International Shipping: Customs, Duties & Taxes Guide
Our Standard Trade Term: DAP
At Unionfab, our default shipping term is DAP (Delivered at Place).
Included Costs: Your quote covers the high-quality manufacturing of parts and international shipping to your destination.
Excluded Costs: Our standard quote does not include any import duties, VAT/GST, local customs clearance charges, or other potential fees.
Responsibility and Payment Process: All government-imposed taxes and fees are handled as follows:
Customer Responsibility: These government charges (duties, VAT, etc.) are the sole responsibility of the recipient (the customer).
Clearance and Payment Workflow: Under DAP terms, the clearance process typically involves two stages:
Pre-clearance Stage (Recommended): Before the goods arrive, customers should prepare and submit complete clearance documents (such as VAT/EORI numbers). Once customs approves, a tax bill is generated and sent to the carrier (e.g., DHL, FedEx, or UPS), who then forwards it to the customer. If payment is completed at this stage, the goods will be released and delivered immediately upon arrival.
Arrival Stage: If the goods have arrived and require urgent clearance but the customer has not yet paid the taxes, the carrier will usually prepay (advance) the taxes to ensure the process continues. Subsequently, the carrier will contact the customer for reimbursement before delivery (via email/SMS link) or in person at the time of delivery.
Service Fees: Please note that if the carrier advances the payment, they usually charge an additional “Disbursement Fee / Administrative Fee”.
* Note: Please pay close attention to contact notifications from the carrier. Failure to submit documents or pay fees in a timely manner may lead to delivery delays, high storage fees, service fees, or even the parcel being returned to China or destroyed on-site.
Understanding Customs, Duties and Taxes
Tax Breakdown: Upon arrival, local customs calculate the "Total Tax," which includes duties and other taxes (such as VAT, clearance charges, etc.).
Total Tax = Import Duties + VAT + Other Clearance Charges + Other Potential Fees
Import Duties: Calculated based on the product’s HS Code and its declared value.
Unionfab’s Professional Choice: Unionfab defaults to the most accurate code for 3D printed parts: HS Code 9023.
Global Duty Rates: Under international trade agreements, items under HS Code 9023 typically qualify for 0% Duty in most countries worldwide.
VAT / GST: Import VAT is a consumption tax based on your local country's tax rate. However, not all countries collect this (e.g., the U.S. has no national-level VAT).
Even with Zero Duty: While duties may be zero, import VAT still applies.
Rate Reference: VAT in EU countries is typically around 20%–22%; the UK standard VAT is 20%; Australia’s GST is 10%. The U.S. has no national VAT, but individual states levy a 5%–10% Sales Tax.
Other Clearance Charges: Occasional minor costs such as customs inspection fees, storage fees, or administrative handling fees.
Other Potential Fees: For example, if a customer delays clearance and the carrier prepays on their behalf, additional late payment fees may apply on top of the advanced amount.
EU Business Exclusive: Save with VAT & EORI
As an EU-registered business, you can significantly reduce import costs by utilizing relevant customs policies. Here is Unionfab’s guide to minimizing your tax burden.
Customs Duty: 0% (Zero Duty)
For all EU business users, we default to HS Code 9023 (Models for demonstration/education).
Under this classification, the import/export duty rate across all EU member states is 0.
* Note: Please do not change our default selection of HS Code 9023 when submitting clearance data to ensure zero-duty treatment.
VAT Recovery: How to Achieve "Zero VAT"?
According to official EU policy, business users can deduct or reclaim import VAT. To enjoy this benefit, you must meet three prerequisites:
Valid VAT Number: Your VAT account must be active and not expired.
Business Purpose: The goods must be for resale or business operations.
Valid EORI Number: You must hold a valid "Economic Operator Registration and Identification" (EORI) number.
Two Scenarios for VAT Deduction:
VAT Postponement (Direct Deduction, No Upfront Payment): If your business has applied for and received approval for VAT Postponement (PVA) from local customs, you do not need to pay cash during clearance. The VAT is deducted directly in your tax filing.
* Note: If you have never applied for postponement, you must first apply to local customs. Once approved, you only need to apply once during its validity period for all future imports to be deducted directly.
Pay First, Reclaim Later (Standard Refund Mode): You pay the full import VAT during clearance. After the goods are sold or during periodic tax filing, you apply for a tax refund from your local tax authority using relevant sales evidence.
⚠ Critical Reminder: You must provide your VAT/EORI number before shipping or during the clearance process. Once customs clearance is completed, you cannot retroactively provide a tax number for deduction.
No VAT/EORI? How to Register:
No VAT: You can visit the official EU portal for detailed application processes and requirements: VAT rules and rates - Your Europe.
No EORI: For imports from outside the EU (e.g., China), an EORI is mandatory. It is a separate system from VAT; having a VAT number does not automatically grant you an EORI. You must apply to your local customs office, and activation usually takes 3-7 business days.
*Note: As each EU member state has an independent customs system, there is no single "EU-wide application webpage." EU businesses must apply via the customs website of their registered country; once approved, the number is valid throughout the EU.
Have VAT/EORI but Unsure if Valid?
Check if your VAT is valid via the EU Commission’s VIES system: VAT Validation.
Check if your EORI is valid via the official real-time database: EORI number validation.
Never Applied for VAT Postponement?
As EU countries have independent tax sovereignty, there is no unified "EU Postponement Application Portal." You can handle this via:
Contact your Accountant (Fastest Way): Most EU businesses apply through their tax representative or accountant. Simply inform them you need to set up Postponed VAT Accounting (PVA).
Visit Local Tax Authority Website: Log in to the tax portal of your registered country (e.g., Finanzamt in Germany or Belastingdienst in the Netherlands) to submit an online application.
Consult your Clearance Agent: Confirm with your agent before the goods arrive that they are capable of processing postponed VAT declarations.
How to Provide VAT to Unionfab?
Already Requested a Quote: Please contact your dedicated Sales Representative directly to provide your VAT number.
New Quote: Start your inquiry and fill in your VAT number on the quote request page.
Want a Hassle-Free Solution? Try DDP
Request DDP: If you prefer not to handle customs payment processes yourself, please contact our sales team during the inquiry stage or leave a note requesting DDP (Delivered Duty Paid) terms. Consult our sales team for details.
All-Inclusive Quote: We will provide a quote that includes all estimated taxes and duties. You pay once and simply wait for the goods to arrive with no further intervention required.
Disclaimer
The information provided in this guide (including but not limited to HS Codes, duty rates, and national tax policies) is for reference only and does not constitute any form of legal or professional tax advice. Due to potential fluctuations or updates in international trade policies, national customs regulations, and exchange rates, Unionfab cannot guarantee the absolute real-time accuracy of the above information.
The final determination of import duties and VAT rests with the customs and tax authorities of the destination country. As the legal "Importer of Record," the recipient (customer) is obligated to verify and comply with all local import regulations. Unionfab shall not be held legally or financially liable for clearance delays, parcel returns, or additional costs incurred due to the customer’s failure to provide valid VAT/EORI numbers, failure to pay taxes, or changes in local policies. We recommend consulting a professional accountant or local customs broker before conducting large-scale cross-border trade.
