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

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

Understanding the calculation of customs duties and taxes on your imports from China to Austria is a central aspect of international trade, and mastering it can save you both anxiety and unnecessary costs.

The calculation begins by determining several key factors including: where the goods originated from, the Harmonized System (HS) code of the goods, the customs value of the goods (based on CIF value), and any additional costs, fees, or taxes that might apply to your specific products.

The first step in this journey is to identify the product's country of origin - this typically refers to the country where your goods were manufactured or produced. This might seem straightforward, but in international trade, the 'origin' can occasionally be a complex subject, especially with global supply chains where components come from different countries.

However, in our context, if you're shipping from China to Austria, then China is most likely considered the country of origin. Armed with this knowledge, you're ready to navigate the nuances of importing with confidence.

Step 1 - Identify the Country of Origin

Knowing your item's country of origin, in this case, China, may seem obvious. Still, it's vital for five primary reasons.

1. Pinpoint the exact regulations: Every product from China carries a set of import requirements for Austria. The details matter.
2. Confirm relevant trade agreements: The China-Austria agreement significantly reduces or even eliminates customs duties.
3. Correct HS Code identification: This determines the tariffs you'll face. It's country-specific—get it wrong, and your goods might not clear customs.
4. Identify import restrictions: Some products have special rules—don't let a surprise derail your shipment.
5. Cost Estimation: Only with the right country of origin can you precisely calculate your import costs.

The China-Austria trade agreement could substantially reduce your customs duties. Check both nations' trade department websites for the latest agreement details.

And be alert, China has specific restrictions on certain imports to Austria. Do your due diligence. They may be tedious to read, but your business will thank you later.

Knowledge is power. And in this case, it could save you time, money, and a whole lot of headaches!

Step 2 - Find the HS Code of your product

The Harmonized System (HS) code is a universally accepted classification system in global trade, used to identify and classify goods being imported or exported. Depending on the type of product you're shipping, a specific HS code is assigned. This code is critical as it helps determine the import duties, taxes, and regulation rules for the product.

In most instances, your product supplier is the best person to provide you with the HS code. They are typically well-versed in product specifications and relevant industry regulations. But if you find yourself without assistance, worry not. Let us walk you through how to identify your product's HS code independently.

To begin, you'll need to utilize an HS lookup tool, such as the Harmonized Tariff Schedule accessible here. Simply enter the product's name into the search bar, and the tool will generate a list of potential options. Once there, refer to the Heading/Subheading column; your product's HS code will be listed there.

Please note that accuracy is critical when determining your product's HS code. An incorrect code can result in unnecessary delays and could also lead to potential fines. Taking care of this step will ensure the smooth, timely delivery of your goods.

Here's an infographic showing you how to read an HS code. Accurate classification is the key to successful international trade. Happy shipping!

Step 3 - Calculate the Customs Value

Imagine you've just bought a high-quality machinery part from China for $1000. This isn't the figure customs in Austria are looking at. They're interested in the 'Customs Value.' What's that, you ask? Well, this is the total cost of your machinery part, plus international shipping fees, and insurance costs.

Let's say shipping was $400 and insurance was $50. The customs value now is $1450. Don’t mistake it as the selling price of the product. It's an essential point in estimating the duties you'll need to pay for your imports.

Understanding this clears up a lot of mysteries about how duties are calculated, saving you from surprises at the customs office!

Step 4 - Figure out the applicable Import Tariff

An import tariff is a tax imposed by the importing country on goods coming from another country. For Austria, which is part of the European Union, these tariffs are established at a union-wide level.

Let's illustrate this process with an example. Suppose you're importing table lamps, whose HS classification code is 940520. Head over to the TARIC System - European Customs and enter the HS code along with China as the country of origin.

The system will display the corresponding import tariff for your goods. Let's assume it shows 6.7% for these lamps.

Now, to calculate the import duties, you'll need the Cost, Insurance, and Freight (CIF) value. Suppose your batch of lamps has a CIF cost of $10,000. Here's how you tally the import due:

Import duties = Import tariff (6.7%) CIF cost ($10,000) = $670

This process provides a clear estimate of your import duties and makes customs clearance in Austria a less daunting task. However, please note that the rates could vary, and it's essential to verify the current tariffs for your goods on the TARIC system.

Here's how you to navigate the TARIC System website to find the needed information:

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

After that, you have to click on "retrieve measures" 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 importing goods to Austria from China, in addition to the standard tariff rate, you may come across other duties based on your product and its origin. One such duty is the excise duty, applied particularly to specific goods like alcohol and tobacco. For instance, an excise duty of $0.50 per liter could apply to an import of whisky, but remember, these rates can vary.

Another cost you should be aware of is anti-dumping taxes. These are set in place to protect local industries from unfairly priced imports and are product-specific. For instance, if a type of steel is being dumped into the EU market at $1,000 per ton, you could face an additional anti-dumping tax if you're importing that product.

