty for products that I buy from CHINA. The question I have is that some of the quotations that I have received have also included a DUTY payment.

Is this EXPORT DUTY if so what are the guide lines and prices involved because I am a little confused at the high cost of this DUTY on some of my quotations.

For example I have recently received a quotation

Hi Jason,

 

FOB Ningbo USD 14.16/set

 

For oder under USD 5000, we will need USD 150 as customs and hanlding fee.

 

Thank you and best regards,

Obviously my concerns are that initially my orders would have to be small so as to gain experience with the company service and quality assurance. so this fee will greatly increase the cost of the items per piece and therfore make the project non viable.

Any help and indicators will be greatly received

Jason

The price they quoted you is per item on a FOB basis.
That means that YOU pay the freight from Ningbo (China) to your Port.
You also pay the Import Duty and Clearanbce charges at your end.
If you purchase LESS than 5,000 items, they (The Supplier) will also charge you an additional $150 for their charges at their end.

Thank you, I understood what they were saying and am happy to pay my charges my end. What I wanted to know was what is the $150?

If I am already paying the shipping and handling then what is the extra $150 for? I dont understand what extra costs the company could have to induce this extra cost.

If anyone can explain the reason for this extra cost it would make it easier to understand.

Thanks

Hi,

if I understand it right, Chinese Company sells on wholesale basis.

If you buy LESS items then they offer at this price, you' ll be charged extra.

For example, 1000 items - 10,000 Euro.

750 - 15,000 Euro.

If you want to save - you must buy more, if you don't to - have to pay 150$.

I am not sure, just conjecture.
In any case, ask THEM for details.

Regards

Thanks for the reply, I woill ask them but I just wanted to get a heads up here before going to them and sounding a bit stupid.

For oder under USD 5000, we will need USD 150 as customs and hanlding fee. All I am trying to find it is do they have any customs fees to pay? and if I am paying for shipping then is this the handling fee.

The only reason I am asking is that I dont want to get it wrong. I am not aware of any customs fees payable by the exporter and then the handling fee can be discussed.

If there is a higher premium for buyin less products I totally understand that, but that should be reflected in the price per unit rather than an EXTRA surely?

mumsbestfriend,

sometimes it is better to LOOK silly then TO BE a fool later.

If you ask them - nobody will eat you.

you have the right to ask and to have an answer. If they are polite and careful - they will explain you well.

If they don't to - just forget and say "happy me that I haven't sent them my money".

I don't know what they mean when speaking about additional 150$, but you have a chance to discuss it with this Chinese Company.

If you want - tell us what they told you.

Don't shy - this is a key factor.

Avoid all those fees by requesting Chinapost as long as your total cost is below 2000USD (or 250USD for items like flowers billfolds,feathers, footware, fur or gloves.) you can avoid vessel shipments, FOB etc. and literally get the shipment to your door via USPS through Chinapost or HongKong Post and only owe the US Customs fee of 5.00 USD per box + the customs duty which is usually under 5% and standard shipping (no need to pay a customs broker or that lame down payment to secure a bond). Keep it under 2000 and you should be fine. No formal entry required no paperwork and hassle. 

Good luck
Thomas

 makes some sense, Thank you very much.

This makes a lot more sense and does indeed reduce my costs quite considerable, unfortunately these items are each the size of a small breif case. Would these items then be too big to use this method?

I appreciate your help as I said, we are still very new to this.

Thanks again

Jason