Exporting to China, Need Some Help !!!!

Question posted by Shazad Chohan, on behalf of ULTIMO GT in W1H

What are the payment terms for Chinese buyers ?

Any other export requirements for British companies like us ?

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Hello

How much are you looking to export?

Payment terms should be negotiated by you as part of the overall package. They can pay all freight charges at the other end (EXWORKS), or you can invoice them directly and be protected by original bills of lading so payment has to be made before the shipment arrives, otherwise they can't collect it. These terms are relevant to seafreight. Your forwarder will have to produce a certificate of origin for the Chinese authorities on your behalf. I should also think that your product is hazardous, so data sheets will need to be provided.

If you would like to discuss any further, please email me: clare@bartonfreight.com

Regards

Clare

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Hello Shazad,
Payment terms need to be negotiated by you as a business based on how much risk you want to take on and how your cash flow works. The INCOterms that the previous responder mentioned (ex works) are delivery terms not payment terms. INCOterms determine how the costs of the transportation and sometimes transit insurance are divided up between seller and buyer. They also determine who is taking the risk involved in which part of the transport.

I would strongly suggest you avoid Ex Works delivery term - to work correctly this would mean your buyer needs to be a company that is tax registered in the UK. I would suggest you could safely use FCA named port or airport of export. You will need to produce an invoice showing a description of the items, the quantity, the price sold, the country of manufacture, the INCOterm and the payment terms as a minimum. You also need what is called a customs tariff code for the product see link https://www.gov.uk/trade-tariff.

Under FCA you would be responsible for the costs of delivering the products, packed for export to the named place with an invoice. The named place would usually be the freight company selected by your buyer.

If your goods are subject to any export licencing procedures you would need to obtain the export licence.

If the goods are hazardous under FCA the freight agent would sort this out for you. It will involved additional costs and paperwork. The freight agent will also completed the export declaration to customs on your behalf - make sure you get a copy and check it - you are legally responsible.

Regards,
Susan

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Hi Shazad,
If you are using timber or plywood to protect your product, (timber cases etc) then you have to ensure you use ISPM15 Heat Treated timber. Your packaging also needs to be provided with a certificate in this instance. Outside of the EU, there are strict regulations on packaging, especially timber. We export to China regularly and understand this process.
Regards,
Woodland Export Packaging.

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HMRC Advisor, on behalf of HM Revenue & Customs in G67.

Information on the Customs requirements for exporting is given in HMRC Public Notice 275. All notices can be found on our website www.hmrc.gov.uk under Quick Links > Library > Official Statistics – Publications – Notices, Info Sheets & Other Reference Materials > Import, Export & International Trade. The Public Notices are in numerical order.

A more comprehensive guide to importing / exporting can be found on our website by selecting ‘Import and export’ from the home page and then scroll down to ‘Guide to importing and exporting: Breaking down the barriers’.

HM Revenue & Customs
Customs International Trade & Excise
www.hmrc.gov.uk/contactus

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