Friday, July 29, 2016

Importing from China to Singapore: A Complete Guide

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singapore-port

Singapore is a country that’s punching far above its weight. With a population of only 5.4 million, the size of its economy is on par with many of its far bigger southeast Asian neighbors.
Singapore (if we exclude Australia) is also our primary market in Asia, both in terms of website visitors and the number of customers.
In this article, we give you an overview of Importing from China to Singapore. Keep reading, and learn more about Singaporean product safety, import duties, required permits and taxes.

Singaporean Product Safety Requirements

SPRING (The Standards, Productivity and Innovation Board) is a business development agency, partly tasked with protecting Singaporean customers from unsafe products.
Some products are covered by one or more Consumer Goods Safety Requirements (CGSR).
This includes, but is not limited to, the following product categories:
  • Children’s Products
  • Toys
  • Watches
  • Clothing and textiles
  • Furniture and beddings
As explained by this FAQ, suppliers (i.e., a Singapore based import business) are responsible for immediately halting sales if a product is deemed as unsafe.
So, what practical implications does this have for importers in Singapore?
Products within the scope of CGSR are required to comply with European Union, United States or International product regulations:
singapore-regulations
Note: This list can be found in the CGSR Booklet, on the official SPRING website.

How Importers Can Ensure Compliance with Consumer Goods Safety Requirements (CGSR)

Singapore has not developed its own set of product standards. Instead, it refers to EU, US and International technical and safety standards.
Let me explain what this means for your import business.

a. Assessing Applicable Standards

Go back to CGSR booklet and scroll down to page 15. Here you see a list of Children’s products, and applicable regulations.
For each product, SPRING has assigned a set of standards.
For example, as an importer of Bunk beds, you are required to ensure compliance with at least one of the following:
  • EN 747 (EU)
  • ASTM F1427 (US)
  • ISO 9098 (International)
Assuming we choose to ensure compliance with EN 747 (Read more), we can start looking for suitable manufacturers in China, or elsewhere in Asia.

b. Sourcing Manufacturers

When sourcing manufacturers, in any industry, it is crucial to first have identified all applicable product safety standards. Why? Because ‘previous compliance’ is a critical factor when selecting a supplier.
Now that we have identified EN 747 as the product standards we must ensure compliance with, we have a reference point.
For example, we can now start calling suppliers – and filter out all suppliers that cannot prove that they have experience in manufacturing products (Bunk beds) according to the requirements set in EN 747.
While I don’t have data for this specific industry, I can safely assume that most (say 90%) of all manufacturers don’t have experience with EN 747.
Clearly, we should avoid all such suppliers.
But, 10% is not all that bad. Assuming you would need to refer to an obscure Singaporean standard, that no supplier has ever heard of, that figure would go down to zero.
Fortunately, the Singaporean government understands this – but referring to unknown standards is a big problem for importers in Australia and many other (relatively speaking) small markets.

c. Compliance Testing

All major compliance testing companies, such as SGS and Bureau Veritas, offer services, testing products according to EU, US and International standards.
As such, you only need to refer to, in this specific case, EN 747 – and they’ll do the rest.

Electrical Consumer Goods

SPRING lists certain kinds of Electronic products, for home usage, that must comply with either a European Union EN Standard or an IEC International Standard.
The full list can be found on page 17 of the CGSR Booklet.
In addition to the mandatory product standards, Singaporean electronics importers must also ensure that the power plugs are affixed with the ‘SAFETY Mark’.
All power plugs must also be registered with SPRING, with the registration number present in the SAFETY Mark.

‘Can I import any product that is CE marked?’

