Importing from China is the path to competitive products for many businesses. But between the factory price and the selling price lie numerous cost items that many beginners underestimate: customs duties, import VAT, freight costs, handling fees, and various regulations.
In this guide, we transparently calculate all costs, explain customs procedures step by step, and give you a checklist for professional China import.
Total costs of China import: Overview
| Cost Item | Typical Share | Explanation |
|---|---|---|
| Product value (FOB) | Baseline | Price ex-factory/port in China |
| Freight (sea/air) | 5-15% of value | Transport from China to destination |
| Insurance | 0.3-0.5% | Transport insurance (recommended) |
| Customs duties | 0-15% | Depends on product category |
| Import VAT | 19% (EU/DE) | On product value + freight + duties |
| Handling/terminal | €100-300 | Port fees, clearance |
| Customs broker | €50-200 | Customs declaration (recommended) |
| Inland transport | €100-500 | Port to your warehouse |
| Quality control | €200-600 | Pre-shipment inspection |
Rule of thumb
As a rough estimate: add 30-45% to the FOB price for all import-related costs. For a FOB price of €10,000, plan for €13,000-14,500 total costs.
Step 1: Understanding product value and Incoterms
| Incoterm | Meaning | What's included? |
|---|---|---|
| EXW (Ex Works) | Ex factory | Product price only. Everything else is your responsibility. |
| FOB (Free on Board) | Free on board | Product + transport to Chinese port + loading onto ship |
| CIF (Cost, Insurance, Freight) | Cost, insurance, freight | Product + transport + insurance to destination port |
| DDP (Delivered Duty Paid) | Delivered duty paid | Everything included to your warehouse. Rare for China import. |
Our recommendation: FOB is the standard for China import. You pay the price up to loading at the Chinese port and arrange sea freight yourself through a forwarder.
Step 2: Calculating customs duties
Customs duties are calculated based on the customs value: product value (FOB) + freight + insurance (= CIF value). Every product has a tariff code (HS code) that determines the duty rate.
| Product Category | Example HS Code | Duty Rate |
|---|---|---|
| Electronics (smartphones) | 8517.13 | 0% |
| Textiles (t-shirts) | 6109.10 | 12% |
| Toys | 9503.00 | 0-4.7% |
| Furniture (wood) | 9403.60 | 0-5.6% |
| Bicycles | 8712.00 | 14% |
| LED lighting | 9405.42 | 3.7-4.7% |
| Kitchen items (stainless steel) | 7323.93 | 3.2% |
| Phone cases (plastic) | 3926.90 | 6.5% |
Anti-dumping duties
Certain Chinese products face additional anti-dumping duties of up to 80% on top of regular rates. Affected products include solar panels, ceramic tiles, aluminum foil, and certain steel products. Always check this in advance!
Step 3: Import VAT
Import VAT in Germany is 19% (7% for certain goods). It's calculated on: customs value + customs duties + excise duties.
Calculation example: 5,000 water bottles from China
| Item | Amount | Explanation |
|---|---|---|
| Product value (FOB) | €9,500 | 5,000 × €1.90 ex-factory |
| Sea freight | €800 | 20ft container (partial load) |
| Insurance | €50 | 0.5% of product value |
| Customs value (CIF) | €10,350 | FOB + freight + insurance |
| Customs duty (3.2%) | €331 | HS code 7323.93 |
| VAT base | €10,681 | Customs value + duties |
| Import VAT (19%) | €2,029 | 19% on VAT base |
| Handling + broker | €350 | Port clearance |
| Inland transport | €200 | Port → warehouse |
| Total import cost | €13,260 | |
| Unit price (landed) | €2.65 | vs. €1.90 FOB = +39% |
Important: Import VAT is deductible
Import VAT can be claimed as input tax — just like regular VAT. The €2,029 from the example is refunded in your next VAT return. It's a prepayment, not a real cost.
Step 4: Common mistakes
- Under-declaring value: Some suppliers offer to lower the invoice value. This is customs fraud with serious penalties.
- Wrong HS code: Determines your duty rate — wrong code means fines or overpayment.
- Ignoring CE/compliance: Customs randomly checks products for EU compliance. Non-compliant goods are seized. See our CE Marking Guide.
- No EORI number: Required for all EU imports — apply before your first order.
Verify your supplier before importing
Before investing in customs and freight, make sure your supplier is a real factory. Our free Supplier Check clarifies this in 48 hours.
Free Supplier CheckChecklist: Importing from China
- Apply for EORI number (one-time, free)
- Determine HS code for your product
- Check duty rate (including anti-dumping)
- Clarify CE/REACH/RoHS requirements
- Agree on Incoterm with supplier (FOB recommended)
- Engage a freight forwarder
- Get transport insurance
- Hire a customs broker (recommended for first-time importers)
- Book a pre-shipment inspection
- Prepare all documents (invoice, packing list, B/L, CoO)
- Calculate total costs (FOB + freight + duty + VAT + handling)
Conclusion
Importing from China isn't rocket science — but it requires proper calculation and knowledge of regulations. The biggest mistakes come from underestimating additional costs (plan 30-45% on FOB) and ignoring compliance (CE, REACH, RoHS). Invest time in preparation before placing your first order.
Key Takeaways
- Plan for 30-45% markup on FOB price for all import costs
- Import VAT (19%) is deductible as input tax — not a real cost
- EORI number is mandatory — apply before your first order
- The HS code determines your duty rate — wrong codes mean penalties
- CE, REACH, RoHS must be checked before import, not after
- Use a customs broker for your first import — well worth the €100-200
Quality control before import
Before your goods leave China, we check quality, marking, and packaging to AQL standards — directly at the factory.
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