Freight Shipping between China and Norway | Rates – Transit times – Duties and Taxes

How to calculate duties & taxes when importing from China to Norway?

Grasping the calculations involved in estimating duties and taxes when importing from China to Norway can streamline your shipping process, saving you valuable time and potentially a fair amount of money as well. When it comes down to customs duties, things you need to know to stay ahead include the country of origin, the Harmonized System (HS) code of your goods, the customs value, the tariff rate applicable to your products, and the presence of any possible additional taxes and fees.

Commencing this estimation journey, you will have to firstly identify the country where your goods have been produced or manufactured. This isn't just a trivial detail – it's an essential piece of the puzzle that'll steer your freight forwarding journey in accordance to the predefined trade rules and regulations. It's always important to remember, every piece of information counts when it comes to making international trade smooth and hitch-free.

Step 1 - Identify the Country of Origin

Without a doubt, determining the country of origin, China in your case, is a foundational step before you can get your hands on the Harmonized System (HS) code. You might think it's a no-brainer, but let's zoom in on why it's vital.

First off, it justifies if the goods are indeed 'Made in China'. Secondly, various products have different regulations depending on their origin. Thirdly, origin verification can prevent potential legal issues. Fourthly, it provides a background for setting selling prices and lastly, it has a big say on the customs duties you'll pay.

Norway and China have a unique trade relationship that impacts your customs duties. Norway is part of the European Free Trade Association (EFTA), and in 2018, EFTA and China updated their free trade agreement to lower tariffs on many products.

On the flip side, Norway has restrictions on certain Chinese imports. Textiles, for instance, face quota and visa limitations. So, keep these in mind while you jot down your HS code and plan your import strategy.

Step 2 - Find the HS Code of your product

The Harmonized System Code, often referred to as the HS Code, is a key term you'll encounter when shipping goods internationally. It's a standardized system of names and numbers to classify traded products. This system is used by customs authorities around the world to identify products for the application of duties and taxes.

In most cases, the simplest way to determine your product's HS Code is to consult with your supplier. They have a deep understanding of the goods they're exporting and the customs regulations associated with them.

If you're unable to secure the code from your supplier, don't worry. We're here to guide you through a quick and easy process to find it on your own. Your first step is to visit the Harmonized Tariff Schedule, a free online HS lookup tool.

Once you're on the Harmonized Tariff Schedule website, search for your product by typing its name into the provided search bar. You can then check the Heading/Subheading column on the results page to find your product’s HS code.

However, accuracy is crucial. A word of caution: Ensure you have the correct HS Code, as an error here may lead to substantial shipping delays or potential fines due to misclassification of goods.

And here's an added resource to help you understand HS codes better: an infographic showing you how to read an HS code.

Step 3 - Calculate the Customs Value

Understanding the customs value of goods you're importing into Norway from China is key in precise duty assessment. The customs value is not just the market price of your products; it packs more. It's the CIF value - total cost, inclusive of the goods' price, international shipping fees, and insurance costs. For instance, if you're shipping goods costing $20,000, with a shipping fee around $1,500, and an insurance premium of $200, your customs value ascends to $21,700. Remember, as the offshore shipping costs increase or if the insurance cost varies, so does your customs value. It's not static; it's a moving sum, directly influencing your duty payment - definitely something worth your keen eye!

Step 4 - Figure out the applicable Import Tariff

An import tariff is essentially a tax imposed on goods imported from another country. It's a critical component of international trade, impacting the final cost of your imported goods.

Norway is part of the European Economic Area (EEA), but it is not part of the customs union. It sets its own tariffs on goods imported from outside the single market. To determine the specific tariff rate for your product, you'll need to navigate to the Norwegian Customs consultation tool and enter the Harmonized System (HS) code identified earlier.

Here, input the Harmonized System (HS) code for your product from China. This will provide you with the specific duties and taxes applied to your product. The HS code is a universally accepted classification system that defines the type of goods being shipped.

For example, let's say you're importing stainless steel screws from China with an HS code 7318.15. The Norwegian customs shows an import duty of 3.7%. Assuming that your insurance and freight (CIF) costs total $10,000 USD, you'll calculate your import duties as follows: $10,000 x 3.7% = $370. Therefore, your goods would incur $370 in import duties.

Remember, being aware of your potential import duties can help alleviate any unexpected costs and assist in more precise financial forecasting for your importing activities.

Here's how you to navigate the Norwegian Customs website to find the needed information:

As you can see on the screenshot above, you should add your goods code (HS Code).

