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Import From China to UK – Documents Needed to Clear Customs Without Glitches

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Digitalization and globalization have made it simple to gain access to merchandise from all across the world. Goods from different countries can be brought with ease into your own. The reasons to import goods are several including low material rates, less manufacturing cost, and high production capabilities in comparison to domestic accessibilities. This allows running a profitable business. It is proven that import from China to UK is financially beneficial. 

Wondering how beneficial it is to import from China to UK that is located 6,576 miles away. Well, its unrivaled ability to manufacture products in bulk quickly and at low costs has made it one of the largest import partners to the UK.

Shipping options to consider

For shipping goods, the chosen mode of transport plays a significant role in delivery. For example, air freight is faster but costly, while sea freight is cheap but takes time. Therefore, you need to find the right transport mode to suit your shipping goals. Nevertheless, for a large volume of consumer products, sea freight is a cheap option, while air freight is better for small loads or urgently needed things, or high-value items.

China is not included in the European Union, so as a commercial product importer, the buyers have specific onuses. Even a veteran importer from the EU will need to know the process involved and documents needed to import goods from China without any glitches. 

Apply correct commodity code

Use the UK Government Trade Tariff to find the commodity code for the goods. Commodity codes are crucial to classify goods. It helps to –

  • Finish declaration as well as other paperwork.
  • Check for any duty reliefs.
  • Find it there is VAT or duty to pay.

Custom authorities use commodity codes to identify the commercial products you will bring to the UK. It ensures that correct duty and tax are paid as well as every legal and safety protocol are adhered to.

Get EORI number

Economic Operator Registration Identification number is used in record-keeping for exported and imported goods by customs in the UK. When goods are imported from China every imported needs to get an EORI number for an export declaration. You will be using the CHIEF system [Customs Handling of Import & Export Freight], which allows you to input customs details electronically, automatically check errors, and calculate payable tax and duties. It allows fast entry for goods with low risk. Apply for the EORI number online and receive it within 3 days.

Check if license is needed

Are you importing goods that belong to the surveillance control category? There are goods, which are subject to import restrictions. So, check if the goods you are bringing into UK have import control. Currently, you will find three control types.

  1. Bans – Not allowed
  2. Surveillance – Monitored importation
  3. Quotas – volume restrictions 

Firearms and ammunitions import from China to UK need a license because they are restricted goods. Some things that cannot be imported from China to the UK are –

  • Antiques
  • Biological substances
  • Animal skins or furs
  • Ivory 
  • Perishables
  • Military equipment
  • Asbestos

Chinese import duties

When you import from China to UK, there will be a need to pay import duty and VAT. What you have to pay depends on the product type you will import. Import duty calculation is complicated; so many importers take help from a customs broker or a freight forwarder to calculate import duty. 

For calculating the import duty, you will need to attain the commodity code of the goods. During goods declaration to customs in the United Kingdom, you will have to confirm the commodity code and this will be used for payable duty calculations. The amounts differ considerably. For example, the import duty set for new cars is 10%, while some electrical goods incur 0%.

The goods are held by UK customs if payment of import duty and VAT is pending. So, know how to calculate VAT, pay it and release your cargo from China.

Pay proper VAT 

For import from China to UK, there is a need to pay VAT [Value added tax] besides the import duty and customs value. 

VAT percentage = total of production cost + shipping cost + import duty rate associated with that commodity code

Pay the necessary VAT and in case you are VAT registered then it can be claimed via standard VAT return. The HMRC will give a C79 certificate to prove that you have paid the import VAT.

Fill in correct details on labels and invoices

All the invoices and labels need to have correct and complete details like –

  • Sender & receiver
  • Goods quantity
  • Goods value
  • Items detailed description
  • Commodity codes

Organize CR [customs registration] and POA [power of attorney]

You will need a CR number as well as POA for good non-documented regardless of its value. CR numbers must be detailed on invoices for smooth clearance. The sender gives a POA letter to the freight forwarding company for shipment clearance through the customs, on their behalf. 

Example:

How to calculate the import duty on goods brought from China to the UK?

