Importing from China, in plain English

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China’s domestic wholesale marketplace, run by Alibaba. Prices are in yuan and aimed at Chinese buyers, so foreign buyers usually need an agent to order, check and ship.

A

Anti-dumping duty

An extra import duty on particular goods from particular countries, charged on top of customs duty after a Trade Remedies Authority investigation finds them sold below their normal value. Anti-dumping watch →

AQL (acceptance quality limit)

The inspection standard that sets how many defective units can be found in a random sample before an order fails. AQL 2.5 means no more than 2.5% defective on average. Spec sheet and AQL →

B

Bill of lading

The shipping line’s document for sea freight: a receipt for the goods, the contract of carriage and, in its original form, the document that gives the right to collect the goods.

Business licence (营业执照)

The registration certificate every mainland Chinese company holds, showing its name, legal representative, business scope and 18-character Unified Social Credit Code. Supplier check →

C

Canton Fair

China’s largest trade fair, held in Guangzhou each spring and autumn in three phases by product group. Buyer badges are free with online pre-registration. Canton Fair companion →

CBM (cubic metre)

The unit shipping volume is measured in. A carton of 60 × 40 × 40 cm is 0.096 CBM. Container and CBM planner →

CE marking

The EU conformity marking. For most product rules it is still accepted in Great Britain alongside or instead of UKCA. Product rules checker →

Chargeable weight

The weight freight is charged on: the greater of the actual weight and the volume weight. For air freight, each cubic metre counts as 167 kg. Container and CBM planner →

CIF (cost, insurance and freight)

A price that includes shipping and minimum insurance to the destination port. The supplier picks the shipping line, and UK destination charges are often higher. FOB, CIF or DDP? →

Commercial invoice

The seller’s invoice for the goods, used by customs to value them. It must show the real price paid.

Commodity code

The 10-digit code that classifies goods for import into the UK. It sets the duty, any anti-dumping duty, the VAT rate and other measures. Choosing it correctly is the importer’s responsibility. Landed-cost calculator →

Countervailing duty

An extra duty that offsets unfair subsidies an exporting country gives its producers. It can apply alongside anti-dumping duty. Anti-dumping watch →

Customs broker

A company that makes the import declaration to HMRC for you. Most importers use one, often arranged through the freight forwarder.

Customs value

The value customs duty is charged on: the price of the goods plus freight and insurance up to the UK border, plus items such as tooling paid for the goods. Landed-cost calculator →

D

DDP (delivered duty paid)

A price that claims to include delivery, duty and VAT. Ask who is named as importer on the customs entry: if it is you, you carry the audit exposure. FOB, CIF or DDP? →

Declaration of conformity

The manufacturer’s signed statement that a product meets the rules that apply to it. As importer you must make sure it exists and keep it available. Product rules checker →

E

EORI number

The registration number every business needs to import into Great Britain. It is free from HMRC.

EXW (ex works)

A price for collecting the goods at the factory. The buyer must arrange Chinese export clearance, which a foreign buyer can’t do itself. FOB, CIF or DDP? →

F

FCL (full container load)

Renting a whole container, usually a 20ft or 40ft. Above about 13 to 15 CBM it is usually cheaper than sharing. Container and CBM planner →

FOB (free on board)

A price for goods loaded onto the ship in China, cleared for export. Your own forwarder handles the voyage. The safer default for most imports from China. FOB, CIF or DDP? →

Freight forwarder

A company that arranges the transport of your goods: booking space, paperwork and often customs clearance and delivery.

G

Golden sample

An approved sample, signed and kept by the buyer, the factory and the inspector, that every production unit is checked against. In Chinese factories: 封样. Spec sheet and AQL →

GSXT

China’s official company register (the National Enterprise Credit Information Publicity System). Search a supplier by its credit code to see its registered name, status and business scope. Supplier check →

H

HS code (Harmonised System)

The international six-digit product classification the UK commodity code is built on. The first six digits of a UK code are the HS code.

I

Import VAT

VAT charged on goods imported into the UK, usually 20%, on the customs value plus duty and delivery costs. VAT-registered businesses can usually reclaim it. Landed-cost calculator →

Importer of record

The business named as importer on the customs declaration. It is legally responsible for the duty, the VAT and the product meeting UK rules.

Incoterms

The standard trade terms (FOB, CIF, EXW, DDP and others) that say where the seller’s costs and risks end and the buyer’s begin. FOB, CIF or DDP? →

Inspection level

In AQL sampling, how large the sample is for a given order. Level II is the normal choice; level I takes fewer units, level III more. Spec sheet and AQL →

L

LCL (less than container load)

Sharing a container with other shippers, charged per cubic metre or per tonne, whichever is more. Usually cheapest below about 13 CBM. Container and CBM planner →

M

Mill certificate (EN 10204 3.1)

A document from the steel or metal producer showing the chemical composition and properties of a specific batch, checked by someone independent of production. Material swap checker →

MOQ (minimum order quantity)

The smallest order a supplier will accept, often per colour or design. Prices usually fall as quantity rises above it.

N

Named exporter rate

A company’s own anti-dumping rate, often lower than the rate for everyone else. It applies only when the invoice carries the declaration the tariff asks for. Quote comparer →

O

OEM and ODM

OEM: the factory makes your design. ODM: the factory’s own design, sold under your brand. With ODM, the design usually isn’t yours.

P

Packing list

The document listing what is in each carton, with quantities, weights and dimensions. Customs and forwarders use it alongside the commercial invoice.

Postponed VAT accounting

A way for VAT-registered importers to declare and reclaim import VAT on the same VAT return, instead of paying it at the border.

Pre-shipment inspection

An independent check of the finished, mostly packed order before the balance is paid, using AQL sampling. How to run a pre-shipment inspection →

Proforma invoice (PI)

The supplier’s formal quotation, often used to pay the deposit. Check the company name and bank details match the business licence. Payment safety check →

R

Responsible Person (cosmetics)

The person or business with a UK address who must make sure a cosmetic product is safe and notified before it is sold in Great Britain. Product rules checker →

RFQ (request for quotation)

A written request that asks several suppliers to quote on the same specification, so the prices can be compared. Request for quotation builder →

T

Trade Assurance

Alibaba’s payment protection: the payment is held and you can claim within 30 days of delivery if the goods are late or don’t match the order.

Trade Remedies Authority (TRA)

The UK body that investigates dumping and subsidies and recommends anti-dumping and countervailing duties. Anti-dumping watch →

Trading company

A supplier that sells goods made by other factories. That can work well, but you should know, and inspect what you buy. Supplier check →

U

UKCA marking

The UK conformity marking for goods sold in Great Britain. For most product rules, CE marking is accepted too. Product rules checker →

UN 38.3

The transport tests every lithium battery design must pass. Suppliers must be able to give you the test summary, and forwarders ask for it. Product rules checker →

Unified Social Credit Code

The 18-character registration number on a Chinese business licence. Its last character is a check character that catches most typing mistakes. Supplier check →

X

XRF analysis

X-ray fluorescence: a handheld analyser that reads the elements in a metal in seconds, used to confirm grades such as 304 stainless steel. Material swap checker →

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