China import costs: how to calculate duty, import VAT and fees correctly
The unit price from China is only half the truth: between factory price and your warehouse lie freight, duty, import VAT and half a dozen fees. Calculate them up front and there are no surprises — here is the complete calculation.
6 min read · For importers and retailers
The formula: from goods value to total cost
The EU levies charges in two stages. First, customs duty: it is charged on the customs value — the goods value plus all costs to the EU border (freight and insurance to the port of entry). Second, import VAT of 19 %: it is calculated on customs value plus duty plus intra-EU transport costs.
Worked example: goods value €10,000, sea freight €1,200, duty rate 4.7 % (typical for many consumer goods). Customs value = €11,200. Duty = €526. Import VAT = (11,200 + 526) × 19 % = €2,228. Important: for VAT-registered businesses the import VAT is a pass-through item — it costs liquidity, not margin. The duty, however, is a real expense.
The duty rate: the most important lever
The duty rate hangs on the customs tariff number (HS code) — and the range is enormous: 0 % for much electronics, 4–7 % for most consumer goods, 12 % for textiles, up to 17 % for footwear. Product-specific anti-dumping duties can come on top, e.g. on certain aluminium extrusions, fasteners or bicycles — sometimes above 40 %.
Classification is not a formality: a wrong tariff number means back payment plus interest at the next customs audit — or wasted money if the rate is too high. We verify classification before every order and quote the full landed cost including all charges before you commit.
The fees people like to forget
Between port and warehouse arise items that appear in no Alibaba quote:
- Terminal handling charges (THC): €150–350 per container
- Customs clearance by the forwarder: €50–150 per declaration
- On-carriage by truck to your dock: €200–600 depending on distance
- Demurrage if the container sits too long at the port
- Testing and certification costs, allocated to the batch
Rule of thumb for quick calculation
For a first estimate on sea freight shipments: factory price × 1.15 to 1.35 = price at your dock (excluding import VAT, as it passes through). The range depends mainly on the duty rate and the volume-to-weight ratio. Light, expensive goods (electronics) land at the lower end, heavy cheap volume goods (furniture, steel) at the upper. The number only becomes binding with a concrete tariff code and current freight rate — exactly what we calculate in every quote.
Common questions about import costs
Does the €150 duty-free threshold still exist?
For commercial B2B imports it plays practically no role — and the EU is abolishing it as part of the customs reform anyway. Calculate every commercial shipment with duty and import VAT; anything else is planning on sand.
What is the cost difference between DDP and DAP?
With DDP (Delivered Duty Paid) the seller bears duty and handling — you receive a final price free at your dock. With DAP you pay duty, import VAT and clearance yourself. Beware of “DDP offers” from Chinese sellers via grey channels: under-declaration is common there, and the back-duty risk ultimately sits with you as the recipient. Our DDP runs through regular German customs clearance with an EU-compliant invoice.
Can I avoid or defer import VAT?
Avoid no, defer yes: via clearance in the Netherlands or Belgium with subsequent intra-Community supply (Article 23 scheme and similar), import VAT is not due at the border but offset in the VAT return — a pure liquidity advantage that becomes relevant at larger volumes. We structure this with our customs partners when your volumes justify it.
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Have the full cost calculated for your product
Product and volume are enough — you receive a full landed-cost calculation with tariff code, duty rate and freight to your dock within 24 hours.