AcademyGetting started: from zero to your first productImport & customs: from the factory to Amazon's warehouse gate
Getting started: from zero to your first product

Import & customs: from the factory to Amazon's warehouse gate

Lesson 9/12 ⏱ ~12 Min. By Enes Kurt Updated August 2026
What you'll take away

Importing sounds like the scariest part of the business — with a good freight forwarder it's mostly organization. This lesson walks you through once completely: from the factory in China to delivery in Germany, with every number, tax and duty in between.

1Incoterms: who carries what, until where?
TermMeaningAssessment
EXW (Ex Works)You collect at the factory — everything beyond the gate is your problem.Only with an experienced forwarder; often needlessly complex.
FOB (Free on Board)The supplier delivers the goods, export-cleared, onto the ship in the Chinese port; from there your forwarder takes over.The standard for FBA imports. Clean handover, comparable freight quotes.
DDP (Delivered Duty Paid)The supplier delivers “duty paid” to your address.Sounds convenient — it's the grey-customs trap. Below.
2Freight routes: sea, air, rail
  • Sea freight: the standard. 30–40 days port to door, unbeatably cheap per kilo. Sensible from about half a cubic meter (LCL — your cartons share a container).
  • Air freight: 5–10 days, but several times the cost per kilo. Sensible for a small, light first order (time gained = learning earlier) and for express restocks when inventory runs low.
  • Rail: the middle ground (~20–30 days), availability depends on world events.
  • Freight is charged by volume OR weight (whichever “uses more space”) — which is why carton dimensions and weights belong in every freight inquiry.
Example

500 AURELO spice grinder sets come to roughly 1.4 m³ and 520 kg packed. The forwarder's quote: sea freight (LCL) around €550 including side costs — about €1.10 per set. Air freight at around €4.50 per kilo: roughly €2,340, or about €4.70 per set. At a €4.50 purchase price, air freight for the whole order would be almost a second purchase price on top — which is exactly why only the small starter batch flies while the rest sails.

Practical starter combo

Many sellers split the first order: a small part (50–100 units) by air — the launch starts weeks earlier — and the rest by sea behind it. Costs some margin on the first units, buys a month of learning time.

3Your freight forwarder

Don't piece freight together yourself — a forwarder specializing in China imports handles pickup, shipping, customs declaration and delivery (on request straight to Amazon, see lesson 11). Get two or three quotes with identical data: carton count, dimensions, weight, goods value, pickup location, incoterm FOB. The forwarder is also your best advisor for everything in this lesson.

4The mandatory numbers and the customs math
  • EORI number: your importer ID, free, applied for online at customs, takes days. No EORI, no customs clearance — apply as soon as the order is placed.
  • HS code (customs tariff number): every product has a code that determines the duty rate. Research it in the EU TARIC database; your forwarder helps. Put it on the supplier's commercial invoice — wrong codes are a classic delay.
  • Duty: a percentage (often 0–12 % depending on product) on the customs value = goods value + freight to the EU border.
  • Import VAT: 19 % in Germany on customs value + duty. Under standard VAT you reclaim it as input tax (lesson 2) — a liquidity topic, not a cost. Small-business-rule sellers pay it for good.
In plain terms

Import VAT works like a bottle deposit: you pay it at import and, under standard VAT rules, you get it back through your VAT return. It doesn't make you poorer — it just locks up your cash for a few weeks. Duty, on the other hand, is real money gone for good: it belongs firmly in your unit economics.

Worked example

Goods €2,500 + freight €600 = customs value €3,100. Duty 4 % → €124. Import VAT: 19 % on €3,224 → €612.56 (reclaimable). Budget both at order time — they're due on arrival, not someday.

5Product compliance: customs may hold your goods
  • CE marking: mandatory for electronics, toys, protective equipment and more — including a declaration of conformity and technical documentation that YOU as importer must keep.
  • Product testing: toys EN 71, food contact LFGB (Germany), textile fiber labeling, electronics LVD/EMC/RoHS. Scrutinize supplier test reports (does the report cover EXACTLY your product?) — when in doubt, test at an independent lab.
  • Markings on the product: responsible person with EU address (GPSR), warnings in German, CE where applicable, material declarations — all part of your spec sheet from lesson 8.
  • German instructions included if the product needs any — missing local-language instructions are a classic for warning letters and bad reviews.
6The DDP trap

“We ship DDP, all inclusive, no customs stress” — tempting, but often runs through bulk clearances with under-declared values. The problem: legally, you are the importer. If the under-declaration surfaces, you pay the taxes — plus possible proceedings; and without clean import documents you have no input-VAT deduction either. Importing cleanly means: buy FOB, use your own forwarder, clear customs on your EORI with the real value. The price difference to DDP is usually small — the risk is not.

7Your first import (timeline)
  • Week 0: order placed (30 % deposit). Apply for EORI, request forwarder quotes, settle the HS code.
  • Weeks 4–6: production done. Quality inspection → pay the 70 %. Forwarder collects (FOB: supplier brings goods to port).
  • Weeks 6–11: sea freight. Time to build the listing and launch prep (Listing track!).
  • Weeks 11–12: arrival, customs clearance by the forwarder (duty + import VAT due), delivery — to you or straight to Amazon.
Most common mistake

Thinking about compliance and markings after production. A missing warning or EU address can't be “quickly added” to 500 packaged units — you'll be sticking labels for days, or the goods aren't sellable at all. Compliance belongs in the spec sheet, not in the repair phase.

