Importing from China to the UK

• Cash flow challenge: I want to import goods from China, but I’m unsure about customs, shipping, and how to manage the upfront costs before I start selling.

• Perfect for: UK businesses sourcing products or raw materials from China for resale or manufacturing.

Novuna helps importers manage the costs of buying goods from China and waiting for them to arrive. We compare supply chain finance providers and offer tailored funding solutions to bridge the gap between paying suppliers and receiving sales income.

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Step 1: Choose reliable suppliers

Sourcing from China often means dealing with factories or trading companies. Take time to vet suppliers, request samples, and use clear contracts to avoid quality issues or delays.

Step 2: Understand Incoterms

International Commercial Terms (Incoterms) define who is responsible for shipping, insurance, and customs at each stage. Common ones include:

• FOB (Free on Board): Supplier covers costs until goods are loaded on a ship.

• CIF (Cost, Insurance, Freight): Supplier covers shipping and insurance until arrival in the

• UKDDP (Delivered Duty Paid): Supplier covers all costs to your door, including customs

Knowing your Incoterms prevents unexpected costs.

Step 3: Customs and duties

Goods imported from China are subject to UK customs duties and VAT. Check the commodity codes for your products to calculate the right charges. Factor these into your pricing to protect margins.

Step 4: Shipping and logistics

• Sea freight is most cost-effective for large shipments but takes several weeks.

• Air freight is faster but more expensive, better for smaller or urgent deliveries.

• Courier services can handle smaller consignments but may add higher per-unit costs.

Working with a freight forwarder can simplify shipping and paperwork.

Step 5: Manage cash flow

Importing from China means paying suppliers upfront, often long before you can sell the goods in the UK. Combine this with shipping time and customs costs, and your working capital can be tied up for months.

Funding solutions include:

• Trade finance to cover supplier costs

• Purchase order finance for confirmed customer orders

• Invoice finance once goods are sold and invoices are issued

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Common challenges with Chinese imports

• Long lead times affecting stock levels

• Currency fluctuations changing overall costs

• Quality control risks without proper checks

• Hidden costs around shipping and customs

How Novuna Business Cash Flow helps

Novuna works with UK importers to manage the financial challenges of sourcing from China. From trade finance to cover upfront payments to invoice finance that unlocks cash from sales, we ensure your supply chain keeps moving without straining cash flow.