Let’s calculate the import duty of sunglasses shipment from China to the United Kingdom. 

  • Production cost = £20,000
  • Shipping & insurance cost = £8,000

The shipment is more than £135. Besides, items are not regarded as gifts due to the volume and therefore you will need to pay import duty. Find the commodity code for sunglasses and apply that code’s import duty rate. Suppose the rate is 2%.

Import duty to pay for sunglasses shipment is 2% on £28,000 [£20,000 + £8,000] that equals to £560. The VAT is approximately 20% of the total custom value £28,560 [£20,000 + £8,000 + £560 = £28,560] that equals to £5,712. As China is outside the EU, you will have to pay £5,712 against VAT for smooth customs clearance in the UK.

Do Chinese goods need to carry the UKCA mark?

It is mandatory to bear UKCA marks on specific products like –

  • Toy safety
  • Simple pressure vessels
  • Measuring instruments
  • Radio equipment
  • Gas appliances
  • Lifts
  • Aerosols
  • And more

The China supplier may be unaware of these specific labeling needs, so supply them with the necessary dimension, affixing position, and graphic files. 

Ensure to find an experienced and reliable shipping company!

Leonardo, a visionary entrepreneur and digital innovator, is the proud owner and mastermind behind chatonic.net. Born and raised in the heart of the Silicon Valley, he has always been fascinated by the potential of technology and its ability to transform the way we communicate and interact with one another.

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Business

What Is Margin Trading in Crypto?

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Margin Trading

Margin trading is the practice of using borrowed funds to trade on margin. This allows traders to engage in high-risk activities with lower capital and leverage than they would be able to use if they were only using their own cash. In this post, we will discuss how margin trading works, what types of assets can be used in margin trading and some popular markets where you can do this!

What Is Margin Trading Cryptocurrency?

Margin trading cryptocurrency is a trading strategy that involves borrowing funds to trade digital currencies. With margin trading, traders can increase their buying power and potentially earn higher profits by using leverage.

To margin trade cryptocurrencies, traders must open a margin account with a cryptocurrency exchange that offers margin trading. They can then borrow funds from the exchange and use them to open larger positions than they would be able to with their own capital.

Margin trading and cloud mining are two different ways of trading and mining cryptocurrencies, respectively. While margin trading involves trading on a larger scale using borrowed funds, bitcoin cloud mining involves mining bitcoin and other cryptocurrencies using remote data centers. Both methods have their advantages and disadvantages, and traders and miners should carefully evaluate the risks involved before engaging in these activities.

How Does Margin Trading Crypto Work?

Margin trading crypto works by allowing traders to borrow funds from an exchange or a broker to increase their buying power and potentially earn higher profits. Instead of using their own capital to open a position, traders can borrow funds and use them as collateral to enter into larger trades.

To start margin trading crypto, traders need to open a margin account with a cryptocurrency exchange that offers margin trading. They will then need to deposit a certain amount of funds as collateral, known as margin, which will determine the maximum leverage they can use.

The leverage ratio determines how much a trader can borrow compared to their margin. For example, if a trader deposits $1,000 as margin and the exchange offers a 10x leverage ratio, they can borrow up to $9,000 to open a $10,000 position.

Therefore, margin trading crypto requires a solid understanding of the market and risk management techniques to minimize potential losses. Traders should also be aware of the fees and interest rates associated with margin trading, which can vary depending on the exchange and the amount of leverage used.

Liquidation Price Calculation

The liquidation price is the price at which the broker can buy a position back from the margin trader. It’s based on a formula that takes into account the current market price, plus any fees that have been accrued by both parties.

These prices, including ETH price are posted live in exchanges, including several assets’ market cap of and live crypto price. This means that you’ll be given an opportunity to exit your position before it becomes completely worthless.

The liquidation price calculation will vary depending on whether or not there are any fees attached to trading with different brokers:

Pros of Margin Trading in Crypto

High Leverage

One of the most significant pros of margin trading in crypto is the high leverage it offers. With leverage, traders can access a larger position size with a smaller capital outlay. This means that traders can magnify their potential gains significantly. 

