Tips To Follow If You Are Importing From China

China has always been one of the biggest exporters to UK, with more than £2.94 billion worth of goods shipped by the PRC alone, as per track records up to February 2016. But if you are planning to buy anything in bulk from China for the first time ever, there are certain factors that you ought to consider. Here are some tips that would help you substantially in your endeavour:

Plot Your Objectives

First of all, be clear and straightforward about your requisites. Are you in search of an affordable supply source or do you wish to buy stuff that’s not been introduced in the UK market yet? Interrogate yourself and plot the objectives suitably. But make sure that they comply with your business strategy.

Locate A Supplier

When importing from China for the first time ever, finding a legit, reliable and creditworthy supplier should be one of your topmost priorities. Before investing in supplies, you also need to check product quality and make sure that they are suitable for purchase.

Get A Proper Contract

Having a clear-cut documented agreement with your supplier is essential, as it would help you to steer clear of risks related to delivery and payment. Make sure that only International Commercial Terms (Incoterms) are used so as to prevent misunderstandings. The contract must also include info about payment requirements, payment methods and type of currency used.

Declare Imports To The HMRC

It is mandatory for all kinds of imports made from China into the UK to be declared to Her Majesty’s Revenue & Customs (HMRC). You will have to do this with the SAD or Single Administrative Document (Form C88).

Understand Commodity Codes & UK Trade Tariff

Comprehending the commodity codes is important, since you will have to provide the right code for your imports when filling out the customs paperwork. Also, you must have a sound knowledge of the Integrated Tariff for understanding what duties you need to pay.

Choose A Freight Forwarder

Last but not the least, find a competent and trustworthy freight forwarding company that facilitates shipping from China. The import export agents of the company will handle a major part of the work for you. But make sure the firm you partner with has a proven track record of offering quality services.

So follow these tips and ensure the success of your first ever import from the People’s Republic of China.

Shipping Industry To Use Cleaner Fuels By 2020

Recently, a confirmed proposal has come into circulation that the shipping industry will begin using cleaner fuels and nothing else by 2020. Although it is great news for environment conservationists, the switch can put a lot at stake for old oil refineries and literally wipe out the businesses of those who supply wrong crude. However, advanced refineries with state-of-the-art equipment can expect their profits to double up.

During the next 4 years, ships all over the world must cut down on their sulphur emissions from the current 3.5% to 0.5%. The on-target deadline has caused quite a pandemonium among some refiners and ship owners. This is because right now, nearly 3 million barrels of sulphur laden oil are used every day for powering tens of thousands of ships. And countries like Iraq, Brazil, Saudi Arabia, Mexico and Venezuela, which produce ship fuel with high concentration of sulphur, are feeling threatened.

The advanced refineries are, of course, considering this a windfall, since they are producing more and more fuel with very low sulphur for an increasing number of ships. But for ship owners who still utilise sulphur-laden fuel for their vessels, there are several avenues open in order to follow the new standards. The easiest solution is burning middle distillates, which, although expensive, are low in sulphur. According to expert estimates, the new rules can shift around 700,000 barrels every day of demand to distillates from fuel oil by 2020.

As per the calculations of international shipping agents, the fuel oil utilised by today’s marine sector accounts for 4% of refined product demand of the world. At less complicated and older units in Asia, Mediterranean and developing nations, fuel oil containing sulphur accounts for almost 40% of the total output.

Some professionals are suggesting investing in various upgrades, but it may not be as simple as it seems. Using a residual hydrocracker that removes sulphur from fuel costs about $1 billion. Besides that, the overall procedure can take a long period of time, perhaps even a decade.

However, as oil markets begin preparing for the brand new rules, the shipping sector can crush their well laid plans. For instance, scrubbers costing around $3 to $10 million are quickly becoming standard on the newer ships. This can cause the expected rapid decline in fuel prices to make that investment worthwhile. But if the marine sector is quick in investing, it can bring back the demand for oil.