Importing from China and import duties

By preparing to import from China properly, you can avoid problems with the Customs Administration of the Netherlands or the Netherlands Tax Administration. In this article, you can read how to do this, what costs you will incur, and how to do business with China safely.

Check the supplier’s quotation carefully

Start by requesting a price quotation from your supplier before placing your first order. Always check this quotation carefully to make sure it answers these questions:

• Are the products and prices correct?
• How is transportation arranged?
• Is the insurance of the shipment included?
• Which Incoterm® applies? These are international terms of delivery.
• How long is the price quotation valid?
• In which currency do you pay? In euros or US dollars, for example.

Order a sample of the product right away. That way, you can see in advance what you will be bringing to the market. And whether the product meets your quality requirements.

Import documents

Which import documents you need depends on the product you are importing. An invoice, a transport document, and a packing slip are standard import documents. Additional documents are sometimes required for certain goods. For example, when it concerns goods that may pose a risk to safety, health, economy, and the environment (VGEM, in Dutch). For example, toys, electronic goods, and cosmetics

Ensure that all documents are complete and correct. Without the right paperwork, the Customs Administration may hold up or reject your shipment. Also keep digital copies of all documents for your own administrative records.

The Customs Administration or a forwarding agent can provide you with more information about this.

Import declaration for customs

You pay customs charges when importing goods from China. For the import of goods into the EU, you must submit an electronic import declaration to Dutch Customs. A customs broker can arrange this declaration for your company, especially if you have little or no experience with this. They will charge a fee for this.

You need an EORI number (in Dutch) to declare goods to Dutch customs. EORI stands for 'Economic Operators Registration and Identification'. With this number, you exchange data with customs.

Watch the animation on clearing goods through Customs. This sets out what the steps are and explains what the terms used in the process mean.

Product requirements and product liability

If you import products from a non-EU country such as China, European and national requirements and rules apply to these products. They must be safe and usable. As an importer, you are liable for injury or damage caused by a faulty product.

 Some products have extra rules. Examples include:

• Toys: must comply with European toy directives.
• Electronics: must have a valid CE marking.
• Cosmetics: must be registered in the European CPNP register.

As an importer, you are liable for damage caused by a defective product, even if the fault lies with the Chinese manufacturer. Does your product pose any risks? If so, consider taking out product liability insurance. This will limit the financial consequences of any claims for damages.

Import duties and VAT on imports from China

When you import products from China, you usually pay import duties. The amount of these import duties depends on the commodity code or TARIC code of your product. Check in advance what import duties and other import charges apply. This will prevent any unexpected costs when your goods arrive.

VAT

When importing into the Netherlands, you pay Dutch VAT in addition to any import duties. Are you entitled to deduct VAT? Then you can deduct the VAT you have paid as input tax in your VAT return. This works in the same way as when you make purchases in the Netherlands.

Check what import duties you pay when you import products from China.

Secure payment when importing from China

Chinese suppliers often want you to pay in advance. This puts you at risk. You pay, but you may not receive the goods. So, negotiate a different payment method. For example:

• 25% advance payment
• 25% upon shipment
• 50% upon delivery

Ask your bank which payment method and currency are best suited to your purchases from China. This will limit your risks and allow you to keep control of your payments.

Scams and Fraud

Doing business with countries outside Europe involves risks. You would not be the first to encounter a scammer or fraudster. So pay as little as possible in advance. Or you can use a Letter of Credit. This document gives you greater certainty that you will receive the goods.

If a trade dispute does arise, the Dutch Embassy in China may be able to help you.