Importing products from China is not something you can improvise! Many people are unaware of the tax obligations imposed by the European Union or directly by the French government. Customs duties, VAT (value-added tax), quotas, licenses... Don't let yourself be taken by a bad surprise!
Customs clearance is mandatory when you import goods from China to France (or Europe in general). Thus, taxes will be applied on your cargo, a tax collected directly by the customs authorities of the destination country.
Keep in mind that taxes are applied directly on the declared value of your goods.
In this page, we will explain how DocShipper accompanies you through the customs clearance process from departure to arrival, we will also highlight how you can estimate the customs duties by yourself, the necessary documents... Enjoy reading!
The DocShipper Plus: For each shipment we handle, we check the entire documentary bundle to certify the feasibility of the project. Also note that in most cases, you will need a state-sworn "customs declarant" to clear your products through customs. Naturally, DocShipper offers you this service.
How to assess customs duties and taxes for Chinese products?
When shopping abroad (outside Europe), your purchases will be made under the heading "duty-free", many of you refer only to VAT when talking about tax. This is a classic mistake!
Indeed, you should not forget what is called "customs duties"! This tax, which is compulsory for a large number of importers, is a rather obscure point, but it is even more complicated to gauge. However, it is essential to consider it in your business model since it can have a significant impact on your figures.
DocShipper's note: These rates are not easy to predict because they are constantly fluctuating depending on a multitude of points: trade agreements between countries, monitoring of quotas, the status of the importer, country of origin... And because things would be too easy if they were stable, customs duties also change over time and with temporary and/or transitional amendments.
DocShipper Note: The value retained by customs officials is what is known as the CIF value, i.e. it also includes international freight charges in the loadable (customs) value. CIF is an incoterm that includes the entire shipping process from departure to the destination terminal (port, airport, or station).
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:Â : 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 - Value Added Taxes
VAT is a must, so you need to clarify this situation so that you don't have any unpleasant surprises in your cash flow.
Before going into the explanation, you can directly read this article about import duty from USA.
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)
DocShipper Note: Each country legislates its taxation differently, including exceptions. For example, in the case of France, some companies are under the Simplified Taxation Regime (RSI) and therefore have a very specific regulation.Â
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 2020 - Commission Implementing Regulation [EU] 2019/1776 of 9 October 2019
Goods to be declared at customs | Customs duties | VAT | Customs Nomenclature |
---|---|---|---|
Gyropode / Hoverboard | 6Â % | 20Â % | 8711Â 90Â 00 |
Civilian drone | 0Â % | 20Â % | 8525Â 80Â 99 |
Electronic Cigarettes | 3,7Â % | 20Â % | 8543Â 70Â 70 |
Tables of estimated duties and taxes on the basis of the Common Customs Tariff, for recent products
Electronic equipment: camera, camcorder, computer, games...
Rates applicable in 2020 - Commission Implementing Regulation [EU] 2019/1776 of 9 October 2019
Goods to be declared at customs | Customs duties | VAT | Customs Nomenclature |
---|---|---|---|
Tactile tablets | 0Â % | 20Â % | 8471Â 30Â 00 |
Laptop | 0Â % | 20Â % | 8471Â 30Â 00 |
Smartphone | 0Â % | 20Â % | 8517Â 12Â 00 |
Hands-free kits for mobile phones | 0Â % | 20Â % | 8517Â 62Â 00 |
Digital cameras and camcorders | from 0% to 1.6%. (at 0.8% as of July 1, 2020) |
20Â % | 8525Â 80 .. |
Game consoles | 0Â % | 20Â % | 9504Â 50Â 00 |
Recorded DVD/Blu-ray | 0Â % | 20Â % | 8523Â 49 10 |
Electronic toys | from 0 % to 4,7 % | 20Â % | 9503Â 00 21 Ã 9503Â 00 99 |
Electronic games (like Sudoku) | 0Â % | 20Â % | 9504Â 90Â 80 |
Portable color television set (small TV with antenna) and television receiver screen | 14Â % | 20Â % | 8528Â 72Â .. |
Electronic breathalyzer | 0Â % | 20Â % | 9027 10 10 |
GPS navigation system | 0 % | 20Â % | 8526Â 91Â 20 |
Tables for estimating duties and taxes on the basis of the Common Customs Tariff, for electronic products
Musical instruments: piano, string or wind instruments
Rates applicable in 2020 - Commission Implementing Regulation [EU] 2019/1776 of 9 October 2019
Goods to be declared at customs | Custom duties | VAT | Customs Nomenclature |
---|---|---|---|
Musical instruments | from 3,2 % to 4 % | 20Â % | from 9201 .. .. to 9207 .. .. |
Tables estimating duties and taxes on the basis of the Common Customs Tariff, for musical instruments
Horlogerie & jewelry
Rates applicable in 2020 - Commission Implementing Regulation [EU] 2019/1776 of 9 October 2019
Goods to be declared at customs | Custom duties | VAT | Customs Nomenclature |
---|---|---|---|
Wrist watch | 4,5 %, with : a minimum of 0,3 ⬠/ piece and a maximum of 0,8 ⬠/ piece | 20 % | from 9101 .. .. to 9102 .. .. |
Articles of jewelry and parts thereof of precious metal, whether or not coated, plated or lined with precious metal | 2,5Â % | 20Â % | 7113 1. .. |
Costume jewellery | 4 % | 20 % | 7117 .. .. |
Estimation tables of duties and taxes on the basis of the Common Customs Tariff, for watches, jewellery, etc.