The CE mark is a European Union compliance mark. It indicates that a certain product is manufactured in compliance with all applicable EN standards.
By putting one and one together, it would be reasonable to assume that all CE marked products are ready to be shipped over to Singapore.
However, doing so could be a grave mistake.
Many products containing the CE mark are not actually compliant with the applicable EN standards. The Singaporean government is, of course, aware of this:
‘Consumers should be aware of the various safety/conformity marks and their limitations. For example, the CE marking is based on a supplier declaration of conformity and there is no assurance that consumer goods marked CE have actually been tested to the relevant EN safety standards.’
Personally, I find it fascinating that the Singaporean government has a better understanding of the complexities surrounding compliance with EU regulations – than the EU authorities have.

Shipping from China to Singapore

Singapore is only 4 to 6 days away from China’s major ports, offering Singaporean importers the benefit of quick and cost effective sea freight from the world’s manufacturing center.
Below follows an overview:
  • Tianjin – Singapore: 7 – 8 days
  • Shanghai – Singapore: 6 – 7 days
  • Hong Kong – Singapore: 4 – 5 days
Singaporean importers also have the option of air freight and land transportation.

Customs Value

Import duties and other taxes (i.e., GST) is calculated based on the Customs Value. In Singapore, the Customs Value equals the CIF (Cost, Insurance and Freight) cost.
Hence, the Customs Value, in Singapore includes the following:
The official Singapore Customs Authority website provides additional information about conditions and alternative valuation methods.

Import Duties

Many products, imported from China to Singapore, are subject to Import duties. The Import duty is normally a percentage, calculated based on the Customs value.
As explained above, the Singapore Customs Value is based on the CIF price. Hence, you can calculate your Import duties as follow:
Import Duty = X.X% x (Product Cost + Freight Cost + Freight Insurance)
The next step is to find out which, if any, Import duty rate applies to your product. Luckily, the Singaporean government.
customs-search-1
Here, you can choose to specify an HS code, CA Product Code or a Description. In the example above, I just typed in “Watch”.
Let’s see what that gives us.
customs-search-2
The system gives us more than 50 different results, containing the word “Watch”. This includes, for example, the following:
91012100: OTHER WRIST WATCHES OF PRECIOUS METAL CASE OR CLAD WITH PRECIOUS METALS WITH AUTOMATIC WINDING (NMB)
91012900: OTHER WRIST WATCHES OF PRECIOUS METAL CASE OR CLAD WITH PRECIOUS METALS (NMB)
91029900: OTHER WATCHES INCL POCKET WATCHES OTHER THAN OF HEADING 9101 NOT ELECTRICALLY OPERATED (NMB)
The Customs classification of a product such as Watches is very specific, as detailed above. It’s up you to determine which HS code applies to your product, and then ensure that the cargo is declared accordingly.
Now, back to the Import duty rate. You can’t see it in the image, but in the columns on the right, you can read the applicable duty rate.
Here, you can also find a summary of dutiable goods in Singapore.

Goods and Services Tax (GST)

Not all products are subject to import duties. However, all imports valued above $400 are subject to a GST, currently set at 7%.
The GST is added on top of the sum of the Customs value and the Import Duty. However, as the Import duty is often set at zero, you might be able to leave that out.
Below follows an example:
GST = 7% x (Product Cost + Freight Cost + Freight Insurance + Import Duty)

Other Import Taxes and Fees

Alcohol and tobacco products are subject to additional fees, called excise duties. However, in this article we don’t cover Alcohol, tobacco or related products.

Registrations, Permits and Licenses

Before you can get started to import products, your business must go through the following registration steps:
Step 1: Register for Unique Entity Number (UEN) and Activate Customs Account
Step 2: Use the (HS/CA) Product Code Search Engine to confirm the HS code and import duty ate
Step 3: Register for IGB account with the Customs (required to pay import duties and GST)
Step 4: Furnish Security
Step 5: Apply for Customs Import Permit
This process is explained in greater detail on the Quick Guide for Importers, on the Singapore Customs website.

Visiting Suppliers in Mainland China

Singaporean citizens enjoy the advantage of visa free visits to Mainland China, for up to 15 days. Visa-free entry has only recently become available to other nationalities in China, and so far only for transit travelers.


