Ultimate Guides
The Ultimate China Importing Guide

The Ultimate China Importing Guide

This ultimate guide is your one-stop-shop for all things importing from China. We cover everything from shipping methods to import documents, calculating taxes, and even special customs requirements for specific countries.

20 mins read, 7 Jul 2020

Tackling international shipments can feel like a nightmare, especially so for first time importers. It's a confusing, long process.


This ultimate guide is your one stop shop for all things importing from China, from start to finish - it covers shipping methods, import documents, calculating tax and special customs requirements for specific countries.

Download Our
Import Guide

Chapter 1: Choose Your Shipping Method



For international shipments, there are two major transportation methods you can choose from - air freight and ocean freight.

Air Freight


shipping from china air freight

To put simply, air freight is the transport of goods by air through aircrafts. There are 2 options within air freight.

Your goods are often carried in a cargo aircraft, but some get shipped in a passenger aircraft, where they would be placed in the belly of the plane, next to the check-in baggage.

1. Air Courier

What is it?

It’s the simplest of all, and the easiest to understand. You've heard of UPS, DHL, and FedEx, yeah? They’re your air couriers!


One really good thing about air couriers is that they offer door to door service, which means that they can pick up the goods at your factory and deliver it to your doorstep directly.

When is it ideal to choose air couriers?

It’ll work out cheaper to choose air couriers for shipments weighing less than 150 kg.

2. Traditional Air Freight

What is it?

This is a more complex process which involves arranging for transportation of goods through a party called a freight forwarder.

Usually, traditional air freight services are  terminal to terminal - meaning either you arrange transportation form the factory to the airport terminal OR you can ask the freight forwarder to take care of pick up for an extra fee.



When is it ideal to choose traditional air freight?

It’s best to choose traditional air freight for shipments weighing between 150 kg and 500 kg.


Here’s an overview comparison of Air Courier and Traditional Air Freight:


Air Courier
Traditional Air Freight
Service Type
Door to Door
Terminal to terminal
(but can ask the freight forwarder to arrange door to door services)
Total Transit Time
3 - 8 days transit time depending on direct or transit flights
5 - 15 days door to door transit time depending on direct or transit flights
Freight Rate / Per Kg (USD)
US $ 6 - 10 / kg depending on the distance
US $ 5 - 7 / kg depending on the distance
Ideal Scenario to Choose
Door to Door
150 kg < shipment weight < 500kg

How are air freight charges calculated?


Air freight cost = rate per kilogram x chargeable weight


‍Chargeable weight = volumetric weight VS gross weight, whichever is greater.

You can visit our Air Freight FAQ where we answer how the air freight costs are calculated in detail along with the answers to many burning questions on air freight that we often hear.

Ocean Freight

shipping from china ocean freight

Ocean freight is the transport of goods by sea and ocean through ships.

Ocean freight is also typically port to port - you’ll have to arrange for pick up and drop off transportation yourself or through a freight forwarder.

Goods are either shipped in containers or in bulk. But here, we’re more focused on containerised freight - LCL and FCL.

shipping from china fcl and lcl

1. LCL

What is it?

LCL (Less than Container Load) is a consolidated shipment - meaning that your shipment will be combined with other people’s shipments into a container. LCL is ideal for smaller shipments.


When is it ideal to choose LCL?


If your shipment is LESS than 13 CBM, choose LCL shipments.

2. FCL

What is it?

FCL (Full Container Load) is more of an individual shipment - it’s when a single shipper’s cargo takes up the space of an entire or near full capacity of a container (of any size).


When is it ideal to choose FCL?

If your shipment is GREATER than 15 CBM, choose LCL shipments.

For shipments between 13 - 15 CBM, you should get quotations for LCL and FCL, compare and choose.


What are the benefits of  FCL vs. LCL ?

FCL
LCL
Faster
Slower
(time spent for consolidation and deconsolidation)
Works out to be cheaper if you have large quantities of goods
Cheaper for smaller shipments
Reduced risk of damage to goods
(the container only has your goods)
Higher Risk of damage to goods
(your goods are combined with others)

Is there a “Sea Courier” option?

Technically, no. But, there is an express ocean freight service called speed boat, but it’s still port to port (NOT door to door like an air courier).

Ocean Freight Options
Routes
Transit Time (Door to Door)
Normal Boat
All
30-35 Normal Days
Speed Boat
Shanghai or Ningbo Port to Long Beach Port
25-30 Normal Days

So, Which Type of Freight Should You Choose?

Ultimately, the cost comes down to volume and the weight of your shipment.

