Working sequence

Duty, tariff and tax are three different lines on a landed cost

Most problems with duty tariff and tax lines show up before the booking is confirmed. Here is the order our Shenzhen team works through it.

Before the booking: VAT cash timing

For EU shipments with VAT deferment, the tax is declared without an upfront cash payment, which changes cash flow but not the liability.

We put this in the booking file so the destination broker sees the same version we do.

At handover: rate schedule

A tariff is the schedule or rate applied to a classification; duty is the amount calculated from it; import VAT or GST is a separate tax on the customs value plus duty in many jurisdictions.

Timing matters here: the check has to happen while the shipment is still editable in our system.

After arrival: duty calculation

Put each on its own line in the landed-cost model, because a rate change affects one line while an exchange-rate move affects another.

If anything changes at this point, we reissue the file rather than patching it by email.

The failure point we see most often: Quoting a single 'import tax' percentage and then being unable to explain a higher invoice at destination.

Have these ready before filing:

Commercial invoice and packing list with matching values and descriptions.
Classification, origin and any licence references used in the declaration.
Booking reference, transport document and the consignee’s broker contact.

Questions importers ask us

Who is responsible for getting this right on a China-origin shipment?

The shipper supplies accurate product and value data; Hovmar Logistics checks the file before submission and coordinates with the destination broker. We confirm the split in writing at booking.

Can Hovmar review this before the cargo leaves Shenzhen?

Yes. Send the commercial invoice, packing list and intended classification before cutoff and our customs desk will flag gaps while they are still easy to fix.

Where this fits in your shipment

Planning a shipment from Shenzhen?

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Notes from the Hovmar Logistics customs desk in Shenzhen. Confirm current requirements with your licensed broker before filing.