Customs & Taxes When Importing from China: US, EU, Australia & Canada

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Understanding import duties, port charges, VAT and other taxes is crucial when importing products from China, especially in a time when trade tensions are at an all-time high. However, each country or market have its own import duty rates and customs value calculation methods.

In this article, we explain what every Importer must know about import duties, customs valuation methods, and other taxes when importing products to the following countries and regions.

  • United States
  • European Union
  • Canada
  • Australia
  • New Zealand
  • United Kingdom

Continue reading Customs & Taxes When Importing from China: US, EU, Australia & Canada

VAT on Imported Goods from China: A Complete Guide

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Imported from Asia to the EU, or selling cross-border? In this guide, we explain what importers, Amazon sellers, and cross-border e-commerce companies must know about the Value Added Tax (VAT) in the European Union.

We also collaborated with Alex Wyatt from SimplyVAT and Dr. Matthias Oldiges from KMLZ, two of Europes leading experts, to create this comprehensive VAT guide.

This is covered

  • VAT calculations for European importers
  • VAT rates in EU member states
  • How and when to pay VAT
  • VAT registration for EU companies
  • VAT registration for non-EU companies
  • VAT when dropshipping products
  • VAT when selling products online within the EU
  • VAT registration when selling from overseas to the EU
  • VAT when selling on Amazon

What is Value Added Tax (VAT)?

The VAT is a consumption tax in the European Union. In B2C transactions, VAT is always included in the price. If you, for example, buy a product online from an EU based online store, the price you pay includes VAT.

The seller can then subtract the VAT paid on imports, from VAT added on top of the sales price.

Below follows an example:

  • Sales: $10,000 (Including VAT, 20%)
  • Expenses: $5,000 (Including VAT 20%)

This allows us to make the following calculation.

  • Sales VAT: $2,000
  • Paid VAT: $1,000
  • Total: $2,000 – $1,000 = $1,000

Thus, I would need to pay a VAT of $1,000. If I’d spent more on VAT than I added on top of my sales, I would instead get money back from the state.

Continue reading VAT on Imported Goods from China: A Complete Guide

CE Marking When Importing From China: A Complete Guide

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Importing products from China to the European Union? Depending on the product, importers are required to ensure full compliance with all relevant CE directives – a process that is far more complex than requesting a test report from your supplier.

In this guide, we explain what you must know about CE marking as an importer:

  • What is CE Marking?
  • Documentation Requirements
  • Labeling Requirements
  • List of CE Marking Directives
  • Laboratory testing requirements

We also answer frequently asked questions about CE marking:

  • Are non-EU companies and exporters required to comply with CE marking rules?
  • Which products must be CE Marked?
  • Must all products sold in the EU carry the CE mark?
  • Is the importer or manufacturer responsible for ensuring CE compliance?
  • What can happen if I importer non-CE compliant products?
  • Are all Chinese manufacturers able to produce CE compliant products?

Continue reading CE Marking When Importing From China: A Complete Guide

REACH Compliance & Restricted Chemicals When Importing from China

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REACH is an EU regulation restricting chemicals, heavy metals and pollutants in all products. Products that contain excessive amounts of restricted substances, such as lead or AZO dyes, are illegal to import and sell within the single market.

In this article, I explain how you can determine if REACH testing is necessary for your products, and the steps you must take to properly ensure compliance. That’s why we invited Compliance & Risks, based in Ireland, for help.

In addition, Compliance & risks – a leading product compliance company based in Ireland – answers some of the most common questions importers have about REACH.

Continue reading REACH Compliance & Restricted Chemicals When Importing from China

List of Sourcing Companies in the United Kingdom: Top 7 Agencies

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UK sourcing agencies

Importing custom designed products from Asia doesn’t always require that you look overseas. In some cases, you can find the best partner closer to home. In this article, we list some of the UK’s leading Asia sourcing and product development companies.

What are the benefits of working with a UK based sourcing company?

If you’re looking to import goods from, for example, China, it’s natural to assume a Chinese sourcing agency know more about their own country – compared to one based outside. While that may be true to some extent, importing products from Asia involves a lot more than finding the right supplier.

In reality, most sourcing companies know little about UK safety standards, product labeling, VAT and customs procedures, which can have severe consequences for you as an importer.

A sourcing agency based in the UK, on the other hand, is far more likely to understand these requirements. Besides, sourcing agencies headquartered in the UK always have subsidiaries or other forms of representation in Asia. Continue reading List of Sourcing Companies in the United Kingdom: Top 7 Agencies

RoHS Compliance When Importing Electronics from China

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RoHS compliance

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RoHS restricts heavy metals, such as lead and mercury, in electronic products imported and sold in the European Union. RoHS compliance is mandatory, not optional, for importers.