• For smaller volumes, or high value goods - choose Air freight.

• For larger volumes, or low-value goods - choose Ocean freight.


But, there are also other factors such as speed, reliability, and even environment friendliness - read our How to Choose Between Air Freight and Ocean Freight? guide for more information.


Now, there’s one last thing to cover that affects your choice of transportation mode and your shipping costs, and it is… *drum roll please*...


Incoterms!

That's right! It’s incoterms - short for International Commercial Trade terms. And don’t worry if you’ve never heard of them, we'll break them down and explain to you in plain English :)

What are incoterms?

They are trade terms that a buyer and seller will have to come to an agreement with, and which ultimately decides the sales prices AND their responsibilities - like arranging for main transportation, insurance, customs clearance, loading and unloading of the goods!

examples of incoterms

🚨The following terms - FAS, FOB, CFR, CIF are ONLY applicable for Ocean freight.


What are the popular incoterms for the buyer?

‍Buyers commonly choose or prefer the following:


Rank #1 -  FOB

FOB (Free on Board) gives you (the buyer) control of your goods and relatively low shipping costs since you get to negotiate and find a freight forwarder of your choice.

The seller takes over the harder part - getting the goods onto the ship and arranging export clearance.

When is it best to use FOB terms?

Works best for shipping bulk or break bulk goods such as oil, grains, coal, or bagged cement. For containerised cargo, it’s better to use FCA terms.

Rank #2 - EXW

Gives you complete control over the goods, there is only one party responsible for arranging for your cargo’s departure.

With other terms, it's usually a collaboration between the supplier and forwarder - which may increase the risk of miscommunication.

When is it best to use EXW terms?

Works best for local or within borders transportation of goods. Or for buyers who want complete control over their goods and its transportation.

Rank #3 - DPU

DPU, previously known as the DAT (Delivered at Terminal), is a popular choice if the buyer does not want to or does not know how to arrange for transportation and insurance.

Under DPU the buyer is only responsible for 2 things: import clearance & duties, and unloading costs at the final destination.

When is it best to use DPU terms?

Works best for LCL or consolidated shipments with multiple receivers - the seller can unload the goods, separate the shipments and make them available to them.


🚨 Keep in mind that these are the popular terms - it may not be the best for your good type and value. So, do consider other options.

You can explore the terms individually, and we even tell you when to choose the specific term:

1. EXW (Ex Works)

2. FCA (Free Carrier)

3. CPT (Carriage Paid to)

4. CIP (Carriage & Insurance Paid to)

5. DAT (Delivered at Place Unloaded)

6. DAP (Delivery at Place)

7. DDP (Delivery and Duties Paid)

8. FAS (Free Alongside Ship)

9. FOB (Free on Board)

10. CFR (Cost Freight)

11. CIF (Cost Insurance Freight)

Or we also include DDU (Delivery and Duties Unpaid) - it’s the older version of DAT but still popular even in 2020.

Chapter 2: Import Documents

1. Packing List (must have)

What is it?

An itemized list containing product details, as well as the weight dimensions in kilograms (KG) or cubic meters (CBM).


Why do you need it?

It acts as a checklist for the exporter, customs, or other involved parties to ensure accurate packing of the shipment.


What information does it need?

A good packing list should contain the following:

• Product description

• The type of package(s), e.g. box, carton, vials, etc.;

• Quantity and weight dimensions

• Buyer and seller references

• Commercial Invoice number and/or item number


Free template:

CLICK HERE for  a FREE packing list template!


2. Commercial Invoice (must have)

What is it?

A legal document describing the entire export transaction and the shipping terms - the prices, value of the goods, payment terms, and total invoice value.


Why do you need it?

Gives the total value of shipment, which is then used to calculate import duties and taxes.


What information does a commercial invoice need to have?

A good commercial invoice must contain the following:

• Shipping transaction (Date, invoice number, terms of sale)

• Details of goods being transported (refers to packing list)

• Harmonized System codes for those goods (aka HS Code)

• Details of exporter and the receiver  

• Country of manufacturing


CLICK HERE for a FREE Commercial Invoice template!


🚨  Important - Declared value! 🚨

What is it?

The value placed on the goods by the importers to convey the value of the shipment to freight carrier and custom control.


How is it determined?

You set the declared value at the Cost of Goods Sold (COGS) (NOT sale value/price). This is basically the price you paid to purchase the goods from the factory.


Why is it important?

Your import duties and taxes depend on it! And if anything is lost or damaged, the declared value will be used in figuring out your compensation.  


Who will prepare the documents?


