Import Duty Costs

HugoSwany · 03-07-2009, 06:10 PM

Hi there, hope you can help me. I am new at importing from China - I have done it only once before. I have recently went into partnership with a friend importing and selling cameras. Our order was over £1000 worth of cameras from china, and we got hit with a heavy import duty invoice. Now that I can expect this I can incorporate it into our costs, but it is just so much! I spoke to the people we buy from in China and they said they can invoice use for a much lower cost than the actual amount, so that we are taxed less at import duty. My partner seems to think this will work ok, as we are not VAT registered yet, but I have strong feeling that this is really wrong. Can anybody please help? I am on a steep learning curve here, and would appreciate any help at all. Thank you.

JZ100K · 03-07-2009, 06:16 PM

I dont know much about VAT or TAX but I know one day they will catch you, its better you go in clean in the beginning, then when you have become big hire an accountant that really knows his/her thing and I am sure you will find many loop holes you can enjoy

HugoSwany · 03-07-2009, 06:24 PM

Mmm. I think you maybe right. Thank you.

Ultravox · 03-07-2009, 06:33 PM

I asked a similar question.
Check out the answers and reasons why suppliers offer to do this.
Click Here

HugoSwany · 03-07-2009, 10:03 PM

Thank you again. I appreciate your time. I know what I mentioned is underhand, but my business partner seems to thinks it is ok to do this. I am just scared we will end up paying more in the long run. Thanks again. HUGO.