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Monday, July 18, 2016

Buying in China and Selling on Amazon – Part 3: Product Guidelines

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Amazon Product Guidelines

In this third part of our series on Buying in China and Selling on Amazon, we guide you through Amazon’s Product Guidelines, which are part of Amazon’s Seller Policy.

In part, these terms refer to US product regulations and compliance, but also other, non-regulatory requirements sellers must meet in order to participate.
In this article we explain Amazon’s terms for CPSC product compliance, defective products and counterfeit items.
As always, we also explain how each term relates to the risks involved when importing from China, and other Asian countries.
If you’re interested in reading the first two parts of the series, you find them here:

CPSC Compliance Requirements

“Sellers are responsible for tracking and complying with any regulations issued by the CPSC.”
Compliance with applicable US product regulations is never optional, regardless of whether or not the items are sold on Amazon.com.
However, Amazon’s Seller Policy is explicitly referring to these regulations, clarifying that compliance is the sole responsibility of the seller.
Ensuring product compliance when buying from China is, in my opinion, the biggest challenge faced by American importers. Below I explain the three main reasons:
  1. Only a fraction of the suppliers in China can show previous compliance with US regulations (e.g. CPSIA & California Proposition 65)
  2. It’s often complicated to determine which regulations (often more than one) apply to a certain product.
  3. Ensuring compliance often requires product testing, which is costly.
Ensuring compliance is critical, not only for Amazon sellers, but all importers.
At best, non-compliance results in a forced recall. However, you may also be forced to pay millions of dollars in damages, in case someone is hurt, or if property is damaged.
Before you get started with your imports, you must first confirm which regulations apply to your product, and then limit your supplier selection to those who can prove that have a verified compliance record (e.g. previous test reports, certificates and American buyer references).
In addition, Amazon also requires the seller to comply with all applicable labelling requirements. These labeling requirements are often part product regulations, such as the CPSIA.
Amazon.com provides templates, that enables sellers to add warning labels (e.g. Choking Hazard Warnings) directly to the product page.
Follow the links below to learn more about US product regulations and labelling requirements:

Unacceptable and Prohibited Items

“Items in any of the following conditions are unacceptable for listing on Amazon.com:”
  1. Item does not work perfectly in every regard.
  2. Item is not clean, including signs of mold, heavy staining, or corrosion.
  3. Item is damaged in a way that renders it difficult to use.
  4. Item is missing essential accompanying material or parts. (This does not necessarily include instructions.)
  5. Item requires repair or service.
  6. Item was not created by the original manufacturer or copyright holder. This includes copies, counterfeits, replicas, and imitations.
  7. Item was originally distributed as a promotional copy, promotional bundle, product sample, or advance reading copy. This includes uncorrected proofs of in-print or not-yet-published books.
  8. Any aspect of the item is obscured and not able to be read or viewed because of markings, stickers, or other damage.
    Item is prohibited for sale on Amazon.com.
As any reputable marketplace, Amazon.com has set certain product requirements the sellers must fulfill.
At a glance, these requirements may seem rather simple and easy to comply with, but things always tend to get a lot more complicated when importing from China.
Keep reading, and I’ll explain what you must know about defective items, damages and counterfeits.

Defective items

It’s impossible to completely avoid quality issues when importing products from China. That said, the severity and rate of these defects can be effectively reduced, and controlled, by implementing a comprehensive Quality Assurance (QA) strategy.
It may sound like a monumental task, too big for any small business to implement. In fact, QA is not as complicated as it may seem.
What truly matters is that you implement a QA strategy from the very beginning, and not only in the later stages of the process. Click here to read more about avoiding defect and damaged products when selling on Amazon.com.

