Import duty and landed cost for OEM orders
The price on a quotation is not what the goods cost you. Between FOB and your warehouse there are four more lines, and on a first import it is usually the third one that breaks the margin. This page sets out what each line is, who decides it, and the specific places buyers get it wrong.
The four lines, and where each one goes wrong
| Line | Who sets it | Where buyers get it wrong | What we give you |
|---|---|---|---|
| Goods value | Our quotation, FOB Xiamen | Treating the FOB figure as the delivered cost | Unit price by quantity break, in writing |
| Duty | Customs, by HS code and country of origin | Assuming one HS code fits every SKU in the container | A classification suggestion, with the reasoning |
| Import VAT | The tax authority of the destination country | Calculating it on the goods value alone | Nothing — it is paid by the importer of record |
| Freight, insurance, clearance | Your forwarder | Quoting a retail price before these are known | Carton count, gross and net weight, CBM, pallet count |
The third line is the one that surprises people, and it is arithmetic, not opinion: import VAT is charged on the goods value plus duty plus freight and insurance, not on the goods value. A buyer who models VAT against the FOB price will understate the cash needed on arrival by the duty and freight component, and that gap is what sits in the warehouse unpaid.
There is no “pickleball” line in the tariff
Racket sports goods classify in Chapter 95 of the Harmonized System, which covers sporting equipment. Within it, paddles and rackets typically land on 9506.29 or 9506.99 — but which one, and whether a set or an accessory belongs in a different heading, depends on how the goods are described and what they are made of. There is no dedicated code for pickleball, and no code that says “this is a badminton racket”.
That matters less for the rate than for consistency. Two shipments of the same product declared under two different codes is one of the ordinary reasons a container is held for inspection: the declaration contradicts the earlier one, and the broker has to explain why. Pick the code before the first shipment and keep it — the classification itself is a decision for customs and your broker, not for the factory.
Who the importer of record is decides more than the VAT
In the EU, the importer of record needs an EORI number, and it is the party that carries the VAT, the product-safety obligations and the customs liability. Three arrangements exist in practice, and they are not equivalent:
| Arrangement | Who is importer of record | What follows |
|---|---|---|
| You import directly | Your own company, with an EORI | You recover the import VAT, and you carry the GPSR responsible-person duty as the economic operator |
| Your EU distributor imports | The distributor | They carry the VAT and the liability; your margin is a wholesale price, not a retail one |
| A service imports on your behalf | The service, as indirect representative | Legal responsibility can stay with you even though the paperwork is theirs — read what you are signing |
This is the same decision that puts a name and address on the packaging, so it should be settled before artwork is approved, not at the port.
FOB Xiamen means the cost starts at the port, not at your door
Our term is FOB Xiamen. Everything from the moment the goods are on board is yours: ocean or air freight, insurance, destination charges, clearance, inland delivery. That is normal for OEM and it is also why a landed-cost model has to be built by you, with your forwarder’s numbers, rather than read off our quotation.
One line worth modelling before you commit to a first run: consolidation. A first order that ships LCL pays per cubic metre and shares a container; the same volume inside a full container is usually cheaper per unit but requires more stock. We can tell you the CBM of the order; only you can say whether the cash tied up in a full container is worth the unit cost.
What we hand over, and what stays with you
| Item | Us | You |
|---|---|---|
| Packing list: cartons, units per carton, gross and net weight, dimensions, CBM, pallets | Yes, per shipment | Hand it to the forwarder |
| Commercial invoice and bill of lading | Yes, in the form your broker asks for | Confirm the consignee and the declared value |
| Certificate of origin | Yes, on request, for the form your market accepts | State which form you need before shipment |
| HS classification | A suggestion with reasoning, based on how the goods are made and described | The declaration, and the liability for it |
| Duty and VAT figures | No | Your broker, against the entry date and the origin |
| Customs clearance | No — we are not a customs broker and do not act as importer of record | Your broker or your EU operator |
Questions buyers ask before the first container
What HS code do your rackets and paddles ship under?
Racket sports goods classify in Chapter 95, and 9506.29 or 9506.99 are the usual landing points — but the code that gets accepted depends on how the goods are described and what they are made of, and the decision belongs to customs and your broker. What we can do is give you a reasoned suggestion before the first shipment and then keep it consistent, which is the part that actually prevents holds.
Can you quote CIF so I know my landed cost in one number?
Our term is FOB Xiamen. A CIF figure needs the destination port and the volume before the freight can be quoted, and the freight number comes from a forwarder rather than from us. Give us the port and the first-run quantity and we will have it costed — but treat it as an estimate, because rates move between quotation and booking.
Who pays the import VAT?
The importer of record, which is the party named on the customs entry — usually your company, your EU distributor, or a service importing as your indirect representative. It is normally recoverable if you are VAT-registered in that jurisdiction, but it is cash out at arrival, and it is charged on the goods value plus duty plus freight rather than on the goods value alone.
Do you provide a certificate of origin?
Yes, on request, in the form your market accepts. Tell us which form you need at order stage rather than at the port, because some of them require information that has to be captured during production.
Can you handle customs clearance for us?
No. We are not a customs broker and we do not act as importer of record. What we do is make sure the packing list, invoice and origin documents match what is actually in the container — mismatched paperwork is the most common avoidable delay at the border.
Related reading
Certification and market access by market · PPWR packaging compliance · All OEM categories
Start with the destination port
Send the port, the model and the first-run quantity. That is enough for a packing estimate, a classification suggestion and a freight request, which together give you a landed cost you can actually price against.
Rate and classification positions on this page are stated as mechanism, not as figures, because both are decided at the border against the entry date, the origin and the accepted code. Confirm the numbers with your customs broker before pricing a shipment. Written November 2026.