China import from A to Z: the buyer's glossary

A – C

AQL (Acceptable Quality Limit) — Statistical sampling per ISO 2859: defines how many defects a sample may contain before the whole batch is rejected. Consumer goods standard: 0/2.5/4.0 (critical/major/minor). AQL guide.

Anti-dumping duty — EU surcharge on certain product groups from certain countries (e.g. bicycles, fasteners, aluminium profiles from China), sometimes above 40 %. Checked via the tariff code before ordering — not discovered at the border.

B/L (Bill of Lading) — The central sea freight document and a document of title. Whoever holds the original B/L controls the goods at the destination port.

CE marking — Declaration that a product meets all applicable EU directives. When importing directly, you assume the manufacturer's duties. CE guide.

CBM (Cubic Meter) — The calculation unit of sea freight. A 20ft container holds ~28 usable CBM, a 40ft HC ~68 CBM. LCL freight is billed per CBM.

CNY / Chinese New Year — Chinese New Year (Jan/Feb) shuts factories for 2–4 weeks; ramp-down and ramp-up cost further weeks of capacity. The most important date in annual planning. Lead time guide.

D – G

DDP (Delivered Duty Paid) — Incoterm: the seller bears transport, customs and import charges to the buyer's dock. Beware grey-channel "DDP" with under-declaration — back duties hit the recipient. Incoterms guide.

DFM (Design for Manufacturing) — Reviewing a design for series producibility (wall thickness, demoulding, tolerance chains) before tooling is cut. Saves the most expensive iteration loop of all.

EORI number — EU-wide identifier for economic operators in customs; no commercial import without it. Free to apply for. EORI guide.

Import VAT — The "VAT of importation" (DE: 19 %): levied on customs value + duty; a pass-through item for VAT-registered businesses. Import cost guide.

FOB (Free on Board) — Incoterm: the seller delivers on board at the port of departure; from there the buyer bears freight and risk. The most common price basis in China trade.

Golden sample — The mutually approved, sealed reference sample every production batch is inspected against. Turns "I like it" into an enforceable standard. Sample guide.

GPSR — EU General Product Safety Regulation (since 12/2024): requires an EU responsible person, traceability and risk analysis even for non-CE products. GPSR guide.

H – M

HS code / tariff number — Globally harmonised commodity code (EU: 8–10 digits), determines duty rate, anti-dumping duties and prohibitions. Wrong classification = back payment plus interest at audit.

Incoterms — The ICC's 11 standardised delivery terms (EXW, FOB, CIF, DDP …): govern who bears cost and risk where. The choice of term shifts thousands of euros. Incoterms guide.

LCL / FCL — Less than Container Load (shared container, billed per CBM) vs. Full Container Load. Rule of thumb: from ~13–15 CBM, FCL becomes cheaper than LCL.

LFGB — German food and feed code: the benchmark for food contact ("LFGB-tested" is de facto mandatory for kitchenware in German retail). Stricter than some EU baseline requirements.

LUCID / VerpackG — German packaging register: whoever places packaged goods on the German market must register and license volumes — no de minimis threshold. Packaging guide.

MOQ (Minimum Order Quantity) — The manufacturer's minimum. Negotiable via pilot runs, standard colours or bundling — but never to zero. MOQ guide.

N – R

NNN agreement — Non-Disclosure, Non-Use, Non-Circumvention: the China-proof alternative to a Western NDA — in Chinese, under Chinese law, with contractual penalty. Only then is it enforceable locally.

OEM / ODM — OEM: the factory builds to your design. ODM: you adapt an existing factory design (logo, colours, details). ODM is faster and cheaper; OEM is fully yours.

PI (Proforma Invoice) — The manufacturer's preliminary invoice with prices, quantities, Incoterm and payment terms — effectively the order document. Whatever is not in it does not exist later.

Pre-Shipment Inspection (PSI) — Final inspection at 80–100 % completion, before loading and before the balance payment: the last moment defects get fixed at the factory's expense. View sample report.

REACH — EU chemicals regulation: restricts substances like nickel, cadmium, lead, phthalates and PAHs in products. Affects jewelry, textiles, plastics, leather — batch lab testing is the standard route.

RoHS — EU directive restricting hazardous substances in electrical and electronic equipment (lead, mercury, certain plasticisers etc.). Mandatory for practically every electrical product.

S – Z

T/T (Telegraphic Transfer) — Bank transfer, the standard payment route to China. Common: 30 % deposit, 70 % after passed inspection against B/L copy. Payment guide.

Trading company vs. factory — A trader with a factory façade or a real manufacturer? The difference costs 8–25 % margin and any direct quality control. Guide.

UN 38.3 — Transport testing standard for lithium batteries: without the report, no carrier accepts battery packs, power banks or e-bike batteries. To be settled before ordering, not on shipping day.

WEEE — EU waste electrical equipment rules: importers of electrical devices must register nationally (DE: stiftung ear) before selling. Marketplaces check the number automatically.

Customs value — The duty base: goods value plus all costs to the EU border (freight, insurance). Import VAT is then calculated on customs value + duty. Calculate directly.

Second source (dual sourcing) — A second factory qualified in parallel to the identical specification: insurance against capacity crunches, price dictates and factory failures — built before you need it.

Common questions

The practical guides behind it