1
FIND YOUR HS CODE (8-digit)
HS Code = Classification of your product used globally for tariff calculation
Example Products & Codes:
- Plastic storage containers: 3923.30 (2.7% EU tariff)
- Ceramic mugs: 6912.00 (2.7% EU tariff)
- Metal hinges: 7326.90 (0% EU tariff)
- Electronic switches: 8536.50 (0% EU tariff)
- Textiles/clothing: 6204.62 (12-15% EU tariff)
How to Find Your Code:
- 1️⃣ Use TARIC database (European tariff database): tariff-app.ec.europa.eu
- 2️⃣ Describe your product + materials precisely
- 3️⃣ System returns HS code + applicable tariff rate
- 4️⃣ Verify by asking your supplier or customs broker (they know)
Why This Matters:
Misclassifying a product can result in surprise tariff: 500 units at $5/unit suddenly cost $500 more in duty. Customs can reclassify at clearance.
2
EU TARIFF RATES: Most Common Range 0-15%
Tariff by Category:
- Raw materials: 0-3% (metal ingots, raw textiles, chemicals)
- Semi-finished goods: 2-8% (processed metals, fabrics, components)
- Finished consumer goods: 5-15% (electronics, ceramics, plastics)
- Textiles/clothing: 9-15% (highest tariff sector)
- Machinery/equipment: 0-8% (typically low)
Real Examples (2026 Rates):
| Product Category |
HS Code |
EU Tariff Rate |
| Ceramic mugs |
6912.00 |
2.7% |
| Plastic storage boxes |
3923.30 |
6.5% |
| Cotton t-shirts |
6204.62 |
11.9% |
| Mobile phone cases |
4202.92 |
8.5% |
| Electronics (USB cables) |
8544.30 |
0% |
3
CALCULATE TOTAL IMPORT COST
Formula:
Total EU Cost = Product Cost + Shipping + Insurance + Tariff + VAT + Broker Fees
Real Calculation Example:
Product: Ceramic mugs, 5,000 units
Factory price: $1.00/mug = $5,000
Shipping (China to Rotterdam): $1,200
Insurance: $100
Subtotal (CIF value): $6,300
Tariff Calculation:
HS Code 6912.00 = 2.7% EU tariff
Duty = $6,300 × 2.7% = $170
VAT Calculation (using Germany 19% rate):
VAT Base = $6,300 + $170 (tariff) = $6,470
VAT = $6,470 × 19% = $1,229
Customs Broker Fees: $150 (typical for container)
Total EU Import Cost = $6,300 + $170 + $1,229 + $150 = $7,849
Per-mug cost = $7,849 / 5,000 = $1.57/mug
Markup from factory = +57% (from $1.00 to $1.57)
4
VAT: The Hidden Cost (17-27% by Country)
How VAT Works:
VAT (Value-Added Tax) is a consumption tax added by every EU country. Rates vary 17-27% depending on country.
VAT Rates by Country (2026):
- Hungary: 27% (highest)
- Denmark, Sweden: 25%
- France, Germany, Italy, Spain: 19-23%
- Poland, Greece: 23-24%
- Luxembourg: 17% (lowest)
Important:
If the importer is VAT-registered: Import VAT recovery is not automatic. It depends on who is the taxable person and importer, whether the goods support deductible taxable activity, the evidence held, and the applicable member-state rules.
If the importer is not VAT-registered: Treat import VAT as a cash and pricing exposure until a qualified adviser confirms the transaction-specific treatment. Do not assume either recovery or permanent cost from registration status alone.
Implication:
Build the landed-cost model from the actual seller, importer, stock location, customer type and transaction path. Tax registration and recovery questions should be resolved before using VAT as a margin assumption.
5
POST-BREXIT UK: Different Tariff Schedule
UK vs EU Tariff Differences:
UK has its own tariff schedule since Brexit. Most products are identical, but ~500 products differ.
Common UK-Specific Differences:
- Textiles: UK rates sometimes lower (trade deal advantages)
- Ceramics: UK aligns with EU (2.7% same)
- Electronics: UK 0% (same as EU)
- Automotive parts: UK may differ (check UK tariff schedule)
Look Up UK Tariff:
Use UK Trade Tariff database: trade-tariff.service.gov.uk
UK VAT:
Standard rate: 20% (simpler than EU's 17-27% variation)