Importing from China to the UK: a step-by-step guide for eBay sellers buying stock

How does importing from China to the UK work?

Importing from China to the UK follows the same basic path for every business, whether you are bringing in 200 phone stands or a container of furniture. You check that the goods can be imported and sold safely, register for an EORI number, find the commodity code for each product, agree shipping terms with your supplier, have a customs declaration made when the goods arrive, and pay or account for customs duty and import VAT. gov.uk's guide to importing goods into the UK sets out the official steps.

For eBay sellers, importing is usually how you move from small test orders to stock bought at better prices. It brings more paperwork than ordering parcels, but the steps are manageable once you have done them once, and most repeat orders reuse the same paperwork.

This guide covers the general process. Customs and tax rules are detailed, so check gov.uk for your goods and take advice from a customs agent or accountant where you need it.

Step 1: Can the goods be imported and sold?

Before you pay anything, check the product itself.

• Restrictions and licences. Some goods are banned, restricted or need a licence or certificate. gov.uk's importing guidance explains how to check.
• Product safety. As the importer you take on legal duties for the product. Our guide to product safety rules for online sellers covers them.
• Markings and documents. Many product types need conformity marking and a declaration of conformity for the exact model.
• Brands and designs. Avoid copies of branded products; infringing items are not allowed on eBay.
• eBay's own rules. Check the product is not prohibited or restricted on eBay.

It is far easier to drop a product at this stage than to deal with a shipment you cannot sell, or one held at the border.

Step 2: Get an EORI number

You need an Economic Operator Registration and Identification (EORI) number to import goods into the UK for your business. It identifies you to customs and goes on your import declarations. gov.uk explains how to get an EORI number; for goods coming into Great Britain you need one that starts with GB.

Apply before you place your first bulk order. Give the number to your supplier, courier or freight forwarder so it appears on the shipping paperwork.

Keep the number with your other business details. You will use it for every import, and a shipment can be held at the border if the paperwork does not show it. If you later move from sole trader to a limited company, the company needs its own EORI number for its imports.

Step 3: Find the commodity code and duty

Every product has a commodity code, a number that classifies it for customs. The code decides the rate of customs duty and whether any other rules apply. You find it using the UK trade tariff; gov.uk explains how to find commodity codes.

Tips for finding the right code

• Describe the product by what it is made of and what it does, not by its marketing name.
• Look at the notes for the chapter in the tariff, which explain what is included and excluded.
• Compare with the code the supplier uses, but do not rely on it without checking.
• If you are unsure, ask a customs agent, or use gov.uk's routes for getting advice on classification.

The code matters because a wrong code can mean paying the wrong duty. Under-paying can lead to a bill later, with penalties.

Step 4: Agree the shipping terms

Shipping terms say who pays for and arranges each part of the journey, and where the risk passes from the supplier to you. International trade uses standard terms called Incoterms. You will often see:

Ask for every quote on the same terms, or convert them yourself, so you compare like with like. A supplier quoting FOB looks cheaper than one quoting delivered, but the FOB price leaves freight, insurance, customs and delivery for you to add.

Small sellers often prefer delivered terms because they are simpler, but check the quote carefully. Even with delivered terms, you need to know who is named as the importer and what value has been declared, because the importer carries the responsibility.

Step 5: Arrange the customs declaration and pay the charges

The customs declaration

Goods entering the UK need a customs declaration. For parcels sent by express courier, the courier usually makes it and bills you for duty, VAT and a handling fee. For freight, a freight forwarder or customs agent usually makes it for you. gov.uk explains how to appoint someone to deal with customs on your behalf.

Even when someone else makes the declaration, it is made for you, so check the details: your EORI number, the commodity code, the value and the description. Declare the real value of the goods. A supplier who offers to write a lower value on the invoice is offering to make a false declaration in your name.

Duty and import VAT

Customs duty depends on the commodity code and the customs value. Import VAT is charged on imported goods too. If you are VAT registered, you can often account for import VAT on your VAT return rather than paying it at the border; gov.uk explains when you can account for import VAT on your VAT return. If you are not registered, the VAT is a cost of the stock.

A worked example: comparing two quotes

Example: suppose a hypothetical seller is buying 400 bamboo trays and gets two quotes. All figures are invented to show the comparison.

In this example the delivered quote costs £100 more in total but saves the seller arranging freight and customs. For a first import, that convenience may be worth it, as long as the seller confirms who is named as importer and what value is declared. Our guide to import VAT on AliExpress orders explains the VAT side in more detail.

Step 6: Receive, inspect and keep records

1. Inspect on arrival. Check a random share of the units against your approved sample before listing.
2. Keep the import paperwork. Invoices, packing lists, shipping documents, the customs declaration and any duty or VAT statements.
3. Keep supplier records. Product safety rules require you to be able to trace products back to their supplier.
4. Record your landed cost. Work out the real cost per unit so your eBay prices cover it.
5. List from stock. Use your own photos and a handling time you can always meet.

Importing stock you hold is different from per-order buying. eBay's drop shipping policy allows dropshipping from a wholesale supplier, but listing an item and then buying it from another retailer or marketplace that ships directly to your buyer is not allowed. Selling imported stock from your own shelf is ordinary retail, and you remain responsible for delivery and for your buyers' satisfaction.

A quick checklist before your first import

• Check the product can be imported and sold, including safety rules, markings and eBay's rules.
• Get a GB EORI number and give it to your supplier and shipper.
• Find the commodity code and duty rate for each product in the UK trade tariff.
• Get quotes on clear shipping terms and compare total landed cost, not the headline price.
• Decide who makes the customs declaration and check its details before it is submitted.
• Plan how you will pay or account for duty and import VAT.
• Inspect every batch on arrival and file every import document.

For choosing where to buy, our comparison of Alibaba vs AliExpress for eBay sellers explains when bulk orders from a manufacturer make sense.