Landed cost from China to the EU: how to calculate it, with brushes as the example

Landed cost is the full cost of goods delivered to your warehouse: the factory price plus freight, insurance, port charges, customs duty, brokerage, inland delivery, fees and the cost of the money tied up along the way. For brushes from China classified under EU tariff codes 9603 90 91 or 9603 90 99, the European Union (EU) charged a 3.70% customs duty on 12 November 2026, and import value added tax (VAT) comes on top but is recoverable for a VAT-registered business that resells the goods.

This is general information and does not replace legal or tax advice. Rates change, so confirm with a customs broker before you price a range.

Three Incoterms that decide who pays what

Incoterms are the standard trade terms of the International Chamber of Commerce (ICC) that say where the seller hands over the goods, who pays which leg and when risk passes (ICC).

• FOB (Free On Board): the seller delivers the goods on board the vessel the buyer nominates, at the named port of shipment, and from there freight, insurance and risk are yours (ICC).
• CIF (Cost, Insurance and Freight): the seller also pays sea freight and insurance to your port, with minimum cover of the contract price “plus 10%”, though risk still passes to you once the goods are on board in China (ICC).
• DDP (Delivered Duty Paid): the seller delivers to your named address and handles “both export and import formalities at their own cost and risk”, leaving you only the unloading (ICC Academy).

The example below uses FOB because it shows every cost after the Chinese port.

Every component, in order

Aslan’s commission is invoiced to the buyer, half at deposit and half at shipment; see pricing and the comparison in what a China sourcing agent costs. Aslan charges inspections on a day rate quoted in advance. Day rates published by inspection firms are in our guide to pre-shipment inspection and AQL, the acceptable quality limit used to sample goods.

How the EU sets customs value

Duty is a percentage of customs value. The main method is the transaction value, “the total amount paid (or to be paid) for the imported goods” under Article 70 of the Union Customs Code, with additions in Article 71 and deductions in Article 72 (European Commission).

Article 71(1)(e) adds “the cost of transport and insurance of the imported goods” and loading and handling charges “up to the place where goods are brought into the customs territory of the Union” (Regulation 952/2013). In practice your customs value is close to a CIF value: goods plus freight and insurance to the EU border.

Article 72 leaves out transport after entry into the EU, import duties themselves and “buying commissions”. A commission you pay to your own buying agent therefore stays out of customs value; whether a given agency contract qualifies is a question for your broker.

A new Union Customs Code, Regulation (EU) 2026/2108, was adopted on 16 September 2026 and applies in general from 21 September 2027. Its Articles 176 and 177 repeat the same transport, insurance and buying-commission rules.

Duty on brushes: what TARIC shows

The HS code (Harmonised System code) is the international product classification; the EU extends it to ten digits in TARIC, its integrated tariff database. Heading 9603 covers “brooms, brushes”, mops and squeegees. On 12 November 2026, TARIC showed for origin China:

TARIC also lists end-use reliefs for certain goods, available only under conditions, and a customs broker must confirm whether any shipment is eligible. The same entries list a EUR 3 per-item duty on consignments worth up to EUR 150 in total and a EUR 2 per-item handling fee on goods sold in distance sales. For a container bought for resale, budget the 3.70%. Telescopic poles and buckets fall under other headings, so look each one up. Our deck brush sourcing guide covers specifications.

Import VAT and when you get it back

Import VAT is charged on the customs value plus duty, plus “incidental expenses, such as commission, packing, transport and insurance costs, incurred up to the first place of destination” in the country of import (Articles 85 and 86 of the VAT Directive). A VAT-registered business may deduct “the VAT due or paid in respect of the importation of goods” when the goods are used for its taxed sales (Article 168). Article 211 lets member states allow import VAT to be entered in the VAT return without paying it at the border. Article 86 names commission among the incidental expenses, so ask your broker whether your agent’s fee belongs in the VAT base.

Standard rates from the Commission’s Your Europe table, last checked by the Commission on 13 July 2026:

Worked example: EUR 50,000 of brushes, FOB China

This is an illustration with assumed inputs. Only the goods value, the duty rate, the VAT rate and the agent’s percentage are fixed; you fill in the rest from your own quotes. For scale, Drewry’s World Container Index put Shanghai to Rotterdam at USD 3,504 per 40-foot container on 12 November 2026 (Drewry); that is a spot benchmark, and your quote will differ.

With the other lines at zero, the fixed part of import VAT on goods plus duty (EUR 51,850) would be EUR 9,851.50 in Germany, 10,370.00 in France, 10,888.50 in the Netherlands or Spain, 11,407.00 in Italy and 11,925.50 in Poland. That cash comes back through your VAT return.

Divide LC by the number of units for the landed cost per piece.

The same calculation in a spreadsheet

Put the inputs in column B, rows 2 to 11, then:

B2  Goods FOB              50000
B3  Freight                (your quote)
B4  Insurance              (your quote)
B5  Duty rate              0.037
B6  Port and delivery (E)  (your quote)
B7  VAT rate               0.23
B8  Brokerage              (your quote)
B9  Agent rate             0.06
B10 Inspection             (days × day rate)
B11 Financing + FX         (your estimate)

B13 Customs value   =B2+B3+B4
B14 Duty            =B13*B5
B15 VAT base        =B13+B14+B6
B16 Import VAT      =B15*B7
B17 Agent fee       =B2*B9
B18 Landed cost     =B13+B14+B6+B8+B17+B10+B11
B19 Cash out incl. VAT =B18+B16

Row 18 is the cost that sets your margin. Row 19 is what leaves your account before the VAT return. Before the goods go on sale, check your responsibilities under the General Product Safety Regulation (GPSR) in our GPSR guide.