Customs Clearance and Documents for Importing from China

Customs clearance is one of those parts of importing that looks scary from the outside, but in practice – with a good freight forwarder and the right paperwork – it runs almost on autopilot. When things go wrong, it’s almost always because of bad or incomplete documents: your shipment gets stuck, extra fees pile up, and in the worst case, customs can even seize the goods.

In this guide, you’ll learn the essentials of the customs process – from the key documents you must have to a simple example of how duties and VAT are calculated.

Who is responsible for customs clearance?

Whether you’re importing for the very first time or you’ve been doing it for years, there’s one key rule you need to remember: you as the importer are the only one legally responsible for meeting customs requirements in your own country. You can’t transfer that responsibility to your supplier, your freight forwarder, or any agent – you’re the one bringing the goods in, and the law treats you as the responsible party.

In reality, your freight forwarder or customs broker handles the paperwork and communication with customs on your behalf – they prepare the documentation and file the entry. But the legal responsibility for accuracy and compliance still sits with you as the importer.

If you’re just starting out, make sure you talk to a local freight forwarder before the goods leave China and check whether there are any special legal requirements for your specific product in your country.

The three must-have documents for customs clearance

When your shipment arrives in the destination country, you must have these three documents from your Chinese supplier or their agent. Without them, customs clearance simply cannot start:

1. Bill of Lading — ocean bill of lading / B/L
2. Packing List
3. Commercial Invoice

All information across these three documents has to match. If there are any differences – in quantities, values, or product descriptions – the system will flag the shipment as suspicious and your goods can be delayed while customs investigates.

Bill of Lading (B/L)

The Bill of Lading, often shortened to B/L or BOL, is issued by the shipping line as proof that your goods have been loaded on the vessel. Traditionally, the ship’s captain signs this document – which is why it’s treated as a legally binding proof that the cargo is on board.

The B/L is also a document of title – it defines who legally owns the goods while they are in transit. It includes:

• Shipper — your Chinese exporter
• Consignee — you, the importer
• Details about the cargo: description, weight, volume in m³
• Port of loading and port of discharge

For example, if your company is called Petar Perić d.o.o. and you’re buying from Aoluola International Trade Limited in China, your B/L might look like this:

• Shipper: Aoluola International Trade Limited, [factory address]
• Consignee: Petar Perić d.o.o., [your address]

Released vs. on hold B/L

A Bill of Lading can be in one of two statuses: released or on hold. Until the shipper confirms that they have received full payment from the buyer, the B/L usually stays “on hold”. Without a released B/L, customs and the shipping line will not release your cargo.

This setup protects both sides: as the importer, you can pay a deposit and wait until the goods are actually loaded on the vessel before you pay the remaining balance.

Packing List

The Packing List tells customs exactly what’s inside the shipment: which products, in what quantities, and how many cartons or packages there are.

Customs officers are allowed to cross-check the Packing List against the B/L and the invoice. If there are any inconsistencies between these documents, an investigation is triggered. Even honest mistakes on the Packing List can cause serious delays and extra costs.

Before the goods leave China, always double-check the Packing List and make sure it matches your purchase order in terms of products, quantities, and packaging.

Commercial Invoice

The Commercial Invoice is the most important document from a tax and customs perspective. Customs uses the value declared on the invoice to calculate import duties and VAT that you’ll pay when the goods enter your country.

The declared value must be real and accurate. Under-declaring the value to save on duties (so-called “undervaluing”) is illegal and can lead to seizure of goods, heavy fines, and even bans on future imports.

Your invoice should include at least:

• Seller and buyer details
• Product description, quantities, and unit prices
• Total shipment value
• Incoterm and currency
• HS codes (recommended)

HS codes – what they are and how to get them

HS codes (Harmonized System) are an international coding system for classifying products in global trade, developed by the World Customs Organization. Every product has a specific HS code, and that code determines:

[trade](https://www.trade.gov/harmonized-system-hs-codes)

• Which import duty rates apply
• Which taxes are charged
• Whether there are any special import rules or restrictions

Here are the easiest ways to find the HS code for your product:

• Ask your Chinese supplier – they usually know the HS codes for the items they export
• Search on the official website or online tariff database of your local customs authority
• Ask your freight forwarder or customs broker to help classify your product

Once you share the HS code with your forwarder, they can tell you exactly which duty rate applies to your product and what VAT you’ll need to pay on import.

[plutoniaglobal](https://www.plutoniaglobal.com/guides/cu-customs-documents)

Example: duty and VAT calculation

Let’s assume the following:

• Product value: 10,000 USD (FOB)
• Freight cost: 1,000 USD
• Import duty rate: 5%
• VAT rate: 20%

Step-by-step calculation:

• CIF value (goods + freight): 10,000 + 1,000 = 11,000 USD
• Import duty (5% of CIF): 11,000 × 0.05 = 550 USD
• VAT base (CIF + duty): 11,000 + 550 = 11,550 USD
• VAT (20%): 11,550 × 0.20 = 2,310 USD

Total landed cost: 10,000 + 1,000 + 550 + 2,310 = 13,860 USD

On top of the factory price of 10,000 USD, you’re paying almost 4,000 USD in additional costs – which means your final landed cost is nearly 40% higher. That’s why running a basic duty and VAT calculation is a must before you commit to any purchase from your supplier.

For a deeper dive into total landed cost, check out this guide: How to Calculate Landed Cost for Imports from China.

Tips for first-time importers

• Talk to a local freight forwarder before shipping – don’t wait until the goods arrive to ask what you need. Get clear requirements upfront.
• Double-check that all three documents match before you approve shipment – the B/L, Packing List, and Commercial Invoice must be fully aligned.
• Get the HS code before you pay the factory – it’s the only way to accurately calculate your future duty and VAT.
• Don’t declare a lower value – short-term savings on duties are not worth the legal and financial risks.
• Check if your product is subject to special rules – categories like food, cosmetics, electrical equipment, and toys often have extra requirements that must be met before customs will release the goods.

Frequently asked questions

Which documents are required for customs clearance when importing from China?

You’ll need three core documents: the Bill of Lading, the Packing List, and the Commercial Invoice. Without these, your freight forwarder cannot start the customs clearance process. [maersk](https://www.maersk.com/logistics-explained/shipping-documentation/2023/09/27/shipping-documents-us)

Can my Chinese supplier handle customs clearance for me?

No. Your supplier provides the documents and arranges shipping, but the party legally responsible for customs clearance in the country of import is always the importer – your company or your sole proprietorship. [plutoniaglobal](https://www.plutoniaglobal.com/guides/cu-customs-documents)

How do I find the HS code and duty rate for my product?

You can get the HS code from your supplier, look it up in your local customs tariff database, or ask your freight forwarder. Once you have the HS code, your forwarder or customs authority can tell you the exact duty and VAT rates. [als-cs](https://www.als-cs.com/hs-and-hts-codes/)

Is it allowed to declare a lower value to save on duties?

Deliberately declaring a lower value is illegal. If customs discovers discrepancies, they can charge additional duties and taxes, impose fines, or even seize your shipment. [ielfreight](https://ielfreight.com/faq/what-documents-are-required-for-customs-clearance/)

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