Your factories! They will provide both Packing List and Commercial Invoices.


So, what do you ( the importer) need to do?

You might need to help your factories gather the necessary information.

You also need to ensure there are no mistakes or missing information.


There is NO room for errors in these documents.

Customs uses these documents to classify and sort your shipment, as well as calculate duties, so any mistakes will delay your customs clearance.

3. Any other documents?

If you are shipping electronics, cosmetics, or food related products, you will need special certifications.

What are the special certifications?


Product Quality Certification, such as the CCC (China Compulsory Certification), applies to electronic goods ranging from electric tools, low-voltage appliances, wires and cables.


If you are shipping battery products or electronics, watch out for these top 3 mistakes to get your products shipped to your door safely.


FDA certification (Food and Drug Administration) is required if you’re shipping health food, supplements or formulas to certify the quality of your products.

Example of a CCC
Example of an FDA Certificate


But as a general goods buyer, you'll mainly just need the first two - packing list and commercial invoice.

So, How is import tax and duty calculated?

Formula:

The import tax and duty = total shipment value * tariff rate + import duty


How to calculate tax (aka finding tax tariff)

Each product has a tariff rate which is based on the HS code.


What is the HS code?

Harmonized Systems (HS) is an internationally recognized system of numerical codes to help with identifying the category of your goods being shipped.


HS codes help communicate what the product is, what it is made of, and from where it's coming from - so the customs authorities can quickly identify and determine tax rates.


For example:


example of hs code

How to find your HS code?

Let's try an example:

Product: 100% cotton t-shirts

Declared value: US$ 20,000

Export Country: China

Import Country: US


Step 1: Open the US HS code Tool to find the HS code for the cotton t-shirt

Step 2: Type your product name into the tool bar

how to search hts

Step 3: We search by type of material

So, Scroll down until you see “Of cotton” in the article description.

how to search hts

You can see that all articles of clothing made of cotton will have a heading of 6109.10


Step 4: We narrow down by usage of materials( in this case t-shirts)

We find the suffix code for t-shirts: We see that it’s 04.


So, our 100% cotton t-shirt’s HS code is 6109.10.04


Step 5: Locate the tariff rate at the heading: We see a 16.5% tariff duty rate


What happens now?

Customs sees the HS Code on your commercial invoice, and uses the product category’s tariff rate with the total shipment value on the invoice to determine your import duties.  


The import duty = total shipment value * tariff rate

                         = US$ 20,000 * 16.5% = US$ 3,300.


Other free resource:

Find out the HS codes and the tariff rates for the following regions at their respective customs websites:


HS Code - US

HS Code - Canada

HS Code -  Australia

HS Code - UK

HS Code -  Europe



How to calculate Duty

What is customs duty?

The tax that you have to pay on the goods you bring into a country.


Do you have to pay duty on ALL goods?

Not really. There is a minimum threshold that countries set. So, if your total import value of goods is below that threshold, your goods are duty/tax-free.


Beyond the threshold, there will be duties and a sales tax, aka, GST (Goods and Service Tax) or VAT (Value-added-tax).


Here is an overview of the minimum thresholds and sales taxes across different regions.

US
Canada
Australia
UK
EU
Import License Needed?
No, but special cases apply
Yes
No, but special cases apply
No, but special cases apply
No, but special cases apply
Other Requirements
Normal Customs bond
N/A
N/A
EORI Number
EORI Number



*Different VAT rules in each EU country

** NAFTA is the North American Free Trade Agreement between US, Canada and Mexico that eliminates tariffs/duties on all imports and exports between the 3 countries.  


Free resources, duty calculator:

Duties Calculator- Canada

Duties Calculator  - Australia

Duties Calculator  - Europe

Check your VAT  - UK



Importer of Record, Import Licenses, and Customs Bond.

1 .Importer of Record (IOR)

What is it?

An IOR is an owner, or buyer, or  trading firm that will be in charge of all import obligations.


What does an IOR do?

They do two things:

1.They handle the documentation procedure or anything legal related to importing goods.

2.They handle all the payments of duties, tariffs and other import related costs.

Do you need an IOR?

Yes! Most countries legally require an Importer of Record (IOR) to let you import goods to the region.


What if you don’t have an importer of record in the country you sell to?

A third party, such as a trading firm can act as an IOR! The third party will arrange for a local entity to be the importer of record.

In the UK/EU, it’s different!

Business entities importing into the UK or the EU need an EORI number.


What is an EORI number?

EORI stands for Economic Operators Registration and Identification (EORI), it's an identification number that is given to let you bring goods into the UK or the EU.


