Do small-value exemptions apply to commercial shipments?

Don't count on it. De-minimis rules differ by country and many exclude or restrict commercial imports. Cost your goods assuming duty and VAT apply, and confirm with your broker.

Is freight included in the dutiable value?

In CIF countries such as EU members and Korea, yes. In the US, customs value generally excludes international freight and insurance.

How do I find my duty rate?

Identify the product's HS code and look it up in your destination country's tariff schedule. If the classification is unclear, ask your customs broker or request a binding ruling.

China Import Duty & VAT Example (B2B)

“The unit price looked great until duty and tax went on top.” First-time importers tell us this a lot. Commercial goods go through a formal import declaration and pay duty and VAT (or sales tax, depending on the country). The math isn't hard, so run it as part of your costing before you place the order. Every number below is an illustrative example.

Commercial goods go through formal entry

Goods imported for resale are generally cleared through a formal import declaration, usually filed by a customs broker on behalf of the importer of record. You'll need a commercial invoice, a packing list and the transport document (bill of lading or air waybill).

Customs value: many countries, including EU members and Korea, use CIF (goods + freight + insurance). The US uses the transaction value, which excludes international freight.
Duty rate: set by the product's HS code in your country's tariff schedule, and it varies widely by product.
Trade agreements: some countries have FTAs with China that lower duty if you have a valid certificate of origin.
VAT or sales tax: in VAT countries it's typically charged on customs value plus duty, and registered businesses can usually reclaim it.

Product compliance (CE, FCC, UKCA, KC and so on) often blocks clearance more than tax does. Check what your market requires before you order.

Working through an example

Customs value

Goods value plus freight and insurance where CIF applies, converted at the customs exchange rate.

Duty

Customs value × the duty rate for your HS code (standard or preferential).

VAT

(Customs value + duty) × your country's import VAT rate.

Landed cost

Add goods, freight, duty, VAT, brokerage and inland delivery, then divide by units.

Item (example)	Amount
Goods (FOB) 1,000 units × $3	$3,000
Freight + insurance (example)	$400
Customs value (CIF)	$3,400
Duty (example rate 8%)	$272
VAT (example rate 20%) on $3,672	$734.40
Duty + VAT total	$1,006.40

These figures only illustrate the method. Your actual duty rate depends on the HS code and destination country, VAT rates differ by country, and freight depends on the real quote. Confirm final figures with your customs broker.

What gets missed in costing

Calculating duty on goods value alone in a country that uses CIF
Treating reclaimable VAT as zero cost, when it's still cash out at clearance
Guessing the HS code and getting a different rate at entry
Expecting an FTA rate without a valid certificate of origin

Before shipment we prepare the commercial invoice and packing list, and we work with our forwarders on export clearance and transport. Import clearance and the final duty figure in your country are something you settle with your customs broker.

Import duty and VAT on goods from China: a worked landed-cost example