On top of these, you need to factor in VAT (Value Added Tax), which is significant and unavoidable. The standard VAT rate in Austria is 20%, applied to the cumulative cost of the product value, shipping cost, and any other duty paid. So if you have a total landed cost of $100 per item, the VAT payable would be $20 per item.

Thus, understanding these additional costs is vital to accurately run your financials and avoid any nasty surprises.

Step 6 - Calculate the Customs Duties

To understand the exact duties you'd owe when importing goods from China to Austria, various elements must be taken into consideration. The customs duty is calculated on the customs value of your goods (Cost, Insurance, and Freight - CIF) while VAT is determined from the customs value in addition to any duty owed.

For instance, assuming just the customs duties apply, imagine having goods worth $10000, with a duty rate of 5% - your duty payable would be $500.

In a second scenario, where VAT applies too, let's take the customs value as $10000, the duty rate as 5% and the VAT as 20%. Here, VAT is calculated on $10000 + $500 (duty) = $10500. Thus, VAT would be $2100 plus $500 (duty), leading to a total payable of $2600.

Last but not least, adding anti-dumping taxes and Excise Duty to the mix. Let's assume an Excise Duty of 15%, an anti-dumping duty on specific goods at 10%, VAT at 20%, and customs duty at 5% on your $10000 goods. The calculation would be: $500 (duty) + $2000 (anti-dumping tax) + $1500 (Excise Duty)= $4000 initial taxes. Add the VAT on $14000, that is, $2800, to get a total payable of $6800.

All these values, though hypothetical, show how duties can accumulate, significantly affecting your business’s bottom line. Turn to DocShipper for your customs clearance; not only can we handle every step of the clearance procedure worldwide, but we also ensure you don't overspend. Contact us for a free quote in less than 24 hours. Your customs clearance is smart, swift, and safe.

Bill of Lading

A Bill of Lading (BOL) is your key to navigating shipments from China to Austria smoothly. This official document moves ownership from seller to buyer and records details like cargo type and destination. Don't underestimate its power — it's your ticket to claim your goods on Austrian soil!

Prefer air cargo? The Air Waybill (AWB) plays a similar role in the sky. For our tech-savvy shippers, consider an electronic release, commonly known as the telex release. It’s faster, cuts out courier fees, and skips the stress of lost or late physical copies.

Always keep your BOL or AWB safe, accurate, and accessible, and watch your international trade sail (or fly) smoothly!

Packing List

Navigating the world of international trade, you'll find the Packing List is more than just a paper trail. It's your declaration of contents when shipping between China and Austria and is vital whether flying goods over the Himalayas or sailing around Sri Lanka.

The onus to create it rests on your shoulders, so accuracy is everything. Picture this scenario: your shipment consists of lighting fixtures and electrical wires, but your inaccurate packing list only mentions 'electrical goods'.

Not only does it raise eyebrows at customs, potentially delaying your shipment, but it also misleads your Austrian buyer. Such inaccuracies could result in unexpected tariffs and sour business relationships. Thus, creating a meticulous Packing List isn't optional; it's a business-critical task, helping you sail smoothly through customs and bolster reliability in your trade partnerships.

Commercial Invoice

Navigating customs between China and Austria? Your Commercial Invoice plays a pivotal role. This document must detail the total value of your goods, display precise descriptions of each item, and mention the country of origin (China or Austria in our case).

Remember, inaccuracies can cause delays or even penalties, so precision is key. For instance, if you're shipping consumer electronics to Vienna, a vague description like 'electronic goods' won’t cut it. Instead, be specific: 'Samsung Galaxy S21, quantity: 500'.

Your invoice also needs to align with the information on your Bill of Lading or Airway Bill description. This helps maintain trust with customs authorities and assures a smoother transit. Your accurate and detailed Commercial Invoice will be your passport for swift customs clearance, every time.

Certificate of Origin

In the complex maze of international shipping, a Certificate of Origin (COO) is your compass. Navigating between China and Austria, authenticates the geographic beginnings of your goods. Say, you're exporting made-in-China Austrian-crystal-inspired vases. Your COO unequivocally confirms their Chinese origin.

How does that sparkle for your business? Cue in preferential customs rates where Austrian customs favor goods made and shipped from certain regions. But tread carefully, any discrepancy in this document can throw your shipment into the customs quagmire.

So, ensure you specify the right country of manufacture, i.e., China. Your straightforward ticket to avoid unexpected duty charges, ensuring your gorgeous vases reach Austrian stores without any hassle.

Certificate of Conformity (CE standard)

The Certificate of Conformity (CE Standard) is your ticket to a hassle-free shipping process from China to Austria. It testifies that your goods comply with the safety, health, and environmental protection standards of the European market. While it's not a quality assurance certificate, it's akin to saying my goods fit the EU screening.

Think of it like the UL standards in the US, but designed for the European Union. If your goods aren't CE marked, you could face market entry barriers, delayed shipments, or even penalties. Remember, it's not enough to simply have the product; make sure it's up to European standards too. It's all part of ensuring a smooth, efficient shipping process.