Short Selling

Another advantage of margin trading in crypto is the ability to short sell. Short selling is a strategy used by traders to profit from a decrease in price. In a short sale, traders borrow crypto assets from a broker, sell them, and then buy them back at a lower price to return them to the broker. Short selling can be a profitable strategy in a bear market.

Diversification

Margin trading allows traders to diversify their portfolio by trading on different exchanges and with different cryptocurrencies. This can help to spread the risk and increase potential returns.

Quick Profits

Margin trading allows traders to take advantage of short-term price movements in the cryptocurrency market. Traders can enter and exit trades quickly, allowing them to profit from quick price changes.

Cons of Margin Trading in Crypto

If you want to trade on margin, then the following things are worth considering:

The lack of regulation in crypto is one of its biggest drawbacks. You can’t count on having your funds protected by a third party, which means that if anything goes wrong with your account and someone else’s money is stolen from it (or vice versa), there isn’t much for anyone to do about it.

Margin trading also comes with high risk—because as we mentioned above, if something goes wrong and someone loses their money because they were trading with borrowed capital while their account balance was too small or too large compared to theirs—it’s all on them.

Understanding Margin and Leverage

Margin trading is when you borrow money from your broker in order to invest. This can be done with either cryptocurrency or fiat currency, depending on the platform you’re using. For example, if you want to buy Bitcoin using USD (the U.S dollar), then your margin trading would be done through an exchange like KuCoin, Poloniex or Coinbase Pro for USD and Kraken for BTC.

Leverage refers to how much leverage a trader has when making trades and investments; it allows them to increase their profits by borrowing from their brokers at less than 100% of what they have available in capital.

Margin Call

A margin call is a request that you make to your exchange, asking for additional funds to be deposited into your account. The exchange will then deposit these funds and use them as collateral in order to increase the amount of money you can trade with. Margin calls generally occur when there’s been a sudden drop in the value of cryptocurrencies.

Margin Trading Strategies

Margin trading is a form of trading where you borrow money from your broker to buy or sell an asset. You can use this borrowed money to buy more assets, or to sell assets for more than you paid for them by using leverage (basically, borrowing more than the amount of capital that you have).

If you’re buying cryptocurrency with borrowed funds, then it’s called margin trading. If your goal is simply getting liquidated quickly by selling off some coins at a profit and closing out your position, then it’s called short selling (or “going short”).

Conclusion

As you can see, the benefits of margin trading can be huge. It gives you more flexibility and control over your investment, while reducing risks. However, there are also disadvantages to this type of trading that need to be taken into consideration before jumping in head first. 

In fact, many experts would argue that it’s better not to engage in crypto margin trading at all! But if you do choose to take on this risky endeavor (which is definitely possible), then we hope this guide will help guide your way through it safely.

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Sipping to Success: Uncovering the Best SIP Plans to Invest In

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Regularly investing in mutual funds is made easy with Systematic Investment Plans (SIPs). With SIPs, investors can benefit from rupee cost averaging by investing a certain sum in mutual funds on a regular basis. As a result, investors can profit from fluctuations in the market by acquiring more units when the market is down and fewer units when it is up.

In order to build long-term wealth, it is essential to invest in the correct SIP plan. We’ll talk about some of the top SIP plans in this article.

Best SIP Plans to Invest:

The best sip plan to invest in are given below:

1. Large-Cap Mutual Funds 

Mutual funds with a significant market cap invest in the equities of established, reputable, large corporations. These businesses are well-established and frequently market leaders in their respective fields. Large-cap mutual funds are a great option for conservative investors since they have a lower risk profile than other equity mutual funds. These investments give the portfolio stability and long-term capital growth.

2. Multi-Cap Mutual Funds 

Large-cap, mid-cap, and small-cap equities are all included in the investments made by multi-cap mutual funds. These funds provide a diverse portfolio, which lowers the portfolio’s overall risk. Investors aiming for long-term capital growth and who have a modest taste for risk can choose multi-cap mutual funds.