In this article, you will learn how to ensure RoHS compliance when importing from China and selling to the EU:

  • What is RoHS?
  • Restricted RoHS heavy metals
  • Product categories
  • CE marking requirements
  • RoHS marking
  • How to find RoHS compliant components
  • RoHS compliance testing
  • Accredited testing companies
  • RoHS testing costs

RoHS and RoHS 2

RoHS (Restriction of Hazardous Substances Directive) is a European Union product certification standard that limits the usage of certain substances (mainly heavy metals) in electronics. The restricted substances are listed below: Continue reading RoHS Compliance When Importing Electronics from China

The Importers Guide to EN Standards: By Ferry Vermeulen

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Understanding EN standards, or harmonised standards, is an integral part of ensuring compliance when selling products in the European Union. In this article, Ferry Vermeulen of INSTRKTIV explains what an EN standard is, and what you must know to make sure that your products are fully compliant.

1. What is an EN standard?

EN standards are standards that have been developed by a standardisation institute, mandated by the European Commission and are in order to comply with one or more mandatory essential requirements from a specific European directive.

Products that meet the requirements of harmonised standards [applicable in all EU member states] benefit from a presumption of conformity with the corresponding essential requirements.

Generally speaking, harmonised standards contain the following content:

Scope – Describes the field of application of the standard.

Normative reference – Lists the standards that have been used and which are essential for the correct application of the standard.

Terms and definitions – Describes used terms and definitions.

Requirements – Gives detailed requirements on how to meet the more general product requirements from the related directive.

Warnings, markings, and instructions – Describes how to properly instruct users about product risks and inform them about important product characteristics?

Test methods – Describes how to test if a product meets the requirements and how to document this for the technical file.

2. Where can I find EN standards online?

Whereas directives are mandatory and can be freely accessed via the website of the European Commission, standards are voluntary and need to be purchased.

You can find them for example via the ISO, IEC, DIN or BS website. Continue reading The Importers Guide to EN Standards: By Ferry Vermeulen

EN 71 & Toy Safety When Importing from China

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EN 71

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EN 71 compliance is mandatory when importing toys to the European Union. Yet, many Importers fail to understand that EN 71 compliance is more complex than a printed CE mark.

In this article, we explain what EN 71 really is, and what you must do to ensure that your imported toys are compliant. The alternative is not an option.

What is EN 71?

EN71 is a set of European Product Safety standard that applies to all toys sold in the European Union.

EN 71, which is also a part of the CE directive, has been put in place to ensure that all toys sold in the EU meet certain minimum safety standards on the following factors: Continue reading EN 71 & Toy Safety When Importing from China

How to Write a User Manual When Importing Products to the EU: By Tom van de Wiel

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Product manuals, or user guides, are not just ‘nice to have’. At least if you are importing and selling in the European Union.

They are absolutely essential to many product categories, as product manuals are mandatory.

I am aware of several cases, when the customs authorities have seized shipments, simply because the product was not bundled with a manual.

So, we decided to ask an expert, Tom van de Wiel, CEO of Manualise.

In this interview, with one of Europe’s leading experts in this area, you will learn the following:

  • What kind of products require a manual?
  • In which cases is a product manual not required?
  • What information must be included in the manual?
  • What can happen if I don’t have a manual?

Continue reading How to Write a User Manual When Importing Products to the EU: By Tom van de Wiel

Product Labeling Regulations in the US, EU and Australia

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About to import products from China or elsewhere in Asia? Then you need to ensure that the products are properly labeled.

In this article, we explain what every importer must know about labeling requirements in the EU, US and Australia.

We also explain why you cannot rely on your manufacturer to ensure compliance on your behalf. In fact, most of them don’t even know how products must be labeled in your market.

Keep reading, to ensure that your products are not seized by the customs authorities!

What is ‘Product Labeling Requirements’?

Most countries have legal requirements for how a product shall be labeled. A label can, for example, inform the customer about the following:

  • The manufacturing country
  • If the product meets certain legal safety requirements (i.e., compliance marks)
  • Size, material and other general product information
  • Warning labels and user instructions

Some labeling requirements apply to all, or a wide range of, product categories.

For example, all products in the US must be labelled with the country of origin (i.e., Made in China). In the European Union, many products must be CE marked.

Other labeling requirements apply to specific products. Examples include toys, electronics and textiles – each with their own set of unique labeling requirements.

Notice that labeling requirements are usually just one of many requirements that importers must fulfil to ensure compliance with certain regulations.

In addition, you may need to keep track of the following:

Technical Compliance: This means that the product is manufactured according to certain technical standards, or substance restrictions. The product is therefore able to pass the necessary tests.

Documents Requirements: The Importer is required to create and store a set of documents. Such documents may include circuit diagrams, component lists, design drawings and risk assessments.

It is important to underline that this article does not include information above the two points above. Continue reading Product Labeling Regulations in the US, EU and Australia