Get the HS code and duty rate right before you order — it changes your true cost.
The short answer
When goods arrive, they must clear customs in your country: you or your broker declare them under an HS code, and pay import duty and taxes (such as VAT/GST) based on that code and the customs value. Because duty varies widely by product, get the HS code and rate right before you order — it is part of your real cost.
Figure 1: Incoterms — where seller responsibility ends and duty is paid.
Figure summary: Incoterms set where the seller's cost and risk end and the buyer's begin: EXW (buyer collects at factory), FOB (seller to export ship), CIF (seller pays freight/insurance to port), DDP (seller delivers duty-paid). Under most terms the importer of record pays the import duty and clears customs.
How customs clearance works
On arrival, the goods are declared to customs with a commercial invoice, packing list and bill of lading / air waybill. Customs assess duty and taxes from the declared value and HS code, and the goods are released once paid. In practice your freight forwarder or a customs broker handles the filing.
HS codes
Every product imports under a Harmonized System (HS) code — an international classification that determines the duty rate and any restrictions. The same product can carry very different duty depending on its exact code, so confirm the correct classification for your country before ordering. Getting it wrong causes delays, penalties or overpaid duty.
Import duty and taxes
You typically pay import duty (a percentage set by the HS code) plus import taxes such as VAT or GST, calculated on the customs value — often the goods value plus freight and insurance (CIF). Rates and thresholds vary by country, and trade agreements can reduce duty. Budget these before you commit, because they change which supplier is actually cheapest.
Documents you need
Commercial invoice (value, terms, HS code)
Packing list
Bill of lading (sea) or air waybill (air)
Any certificates or licences your product requires
FAQ
What is an HS code?
A Harmonized System code is an international product classification that sets the import duty rate and any restrictions. Confirm the correct code for your country before ordering.
How is import duty calculated on China goods?
Usually as a percentage (set by the HS code) of the customs value — commonly the goods value plus freight and insurance — plus import taxes like VAT or GST. Rates vary by country and product.
Who handles customs clearance?
Normally your freight forwarder or a customs broker files the declaration and pays duty on your behalf. You provide the invoice, packing list and shipping documents.