Damages, dirt, corrosion and mold

Apart from Quality Issues, transportation damages is another major risk. Many Chinese suppliers lack internal export packaging guidelines. As a result, many suppliers use cheap and substandard export packaging, thereby vastly increasing the risks of transportation damages.
During transportation, your cargo must be able to withstand heavy pressure from other cargo (especially when shipping LCL), shocks, humidity and liquids.
Always provide your supplier with clear export packaging quality requirements, and instruct your quality inspector to include the packaging in the inspection protocol. Below follows some general export packing quality recommendations:
  • Pallets: Wooden ISPM 15 Pallets (1200×900 mm)
  • Outer cartons: 5 layer cardboard
  • Inner cartons: 3 layer cardboards
  • Plastic wrapping: Yes (Outer cartons)
  • Plastic straps: Yes (Shall fix Outer cartons to wooden pallets)

Amazon Anti-Counterfeiting Policy

“The sale of counterfeit products, including any products that have been illegally replicated, reproduced, or manufactured, is strictly prohibited.”
This area is tricky. I think most of you understand that importing fake Gucci bags is not a good idea. However, things are not always as clear cut as obvious fakes VS original designs.
How do you know if that stainless steel coffee pot is an original design, or a replicate of some obscure Danish design company you’ve never heard of?
There’s a reason Chinese manufacturers aren’t famous for being the worlds leading innovators.
The items you see on sites like Alibaba.com are generally referenced products – either based on the products ordered by previous customers, or products that are more or less “inspired” by other brands.
That said, some Chinese manufacturers also develop their own designs, but I dare to say they are a minority.
In fact, we’ve had a few cases when our clients’ products turn up on a suppliers Alibaba.com page. Luckily, Alibaba.com has become much better at acting against IP infringements.
But, Alibaba.com, and other B2B supplier directories, can only act if they the infringement is reported.
While there may not be any cost efficient way to be 100% sure your product is not infringing on another company’s IP, there are still a few precautions you can take in order to reduce your risk of importing counterfeit items:
1. Create your own custom designed product
2. Modify an existing product

Returns, Refunds, & Cancellations

“Here are some situations when you may need to refund, accept returns or cancel orders:”
  1. You can’t fulfill an order.
  2. The customer doesn’t receive your order.
  3. The customer returns an item.
  4. The customer files a credit card chargeback or an A-to-z Guarantee claim.
  5. The customer requests you cancel an order.
  6. The buyer is unable to receive the order at the address provided.
There are various reasons you are forced to refund a customer. Below I explain what you must know about the two most common reasons.

Returns

A customer is not always returning products due to defects or damages, even though quality issues are very likely to result in a high return rate. However, managing quality issues is already covered in this article, so let’s look into how you could end up in a situation where you fail to deliver orders.

You can’t fulfill an order

In order to avoid a situation where you fail to deliver the products, you need to maintain a sufficient quantity in stock. This is often easier said than done.
For natural reasons, importers want to avoid excessive inventory. On the other hand, lead times to restock are long, and prone to delay.
Chinese suppliers rarely keep products “off shelf”, and certainly not products compliant with US product regulations (e.g. California Proposition 65).
Your items must be manufactured before they are shipped, a process which usually takes 30 to 50 days, largely depending on the quantity and complexity of the product.
Then the cargo must be shipped from China to the United States, adding on another 20 to 35 days. In total, you are looking at 2 to 3 months, before the items are restocked, counting from the order date.
However, that is assuming you face no delays whatsoever. But delays are common in China. Maintaining sufficient inventory is complicated, and requires very serious planning.
It’s also a critical Sales Performance signal, that has a great effect on your ratings on Amazon.com. Click here to read more about how you can avoid delays when importing from China and selling on Amazon.

Product Packaging

Amazon’s terms are not limited to the products, but also specify strict requirements forproduct packaging. In most product categories, the packaging requirements are related to whether the item is marketed as new, used or refurbished.
However, certain products must be delivered in a new, and unopened, packaging. This is what Amazon.com requires for wristwatches:
“All watches must come in their original packaging, including all original packaging materials and instruction manuals.”
Also, even if not explicitly referred to in the Amazon.com Participation Policy, all US packaging regulations, and labelling requirements, are applicable.