Carpets and floor coverings
Rates applicable in 2020 - Commission Implementing Regulation [EU] 2019/1776 of 9 October 2019
The quality of the carpet's construction, texture and composition influence the customs rates.
Goods to be declared at customs | Custom duties | VAT | Customs Nomenclature |
---|---|---|---|
Carpets known as "kelim" or "kilim", "schumacks" or "soumak", "karamanie" and similar hand-woven carpets | 3Â % | 20Â % | 5702Â 10Â 00 |
Coconut floor coverings | 4Â % | 20Â % | 5702Â 20Â 00 |
Carpets and other textile floor coverings, tufted, whether or not made up | 8 % | 20 % | 5703 .. .. |
Tables estimating duties and taxes on the basis of the Common Customs Tariff, for carpets and floor coverings
Clothing
Rates applicable in 2020 - Commission Implementing Regulation [EU] 2019/1776 of 9 October 2019
Travellers' attention is drawn to the range of rates for clothing imports: 12 per cent in general (highest rate), but varying between 6.3 per cent and 12 per cent.
Goods to be declared at customs | Custom duties | VAT | Customs Nomenclature |
---|---|---|---|
Knitted or crocheted clothing and clothing accessories (incl. knitted or crocheted garments) | General case: 12%. (range of 8% to 12%) |
20Â % | 61.. .. .. (Chapter 61) |
Garments and clothing accessories, not knitted or crocheted (e.g. made of fabric). | General case: 12%. (range 6.3% to 12%) |
20Â % | 62.. .. .. (Chapter 62) |
Tables for estimating duties and taxes on the basis of the Common Customs Tariff, for garments
Documentary bundle and regulation
Mandatory documents for customs clearance
Bill of Lading
The "bill of lading" (which can also be found under the name "B/L") is an indispensable document when it comes to international freight. While the Bill Of Lading is specifically for sea freight, we will refer to this document as the "Airway Bill" when chartering your goods by air.
In any case, the 2 documents have the same principle: they allow you to confirm the space reserved for freight and therefore the transport of goods.
1 = Sender
2 = Recipient
3 = Notify party
4 = Vessel and voyage number
5 = Port of departure / arrival
6 = Place of departure / arrival
7 = Container number
8 = Description of goods
9 = Gross weight
10 = Dimensions
4 copies of the B/L will be printed and the original will be retained for customs clearance when the cargo is at the destination terminal.
The DocShipper Plus: the B/L is naturally a document that the DocShipper team will generate for your future expedition.
Packing list
The "packing list" is one of the other essential documents when it comes to international freight. It is a document that will notably be necessary during the import customs clearance phase but also to make the export declaration.
The packing list provides a multitude of information such as :
- The purchase incoterm
- Terms of payment
- Information on the product(s), in particular weight, volume, description, etc.
- Declared value of products and total amount
- Origin and destination of cargo
- Seller and buyer information (name, address, email, phone)
The DocShipper Plus: Before starting any shipment, our import department will check your packing list to verify its conformity. All it takes is one omission, one mistake and your shipment can be blocked at customs and thus generate uncontrolled costs.
Certificate of Origine (C/O)
The Certificate of Origin (or Certificate of Origin in English) is still one of the indispensable documents to be able to ship products around the world. Indeed, it certifies that the product listed on it meets certain criteria to be considered as originating from a particular country.
Here is an example of a Certificate of Origin (Chinese):
Other mandatory documents
We have made a very condensed list of the documents you need to have during development. But beware, some shipments for specific products require very special documents. Here is a list of these documents:
- The purchase invoice
- Insurance policy
- The quota compliance certificate
- The inspection certificate
- Quality certificates
- Sanitary certificates
DocShipper Note: Would you like to ship sensitive products? Not sure which documents you need for your shipment? No problem, DocShipper is there for you!
EORI Number
EORI Number: What is it?
The EORI number (Economic Operators Registration and Identification Number) was introduced to identify economic operators in the EU in a uniform way, as regards their relationship and interaction with customs authorities and can be considered as a kind of "customs number".
