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Ash, Solicitor
Category: Law
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Experience:  Solicitor with 5+ years experience
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My question is am I legally able to resell a branded item as

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My question is am I legally able to resell a branded item as second hand once I have purchased it?
My idea is to sell second hand (used - like new) authentic designer bags/watches and scarfs, I will be purchasing my items directly from the factories that make for the brand, it is something called grey imports, I am aware because I do not purchase from the brand I cannot offer the brand warranty and would therefore have to offer my own warranty, I would also be buying and reselling from individual people who would like to sell their second hand items.
I am wondering if this is legal to do?
My thinking is the items cannot be sold as brand new (the grey imports) because the brand would be upset and the price would be maybe half the RRP however if the items were sold as used like new and any barcodes removed I should not have a problem with the brand?
I would mainly be selling on the high street although if it went well I would maybe start to sell through an online web-site as well.
I suppose it is something similar to what TK Maxx business operations are however I am not sure if they have permission from all of the respective brands or if they purchase the brands seconds and last seasons items directly, of course their items are sold as new.
Any help or advise would be much appreciated.

Hello my name is ***** ***** I will help you.

Just to clarify you are purchasing genuine brands?

Customer: replied 1 year ago.
Hi,Yes all of the items are genuine, they are purchased from the factories that are sub-contracted to make for the brand, as you may know a large percentage of brands do not have their own factory.I have been selling branded watches over the internet for over eight years now so I have quite a lot of experience and know a couple of the brands particularly well so I know for sure they are genuine, My concern opening a high street shop is that I will now be selling bags and scarfs as well as watches and I would not want to open a shop at a high expense just to be closed down by the brand if it was not legal to do.I do know that many other internet sellers also purchase in this way (grey imports) and is how they can sell their items at a very good discount from the RRP but all state their warranty is with themselves just as we do. it is quite a big business with lots of business doing this online around the world.

Ok, then you have noting to worry about. They can't stop you selling the products.

If they were not genuine the matter would be different but they are. They can only stop you if they are not genuine.

If you well at a discount and remove barcodes as you suggest they can not stop you.

It would be uncompetitive and against competition if they did so.

Can I clairfy anything for you about this today please?

Customer: replied 1 year ago.
Hi Ash,Thank you for your quick response.That is great news.Would I then be able to sell the items as new or is it better from a legal stance to sell as used like new as mentioned?I also do have a concern when importing the items that they maybe stopped at customs, I am happy of course to declare the value and pay any such taxes and import duties but I do know that a lot of brands have relationships with HMRC and are brought in to check items imported for authenticity, I do know that always the brand states the items are not genuine even if they are if they are not imported and purchased from themselves or an authorised seller they reconise, this does worry me because I know the items are genuine, would I then appeal the decision and fight the case because of course customs will listen to the brand and the brand may not honestly state the items are genuine because it is in their interest to not have such grey imports in circulation, from a legal stance what can I do about this?

You can sell as new, but like new is probably safer.

If you are stopped by customs you simply pay the approvals tax and duties where applicable.

You simply show they are genuine and from a proper wholeseller.

Customs won't be interested in brand issues. Just as long as they are not counterfeit.

Does that clairfy?

Customer: replied 1 year ago.
that makes things clearer, thanksOne potential issue is that we purchase from an agent who sell on behalf of the factory or have their own business buying from the factory and selling on to buyers like us around the world.The factories only deal with trusted agents because they do not want the brand to find out they are selling their items under the counter so to speak as the brand will maybe cancel the contract and then go and find another factory to produce for them, all factories are doing this and the brand are well aware of it. A lot of the stock is excess stock, orders cancelled by the brand or maybe slights seconds, the factory or course try to recoup some of the money spend on producing these items and because the brand also offer them such small amounts of profits margins.The invoice would therefore be from our agent which may not represent a proper wholeseller although they are of course a registered business in the specific trade area.

Yes that is fine

Does that clarify?

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Customer: replied 1 year ago.
it all makes sense now.As long as the items are genuine and at customs an invoice is given in order to calculate the correct taxes and import duties then there should not be a problem importing the items, also selling used like new is better than new from the brands points of view therefore I should have less issues from them if any at all.Thank you so much for your help and advise, I will leave positive feedback now.Best regards

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