As soon as your goods from China reach the EU's external border, import charges apply. If you do not budget for them, the customs bill will come as a surprise – and incorrect declarations risk additional demands. Here are the key terms and processes at a glance.
This article is not a substitute for customs advice in individual cases. Duty rates, special rules and exemption thresholds change; binding information is provided by customs authorities or your customs agent. The examples refer to Germany.
EORI number
The EORI number (Economic Operators Registration and Identification) is your identifier in customs procedures. Businesses importing goods from third countries such as China need one. Applying to customs is free of charge. Apply well before your first shipment, because without an EORI no customs declaration can be made.
Tariff code and duty rate
Every product is assigned a tariff code (HS code or commodity code in the EU tariff, TARIC). It determines the duty rate, possible import bans and restrictions and additional charges such as anti-dumping duties. The range is wide: some goods are duty-free, others carry a low single-digit rate or a considerably higher one. A wrong tariff code is one of the most common mistakes – check it before ordering, not at import.
Customs value
The calculation is based on the customs value. Simplified, this is the goods value plus transport and insurance costs to the EU border (CIF value). The customs value is derived from the commercial invoice – so it must be correct and reflect the price actually paid. Understating values is no solution: it can lead to additional demands and penalty proceedings.
Import VAT
Import VAT in Germany is generally 19%, and 7% for certain goods. The basis is the customs value plus duty and further costs up to the first destination in the EU. For VAT-registered businesses import VAT is a pass-through item: it can be reclaimed as input VAT in the VAT return. You do have to pre-finance it first, though.
Worked example (fictitious figures)
Import charges total €2,482.70 here. A VAT-registered business can later offset the import VAT (€2,152.70) as input VAT. Not included: domestic forwarding, port and customs agent costs.
Required documents
- Commercial invoice with complete details on goods, quantity, price and Incoterm,
- Packing list,
- Transport document: bill of lading for sea freight, air waybill for air freight,
- Proof of origin and conformity where required (e.g. certificates, CE documentation),
- Power of attorney for the forwarder or customs agent who files the declaration for you.
Common mistakes
- Wrong or unchecked tariff code,
- Duties and import VAT missing from the calculation,
- Inaccurate commercial invoice or mismatching values,
- Missing documents on product conformity,
- EORI number applied for only after the goods have arrived.
We handle customs clearance
In import projects with us we take care of the customs declaration, EORI matters and import VAT, and support you with CE questions. You receive a transparent overview of your costs in advance. See the whole process under How it works; for an overview of all import steps read our guide to importing from China.