Importing goods from China is hugely popular among Thai businesses — costs are low and the choice is vast. But the thing newcomers find most confusing is: “What taxes do I actually pay?” This article breaks it down simply.
The Main Taxes on Imports
When goods arrive at customs, there are generally two main charges:
- Import Duty — calculated from each product’s tariff code (HS Code). Rates vary from 0% to 30% or more.
- Value Added Tax (VAT) 7% — calculated on the base (goods price + freight + insurance + import duty).
Rough Calculation
The basic formula is:
- CIF value = goods price + freight + insurance
- Import duty = CIF × the duty rate for the HS Code
- VAT = (CIF + import duty) × 7%
Getting the HS Code right is crucial — it affects both the duty rate and which permits you need.
Some Goods Need Permits
Many products can’t be imported just by paying tax — they require permits too, such as cosmetics, food, and supplements (which need FDA approval) or certain electrical goods (which need TISI). Incomplete documents can get your cargo held at the border.
Summary
Importing from China isn’t as hard as it seems once you understand the tax structure and prepare your documents. If you’re unsure about HS Codes, taxes, or permits, using a professional customs clearance service saves time and greatly reduces the risk of stuck cargo.
Want end-to-end importing from China? Talk to the JP Shipping team for free — we handle everything from freight to customs clearance.