Customs duty and VAT: what really lands on arrival

It starts with the customs value: usually the price paid for the goods, plus transport and insurance to the EU border (a base close to CIF). Everything else is calculated on that amount, not on the FOB price alone. Under-declaring that base to "pay less" is a false economy: it is exactly what customs checks, and a reassessment costs far more than the duty saved.

Customs duty depends on the tariff classification of your product: the TARIC nomenclature, a multi-digit code that sets the applicable rate. For many manufactured goods duty sits between 0 and 10%, but some categories (textiles, footwear, bicycles…) are taxed markedly higher. The wrong code, and you overpay, or expose yourself to a reassessment and penalties. Finding the right code is a craft; we frame it with your forwarder before committing to an order.

Beyond the "normal" duty, some Chinese products carry anti-dumping or countervailing duties, sometimes very heavy (panels, e-bikes, tableware, and other families depending on ongoing investigations). They add to the standard duty and can completely change a landed cost. Checking whether an anti-dumping measure applies to your TARIC code is a first reflex, an oversight here can turn a good deal into a loss.

Import VAT, 20% in France for the standard rate, applies to the customs value plus duty (and certain charges). It is a cash-flow mechanism as much as a cost: since 2022 in France it is reverse-charged, i.e. declared and deducted at once on the VAT return, with no cash advance for a registered business. For an importer reclaiming VAT, it weighs on cash flow, not on the final margin.

To import commercially, an EORI number is required: your unique identifier with EU customs, to obtain upfront (the process is quick but blocks everything if missing on arrival day). Depending on the products, other formalities apply: certificates, standards, sometimes licences.

Do not forget the ancillary charges, often underestimated: customs clearance, port handling, possible storage if the container waits, and final delivery. Taken alone they seem modest; stacked, they weigh on the real cost per carton. Anticipating them avoids the nasty surprise on the forwarder’s invoice.

One last point, and not the least: rules, rates and thresholds change, and every situation has its specifics. The bearings above help you reason correctly, not replace a forwarder or an accountant, whom we recommend you consult before any costed commitment. That is also why we frame each case with the right professionals.