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Want to start importing from China? This may be a good idea and bring profits thanks to lower prices for some goods and materials than in Europe. Before deciding, however, understand all the formalities associated with importing goods from China. Here are the principal issues.
Wholesale imports from China: how to start and what to watch? The import process into Poland
Importing Chinese goods makes economic sense in many industries. It is not overly complicated: the process consists of successive steps. To avoid costly errors and speed it up, consider help from MyChinaPal, which supports every stage of cooperation with Chinese suppliers.
The process usually comprises:
Establishing a business (a sole proprietorship can also import from China);
Registering for VAT;
Obtaining an EORI number for imports and exports;
Registering in the BDO register of entities placing products and packaged products on the market and managing waste;
Finding a suitable, reliable supplier;
Contacting and verifying the counterparty and, possibly, negotiating price;
Placing a test order to check the product before a large order;
Placing the actual order;
Arranging transport;
Customs clearance;
Correct tax and accounting settlement;
- Submitting a greenhouse-gas emissions report related to production of imported goods in the transitional CBAM register, if applicable.
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Importing from China: customs clearance and duties
Before imported Chinese goods can enter circulation in Poland, they must undergo customs clearance. Appropriate documents in English are required, especially:
- An invoice from the Chinese seller meeting statutory requirements, including seller and buyer details, place and date of issue, type, quantity and country of origin of goods, price and delivery terms;
- A packing list describing the goods;
- A suitable transport document: a bill of lading for sea freight, CIM or SMGS consignment note for rail, or AWB for air.
Depending on the situation and product, additional documents may include:
- CE certificate;
- Certificate of origin;
- Material Test Certificate (MTC);
- Exporter or manufacturer statement;
- CITES certificate;
- Dangerous goods marking;
- Fumigation certificate.
Successful clearance concludes when an official issues the appropriate customs document, SAD or PZC. These form the basis for further import settlement.
Customs charges, especially duty, depend on value, type of goods and rates assigned to the product category; rates can be checked in ISZTAR.
Duties and other customs charges paid on imports from China can be recognised as tax-deductible expenses. Article 23 of the PIT Act imposes no restriction in this respect, as Polish tax authorities have repeatedly confirmed, for example in individual interpretation 0111-KDIB1-3.4010.503.2023.1.PC of 4 December 2023.
VAT on imports from China
Customs charges are not the only cost: imports also require correct VAT payment. The amount should be shown on the SAD or PZC customs documents.
Under Article 33a(1) of the VAT Act, a simplified VAT procedure is available for Chinese imports. It allows import VAT due to be settled in the tax return for the period in which the tax obligation arose.
What else should you know about importing from China?
Correct settlement also requires proper accounting. Invoices and other documents from the Chinese supplier, plus SAD and PZC customs documents, underpin all entries.
Want to import from China? If you need help, especially with tax and accounting matters, explore the services of the TaxCoach accounting firm.
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