Before you place an order, you need to confirm which apply to your products, and verify the supplier’s previous compliance record.

Thursday, July 14, 2016

Slowing China Economy Ripples Into Laos


A slowing in China’s economy is having rippling effects on Laos, which has been described by the World Bank as having “once of the fastest growing” economies in the East Asia and Pacific region.
A decade long mining boom, combined with a rapid development of hydropower, has seen Laos’ growth rate reach over 7 percent a year, allowing national output to more than double, generating some half a million jobs.
A key player in the economic progress has been China. A recent World Bank report on the Lao economy noted China’s influence was continuing to grow.
China is the leading investor, with $6.7 billion in 760 projects from mining, to energy, agriculture, banking and trade as well as construction of commercial properties. 
In 2015, China accounted for more than 40 percent of Laos’ public external debt, up from 35 percent three years earlier, with the funding focused on infrastructure and power projects.
Slowdown 
But signs of a spillover from a slowing in China’s economy has come in a downturn in bilateral trade, according to senior Lao officials. Two-way trade accelerated from just $1.3 billion in 2011 to reach $3.6 billion in 2014. But it slid to $2.78 billion last year. 
Laohoua Cheuching, a senior official in the Ministry of Industry and Commerce, recently told Lao media that new initiatives are needed to stem the slowdown.
Laohoua said the downturn was due in part to a slowing global economy. Lao exports to China focus on mining and agriculture, especially rubber, while key imports are machinery and electronic equipment.
“We have to find new products to export to offset the loss. If not the value of our exports to China will decline further,” Laohoua told the Vientiane Times.
The World Bank has also raised concerns over the slowing China economy that “may effect some potential investment on pipeline projects that do not have secured financing.”
China is also a key investor in real estate. In Vientiane, Chinese owned commercial buildings stand developed or under construction. This includes the $1.6 billion That Luang Lake residential and commercial complex covering 365 hectares.
In December last year, Chinese and Lao officials witnessed the “ground breaking” ceremony for a 427 kilometer $6.04 billion high speed rail line from Vientiane to the Chinese border. The project, requiring 100,000 Chinese workers, was the mainstay of former deputy prime minister, Somsavat Lengsavad.
But Vientiane-based analysts told VOA the project’s cost and the departure of Somsavat from the government has created some uncertainties about the project.
Diversification
Analysts say Laos’ dependence on China and narrow industrial revenue base of hydropower and mining leaves the Lao economy vulnerable.
Asian Development Bank (ADB) senior country specialist, Shunsuke Bando, said Laos has to diversify especially amid rising competition from the ASEAN Economic Community (AEC).
“The economic structure is heavily reliant, heavily dependent on mining, electricity. So in this context the country has to diversify its economic structure,” he said.  
“They have to expand their industrial bases, such as textile garments, food processing and so on – is more important for this country’s future,” Bando told VOA. 
The ADB says growing regional competition, a weak industrial base and human resource skill shortages are undermining the Lao business sector. 
“They are lacking and running short of skilled workers. Even the low level workers, their skills are very low compared to other countries,” Bando said.
Faced with economic uncertainties, Lao Prime Minister Thongloun Sisolith has moved to strengthen regional business and economic ties, signing key trade agreements with Cambodia and Thailand during recent official visits. 
Pavida Pananond, a professor of international business at Thammasat University in Bangkok, said Thongloun’s strategy appears to be directed to building on Laos’ regional connectivity. 
“It’s not surprising that the Lao Prime Minister would now be trying to change the perspective that this is a land locked country but a land linked [one] because he wants to make use of regional integration,” Pavida told VOA.
Signs of success in diversification are starting to emerge. Laos has in place more than 10 special economic zones throughout the country, with 200 registered businesses in different stages of development.   
The economic zones largely focus on entertainment services, logistics as well as manufacturing and commerce, employing more than 11,000 workers, 60 per cent of whom are foreign. 
ADB analysis says Laos is expected to be “well positioned to tap on new market opportunities arising from deeper ASEAN integration”. 
“Deeper integration could accelerate growth and development and contribute to achieving Lao PDR’s goal of graduating from least-developed status by 2020,” the ADB said.
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Friday, July 1, 2016

