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How to calculate the total budget when you import led lighting from China?How to check led lighting import tax- for people first time import from China?

Views: 0     Author: Rebecca     Publish Time: 2021-09-08      Origin: SHENZHEN FOCUS LIGHTING MANUFACTURER

Many people thought it’s easy buying from China, and very cheap. Yes, that’s true, but not complete understanding as their thinking. That will according to what they want to buy, the quantity they need and purchase frequency. Generally speaking, buying from China is cheaper, but not always, not for all products. Let’s make an example as led lighting and discuss about it.

Today's article is talking about how to calculate the total budget when import from China, how to check import tax step by step before buying, and how to reduce your cost?

  1. What’s cost included when import led lighting from China?

  2. Analyze the cost of each part and how to reduce cost?

  3. Tips when import from China.

1. What’s cost included when import led lighting from China?

Generally speaking, your total budget should include 4 main parts: LED Lighting products cost, shipping cost from factory to your country, custom duties and import tax/VAT, your local shipping cost.

2. Analyze the cost of each part and how to reduce cost?

Let’s check one by one:

a> LED Lighting products cost

b> Shipping cost and insurance from factory to your country

c> Custom duties and import tax/VAT

d> Your local shipping cost

a>LED Lighting products cost: 

LED lighting cost is pretty different according to different supplier and products' quality. If not sure about quality, take samples firstly. And carefully test trail order, communicate with sales people, ask questions you are not sure.China old saying: Shop around. Everyone wants to choose the best products with lowest price. It’s hard for first time, especially when you are not in LED lighting area for business. For first time buying, believe yourself. You have feeling when you talk with sales. Professional or non-professional, responsible or not. The best way is reply on yourself, feeling and researching.

b> Shipping cost and insurance from factory to your country:

Shipping cost will depend on which shipping method you choose, mainly include 4 different way:

  • By sea:This is most traditional way, best economical way, but long time shipping.

  • By Train:Chine railway express is mostly to Europe country. Cost is higher than by sea, but cheaper than by air. Also delivery time.

  • By Air:Most urgently goods would like to choose this way, 7-10 working days is most common delivery time.

  • By DHL/FedEx/UPS/TNT express:Most expensive way but fastest shipping method.

    There are many shipping methods which has advantages for certain country. Such as ARAMEX better service and faster to Middle East countries.Some special way include DDP service by boat or by train. You can ask for sales people you work with, normally they have cooperate partners which offer shipping service for their clients. Or you can also looking for forwarder to get more shipping cost information. 

c> Custom duties and import tax/VAT:
This is mostly uncertain part for beginners. You have 2 ways solve this problem: 

  1. Find your local Custom clearance agent and ask them. 

  2. Search on google find the information you need.

Let’s show how to search on google and check the import tax you need step by step.

Firstly, you need to know led lighting products HS code you buy, import tax is related with Harmonized System (HS) Codes. No matter ask your agent or check by yourself, this is necessary. Check below list of led lighting products.

9405409000 include:

LED Lamp (LED Bulb, HID Replacement bulbs)

LED Indoor light (LED Ceiling Light, LED Downlight, LED Spotlight, LED Tube, LED Panel Light, LED Try-Proof light, LED Pendant light)

LED Outdoor Light (LED Flood Light, LED Street Light, LED High mast Light)

LED light Fixture (LED Aquarium Light, LED Grow Light, LED Wall washer)LED Decorative Light (LED Strip Light, Christmas LED String, LED Rope Light)LED Illumination LampLED Touch Lamp; LED Push Light, LED Work LightLED Module (PVC case)

LED Underground Lamp

9405990000 LED lamp accessories (Aluminum, lamp shell, lamp cover, track rail)


9030820000 LED Test Machine

9001909090 Mobile LED Light Guide Panel

8544200000 LED Connector(DC12V)[contain copper]

8541900000 LED Chip

8541401000 LED (light-mitting diode)

8539100000 Sealed beam lamp

8537109090 LED Controller

8526920000 Remote Controller

8531909000 Lead wire (digital tube LED show board with parts/iron

8531909000 LED Screen Coating

8531809000 LED Indicator (LED G4, LED Bayonet Light, LED Fog light, LED Wedge Light)

8531200000 LED Display, LED Screen

8530800000 LED Traffic Light

8517703000 Mobile Flexible PCB with LED

8515800090 LED Bonding Maching

8513109000 LED Portable Lamp

8513101000 LED Flash Light

8512100000 Bicycle Indicator (1pcs IC & 3pcs LED)

8504401400 Power supply/ mean well driver

8443999090 Lamp Socket

Secondly, check keyword “USA customs government website“ or “USA trade tariff government website” in google, change “USA" to your country find same information.

USA Customs government website

USA Trade tariff government websitefree duty value

You can find the below government official website showed the valuable information about custom duties and tax.

HS Code: 940540 duty rate is 3.9% based on normal trade relations, but China and USA trade relations right now is not under normal situation, Trump's China tariffs raised 25% rate of led lighting products.

duty rate

Product value under US dollar $800, it’s duty-free. 

free duty value

If you still not sure about exactly duty rate or want to double check, you can also write email to your local trade government department or call them.This is not an easy work or one time can search for all information, but you can collect all from government custom website in your local country.Kindly pay more attention to that, some countries import tax duty rate is include products value and shipping cost, but some are without shipping cost. So, make it clear what’s include when custom fee and if other VAT fees.

d> your local shipping cost:

By sea or flight service is only arrive in local seaport or airport, you have to charge for the cost pick up from seaport or airport warehouse deliver to your office. Don’t forget this cost.

By train also have same cost, make it clear when discuss with your forwarder.

By Express like DHL/FedEx/UPS/TNT it’s include deliver cost to your office, so you can ignore this part if choose express.

3. Tips when import from China.

a> Find a reliable supplier is the most important thing, high quality products will help you build a good reputation in your market, especially for long term business.
b> Professional sales will help you reduce cost and control import risk.
c> Evaluate your total cost before import led lighting from China.
d> Positive sharing your questions or needs with your supplier.

Welcome to contact us if you want to import from China.


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