3. Mid-Cap Mutual Funds 

Mutual funds for mid-cap companies buy stocks from businesses with a market value of between 500 crore and 10,000 crore rupees. These businesses have the potential to produce substantial profits and are frequently in the growth phase. However, compared to large-cap mutual funds, mid-cap mutual funds have a higher risk profile. These funds are appropriate for investors that have a higher risk tolerance and are seeking long-term capital growth.

4. Small-Cap Mutual Funds 

Mutual funds for small-cap companies buy stocks from businesses having a market value of less than 500 crore rupees. These businesses have the potential to produce substantial profits but are frequently in their beginnings. The risk profile of small-cap mutual funds is higher than that of large-cap and mid-cap mutual funds, though. Investors searching for long-term capital growth and with a high-risk tolerance should choose these funds.

5. Sectoral Mutual Funds 

Mutual funds that specialize in a certain industry, such as banking, medicine, or technology, invest in the stocks of businesses in that industry. These funds offer exposure to a certain industry and are appropriate for investors that have a positive outlook on that industry. Sectoral mutual funds, in opposition to diversified mutual funds, have a higher risk profile. Investors searching for long-term capital growth and with a high-risk tolerance should choose these funds.

Conclusion:

SIP investments in mutual funds are a great method to build money in the long run. Rupee cost averaging, which is a benefit of SIPs, aids in lowering the portfolio’s total risk. Investors’ risk tolerance, investment horizon, and financial objectives must all be taken into account while making SIP investments. Selecting the mutual fund category that best suits your financial goals is crucial.

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What are the Regulations for Taking Phone Credit Card Payments?

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Phone Credit Card Payments

In Australia, there are strict regulations around taking phone credit card payments. The relevant rules and guidelines are outlined in the Reserve Bank of Australia’s EFT Code of Conduct. This code contains regulatory requirements for all entities that process electronic funds transfers (EFTs), including phone credit card payments.

The regulations set out several obligations for entities that process phone credit card payments. These obligations include the following:

• Entities must obtain a signed authority from customers before processing any payment made by phone or the internet.

• Entities must ensure that all staff members involved in taking payments have been properly trained and understand their responsibilities.

• Entities must use secure systems to protect customer data and privacy.

• Entities must confirm customers’ identities before processing any payment, including via phone credit card payments.

• Entities must provide customers with a clear breakdown of the fees associated with their purchase.

• Entities must be able to demonstrate compliance with all relevant regulations, including those related to data security.

• Entities must provide customers with clear information about the payment process and any associated risks before processing the payment.

• Entities must ensure that customers are informed of their right to dispute any charges and be provided with a prompt refund if the dispute is proven valid.

• Entities must store all customer data securely and in accordance with applicable regulations.

• Entities must have an effective dispute resolution process in place.

• Entities must ensure that customers are not charged any additional fees or surcharges beyond what they initially agreed to.

Choosing the Right Payment Terminal

This might seem like lots of stress, especially for a small business, but much of the work is done when selecting a payment terminal. When selecting a payment terminal, consider:

• The cost of the terminal.

• The type of payment processor used with the terminal.

• Any associated fees and any additional hardware needed to use it.

• The compatibility with existing systems, such as point-of-sale software or a merchant account.

• The terminal’s ability to accept payments from different credit card companies.

• The security measures in place for processing transactions, such as data encryption and fraud protection.

Once a terminal is selected and the necessary hardware is installed, businesses will need to register and be approved by their payment processor to begin taking phone credit card payments. During the registration process, businesses will need to provide basic information such as contact information and banking details. They may also need to present additional documents such as a business license or invoices verifying the legitimacy of their operations.

With Zeller solutions, you can provide a safe and secure payment option to all your customers. The compliance team will make sure you meet all necessary security regulations and standards such as Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection Regulation (GDPR). This ensures that you are providing your customers with the highest level of protection when it comes to their data and financial information.

Choose the right solution today and you will follow all the right regulations – not only will you avoid fines and penalties, but you’ll also keep customers happy and avoid damage to your reputation!

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