Trade with China: Customs, Import, and Export Overview

Economic relations between Europe and Asia have become increasingly close in recent decades. In addition to reliable logistics processes, international trade needs one thing above all else: clear rules. Thus, compliance with customs regulations plays a crucial role in ensuring smooth business processes. This article provides comprehensive information on customs and import regulations for importing and exporting goods to and from China.

Figures and Statistics on Import from and Export to China

Just a few figures illustrate the importance of goods traffic between Europe and Asia. China remains the European Union’s most important trading partner. According to Eurostat, the volume of trade between the EU and China (import and export) amounted to 739 billion euros in 2023 – this corresponds to 15% of the EU’s total trade in goods. In Europe’s largest economy, the figures are as impressive as those for the EU as a whole: In 2023, the People’s Republic of China was Germany’s most important trading partner for the eighth consecutive year. The trade volume amounted to 254.5 billion euros, according to the Federal Statistical Office (Destatis).

Customs Between China and Germany

Given the enormous economic opportunities, it is critical for companies to be fully aware of the complex – and ever-changing – customs regulations for both imports and exports. Violations can result not only in significant financial burdens, but also in costly delivery delays and legal consequences.

Import from China: Customs Duties and other Regulations

Importing goods from China is a multifaceted process that goes far beyond the logistical steps along the supply chain. Customs regulations play a central role. You have probably come across the customs tariff number (HS code) as a central element of customs clearance. It is used to classify goods and determines which tariff rates and import regulations apply to a product.

Chinese Customs Requirements for Import and Export

In addition to the European regulations, the requirements of the Chinese General Administration of Customs must also be observed. The most important is the China Customs Advanced Manifest (CCAM) for air and sea freight. Logistics companies, shippers, and consignees must comply with these regulations. In addition to the company name and address, the CCAM declaration must include the individual company code – for most countries, this is the VAT identification number (VAT ID).

Customs from China to Germany

Commodities such as electronic products, textiles, and machinery are each classified in different chapters of the tariff, which in turn have specific regulations and duties. Here is an example: a European company imports 1,000 LED lamps from China. The HS code for LED lamps is 85414010. In the following example, customs duties and import-turnover tax in Germany are calculated based on this code.

In addition, the CFR must be considered: CFR stands for “Cost and Freight” and refers to sea freight as an Incoterm (International Commercial Term). This means that the seller is responsible for transportation to the port of destination and bears the associated costs, which are included in the customs value. In our example of the LED lamps, the invoice value including Incoterm CFR is 10,000 Euros and the duty rate is 3%. This means that 300 Euros in customs duty and 1,900 Euros in import-turnover tax are payable.

Product	HS-Code	Tariff rate	Invoice value incl. Incoterm CFR	Customs duty	Import-turnover tax
LED lamps (1,000 pcs.)	85414010	3%	€10,000	€300	€1,900

Customs Clearance and Import Taxes in Practice

The level of import tariffs varies considerably between product groups. For example, tariffs on textiles are generally higher than those on machinery. In addition, the import-turnover tax is a fixed component of the duties to be paid. In most EU countries it is 19%. Occasionally, politicians also intervene for economic policy reasons and impose higher rates (so-called punitive tariffs) as a control instrument. One example: in the summer of 2024, the EU provisionally decided to increase tariffs on electric cars from China.

Documents and Certificates Required for Import

As a result, trading companies and logistics service providers are faced with the challenge of keeping abreast of the latest customs regulations. Moreover, importing goods from China requires a large number of documents. These include the commercial invoice, the bill of lading, the certificate of origin, and sometimes special certificates such as the CE mark for technical and electronic products.

Essential import certificates you should know about:

• CE mark: required for many products entering the European market, particularly in the electronics and machinery sectors.
• REACH compliance: chemical products must be registered under the European REACH regulation.
• RoHS certification: this EU directive regulates and restricts the use of certain hazardous substances in electrical and electronic equipment.

Product Quality and Compliance: What to Consider When Importing from China

Ensuring product quality and compliance with European standards is also of key importance when importing from China. To meet these requirements, quality management plays a central role, for example through regular goods inspections, which can be carried out either by your own staff on site or by a contracted inspection company.