Import from China to the UK: A Complete Guide

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United Kingdom

About to Import products from China to the United Kingdom? Eager to know how the ‘Brexit’ will affect your business?
Read this guide to learn what you must know about product regulations, labelling requirements, import duties and VAT in the United Kingdom.
We also explain why UK based importers should not worry too much about the country’s departure from the European Union. Well, at least in the mid to long term.

Important NoteAs of now, this guide applies to importers in all EU member states. Thus, the UK is interchangeable with any other EU country. That is, of course, until we create an updated version of this country guide in 2018.

British Product Safety Regulation

As the United Kingdom is (still) part of the European Union, EU wide standards and directives are mandatory.
Below follows an overview:

REACH

REACH regulates chemicals in all consumer products sold within the United Kingdom, and all other EU member states.
Products covered by REACH includes, but is not limited to, the following:
  • Clothing and textiles
  • Toys
  • Electronics
  • Furniture
  • Product packaging
Importers don’t need keep track of which substances are regulated (new chemicals are added regularly).
Instead, you only need to refer to “REACH”, when communicating with both suppliers and testing companies.
While REACH compliance is always mandatory – third party testing is not. That said, a non-compliant product must be removed from the market.
The only way to be sure that your product does comply, is by submitting batch samples to a laboratory.

CE Directives

CE marking is mandatory for many product categories sold in the United Kingdom, including the, but not limited to, following:
  • Toys
  • Electronics
  • Machines
  • Medical devices
  • Construction products
There is not a single “CE marking directive”. Instead, there are more than 25 different directives that all requires CE marking.
One or more CE marking directives may apply to one single product. Take a Bluetooth speaker ,for example, which must comply with the following:
  • R&TTE Directive
  • Low Voltage Directive (LVD) Included in R&TTE
  • EMC Directive (EMCD) Included in R&TTE
  • RoHS
The CE mark itself is not enough to ensure compliance. If you are importing products from China to the United Kingdom that must be CE marked, you need to gather a full set of documents:
  • Declaration of Conformity
  • Test reports (although third party testing is normally not mandatory)
  • Product photos, design drawings and BoM (Bill of Material)
  • List of applicable directives and standards
  • Risk assessment
Don’t expect much help from your supplier, as it’s not their job to ensure compliance with UK regulations.

RoHS

RoHS restricts heavy metals, such as cadmium and lead, in electrical components and solder. Compliance is mandatory when importing electronics to the United Kingdom, and all other EU member states.

EN 71

EN 71 is a toy safety directive. In fact, it’s part of the “CE marking directives”.
Compliance is mandatory for all toys, and often recommended by industry experts for all children’s products.
EN 71 is split up in more than 10 sub-parts, and covers chemical restrictions and physical properties (i.e., seams and sharp corners).

Food Contact Materials

Kitchen utensils and food packaging are regulated by Regulation (EC) No. 1935/2004.
UK based importers of FCM (Food contact material) products must issue a Declaration of Conformity, and are recommended to submit batch samples to a third party testing company.

British Labelling Requirements

CE Marking

As mentioned in this article, CE marking is mandatory for products that fall within one or more EU product directives.
The CE mark must be applied to the product unit, and its packaging.

WEEE Marking

WEEE marking is mandatory for electronics, and must be affixed to the product packaging.

