Payment terms with Japanese Importers

[Zerosumgame]

What kind of payment terms have you guys typically encountered with UK based importers - i.e. how much are you typically putting down before the car is landed in the UK?

[mhr1294]

Zerosumgame said:

What kind of payment terms have you guys typically encountered with UK based importers - i.e. how much are you typically putting down before the car is landed in the UK?

Every importer in the UK will want the FOB (Freight on Board) price paid in full. I can't think of anyone who would not ask for that.

This usually consists of some kind of a deposit for them to see the car/inspect/bid on your behalf and then you have to pay auctions fees, bank fees, de-registration fees yadda yadda. They'll usually handle this as one payment for you.

When the car arrives, you have all your import fees, VAT/Customs/Registration/SVA/MOT/Road Tax/any conversion work etc.

So basically what you're looking at is:

1. Deposit (Japan)
2. FOB (Japan)
3. Landed (UK)

Some importers might ask for the full amount (OTR in the UK) ready to drive away. They'll calculate how much it'll be when it lands in advance - you should be weary of anyone doing this as some vehicles qualify for no VAT or reduced rates of VAT and customs fees which they'll claim to know nothing about. (cars over 30 years old for example qualifying rate is 5%)

I'm by no means an expert, but I've had a few cars brought in now over the past few years and that's the story.

[samoht]

I was technically dealing with an exporter (Autospecs aka JapaneseUsedCars), I sent a deposit up front, then the rest of the whole amount (=FOB) shortly after they bought the car at auction over there. Then I dealt with import taxes etc after it arrived in the UK myself.

Ultimately I think the whole import thing only works if you trust the outfit who are doing it. Having said that, there are far more happy than unhappy customers overall, most of the longstanding importers appear to be trustworthy.

[Zerosumgame]

samoht said:

I was technically dealing with an exporter (Autospecs aka JapaneseUsedCars), I sent a deposit up front, then the rest of the whole amount (=FOB) shortly after they bought the car at auction over there. Then I dealt with import taxes etc after it arrived in the UK myself.

Ultimately I think the whole import thing only works if you trust the outfit who are doing it. Having said that, there are far more happy than unhappy customers overall, most of the longstanding importers appear to be trustworthy.

To what extent do JapaneseUsedCars hold your hand with the stuff on the UK side (i.e. who sends you the HMRC invoice and port clearance documents?).

[samoht]

Zerosumgame said:

To what extent do JapaneseUsedCars hold your hand with the stuff on the UK side (i.e. who sends you the HMRC invoice and port clearance documents?).

JUC don't really do anything on the UK side, they only handle the export. But there's a fairly well-trodden path;
I paid Kleerfreight £75 to handle the customs clearance. JUC sent them the export docs, and they got the clearance processed with the docks and HMRC. I did a write-up at the time here

[Zerosumgame]

samoht said:

Zerosumgame said:

To what extent do JapaneseUsedCars hold your hand with the stuff on the UK side (i.e. who sends you the HMRC invoice and port clearance documents?).

JUC don't really do anything on the UK side, they only handle the export. But there's a fairly well-trodden path;
I paid Kleerfreight £75 to handle the customs clearance. JUC sent them the export docs, and they got the clearance processed with the docks and HMRC. I did a write-up at the time here

That is exactly what I need - much appreciated