After that, you have to click on "magnify glass" and you will land on a page with all the information that determine the duties and taxes, here's a screenshot to illustrate it:

Step 5 - Consider other Import Duties and Taxes

When shipping goods from China to Norway, besides the standard tariff rate, you might encounter additional import duties. These can depend on both the nature of your product and the country of origin. For instance, you may be faced with an excise duty - a tax imposed on certain goods like alcohol or tobacco. If goods are deemed to have been 'dumped' or sold at low prices unfavorable to Norwegian producers, anti-dumping taxes may come into play.

One major tax you should be aware of is the VAT rate, which typically varies and is integral to your costs. For example, standard goods imported might attract a VAT rate of 25%. So, if you're importing goods valued at $10,000, you’ll also need to factor in a VAT charge of $2,500 (25% of $10,000). Remember, these are sample figures; actual rates can change.

Although these charges may seem complex, understanding them is essential to accurately estimate your total shipping costs. This knowledge can help you avoid surprises and perhaps even find the most cost-effective solutions for your business needs. Always consult the latest guidelines or a customs expert for accurate rates.

Step 6 - Calculate the Customs Duties

Determining customs duties when importing goods from China to Norway can seem complex, yet it's easier when broken down. Essentially, the duty imposed depends on three key elements: the customs value of your goods, any applicable Value Added Tax (VAT), and possible anti-dumping taxes.

Let's explain this with practical examples:
1. Your shipment, valued at $10,000, incurs a duty rate of 8%. Your customs duty payable would be $800.
2. Now presume the same shipment but with Norway's standard VAT of 25%. You'll need to calculate the VAT based on the sum of the customs value and duty, totaling $13,500. Resulting in a VAT of $2,700.
3. Suppose an additional anti-dumping tax of 15%, and an excise duty of $250 on your shipment. Add these to the sum of your customs value, duty, and VAT (equaling $16,250), you're left with a total of $2,688.

At DocShipper, we understand these calculations may be overwhelming; that's where our seasoned team comes in. We handle every step of your customs clearance globally, ensuring you're not overpaying. Reach out to us for a free quote within 24 hours. Get your goods moving without a hitch.

Bill of Lading

Navigating the maze of international shipping? The Bill of Lading is your compass. It's an essential document for moving goods from China to Norway, signaling your shipment's trek from seller to buyer. Issued by your transporter, it outlines cargo details and serves as a receipt. Telex release, or the electronic version, enables faster and smoother transactions—no loss or delay of documents.

Shipping by air? Swap in an Air Waybill (AWB) instead. It's like your parcel's passport, containing all necessary details for your flight. Your top benefit? It speeds up customs clearance.

Remember: correct and complete documentation can help you dodge costly delays. Stay ahead; get your Bill of Lading or AWB right the first time. Shipping—the exciting journey and critical task in unlocking your global market—doesn't have to be daunting.

Packing List

When shipping your goods from China to Norway, don't underestimate the power of a Packing List. Think of it as your shipment's identity card; it provides customs with all the specifics they need - quantity, description, type of packaging (pallet, drum, box, etc.), and the weight of your goods. Consider, for example, you're sending a pallet of machinery parts - the Packing List ensures each item is accounted for. Remember, accuracy is key - discrepancies can lead to delays, extra costs, or fines. Investment in getting it right, whether for sea freight or air freight, will certainly pay off in smoother customs clearance.

Commercial Invoice

A Commercial Invoice is crucial for your China-Norway shipping adventure, acting as a customs declaration. This document outlines exact details of your shipped goods, including product descriptions, quantities, prices, and the total value. Here's the thing - Chinese and Norwegian customs use this to evaluate duties payable. So, a tip? Ensure it mirrors other shipping docs, avoiding mismatched info leading to unnecessary customs delays. Let's go practical - if you're shipping 100 bicycles, the Commercial Invoice should specify '100 mountain bikes, $100 each'. Don't overlook the document's harmony with the packing list, which might slow down your passage at customs if not aligned. With a meticulously prepared Commercial Invoice, you're in safe hands at customs, your freight cleared faster, all while avoiding possible penalties or seizure of goods. Happy shipping!

Certificate of Origin

When shipping goods from China to Norway, your Certificate of Origin (CO) acts as a passport for your cargo. Are you ready to navigate preferential duty rates? The CO gives you that edge, verifying the product's country of manufacture - in this case, China. Imagine those handmade silk scarves your business crafts; they can't enjoy a smoother ride, or maybe even lower tariffs, without that CO stamp affirming their Chinese birthplace! Keeping this tip-top can simplify your journey through Norwegian customs. It's not an option - it's a necessity. Don't let bureaucracy snag your goods; let your CO lead the way. Happy shipping!