Sourcing guide · China
Importing from China, end to end
Importing from China comes down to five steps: find the right supplier, agree the incoterm, arrange freight, clear customs and pay VAT, and check quality. This guide works through each one, with the pitfalls to avoid and the terms worth knowing.
In short
- The supplier comes first: factory, not trader, licence verified, sample then inspection.
- The incoterm decides who pays what. FOB keeps costs visible; DDP simplifies but hides the detail.
- On import: customs duty by HS code, then import VAT at your national rate on the customs value. An EORI number is required.
- The real cost = product + freight + insurance + duty + VAT + clearance fees.
1. Find a reliable supplier
Three main routes. Online platforms, with Alibaba.com for international and the 1688 wholesale platform for the Chinese domestic market. The Canton Fair, to meet hundreds of factories in a few days. And sourcing on the ground, going to see the workshops yourself.
Whichever route you take, the rule is the same: tell a real manufacturer from a trading company, ask for the business licence and cross-check it against the official register, order a sample, then have production inspected before it leaves the factory.
2. Choose the incoterm
The incoterm sets who pays for transport and customs, and where risk passes. Here are the four most useful to know.
| Incoterm | Main carriage | What you handle | Best when |
|---|---|---|---|
| EXW | Yours from the factory gate | Everything, factory to your door | You have a forwarder and want total control |
| FOB | Yours from the Chinese port | Sea freight and import | You are starting out and want visible costs |
| CIF | Paid by the seller to the arrival port | Import and final delivery | You want to delegate freight without losing sight of it |
| DDP | All-in to your door | Almost nothing | You want simplicity and accept less visibility |
3. Arrange the freight
Three modes. Sea freight, the cheapest per kilo, is often four to six weeks door to door: the default choice once you have volume. Air, faster at a few days to a week and a half, is justified for urgent or high-value goods. Express, three to five days, suits samples and small volumes. A forwarder groups your orders into a single shipment and manages the journey.
4. Clear customs and pay VAT
Two charges apply on entry into the European Union. Customs duty depends on the product’s HS code and runs from 0% to sometimes more than 15%; the rate is set at EU level, so it is the same wherever you clear. Then import VAT, charged at your own country’s rate (20% in France, 21% in the Netherlands and Belgium, 19% in Germany, 22% in Italy), calculated on the customs value plus duty and freight. Since 2021 VAT is due from the first euro, with no exemption threshold. To clear goods your business needs an EORI number, and a VAT-registered business generally accounts for import VAT through its own return rather than paying it at the border.
5. Check the quality
A sample first, to validate the product. An inspection next, before shipping, to verify the production run matches: measurements, finish, function, quantities. It is the step people skip when they want to move fast, and the one that costs the most when it is missing.
Frequently asked questions
How do you find a reliable supplier in China?
Start with the platforms (Alibaba.com for international, 1688 for the domestic market) or the Canton Fair to meet many factories at once. Then always verify: business licence cross-checked against the official register, a real manufacturer told apart from a trading company, a sample, then an inspection before shipping. A physical visit to the workshop remains the surest check.
What customs duty and VAT apply when importing from China?
Customs duty depends on the product category (HS code) and runs from 0% to sometimes more than 15%. It is set at EU level, so it is the same wherever you clear. Import VAT is national: 20% in France, 21% in the Netherlands and Belgium, 19% in Germany, 22% in Italy, and it is calculated on the customs value plus duty and freight. Since 2021 there is no VAT exemption for small consignments: it is due from the first euro. A VAT-registered business generally accounts for import VAT through its own return.
Which incoterm should you choose: EXW, FOB or DDP?
FOB is the most common starting point: the supplier delivers the goods, export-cleared, to the Chinese port, and you handle freight and import with your forwarder, which keeps costs visible. EXW (ex works) leaves you to organise everything from the factory gate. DDP delivers all-in to your door, which is simple, but the cost breakdown becomes a black box.
Do you need an EORI number to import into the EU?
Yes. An EORI number is required for any business clearing goods in the European Union. You obtain it from the customs authority in your own country and apply only once. A UK importer needs a GB EORI, and a separate EU one to clear inside the Union.
How long does shipping from China take?
It depends on the mode. Sea freight is often four to six weeks door to door, air a few days to a week and a half, and express roughly three to five days for small volumes. Production time and customs clearance are added on top.
How do you avoid import scams?
Check the business licence, make sure you are dealing with a manufacturer and not a reseller, never pay into a personal account presented as the factory’s, order a sample and have production inspected before it leaves. A flat fee on the buyer’s side, with no commission from the factory, keeps the incentives aligned.
Glossary
- HS code
- The customs nomenclature that classifies each product and determines the applicable duty rate.
- EORI
- The identification number required to clear goods through customs in the European Union.
- Incoterm
- The rule that sets who pays for transport, insurance and customs, and at what point risk passes to the buyer (EXW, FOB, CIF, DDP and so on).
- FOB
- Free On Board: the seller delivers to the port of loading, export-cleared; the buyer pays freight and import.
- Customs value
- The basis for calculating duty and import VAT, generally the price paid plus transport to the border.
- Consolidation
- Grouping several orders in a warehouse in China before a single shipment.
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