Why duties change your numbers
The price you negotiate in China is not the price you pay. Duties and taxes can add 10–30% — and getting the classification wrong can add far more.
The basics
- HS code: every product has a classification that determines the duty rate — get it right before you order
- Duties and taxes: import duty plus local taxes (for example VAT or sales tax) on the declared value
- Valuation: customs taxes the declared value — under-declaring to save duty is a legal risk, not a saving
- De minimis: many markets exempt small-value shipments from duty — know your threshold
How to plan
- Get a landed cost estimate before ordering: unit price + freight + duty + tax
- Confirm whether your product needs certificates, labeling, or testing for your market
- Decide who handles customs — you, your forwarder, or your partner (DDP means the supplier-side handles delivery to your door, duties paid)
Import compliance is not paperwork. It is a cost line and a schedule risk — plan it before you place the order.
See also: Shipping from China and import compliance and air vs sea freight.