HS codes, customs value, duties, import VAT and the documents you need, explained simply so your goods from China clear customs without surprises.
Customs is where many first imports stall. Most problems come from a few basics: the wrong product classification, missing documents or a declared value that does not match the paperwork. This guide explains the core concepts. Rules differ between countries and change over time, so always confirm the details for your destination.
Who is the importer?
The importer of record is the person or company responsible for the declaration and for paying duties and taxes. In the EU, businesses need an EORI number to clear goods through customs. Other countries have equivalent registrations.
HS code: classifying your product
Every product is classified with a Harmonized System (HS) code. The first six digits are international, and each country or customs union adds more digits (the EU uses 8-digit CN codes and 10-digit TARIC codes).
The code determines:
- The duty rate.
- Whether licenses, certificates or restrictions apply.
- Whether anti-dumping duties apply, which can be significant for some products from China.
Classification depends on what the product is made of and what it does, not on how it is marketed. When in doubt, ask a customs broker or request a binding ruling from the customs authority.
Customs value
Duties are calculated on the customs value. In the EU, it is normally the transaction value including transport and insurance to the EU border. In the United States, it is generally the transaction value without international freight. Declaring a lower value than the real one is illegal and creates serious risks for the importer.
Duties and import taxes
At import you usually pay:
- Customs duty: a percentage of the customs value, depending on the HS code.
- Import VAT or sales tax: in the EU, VAT is calculated on the customs value plus duty. Businesses can usually recover it.
- Other charges: anti-dumping duties, excise duties or fees, depending on the product and country.
Documents you need
- Commercial invoice: seller, buyer, description, quantities, unit prices, total value, currency and Incoterm.
- Packing list: cartons, weights and dimensions.
- Transport document: bill of lading (sea), air waybill (air) or rail consignment note.
- Certificate of origin: where required, or to claim preferential treatment.
- Product documents: test reports, declarations of conformity or licenses, depending on the product.
The description, quantities and values must match across every document.
Low-value shipments are changing
Several markets, including the United States and the European Union, have been tightening the rules for low-value parcels that used to enter with simplified treatment or without duties. If your model relies on small parcels, check the current rules before relying on any exemption.
Avoiding delays
- Confirm the HS code and duty rate before you place the order.
- Check whether your product needs certificates or licenses.
- Make sure the supplier’s invoice and packing list are accurate.
- Use the same Incoterm in the contract and the documents. See Incoterms explained.
- Keep copies of everything. Customs can check declarations after the goods are released.
Zyntral coordinates documentation, clearance and compliance through its customs service, so your shipment keeps moving from origin to destination.
