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Importing goods from the USA to the UK.

3 replies

mrswishywashy · 26/04/2014 13:46

Does anyone know the process for customs duties for importing goods to the US. It is a child related product not sold in the UK at the moment and I've talked with the USA business about being the supplier here but getting very confused about the customs and taxes etc.

Each individual item is $17US and selling it would be a minimum of £30.

Any advice greatly appreciated.

OP posts:
LancashireMan · 29/04/2014 21:19

The HMRC website is pretty comprehensive about this sort of thing.
www.hmrc.gov.uk/customs/post/buying.htm

Additionally, you also need to check re health and safety particularly for child-related goods. Contact your local trading standards office for help.

Remember also that almost certainly you'll be paying the shipping, packing and insurance costs from the USA - depending on the volume and weight of product, that can be significant in cost.

So in summary if you are buying for $17, net price, you might have to pay 5% import duty (estimate), 7% shipping etc (estimate) , so it might cost you $20 - about £13. If the sales price is £30 including VAT ( £25 net) you'll be on a margin of about 90% - at current exchange rates. If the £ falls against the $ - and inevitably it will at some point - your margin will go down as you'll need more £ to pay for the goods.

If the business looks positive, you might want to think about getting the Americans to sign an exclusive agreement (according to the laws of England) with you for Europe and/or UK as, without an agreement, they can sell to anyone and everyone and those others could undercut you.

Finally, if the USA company is fairly small, they'll have about as much experience and knowledge of selling to Europe as a garden gnome has of algebra, so you'll be holding their hand a lot on that :-)

Good luck.

mrswishywashy · 30/04/2014 11:06

Thanks so much for you answer. I've been on the HRMC website but injust can't make heads nor tails of it. I think I will give them a call.

The company is probably on the small side of mid range. I know they export to New Zealand.

Think I might order just 10 and get some feedback and then order a bigger shipment if feedback is good.

OP posts:
TalkinPeace · 30/04/2014 22:20

VAT on full price plus shipping
duty possibly
and LOTS of US companies will not sell outside the USA

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