The main idea is to simplify customs clearance, which has become increasingly automated. The EORI number is indispensable for all correspondence between the operator and the customs authorities, whether it concerns applications, declarations, or other documents.
It consists of 17 characters and generally, there are a few exceptions, the first and second characters are the country code. As a trader in Europe, you must check the validity of the number for each shipment within the customs territory of the European Union. However, private individuals are not affected by this regulation.
This is what an EORI number looks like: EN1523824912
N'hésitez pas à vous rendre sur le site officielle pour avoir plus d'informations : Numéro EORI : comment et pourquoi lâobtenir ?
Who needs an EORI number?
Anyone importing goods from outside the EU or exporting in the other direction must have an EORI number. It is also used by customs authorities to find out what is happening and for security, data analysis, and statistical purposes.
When moving goods within the EU or importing products for private use, no EORI number is required. However, it is still required for imports and exports within the European Economic Area.
Sometimes, companies located outside the EU but trading within Europe must also obtain an EORI number.
How to get an EORI number?
The EORI number is very easy and quick to obtain if you already have a company registered in the European Union. You will get it within a few days (depending on the member country) directly on the internet (or by mail if you prefer). Note that the EORI number you will have is unique and definitive, so you will not need to repeat the process over and over again.
Although directly related to the functioning of the European Union, the EORI number can be obtained directly from the local authorities in which your company has been registered. Here is a list of the different websites (by country) to help you apply for an EORI number:
- Austria
- Belgium
- Bulgaria
- Croatia
- Cyprus
- Czech Republic
- Danmark
- Finland
- France
- Greece
- Hungary
- Irland
- Italia
- Lettonia
- Luxemburg
- Malta
- Holland
- Poland
- Portugal
- Romania
- Slovakia
- Slovenia
- Espagna
- Sweden
- United Kingdom
How long does the EORI recording last?
After the registration process and all documents are completed, it should take no more than 3 days before you receive it by e-mail. Check your spam folder and keep in mind that this may vary from country to country.
Check the EORI number: EORI validation
Before you think about getting an EORI number, make sure you are not already registered. Some companies automatically obtain an EORI number when they register for VAT.
You can check whether your company has an EORI number with the EORI number validator provided by the authorities in many countries. You can also go to the EORI number validator provided by the European Union.
Duty free when buying in China
here is a certain amount below which you will not pay tax when you buy goods in China, which we call the "duty-free threshold". If you do not exceed the stated threshold, you will be exempt from customs duties and taxes, you will not pay any taxes!
- 150 euros for products bought in E-Commerce (For example: Aliexpress, Amazon, Made-in-China..)
- 430 euros for travellers by plane or boat
- 300 euros for passengers using other modes of transport
Are you over the deductible? Then you will have to pay customs duties and VAT as indicated above.
Conclusion
As you may have read through this page, customs clearance is not a step you can afford to rush! You will have to be rigorous and meticulous throughout the entire process to avoid mistakes and/or omissions that can cost you a lot of money! A document is missing and customs officials may decide to seize the goods until they are compliant: storage fees, handling fees, etc... etc.
At DocShipper, we check all documents before departure, this is part of our company policy. It's quite simple, if we don't have the necessary documents, we won't ship your shipment!
Of course we accompany you throughout the whole process in order to obtain the missing documents if necessary!
Do you need customs clearance? Do not hesitate to contact our team!
FAQ - Customs clearance of Chinese products
Can a private individual import?
No problem from the moment you import products for personal use. Naturally, if you import 1000 electric bicycles (for example), it will be very difficult (if not impossible) to clear them through customs as personal effects. In this case, you will need a company and an EORI number. Use your common sense!
How to avoid disputes during customs clearance?
It is essential to respect all the requirements coming from the customs authorities of the country of destination: documents, procedures, restrictions... Do not try to circumvent the system at the risk of taking a penalty that could hurt, very badly, your business! The best way to comply is of course to use a professional freight forwarder like DocShipper for assistance from departure to arrival (customs clearance included).
How much to pay at customs clearance?
The customs clearance is invoiced under 2 main charges: firstly the customs clearance fees, i.e. the fact of paying the customs declarant (sworn), the establishment of the documentary bundle... Finally, you will also have to pay (except for tax exemption) customs duties and taxes. The first charge will be paid directly to the forwarder (DocShipper for example) and the second will be for the customs authorities.
How to pay customs duties and taxes?
During the customs clearance phase, our (or another freight forwarder's) customs declarant will submit your file to local customs officials. The latter will then establish the amount of customs duties and taxes to be paid. An invoice will be provided to you so that you can pay directly for the goods in order to finalize the customs clearance and release the cargo.
DocShipper China | Procurement - Quality control - Logistics
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