Textiles Labelling

The United Kingdom has a set of mandatory textiles labelling requirements, which covers the following:
  • Fiber composition
  • Care instructions
  • Language

Customs Duties

Most products imported from China to the United Kingdom are taxed by an import duty.
The import duty is normally paid upon arrival, either directly to the HM Revenue & Customs – or, through a freight forwarder.
You can click here to access the official UK database of all trade tariffs

Customs Value

The import duty is calculated as a percentage on top of the customs value:

Import Duty = Customs Value x X.X%

In the United Kingdom, and all other EU states, the customs value is normally based on the CF value, which includes the following:
1. Product value (as paid to the supplier)
2. Transportation cost to the United Kingdom (but not transportation costs within the UK or other EU states)
3. Transportation insurance
The UK customs value may, depending on the situation, also include the following costs:
1. Tooling costs (paid to the supplier)
2. Design and other service fees (paid to the Chinese suppliers, but not domestic service providers)
3. Product samples (paid to the supplier)

Value Added Tax (VAT)

The standard VAT rate in the United Kingdom is currently (2016) set at 20%.
When importing goods from China to the UK, VAT is paid to the HMRC – or through the freight forwarder – upon arrival.
The VAT rate is calculated on top of the sum of the Customs value and the import duty. Below follows an example:

VAT amount = 20% x (Customs Value + Import Duty)


Case Study: UK Import Duty and VAT Calculation

Cost / TaxCalculation (£)Sum (£)
Customs Value (CIF)1 x 20,000£20,000
Import Duty (6.5%)6.5% x 20,000£1300
VAT (20%)(20,000 + 1300) x 20%£4260
Total20,000 + 1300 + 4260£25560

EORI Number

The EORI (Economic Operator Registration and Identification) number is mandatory for all UK based importers.
You can apply for an EORI number directly on the HMRC website.
The EORI number application is free, and normally takes 2 to 4 working days. However, make sure to apply before you order products from Asia, including product samples.
Without an EORI number, the customs are likely to put a temporary hold on incoming shipments (both container cargo and product samples).
Hence, an “early” EORI number application can help you avoid delays.

Import Licenses and Permits

For most products, British importers don’t need any Import license or special permit. However, special requirements applies to products that fall within any of the following categories:
  • Chemicals
  • Pharmaceuticals
  • Other medical products
  • Agricultural products
  • Live animals or plants
  • Chemicals
Hence, the average Amazon seller or Ecommerce companies don’t need to worry about obtaining any permit.

How will ‘Brexit’ affect product standards, customs duties and other import regulations?

We decided to put this article on hold until after the referendum – and here we are. The United Kingdom is set to leave the European Union.
The United Kingdom is fully integrated with the European Union, which has the following impact for importers:
a. All EU product directives apply in the United Kingdom. As such, British importers can simply refer to well established EU standards and regulations.
b. Import duty rates are harmonized throughout the EU. Hence, UK importers pay the same import duties as those based on other EU member states.
In addition, EU companies and individuals don’t need to pay import duties when buying products from UK sellers.
c. VAT applies in all EU states, including the UK.
At the time of writing, it’s too early to say what this means for import businesses in the United Kingdom. The short term effect is felt by the rapid depreciation of the British Pound.
However, with at least 2 more years to go as an EU member state, the mid to long term prospects are still unclear.
That said, it is extremely unlikely that the United Kingdom would opt out of the EU product regulatory framework. The UK alone is too small of a market to support implementation of its own product standards.
In addition, the UK will most likely have access to the EU single market in the future, which means that customs duties and the VAT system will be aligned with the rest of Europe.
The more things change, the more they remain the same.

Do you have more to say about Importing from China to the United Kingdom?

Did we miss anything? Do you have more to say about this topic?
Don’t hesitate to write a comment in the field below. We read and respond to comments on a weekly basis.



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We are the experts when it come to doing business with China suppliers etc. Travelling through China will be more easy and more satisfaction when you know what to do, how to do it and knowledgeable about it.