With 14% of the UK’s imports coming from China, the logistics of getting products from there to here are well and truly tried and tested. But that doesn’t mean that it is without complexities.
In this blog, we cover the basics of shipping from China
China’s Main Exports
China is a trade giant and has been a powerhouse in the manufacturing world for decades. The country’s ability to produce goods fast, at low cost and in vast quantities means their goods are in high demand – in fact, they are the UK’s third biggest import partner.
The global economy is supported by trade between China and the rest of the world. China has many, many exported goods – we couldn’t list them even if we tried – but the top 5 are;
- Computers
- Broadcasting equipment
- Telephones and mobile phones
- Integrated circuits
- Vehicles
China is also the second largest importer, making it an important trade capital.
Taxes
If you’ve ever shipped anything over from China, you’ll know about import tax.
The cost can be pretty substantial and is often the most expensive part of importing the goods! (Unless your container is worth less than £135 – then there are no taxes to pay).
You can check the commodity codes, VAT and duties for your goods on the UK Government Trade Tariff. Once you’ve searched for your product’s commodity code, which you’ll need to complete the import paperwork, you should be able to scroll down to view the import tax rate for your product from every country.
Shipping Modes
The nature of your goods, how quickly you want them and how much cash you’ve got to spend will all impact your transport of choice.
Sea Freight
If you’re prioritising cheap shipping over speed, container shipping is for you.
China and the Far East are home to nine of the world’s top ten container ports, with China itself having 34 major shipping ports. Around 90% of cargo coming from China to the UK is shipped, making it by far the most common method.
Because of the sheer number of ports, there are various routes from China to the UK, and some are cheaper than other, more direct routes. But generally, it’s a slow business…
Shipments coming from China can take up to 60 days to reach the UK, and that’s if you’ve got the correct documentation. For this reason, perishable goods are not well-matched to container shipping. Instead, sea freight works best for large goods or large quantities.
Though container shipping is generally the cheapest mode of transport for your goods, LCL shipping, where you pay for your goods to fill part of a container rather than a whole, can sometimes be more expensive than sending your smaller consignment by air.
Air Freight
Safer and more secure, air freight is a great choice for sensitive or valuable cargo. If you need your goods quickly, it’s also a swift method of shipping, with your goods arriving in less than a week!
All of this does come at a cost, however. Shipping goods in a plane is pricey, so best for goods less than 500kg.
For more about the pros and cons of both air and sea freight, read our handy blog.
Rail Freight
Moving goods using rail freight is significantly faster than ocean freight, but not as expensive as air freight. This is because a typical rail freight train can carry the same amount of cargo as two Boeing 747s!
Using rail freight means you’ll be getting your hands on your goods in around 18-20 days. This mode of transport is much more secure than via container vessel, and better for the environment too. It can also get your goods closer to where they need to be, covering destinations not easily accessed by sea ports – there are 5 Chinese rail stations linked to Felixstowe in the UK alone!
What Will I Need To Transport My Goods From China?
When you want to import goods from China to the UK, there are various bits of documentation you’ll need. Not having your ducks in order will mean timely and costly delays while you sort it all out, so get your hands on everything you need well ahead of time.
EORI Number
An ‘Economic Operators Registration and Identification Number’ is a unique reference number given to imports and exports entering or leaving the UK. The scheme means government agencies can keep track of what’s moving where and keep international trade secure.
There are two types of EORI numbers. The one you’ll need to import goods from China will be issued from the member state where your company is based and will be fronted by a country code followed by a 9-digit number unique in that state.
Without an EORI number, your goods won’t clear customs. Apply for one here if you haven’t got one already.
Import Licence
Import licences regulate certain types of goods coming into the UK.
Not all goods require a licence, but if you don’t have the proper import licence for the goods you’re bringing over from China, you could face delays at customs, goods seizures, fines and other penalties.
If you’re importing anything on this list, you’ll likely need an import licence.
- High-risk food products
- Medicines for people or animals
- Hazardous goods
- Animals
- Nuclear material
- Weapons of any sort; firearms, knives, swords or anything else that could be used to cause harm.
Commodity Code
Commodity codes are internationally recognised reference numbers that classify your goods. The 10-digit numbers assigned to your goods make sure you pay the correct amount of duty, import VAT, taxes and any preferential rates that might apply to your consignments, so you must use the correct commodity codes on all import declarations.
You can use the simple Government Trade Tariff to find the codes you need with ease.
Customs Declarations
Customs declarations are legal documents that declare exactly what you’re shipping and the value of the goods. And it doesn’t matter where you’re importing or exporting from; these documents are required for all international trade.
Authorities on both sides of your cargo’s journey use these declarations to make sure everyone is playing by the rules and regulations and that the right taxes and duties are paid.
A CR Number And POA
You’ll need a Chinese CR (Customs Registration) number as well as a POA when importing goods from China to the UK. In China, both exporters and importers must register with the customs authorities to get their CR number, and it’s this that you’ll need to add to your commercial invoice so that your goods can clear customs.
What’s a POA, you ask? POA stands for power of attorney. This document is needed when an importer or exporter of goods wants someone to handle aspects of their shipment, usually your freight forwarder.
Labels and Invoices
When filling out all your documents, including your labels and invoices, be clear and correct. You’ll need to add the full details of:
- Both you, the receiver, and the sender
- Commodity codes
- Quantity and value of your goods
- A detailed description of your goods.
Shipping To China? We’ve Got Your Back
It might sound like a lot, but shipping from China isn’t overly difficult. However, if you haven’t got the headspace for all the finer details and you’d rather hand the matter over to an expert who can find you the best option to suit your needs… Give us a shout.
Get in touch with Millennium today for professional advice and hassle-free freight solutions.