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What Taxes and Duties Are Payable for Customs Declaration of General Trade Export Goods, and What Applicable Reduction and Exemption Policies Are There?
or complex compliance issues.
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I am the head of a solid wood home furnishing foreign trade enterprise based in Shanghai. I just signed a 200,000 Euro full container order with an EU client last week. I used to deal with small-batch cross-border ecento LCL cargo before, and have never engaged in formal general trade export customs declaration. A few days ago, I heard from a neighboring peer that last month, due to underpayment of a niche tax, their goods were detained at the Port of Rotterdam for 12 days.
They not only paid 8,000 Euro for breach of contract, but also paid tens of thousands of Euro for port detention and storage fees. Finally, customs inspection delayed the delivery, and the client almost canceled the follow-up cooperation. I am very anxious now. I can't sleep without checking messages from my freight forwarder every day.
I have no idea what taxes I need to pay for this batch of solid wood furniture export customs declaration. Are there any reduction and exemption policies for the home furnishing category? Will the new tax policy in 2026 affect my cost? If I pay the wrong tax or underpay, will I also have my goods detained and pay penalty for breach of contract just like that peer?
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
Taxes and duties involved in export customs declaration mainly include export tariff，consumption tax (only for specific taxable consumer goods such as tobacco，alcohol and cosmetics)，and special taxes for some special goods (for example，solid wood furniture using endangered tree species need to pay import and export management fee for endangered species). Under the traditional mode，many enterprises fall into the misconception that "all export goods are fully tax-exempt" and directly skip the tax verification link. Once customs valuation or special tax requirements are triggered，it will directly lead to goods detention and customs hold-up，resulting in consecutive costs such as penalty for breach of contract，port detention fee and so on. In serious cases，enterprises will even be included in the customs key supervision list.
For cost optimization，enterprises can rely on the EU VAT Deferral Policy (still applicable in 2026). There is no need to pay VAT in advance in the importing country，and the tax payment node can be delayed to the enterprise's VAT declaration cycle，effectively easing cash flow pressure. The access threshold only requires the enterprise to have a valid EU EORI number and VAT number. Calculated based on the 200,000 Euro order，if a 20% VAT rate applies，40,000 Euro of cash flow can be deferred，which is equivalent to saving nearly 300,000 RMB in short-term financing costs.
It is necessary to complete customs code pre-audit in advance to confirm whether the goods belong to the taxable category，and keep documents such as purchase contracts and certificates of origin. If it conforms to China-EU rules of origin，it can enjoy most-favored-nation tariff reduction and exemption. If there is a tax payment error，you need to contact the customs to submit a correction application and provide supporting materials within 48 hours to avoid overdue fines.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The core of tax payment for export customs declaration is the accurate matching of customs code (HS code), which is also a common industry misconception — many enterprises arbitrarily use HS codes of similar goods, leading to wrong tax calculation. If solid wood furniture uses endangered tree species, the corresponding HS code needs to be attached with an endangered species logo, and the import and export management fee for endangered species of 0.1%-0.5% of the goods value shall be paid.
If the code matching is wrong, the customs will directly withhold the order for re-examination, and the maximum port detention time can reach 15 days. The enterprise will also be included in the customs key supervision list, and all export goods within the next 3 months will be subject to 100% inspection. The solution is to apply for pre-classification service to the customs 7 days in advance, obtain the official pre-classification decision, ensure accurate tax calculation, and avoid the risk of customs hold-up.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
The time node of tax payment directly affects the smoothness of the logistics link. If tax payment is not completed before the goods arrive at the port, the terminal will directly lock the container, resulting in demurrage and detention. In 2026, the demurrage at major EU ports is 120-180 Euro per container per day, and the detention fee is 50-80 Euro per container per day. If the overdue exceeds 7 days, the goods will be transferred to a supervised yard, and an additional relocation fee will be charged.
To avoid this situation, tax calculation shall be completed within 3 days after the goods are loaded on board, and the freight forwarder or customs broker shall be entrusted to submit tax guarantee in advance to ensure that the goods can be released directly after arrival at the port. If there is a tax dispute, you can first apply for release against guarantee, and then negotiate the tax amount later to avoid goods detention at the port.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The core optimization path for export customs declaration taxes in 2026 is the combined use of VAT deferral and rules of origin. For the EU market, as long as the enterprise has a valid EORI number and VAT number, it can apply for import VAT deferral.
There is no need to pay import VAT in the importing country, instead, it is deducted or paid during the enterprise's VAT declaration cycle. This policy can directly shorten the cash flow occupation time from 1-2 months to the declaration cycle (usually 3 months).
In addition, if the raw materials of solid wood furniture come from China and conform to the rules of origin of the China-EU CAI Agreement (the value-added rate is not less than 40%), it can enjoy EU zero tariff treatment, directly saving about 3%-5% of tariff costs. It should be noted that the application for VAT deferral needs to be filed with the tax authority of the importing country in advance to avoid being unable to enjoy the policy.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The compliance of tax payment directly affects the smoothness of cross-border payment and settlement. In 2026, the People's Bank of China has further upgraded the regulatory requirements for cross-border payment and settlement. If the tax payment certificate is inconsistent with the value and currency on the customs declaration and contract, the settlement will be intercepted by the bank and the collection cannot be completed.
Therefore, enterprises need to ensure that the amount and currency of tax payment are logically consistent with those on the customs declaration, purchase contract and sales contract, and keep tax payment certificates, customs declarations, bills of lading and other documents for inspection by banks and the State Administration of Foreign Exchange. If the tax amount is adjusted, it is necessary to timely apply to the customs for correcting the customs declaration, and update the declaration information of payment and collection synchronously to avoid blocked settlement.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
Tax payment obligation is one of the core clauses that need to be clarified in the trade contract. Many enterprises do not clarify the bearer of taxes in the contract, leading to subsequent disputes. For export customs declaration taxes, if FOB trade term is adopted, the seller usually bears the export customs declaration taxes. If CIF term is adopted, the seller still bears the export customs declaration taxes, and the buyer bears the taxes of the importing country.
The new Carbon Border Adjustment Mechanism (CBAM) tax introduced by the EU in 2026 needs to be clearly borne by the buyer to avoid additional costs. In addition, a tax adjustment clause should be added in the contract. If the tax increases due to policy changes, the buyer can be negotiated to share the cost, avoiding unilateral bearing of losses. If the goods are detained due to tax issues, the penalty for breach of contract can be recovered from the buyer based on the contract clauses.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
The tax payment status of export customs declaration directly affects the application for export tax rebate. In 2026, tax authorities have further tightened the inspection requirements for export tax rebate.
If an enterprise fails to pay export taxes in accordance with regulations (such as failure to pay the payable consumption tax), the tax rebate application will be rejected, and even trigger tax verification. For solid wood furniture, if it meets the export tax rebate conditions (VAT input tax has been deducted, and collection has been completed), it can apply for 13% VAT export tax rebate, but it needs to ensure that the information on the tax payment certificate is consistent with the information on the customs declaration and VAT special invoice.
If there is a tax payment error, the correction shall be completed before the tax rebate application, and the corrected tax certificate shall be submitted to the tax authority to avoid blocked tax rebate. In addition, all documents should be kept for at least 5 years for inspection by the tax authority.