Why Europe Is Different From the US
Many buyers who have experience importing from China to the United States assume the rules for Europe are similar. They are not. The European Union has its own customs framework, its own VAT system, its own product compliance requirements, and its own import documentation standards. Getting these wrong does not just result in a delayed shipment. It can result in goods being seized, fines, and a ban on selling your product in the EU market.
This guide covers the core things you need to understand before you ship your first container from China to any EU member state. It is not exhaustive legal advice. It is a practical map of the terrain so you know what questions to ask and what to sort out before your goods leave Guangzhou.
EU Customs Duties: How They Work
When goods enter the EU from China, they are subject to customs duties calculated on the customs value of the goods. The customs value is the transaction value: what you actually paid for the goods, plus the cost of shipping and insurance to the point of entry into the EU. This combined figure is called the CIF value (Cost, Insurance, Freight).
The duty rate depends on the HS code (Harmonized System code) for your product. Every product has an HS code, and the EU publishes its duty rates in the Combined Nomenclature, which you can look up at the EU Customs Tariff database (ec.europa.eu/taxation_customs). Rates vary widely. Some products enter at 0%. Others face rates of 12%, 17%, or higher. Textiles and footwear often carry the highest rates.
In addition to standard customs duties, some Chinese products face anti-dumping duties. These are additional tariffs applied to specific product categories where the EU has determined that Chinese manufacturers are selling below market price. Solar panels, steel products, and certain ceramics are examples. If your product falls into an affected category, the additional duty can be significant. Check the EU Trade Defence Instruments database before you finalize your product selection.
VAT on Imports: What You Owe and When
In addition to customs duties, you will owe Value Added Tax (VAT) on goods entering the EU. VAT is charged on the customs value plus the customs duty. So if your goods have a CIF value of 10,000 euros and the duty rate is 5%, your dutiable value is 10,500 euros. If the applicable VAT rate in your country of import is 20%, you owe 2,100 euros in VAT at the border.
The key point is that the VAT you pay at import is usually recoverable if you are VAT-registered as a business in the EU. This is different from the US, where import duties are a straight cost. In the EU, you pay VAT on import, but you then reclaim it through your VAT return if you are registered. The net cost to your business, assuming you are VAT-registered, is only the customs duty.
If you are selling directly to EU consumers (B2C), you need to be VAT-registered in the EU. Since July 2021, non-EU businesses selling goods to EU consumers are required to register for VAT either in each country where they have customers, or use the Import One Stop Shop (IOSS) scheme for goods valued under 150 euros. For goods over 150 euros, VAT is collected at customs, and you will need local registration or a fiscal representative.
De Minimis Threshold: The End of the Free Ride
Before July 2021, goods valued under 22 euros entered the EU without customs duties or VAT. This threshold has been eliminated. Since July 2021, all goods entering the EU, regardless of value, are subject to VAT. The 150 euro threshold still applies to customs duties (goods under 150 euros do not pay customs duties, only VAT), but nothing is exempt from VAT anymore.
This is relevant for anyone who was previously sending low-value shipments directly from Chinese suppliers to EU customers. The cost structure has changed, and you need to factor VAT into your pricing and landed cost calculation for every shipment.
CE Marking: Not Optional
The CE marking is a declaration that a product meets EU safety, health, and environmental requirements. It is required for a wide range of product categories including electronics, toys, machinery, personal protective equipment, medical devices, and many others. Without the CE mark, these products cannot legally be sold in the EU.
The CE mark is not issued by a government body. It is a self-declaration by the manufacturer or the importer. However, self-declaration must be backed by genuine compliance. For most product categories, this means having test reports from an accredited laboratory showing the product meets the relevant EU directives and standards, and a Declaration of Conformity signed by the responsible party.
When you source a product from China for the EU market, ask the supplier whether they have CE documentation. If they do, request the actual test reports, not just a certificate. Check that the test reports reference the correct EU directives for your product category. Many Chinese suppliers have CE paperwork that is outdated, covers a different product model, or was obtained from a non-accredited lab. These are not valid for EU market entry.
If your supplier does not have CE documentation, you can arrange third-party testing through a lab like SGS, Bureau Veritas, or TUV. Budget between 500 and 3,000 euros depending on the product category and the number of tests required.
REACH and RoHS: Chemical Compliance
Two EU regulations govern chemicals in products: REACH and RoHS. REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) applies broadly to chemical substances in products. If your product contains substances on the REACH SVHC (Substances of Very High Concern) list above 0.1% by weight, you have notification obligations. RoHS (Restriction of Hazardous Substances) applies specifically to electrical and electronic equipment and restricts certain heavy metals and flame retardants.
For most consumer goods importers, the practical step is to ask your supplier for a REACH compliance statement and, for electronics, a RoHS compliance declaration. Then verify these with third-party testing if the product will be sold in significant volume or if you will be the importer of record in the EU. The importer of record is legally responsible for compliance, not the Chinese manufacturer.
Import Documentation You Will Need
Clearing customs in the EU requires several documents. Your freight forwarder will guide you through most of this, but you should understand what is required. A commercial invoice with the correct declared value (do not undervalue goods to reduce duties — this is fraud and the penalties are severe). A packing list showing the contents, quantities, and weights of each carton. A Bill of Lading or Air Waybill from the carrier. For products requiring CE marking, your customs broker may ask for the Declaration of Conformity. For some product categories, additional certificates of origin, phytosanitary certificates, or other permits may be required.
The country of origin matters for tariff purposes. Goods manufactured in China are subject to Chinese origin tariff rates. If goods are processed in a third country, the origin rules are complex. Do not attempt to route goods through a third country to manipulate the origin declaration. This is customs fraud and can result in your goods being permanently blacklisted.
Choosing an EU Freight Forwarder
If you are new to importing into the EU, work with a freight forwarder who specializes in EU customs clearance. Your Chinese supplier may recommend a forwarder, but that forwarder works for the supplier, not for you. Find your own, based in your destination country, who can act as your customs broker and advise you on duties, VAT registration, and compliance requirements specific to your product.
The cost of a good freight forwarder is modest compared to the cost of a customs hold, a rejected shipment, or a compliance fine. They know the local customs office, they know which documentation inspectors look for, and they can flag problems before your goods are held.
Getting Your EU Import Strategy Right From the Start
The EU is one of the most valuable markets for imported goods, but it is also one of the most regulated. Buyers who succeed long-term in the EU market are the ones who treat compliance as a built-in cost of doing business, not an afterthought. They work out their duty rates, their VAT registration status, and their product compliance requirements before they place their first order, not after the goods arrive at Rotterdam.
At China Sourcing Advisor, we help buyers map out exactly what they need for their specific product category and destination country. Our AI-powered advisor builds a sourcing plan that includes landed cost calculations, compliance requirements, and documentation checklists so you are not surprised at the border.