Anyone with importing by sea experience? FOB

[MattH]

I'm considering purchasing something large from China but I have never imported anything into the UK by Sea before.

The manufacturer will ship it to Southampton in a part container on FOB terms but what do I need to do in the UK to clear it for import and get it shipped to my unit?

From looking at the import code tools it doesn't look like any duty will be due but obviously I will be looking at clearing fees and VAT etc.

Can anyone with experience give me some information?

 

[Shox Dr]

You need someone (Clearing Agent) to clear it through customs. I have done it myself, its was easy enough, but that was 20yrs ago. By the time I got to East midlands Airport it was sat waiting for me. I was VAT reg’d and had a Inport/export VAT number (just 0001 on the end of my VAT number)
Forked onto my pickup and off I went

Free on Board usually means they put in on the ship at their end, you pay for shipping, insurance, Duty VAT etc

 

[jerrytug]

Get an agent..

 

[MattH]

You need someone to clear it through customs. I have done it myself, its was easy enough, but that was 20yrs ago. By the time I got to East midlands Airport it was sat waiting for me. I was VAT reg’d and had a Inport/export VAT number (just 0001 on the end of my VAT number)
Forked onto my pickup and off I went

Free on Board usually means they put in on the ship at their end, you pay for shipping, insurance, Duty VAT etc

Thanks Shox, shipping is included but I would need to confirm insurance.
I am VAT registered and I have an EORI number.

 

[MattH]

Get an agent..

I intend to but that's what I'm asking really.

Do I just get an agent that deal with the final leg from the container in Southampton to delivery?

 

[MattH]

Or do I purchase the equipment EXW and get an agent to collect it - ship it - clear it and finally deliver it to my door?

 

[Matchless]

The port will pull your trousers down, lube up well! lots of little extra charges, some not so little,

 

[Shox Dr]

Thanks Shox, shipping is included but I would need to confirm insurance.
I am VAT registered and I have an EORI number.

Maritime insurance is a MUST, I’ve seen too many sea containers bent double. God knows how many are lost at sea.

 

[MattH]

The port will pull your trousers down, lube up well! lots of little extra charges, some not so little,

So if I have an agent, do they deal with these fees and include them in their cost?

 

[hotponyshoes]

The port will pull your trousers down, lube up well! lots of little extra charges, some not so little,

I had one come into Southampton years ago, landed on a Tuesday, spoke to the dock on the phone, asked if it would be ok to collect it on the Saturday, yes, no problem, come to the office when you get here...
They charged me £35 a day storage (the area was massive and half empty) plus an extra whack for saturday access...
I expect all the charges are on the internet nowadays.

 

[MattH]

OK, looking at some receiving agents it all looks fairly straight forward.
The only unanswered question is insurance on the sea freight (the manufacture will pay the shipping if it's LCL or cahrge a cost for FCL) so I need to see if that included shipping cost includes insurance.

I think it will be worth it, to buy the machine in the UK will be £10.5K more expensive than the landed in Southampton cost. So even if the fees and delivery are £1.5K then I'm still up by £9000 ex VAT.

 

[Parm]

Customs Clearing agent is the way forward

 

[DAPPH]

Get an agent..

I found that by getting an agent added about £ 180 to the bill but was well worth it .. the first 3/4 ton of goods were sat in a clearing shed in Ipswitch for a couple of weeks , the agent also arranged a cheap delivery for me which was about £ 128 to Ammanford .

Prior to that I'd imported a 1/3 ton crate of used equipment from the USA & a 10 kg box of stuff from India it cost me a fortune to get the clearance & delivery and took forever as I didn't know my way around .

 

[4String.]

Get an agent..

But not the one I had when I was lead singer in a boy band back in the 80's.

He ripped us off for every penny we earned, which is why I ended up driving trucks for a living. All I have to look back on is the memories and my paisley patterned Crimplene suit with matching cummerbund. Those were the days .

 

[RonA]

Hi MattH,
This is advice from my daughter who has dealt with imports & exports for several years, working for DHL & now a major American diesel engine manufacturer. It echoes Shox Dr & Parm’s advice

“He needs to appoint a clearing agent to take all the documents and create a import declaration. I would ask him to get a delivery paid rate DDP or DDU and then compare it to the FOB vs ocean rate, clearing and UK transport and he won’t have great purchasing rates for a one off shipment. FOB just means they will get it over the ships rail and doesn’t include the actual ocean rate to Southampton”.
Hope this helps
RonA

 

[m_c]

I'm in the process off importing something weighing a couple tonnes, and I was told to avoid letting the seller use their own shipper, as they typically get a subsidised rate knowing the the UK agent will shaft you for fees.

I ended up using Shippo. Worked out a couple hundred more expensive than other options, but they're arranging everything from the suppliers door to my door.

 

[Matchless]

and lube up well!

But not the one I had when I was lead singer in a boy band back in the 80's.

He ripped us off for every penny we earned, which is why I ended up driving trucks for a living. All I have to look back on is the memories and my paisley patterned Crimplene suit with matching cummerbund. Those were the days .

pictures?

 

[hazzabo]

Note also that all risk transfers the moment the cargo passes over the ships rail, so you have to arrange insurance and take responsibility for everything from that point. FOB is possibly the least favourable incoterm for the buyer, as others have said DAP, DDP or DDU might be better.

 

[Shox Dr]

I'm in the process off importing something weighing a couple tonnes, and I was told to avoid letting the seller use their own shipper, as they typically get a subsidised rate knowing the the UK agent will shaft you for fees.

I ended up using Shippo. Worked out a couple hundred more expensive than other options, but they're arranging everything from the suppliers door to my door.

I dont see how, or why. More like an interweb myth. I imported from ROC, Taiwan, and the States for 20yrs The only time I’ve had problems was shipping my pickup (and UPS but thats a whole book). It was only 150usd to get it from the seller to the port gates. It cost another 200dollars to get it over the union line. I could have chosen not to pay the 200, but the chance of it sitting on the dockside for months, or never to be seen again was a real possibility. In the end I trusted the seller (autodealer in Appling GA to ship and pay union line fees (bribe) I used a shipper* over here to arrange shipping and customs. I arranged insurance.

If the shipper pays shipping that’s to the destination postside. You then need to get it from there through customs and into your hands.



*Kingstown Shipping very very helpful. Certainly use again.

 

[MattH]

I'm in the process off importing something weighing a couple tonnes, and I was told to avoid letting the seller use their own shipper, as they typically get a subsidised rate knowing the the UK agent will shaft you for fees.

I ended up using Shippo. Worked out a couple hundred more expensive than other options, but they're arranging everything from the suppliers door to my door.

I got a quote from Shippo this afternoon. Seems FOB from the manufacturer and then Shippo with Maritime insurance is the way to go.
Shippo take responsibility from the rail of the ship to the kerb of my unit.

Works out to be £10K cheaper than buying a unit from the UK (which still has a 12 week wait to arrive from China!).