Customs & Duties — Frequently Asked Questions
Information about import duties, tariffs, customs clearance, and regulatory compliance.
How are import duties calculated on furniture?
Import duties are calculated as a percentage of the declared customs value (typically the CIF value — cost of goods plus insurance and freight). The duty rate depends on the HS (Harmonized System) code assigned to your products and the importing country's tariff schedule. For example, wooden furniture imported to the US might attract a duty of 0 to 8 percent depending on the specific product type. Your customs broker assigns the correct HS code and calculates the applicable duty.
What is the HS code for furniture and why does it matter?
Furniture falls under HS Chapter 94, with subheadings like 9403.30 (wooden office furniture), 9403.40 (wooden kitchen furniture), and 9403.50 (wooden bedroom furniture). The specific HS code determines the duty rate, so correct classification is important. Misclassification can result in underpayment (triggering penalties) or overpayment (wasting money). Consult your customs broker to determine the correct code based on the primary material and intended use of each product.
Do I need a customs broker to import furniture?
In most countries, you are legally permitted to self-clear goods through customs, but using a licensed customs broker is strongly recommended. Brokers understand tariff classifications, duty rates, documentation requirements, and regulatory compliance. They handle the paperwork, communicate with customs authorities, and resolve any issues that arise during clearance. The cost is typically $100 to $300 per shipment for standard entries. The savings from correct classification alone often exceed this fee.
Are there any additional tariffs or anti-dumping duties on Chinese furniture?
Some countries impose additional tariffs on Chinese goods. The United States has had Section 301 tariffs on various Chinese products, with rates varying by product category and political climate. Anti-dumping duties may apply to specific product categories if they have been subject to trade investigations. These additional tariffs can significantly increase your landed cost. Check current tariff schedules with your customs broker before finalizing pricing to your customers.
What documents does customs require for furniture imports?
Standard requirements include a commercial invoice (showing buyer, seller, product descriptions, quantities, and values), packing list (detailed box-level contents), bill of lading (shipping document from the carrier), certificate of origin (proving country of manufacture), and sometimes a fumigation certificate for wood packaging materials. Specific countries may require additional documents like formaldehyde emission test reports, fire safety certificates, or import permits.
How can I reduce import duties on furniture legally?
Legitimate strategies include correct HS code classification (some products qualify for lower-duty categories), free trade agreements (if applicable between the origin and destination countries), duty drawback programs (refunds on duties for goods that are re-exported), and foreign trade zones where goods can be stored or processed before formal importation. Never undervalue goods on invoices — this is illegal and carries severe penalties including seizure of goods and criminal prosecution.
What happens if customs holds my shipment?
Customs may hold a shipment for document review, physical inspection, lab testing, or regulatory compliance verification. Holds can last from a few days to several weeks. During a hold, your container incurs storage charges at the terminal. To minimize the risk of holds, ensure all documentation is accurate, complete, and submitted in advance. Having a responsive customs broker who can quickly provide additional information when requested helps resolve holds faster.
Do I need to pay sales tax or VAT on imported furniture?
In addition to import duties, most countries charge VAT (Value Added Tax), GST (Goods and Services Tax), or equivalent sales tax on imported goods. The tax is typically calculated on the CIF value plus duties. Rates vary by country: the EU charges 17 to 27 percent VAT, Australia charges 10 percent GST, and the US charges state-level sales tax varying from 0 to 10 percent. These taxes are often recoverable for businesses through input tax credits.
What is the ISPM 15 requirement for wood packaging?
ISPM 15 is an international standard requiring that wood packaging materials (pallets, crates, dunnage) used in international trade be heat-treated or fumigated to prevent pest transmission. All wood packaging must bear the IPPC stamp showing compliance. Non-compliant packaging can result in shipment rejection, fumigation at the port (costly and time-consuming), or return to origin. Confirm that your factory uses ISPM 15 compliant packaging materials for all shipments.
Can I import furniture for personal use duty-free?
Most countries have a de minimis threshold below which imports are duty-free, but this is typically very low (US $800, EU 150 euros, Australia AUD 1,000). Furniture shipments almost always exceed these thresholds. Some countries offer reduced duty rates for personal effects during relocation but require specific documentation proving you are moving residency. Commercial importers do not qualify for personal-use exemptions regardless of the intended end use.
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