Customs use the EORI to identify you across the UK/EU region. You can request an EORI number here.


2. Import License

What is an import license?

A government approved document that states that a certain entity is legally allowed to bring in certain quantities of goods into the region over a defined period of time.


Here is what it looks like: A drug import license

Example of a Drug Import License
Example of a Medical Device Import License
This way up sign
ethanol sign



Does every country need an import license?

Many countries do not require it.


Canada is an exception!

Canadian importers need to have an import license, and you can get the license by creating an account with the Import/Export Program Account. Click here to find out more.


How do you know if your goods need a license?


There are two categories of goods in imports and exports - general and restricted goods.

GENERAL GOODS
RESTRICTED GOODS
What Are They?
Basic items, usually needed for everyday survival or used on a regular basis.
They are goods that are prohibited but can be imported if approved by a competent authority.

(ex: Food and Drug Administration)
Do The Goods Require an Import License?
No!

You do not need an import license for general goods.
Yes!

You need an import license, or a permit, or an inspection certification.
Examples
Clothing, non-electronic home appliances, furnishings, tableware, plastic articles, accessories and etc.
Medicines, weapons or animal products, Lithium-ion battery products, and etc.


For restricted goods, you can refer to the following official trade organization’s links for more information.

Restricted Goods - US (Refer to Page 106)

Restricted Goods - Australia

Restricted Goods - United Kingdom

Restricted Goods - European Union


Customs Bond (Only applicable for US Market)

What is a customs bond?

A contract between the importer, customs and a third party to ensure all the duties will be paid to the customs.


Where is it required?

Only the United States requires it for importing goods into the country.


Do you really need the customs bond?

You need to get the bond if:

• the value of your imported goods is greater than $2,000 USD.

• you are importing textiles worth greater than $250.

• the products have to meet federal regulations such as firearms and food


Customs bonds can be on a per shipment basis or continuous over a period of time.


QUICK TIP: Get a continuous one to save processing times if you frequently ship to the US.


Here is a quick overview of import licenses or other specific requirements at major regions around the world.

US
Canada
Australia
UK
EU
Import License Needed?
No, but special cases apply
Yes
No, but special cases apply
No, but special cases apply
No, but special cases apply
Other Requirements
Normal Customs bond
N/A
N/A
EORI Number
EORI Number

Bookairfreight is here to help!

Click here for the documentation checklist, and templates for the packing list and commercial invoice!


We guarantee:

• Instant freight quotations

• Passing customs clearance  

• Painless and timely delivery of your goods.


Shoot us a quick message at booking@bookairfreight.com, or get an instant quote on our platform.




Try our instant quotes for free

China
USA
100KG
Get Free Shipping Quotes
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Cristian Ungureanu

Logistics nerd and resident marketing guy of Bookairfreight. I love writing content that simplifies old-fashioned industry processes and provides solid, accurate information you can base your decisions on. Outside of logistics, I enjoy nature, hanging out with friends, electronic music and spirituality.

Stay On Top
Of Your Logistics

Join our newsletter for practical tips
that will save you money and time.

🥳 Thank you! You're signed up!
Oops! Something went wrong while submitting the form.

You May Also Like ❤️...

How to Ship X

How to Ship Lithium Batteries

Proper packaging and labeling are vital when shipping battery products. Failure to do so could result in millions of dollars worth of damages.

How to Ship X

Tips for Shipping N95 Respirators and Surgical Masks (Face Masks)

mporting face masks is highly regulated, and these regulations differ between countries. You will need to ensure your factory is properly certified in order to avoid being blocked at customs.

Shipping 101

How to Choose Between Air Freight and Ocean Freight?

Value of goods, product density, and sensitivity to shipment time and money spend will dictate whether air freight or ocean freight is the right shipping solution for your business.

Amazon

Top 5 Mistakes to Avoid When Shipping to Amazon FBA

Successful Amazon FBA shipments involve a lot of planning, following regulations and partnering with experienced freight forwarders.

Get An Instant Quote For Free

100KG
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Hey, there! Don't see anything you like? Contact us for more alternatives tailored just for you.'

Hello!
Not what you're looking for? Let us know and we'll send you multiple options to choose from.

We're sorry we couldn't find any matches for your search!
Contact us and we'd be happy to get you a manual quote
or
check our platform for more options.
View platform

Take Your Logistics to the Next Level.

Sign up today for free and get access to 20% cheaper freight rates from top forwarders all over the world.

Hundreds of fast-growing e-commerce businesses are working with Bookairfreight.