Importer's cost guide

    How to Calculate Import Duty from China

    Four steps to a realistic landed-cost number: find the HS code, set the customs value, apply the duty rate, then add VAT/GST. Here's the method, a worked example, and the errors that quietly blow up your margin.

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    Quick Answer

    To calculate import duty from China, find your product's HS code, establish the customs value (usually the price you paid the supplier), then multiply that value by the duty rate for your HS code and country of origin. Add VAT or GST — charged on top of duty in most countries but not the US — plus broker and handling fees. Always confirm rates against your destination country's official tariff schedule, since they change.

    The method

    Four steps to your import duty

    Work through them in order — each one feeds the next.

    1. 1

      Find the correct HS code (tariff classification)

      Every product has a Harmonized System (HS) code — 6 digits internationally, extended to 8–10 digits by each country. The code decides your duty rate, so getting it right is the whole game. Use your destination country's official tariff schedule (for example the US HTS or the EU TARIC) to look up your product, and when a classification is ambiguous, request a binding ruling from your customs authority. A wrong code can mean underpaying (penalties later) or overpaying for years.

    2. 2

      Establish the customs value

      Duty is charged on the customs value, not the retail price. Most countries use the transaction value — what you actually paid the supplier. Whether freight and insurance are included depends on the country: the US assesses duty on the FOB (goods) value, while the EU, UK, and many others use the CIF value (goods + international freight + insurance). Keep the commercial invoice, packing list, and freight/insurance documents, because customs will reconcile against them.

    3. 3

      Apply the duty rate to the customs value

      Multiply the customs value by the ad-valorem duty rate for your HS code. Rates vary enormously — many consumer goods sit somewhere in the 0%–12% band, but categories like footwear, apparel, and certain steel or aluminium products can run much higher, and country-specific measures (anti-dumping duties or additional Section 301-style tariffs on Chinese-origin goods) can stack on top. Always confirm the current rate for the exact code and country of origin, since these change.

    4. 4

      Add VAT / GST / sales tax and other import charges

      Import duty is usually not the last charge. Most countries then apply VAT or GST on top of (customs value + duty), often at the standard domestic rate. The United States has no federal import VAT — state sales tax works differently — while the EU (rates commonly ~17%–27% by member state), the UK (20%), and many others levy import VAT at clearance. Budget also for customs broker fees, port/handling, and merchandise-processing-type fees where they apply.

    Worked example

    A simple illustration

    These figures are illustrative only, to show the mechanics — your real rates depend entirely on your HS code and destination country. Say you import goods with a customs value of $10,000 and a duty rate of 5%.

    Customs value (transaction value)
    $10,000
    Import duty @ 5%
    $500
    Subtotal (value + duty)
    $10,500
    VAT / GST @ 20% on subtotal (where applicable)
    $2,100
    Illustrative total charges
    $2,600

    Note how VAT is charged on the value plus the duty, not the value alone. In a US import there would be no federal import VAT, so the total charge above the duty would look very different. This is exactly why you should model landed cost per country rather than assume one number.

    Tools that help

    • Your destination country's official tariff schedule for the exact duty rate
    • A binding tariff ruling from customs when the HS code is unclear
    • A licensed customs broker for the legally correct classification and clearance
    • A landed-cost spreadsheet or calculator to model value + duty + VAT + fees

    Mistakes that cost you

    • Guessing the HS code instead of verifying it against the official tariff schedule — the single most common and most expensive error.
    • Assuming duty is calculated on the retail price rather than the customs (transaction) value.
    • Forgetting that VAT/GST is charged on top of duty, which quietly inflates your true landed cost.
    • Overlooking country-of-origin surcharges such as anti-dumping duties or additional tariffs on Chinese-origin goods.
    • Trusting a supplier's casual 'duty is about X%' estimate as if it were an official ruling.
    Where Trade Entrust fits: duty is a fixed function of your HS code and value, but the biggest lever on landed cost is the factory price itself. As a managed sourcing agent working since 2014 (trading as Trade Entrust Co., Limited, Hong Kong, since 2022) with 500+ verified factories, we secure the true FOB price and independent AQL 2.5 quality control, then leave the tariff classification to your customs broker.
    Related: China sourcing agent · Pricing & commission · Quality control inspection

    Calculating import duty from China — FAQ

    Find the correct HS code for your product, establish the customs value (usually the transaction value you paid the supplier), multiply that value by the duty rate for your HS code and country of origin, then add VAT/GST and any broker or handling fees. Confirm every rate against your destination country's official tariff schedule, because rates and country-specific surcharges change.

    Nail the biggest line in your landed cost

    Duty is fixed by your HS code — but the factory price is where you win or lose. Tell us your product and target quantity and we'll source verified factories and show you the true FOB price within 24 hours.

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