Customs Clearance services when Importing from China

Importing products from China can be a complex process, and it's important to understand the tax obligations that may apply no matter where you are located in the world. Customs duties, VAT (value-added tax), quotas, and licenses are just some of the factors to consider.
Don't risk being caught off guard by unexpected fees and charges!

Customs clearance is a mandatory process when importing goods from China to any country, and taxes will be applied to your cargo. These taxes are collected by the customs authorities of the destination country and are calculated based on the declared value of your goods.

In this page, we will explain how DocShipper can assist you with customs clearance services from China to anywhere in the world. We'll also provide guidance on how to estimate customs duties and taxes for your Chinese imports, as well as the necessary documents and requirements for a smooth import process.
Whether you're based in the EU, US, UK, Australia, Russia or anywhere else, this guide is designed to help you navigate the customs clearance process with confidence. Enjoy reading!

Customs clearance services from China - How to estimate customs duties and taxes for Chinese imports ?

If you are thinking of shopping outside Europe or importing goods from China, you may think that your purchases will be tax-free.
But this is not entirely true. You may be subject to customs duties, particularly for customs clearing imports into China, which many people tend to overlook. Customs duties are mandatory for most importers and can have a significant impact on your overall costs. It is essential to include this tax in your business model and not just focus on VAT.

Calculating customs duties can be complex and difficult, but it is essential to understand how they work. In this article we will explain what customs duties are, how they are calculated and why they are essential.

Step 1 - Getting the HS Code

The HS Code is an identifier composed of numbers only and which allows customs officials (worldwide) to identify simply and quickly the nature of the products in your cargo.

Normally, your supplier should be able to provide you with the HS Code. If not, you can still find it on your own. You can go to this U.S. government site to type in your keywords and find the HS Code that matches your keywords: HTS - HS code finder

Here's a simulation using the same pineapple example :

Still having trouble finding the HS Code? Please contact us !

Step 2 - Determining Customs Duties

We will guide you step by step on how you can determine the future taxes on your cargo :

Go to the European Customs website at the following link: : TARIC System European Customs or American :
Then click on the yellow button in the middle " ACCESS TO DATABASE "
Once you have arrived on the TARIC system, fill in your HS code as well as the country of origin. It should look like this:

Did you enter your HS Code and country of origin correctly? Now click on "Search for measurements".
Check that the HS Code matches with your product and then read the duty, you'll need to find something like this :

Would you like more information? Then click on the blue link as shown in the screenshot just above, you should come across an official document, in our case it's more than 1000 pages long!

DocShipper Note: Having a problem finding the HS Code or customs duties? Do not hesitate to contact our experts for assistance with tax evaluation during customs clearance.

Step 3 - Assessing the value for duty

As mentioned above, customs duties and taxes will be indexed to the so-called "customs value". It is important to estimate the value of duty in order to avoid unpleasant surprises on the day.

The customs value is the CIF value, i.e. it includes not only the price of the goods but also the price of the international freight to the customs clearance terminal as well as insurance costs.

Want to learn more about incoterms (like CIF)? Feel free to have a look at this article from our branch in Vietnam : Incoterms 2020

VAT when importing in Europe

Taxe base

The taxable amount on which VAT must be calculated when goods are imported from outside the EU is the value defined as the customs value of the goods.

If they are not already included in the customs value, are included :

Taxes, duties, levies and other charges that are due outside the EU country of import
Ancillary costs, such as commission, packaging ...
Incidental costs arising from transport to another place of destination within the EU, if the latter place is known at the time of the chargeable event.

Minimum VAT rates

The standard rate cannot be less than 15% ;

EU countries may also apply one or two reduced rates, which must not be less than 5% and which will only be applied to very specific supplies of goods. The directive allows the application of a reduced rate of at least 12%.

VAT when importing in USA

TAXES: In the United States, there is no VAT to be paid when importing a part. However, there is a fee for processing the goods. An "MPF" - Merchandise Processing Fee - is a duty imposed by U.S. Customs and Border Protection (U.S. Customs and Border Protection or "CBP") on most U.S. imports. The MPF is charged at 0.3456% of the value of the imported merchandise with a minimum fee of $25 and a maximum fee of $485 for official entries.

CUSTOMS DUTIES: As in all countries, duties differ according to the type of merchandise. HS codes, which are tariff codes, are used in the United States to categorize the type of item. You can find all the information on HS codes on the U.S. Government Census website here.

When you import products from outside the European Union, the VAT on the products is collected during the customs clearance period. Only after payment of customs duties and VAT will your goods be released and legally resold on the mainland.

Companies can include the VAT paid during customs clearance directly in the turnover declaration to avoid a disbursement.

Eligible companies

Of course, not all companies are eligible for this tax advantage. Here are the 2 conditions of eligibility:

Companies established on the territory of the European Union
Companies subject to VAT in the European Union (with representative office and/or local subsidiary)

How can I pay less tax?

There is no real leeway on the customs duties and taxes you will pay when you import your products. Some will tell you that it is possible to under-declare goods (indicate a value lower than the actual value). Yes it is possible but it is dangerous and we do not advise it!

It is indeed possible to ask your supplier to send documents (including the "packing list" and the "purchase invoice") showing a value lower than what you actually paid. Those who attempt such a manipulation risk 2 types of problems:

Customs penalties: revaluation of your cargo, customs inspection fees, storage and handling...
Reimbursement of disputes: in case of a dispute, your insurance will only reimburse up to the value indicated on the transport documents.

Tables for estimating customs duties and taxes (Europe)

Recent products

Rates applicable in 2022 - Commission Implementing Regulation (EU) 2022/ of 21 November 2022

Goods to be declared at customs

Customs duties

VAT

Customs Nomenclature

Shoes

0 %

20 %

4417

Electric Scooter

0 %

20 %

9503 00 10

Connected Watch

3 %

20 %

7015 10

It is possible that some products are not taxed in China. Recently in 2022, children's products, medical products, some electronic components or leather products such as bags are no longer taxed by customs.

Note that tax exemptions can be temporary and customs rules can change quickly. It is therefore important to find out about the latest customs policies in China before importing products.