Export to China: Opportunities, Obstacles, and Tips

Trade between Europe and Asia is not a one-way street but flows in both directions in large volumes. China is an attractive market for European exporters, and “Made in Germany”, e.g. in the automotive sector, continues to enjoy a very good reputation in the Far East. However, entering the Chinese market requires thorough preparation and knowledge of local customs and market regulations.

Customs Duties for Importing into China

Accurate and complete export documents are crucial when exporting to China. These include the commercial invoice, packing slip, bill of lading, and certificate of origin. Additional certifications may be required for certain products.

Key documents include:

• China Compulsory Certificate (CCC): required for a wide range of product categories, including vehicles, electronics, and toys.
• Health Certificate: For food and agricultural products exported to China.
• Quarantine certificate: Required for certain animal and plant products.

Product Certification and Technical Standards in China

China has adopted its own technical standards and certification regulations, some of which may differ significantly from European requirements. It is vital that you comply with them when exporting. For example, CCC certification is needed for many products and non-compliance may result in the goods being returned. Please note: obtaining this certificate can take several months, so early planning is essential.

Tariffs and Taxes for Export to China

When exporting to China, you should always consider the applicable tariffs and taxes. These vary by product category. For example, agricultural products are subject to higher tariffs than machinery. Furthermore, China may impose import taxes and value-added taxes to reduce the competitiveness of foreign products. China’s tariffs and other import charges can be found in the EU’s Access2Markets database. The customs value of imported goods is calculated from the transaction price plus transportation and insurance costs to the first place of unloading in China.

Here are some examples of tariff rates:

Product segment	Tariff rate	Remarks
Electric motors	10%	Depending on the engine power
Pharmaceutical Products	5 to 15%	Depending on components
Agricultural products	15 to 25%	Higher tariff due to protective measures

In addition to customs duties, exports to China are also subject to value-added tax (VAT). The regular rate in China is 13%. A reduced rate of 9% applies to some categories of goods, such as staple foods and printed products. Other commercial goods, e.g., alcohol, tobacco, and automobiles, are subject to excise taxes. For selected high-tech products, customs duties and import-turnover tax may be waived in some cases.

Ensure that Export Contracts Are Legally Sound

In addition to customs and tax regulations, there are a number of pitfalls in drafting contracts if you are planning to export goods to China. It is therefore advisable to involve both European and Chinese legal experts in the drafting process. This will ensure that the contract covers all relevant aspects and meets the legal requirements of both parties.

Essential features are:

• Terms of delivery: definition of the Incoterms (e.g. FOB, CIF) that determine when responsibility and risk are transferred from the seller to the buyer. This includes the transfer of cost – i.e. the point at which the cost of transportation, insurance, etc. is transferred from the seller to the buyer of the goods.
• Terms of payment: clearly defined payment arrangements, including currency, payment deadlines, and any forms of collateral, such as letters of credit.
• Liability and warranty: regulations defining liability for product defects, delivery delays, or breaches of contract.
• Dispute resolution: place of jurisdiction and arbitration clauses must be specified

to ensure efficient resolution in case of dispute.

Protecting Intellectual Property when Exporting to China

The protection of intellectual property (IP) is especially important when trading with China – cases of piracy and trademark infringement are common. For this reason, European companies should register their trademarks, patents, and designs before entering the Chinese market. Registration in China is necessary as international registrations are generally not sufficient.

Also, your contracts should include specific clauses to protect and enforce your IP rights. A tip: monitor the Chinese market regularly to quickly identify infringements of your IP rights, and work closely with local authorities in the event of suspected infringements.

Digitization in Customs Clearance

In customs clearance for trade with China, modern digitization technologies make your processes more efficient and reduce costs. The introduction of electronic customs clearance procedures has significantly accelerated international trade processes. In the EU, national customs authorities use different digital clearance solutions, for instance the German application ATLAS (Automated Tariff and Local Customs Clearance System).

Such systems allow companies to submit customs documents digitally, significantly reducing processing times and minimizing errors.

Use of Customs Platforms and Digital Services

China has established the Single Window System as a digital platform to simplify the entire customs process. Companies can use this platform to submit all required documents to a single point and monitor the status of their shipments in real time. Digitization eliminates many manual processes, resulting in a reduction in administrative costs.