Checklist: import prepared
  • Incoterm FOB agreed, 2–3 forwarder quotes collected.
  • Freight route consciously chosen (possibly air/sea split for the start).
  • EORI applied for, HS code researched and on the commercial invoice.
  • Duty + import VAT budgeted (due on arrival).
  • CE/testing/marking duties for my product settled — BEFORE production starts.
  • German instructions and GPSR details included in production.
  • No DDP grey import — clearance runs on my EORI with the real value.
8Expert insight: risk transfer, cargo insurance and binding tariff information

The standard FOB setup from this lesson leaves two gaps open that only become visible when something goes wrong — and then get properly expensive.

Gap 1: FOB settles risk transfer, not insurance. The moment the goods are placed on board in the Chinese port, the transport risk is YOURS — but under FOB, nobody is obliged to insure the main leg. If the container is lost or damaged, deposit and balance are simply gone. Even less known: general average. If the ship sacrifices cargo in an emergency or salvage costs arise, ALL cargo owners share the loss proportionally — even if your cartons are untouched; without your own policy, your goods are then only released against a security deposit. Cover costs almost nothing: typically a few tenths of a percent up to about half a percent of the insured value (goods + freight, often with a minimum premium — assumption: typical market rates). For the AURELO shipment (€2,250 goods + about €600 freight) that is usually under €20; your forwarder offers it inside the freight quote. And even CIF only obliges the seller to minimum cover — never rely on the other side's policy.

Gap 2: the HS code is only your claim — until customs checks it. Clearance runs on the code you declare via your forwarder. Customs, however, can correct the classification up to three years retroactively and claim the difference for ALL shipments of that period. Worked example (assumption: two plausible codes at 2 % and 6 % duty): eight quarterly shipments of €3,100 customs value each, declared under the cheaper code, add up on reclassification to 8 × €3,100 × 4 percentage points = €992 in back duties — plus interest, plus in the worst case the accusation of a negligent misdeclaration.

The antidote is called binding tariff information (vZTA/BTI): you apply free of charge online via the German customs portal, describe your product precisely (material, function, photos), and the customs administration fixes the code bindingly — EU-wide and valid for three years. After that, classification is no longer a back-duty risk. Three things to know:

  • The decision binds both sides — you too must use and reference it in your declarations; quietly using a cheaper code on the side is not an option.
  • Processing may take up to 120 days — apply during the sample phase, not once the goods are afloat. Until the decision arrives, clearance simply runs on your own classification.
  • It pays off above all when several codes are plausible, the duty-rate difference is noticeable, or you plan to import permanently — exactly the situation of every private-label seller.
Two checkboxes that cost almost nothing

Set both in week 0 of your import timeline: order cargo insurance inside the forwarder's quote and start the BTI application in parallel with the sample phase. Together under €20 and about an hour of work — in return, total loss at sea and tariff classification as a back-duty risk are off the table.

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Still ahead in this lesson:
  • 2Freight routes: sea, air, rail
  • 3Your freight forwarder
  • 4The mandatory numbers and the customs math
  • 5Product compliance: customs may hold your goods
  • 6The DDP trap
  • 7Your first import (timeline)
  • 8Expert insight: risk transfer, cargo insurance and binding tariff information
  • Quiz: 6 questions with instant feedback

Check yourself

6 quick questions — one at a time, instant feedback. With a free account your progress is saved.

Which incoterm is the standard for FBA imports from China?
FOB creates a clean handover at the departure port and makes freight quotes comparable. EXW dumps everything on you, DDP is the grey-customs trap.
What do you need the EORI number for?
The EORI identifies you to customs. It's free and quick to get — but without it your goods sit at the port.
What are duty and import VAT calculated on?
Customs value = goods + freight to the EU border. The product's duty rate applies to that, and 19 % import VAT applies to the sum.
Why is import VAT not a true cost for standard-VAT sellers?
You reclaim import VAT through your VAT return. It ties up cash on arrival but nets to zero — unlike for small-business-rule sellers.
What is the core problem with supplier DDP offers?
Grey DDP imports leave you without clean import documents (no input-VAT deduction), and under-declaration risks back taxes and proceedings — for the importer, not the supplier.
When do you settle CE duties, test reports and markings?
Markings and compliance must go INTO production (prints, inserts, test samples). On finished goods it's barely fixable — and customs may hold non-compliant products.

Frequently asked

What does freight cost for a typical first order?

Rough orientation for 300–500 compact units (about 1–2 m³): sea freight as LCL often lands in the mid three-digit range including side costs; air freight a multiple of that. Always get 2–3 forwarder quotes with identical data — the spreads are surprisingly large.

Do I have to appear at customs personally for my first import?

No. Your forwarder files the customs declaration with your EORI and the documents (commercial invoice, packing list, bill of lading). You receive the import duty notice at the end — important for bookkeeping and input-VAT deduction, so file it well.

What's the difference between customs value and goods value?

The customs value is the assessment base: goods value PLUS freight and insurance up to the EU border. Duty is calculated on the customs value, import VAT on customs value plus duty — which is why freight belongs on the commercial invoice.

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Enes Kurt
Amazon seller for over ten years · founder of Listimo

Everything in this academy comes from day-to-day selling practice — the same playbook behind Listimo, the tool that turns product photos into complete Amazon listings.