Importing Widgets From China

[CrossBones]

Hi

I am interested in starting a business buying wholesale "widgets" from China and then running a mail order business exporting these to europe by post.

I am wondering how to get $500 - $1000 shipments into Thailand. I bought a camera online once and when it arrived in Bangkok I had to travel to Bangkok (from Surathani) to collect it at the customs depot. Cant they just forward it on to me to my address in Thailand or I have to go to Bangkok every time to collect shipments?

Do I need to show a registered company name to import items? This is going to be a small scale operation to start with and if it is a viable business I will register it (in wifes name)

Please anyone advise on any experience with this

Thanks

[nonthaburial]

Best to import into a Duty free Zone, but think you willl have to have a business and address in the DFZ

[monty]

Not sure tax wise. I reckon it will push up your price out of competition. Along with the extra shipping costs.

Have you considered trying to find out on wholesalers willing to do drop-shipping? A lot of the manufacturers even offer drop-shipping, have a separate department for that as it increases revenue a fair bit.

Basically you do not stock anything. You get an order through your website, forward it to the wholesaler/manufacturer and they will ship directly from their warehouse but with your company/website name and address as the sender on the package.

You basically take profit on forwarding orders!

This needs to be properly researched though as you need reliable contacts etc...

You'd be amazed how many of the so-called manufacturers on alibaba are not manufacturers at all! They just take orders and the actual factory sends the items to you under the other company's name!

[monty]

And I'll move this to the business section, more experience on this stuff over there....

[CrossBones]

Import taxes are based on what? Say I buy a load of jewelry from china with an invoice. Do they just bill me 10 percent? on the price I paid for the items or for the price I intend to sell them for?

[CWMcMurray]

Import taxes are based upon CIF value of goods. This means... cost of goods (invoice value) + cost of freight (should ensure that the rate is shown on the HAWB) + Cost of insurance (1% of invoice value)

The duty percentage is based upon the actual commodity being imported and can change depending upon the country of origin of the goods. If for example, the goods werte produced in China and the supplier can provide a "Form E" certificate of origin, then you can apply for special duty rate (if applicalble) under the China - ASEAN FTA....

The drop shipping idea may be a good one... also importing into a FZ warehouse is also an option.

Just want to add that the obvious danger of using a drop shipper is that they may try to cut you out and sell to your customer directly.

First step should be to advise the exact nature of the "widgi" you would like to import. Your freight forarder can then advise estimate import duty and whether or not a reduced rate is available under China - ASEAN FTA.

If a reduced amount is available, then ask your supplier if they can provide FORM E. THen crunch all of the numbers and evaluate what your best option would be.

Edited November 4, 2009 by CWMcMurray