Factory prices look clean on a spreadsheet. Then the shipment arrives, and there’s a customs bill you never planned for. It’s one of the most common budget surprises in cross-border sourcing — and it’s entirely avoidable if you calculate landed cost upfront, not after the fact.
Landed cost = product price + freight + import duties + local taxes. Everything. Below is a quick breakdown by market, plus three moves that keep the bill honest.
Quick Example
500 office chairs · $20,000 product value · $3,000 sea freight
Add standard duty + VAT + possible anti-dumping tariffs → that $23,000 shipment quietly becomes $30,000. The factory price is the floor, not the ceiling.
Import Tax Rates by Destination
🇦🇪 UAE
5% duty + 5% VAT
One of the simpler destinations. Import via a Free Trade Zone for re-export and both charges disappear. Predictable, clean.
🌏 Southeast Asia
0% duty (with COO) + local VAT
ASEAN trade agreements cover most Chinese goods — but you need a Certificate of Origin (Form E) to claim zero duty. Miss that paperwork and you pay standard rates. Local VAT: Vietnam 8–10%, Thailand 7%, Indonesia 11%.
🇮🇳 India
18–28% total (after surcharges + IGST)
Basic duty sits at 10–20%, but once surcharges and IGST stack on top, the total bite lands well above that. Budget carefully.
🇷🇺 Russia
20% VAT + EEU tariffs
Rates set under the Eurasian Economic Union framework. China is Russia’s dominant supplier, so the shipping lanes are established and familiar.
🇺🇸 United States
Section 301 tariffs: +7.5–25%
The $800 de minimis threshold is generous for small parcels. For commercial shipments, Section 301 tariffs add 7.5–25% on top of standard rates — and the exact rate depends heavily on the product’s HS code category.
🇪🇺 European Union
17–25% VAT + customs duty over €150
The low-value import exemption was scrapped. Every shipment now faces VAT, and anything above €150 triggers customs duty on top.
🇦🇺 Australia
0% duty (most goods) + 10% GST
Straightforward. Most categories enter duty-free. GST applies to everything.
3 Ways to Keep the Tax Bill Honest
1
Get the HS code right
The same physical product filed under a wrong tariff heading can carry a 15% higher duty rate. Spend time on this before placing the order, not after.
2
Request a Certificate of Origin
For Southeast Asia and Australia, Form E / COO unlocks preferential trade rates. Without it, you’re paying standard tariffs you don’t have to.
3
Consider DDP shipping
Delivered Duty Paid means the forwarder bundles duties and customs clearance into a single freight cost. No surprises at the port, one fixed number from the start.
China Sourcing & Procurement Agent
We calculate your full landed cost before you commit to a supplier.
Leo Li’s team handles HS code checks, commercial invoices, packing lists, Form E, COO — and runs DDP lanes to the Middle East, Southeast Asia, Russia, Europe, and the US.
📦 Send us your product photos or links + destination country.
We’ll come back with a free HS code check and a real cost estimate — no obligation.