Here’s what you need to know about China’s customs regulations

China is the world's second-largest consumer market, offering lucrative opportunities for businesses to increase sales and boost revenue. It's no surprise then that the country is also Indonesia's top trading partner. By December of 2025, Indonesia exported US$8.641 billion worth of goods to China, with alloys and metals emerging as a major category driving that bilateral trade volume. By exporting to China, Indonesian businesses can grow their e-commerce presence and gain a competitive edge in global trade.

Getting there, however, requires a working knowledge of China's import regulations. From import duties to understanding the customs clearance process, the rules governing what enters China and how it's taxed can be complex. When exporting to China, there are certain rules and regulations you must follow. We discuss them below.

1. Customs duties and taxes in China

China and Indonesia enjoy strong bilateral trade relations, reinforced by the establishment of a free trade agreement (FTA) between China and ASEAN – the ASEAN-China Free Trade Area (ACTFA) in 2010. Under this FTA, 7,881 product categories – which make up 90% of imported goods – enjoy zero tariffs. 

That said, you are advised to be familiar with China's customs law by understanding the several taxes and import duties required when trading with China. You may check in with your international courier service provider if you have further enquiries on whether your goods will be subjected to these. 

Value-added tax

 The People's Republic of China imposes a value-added tax (VAT) on imported goods. Understanding how import taxes in China are calculated is a practical first step in navigating China's customs regulations. The VAT is calculated based on the total price of the imported goods, plus import duties in China, consumption tax, and any other applicable taxes:

Import VAT = (Price of imported goods + Import duty + Consumption tax + any additional duties) x VAT rate

 As of January 1, 20262, China's VAT structure applies across three tiers:

• Standard rate (13%). Applies to the sale and importation of most goods, processing, repair and replacement services, and the leasing of tangible movable assets.
• Reduced rate (9%). Covers essential services including transportation, postal services, real estate, construction, basic telecommunications, and the sale of select goods such as agricultural products and utilities.
• Reduced rate (6%). Applies to modern services including financial and insurance services, IT and technology services, consulting, cultural and creative services, and logistics and ancillary services.

Consumption tax

Consumption tax is imposed on taxable products, typically luxury consumables like jewellery, cosmetics, products considered harmful to public health such as tobacco, cigarettes, and alcohol, as well as high-end products including passenger cars and motorcycles. The consumption tax rate varies based on the type of product entering China.

The table below outlines the taxable categories and their applicable rates:

Source: China Briefing³

If you are unsure whether your goods fall under any of these categories, reviewing China's customs and shipping regulations before dispatching is strongly recommended.

Import duties

China also levies import duties on products that enter the country. These include:

• Most-favored-nation (MFN): MFN tariffs are applicable to goods imported from World Trade Organisation (WTO) member states that follow MFN treatment clauses. The same tariffs will also apply on imports from countries that have bilateral trade agreements containing MFN provisions with China. Any imports that originate from China will also be subject to MFN tariffs. However, according to Global Times, China has recently introduced a provisional import tax rate for 1,020 commodities starting from January 1 2023. Indonesian consumer products imported to China, such as infant food, coffee machines, home appliances and hair dryers, for example, will enjoy reduced import tariffs.

• Conventional duty rates: These are applicable to goods imported from countries with which China has FTAs and preferential trade agreements. Conventional duty rates are lower than MFN duties. With the Regional Comprehensive Economic Partnership (RCEP), which both China and Indonesia are part of, local exporters can enjoy further tariff reductions. 
• Special preferential rates: These are levied on goods from countries that have trade agreements with China containing special preferential duty provisions. Special preferential duty rates are typically lower than conventional duty and MFN rates. 
• Tariff rate quota (TRQ) duty rates: Under these, goods enjoy lower tariffs if they are within a specific quota. However, if the product is imported in quantities that exceed this quota, they incur higher rates. TRQ rates apply to the following categories of goods:
  • Wheat
  • Corn
  • Rice
  • Sugar
  • Wool
  • Cotton
  • Fertilizer
• General duty rates: These rates apply to goods shipped from countries with which China has no trade agreement, or for which the country of origin is unknown.

2. Prohibited and restricted goods

China's customs also imposes prohibitions and restrictions on certain goods entering the country. Before shipping, Indonesian exporters should verify that their products clear these boundaries — the consequences of non-compliance range from shipment seizure to regulatory penalties. We map them below.

Prohibited goods

Goods prohibited from entering the country include:

• Arms, ammunition, and explosives of all kinds
• Counterfeit currencies and counterfeit negotiable securities
• Printed matter, magnetic media, films, or photographs deemed detrimental to China's political, economic, cultural, or moral interests
• Lethal poisons
• Illicit drugs
• Disease-carrying animals and plants
• Foods, medicines, and other articles from disease-stricken areas
• Used or old garments
• Local currency (RMB)
• Food items containing colorings or additives deemed harmful to human health by China's National Health and Family Planning Commission (NHFPC)

Restricted goods

Restricted items typically require a license or certification from a competent authority before they can enter China. These include:

• Alcohol
• Tobacco
• Gold and silver products
• Toxic chemicals that are severely restricted by the country
• Commodities related to the processing trade, as identified in China's Catalogue of Commodities Which are Restricted or Prohibited from Importing for Use in the Processing Trade. This includes used publications with licentious content, radioactive or harmful industrial waste, and junk commodities.

Where to verify prohibited and restricted goods

The primary authority overseeing customs clearance in China for prohibited and restricted imports is the General Administration of Customs of the People's Republic of China (GACC). For Indonesian exporters, cross-referencing the GACC's official portal at customs.gov.cn against your product list is a practical step before dispatch—particularly where customs clearance for imports into China involves commodities that sit in a grey area between restricted and permitted. Your logistics provider can also help interpret the latest guidance and flag compliance risks before they become costly.

3. Customs clearance in China

To clear customs checks at borders, importers must follow China's customs clearance procedures and prepare the necessary documents. Here is a general step-by-step approach for Indonesian exporters navigating the customs clearance process for imports into China:

1. Classify your goods. Before anything else, identify the correct Harmonized System (HS) code for your products. This determines the applicable tariff rate, VAT tier, and whether your goods fall under any restricted categories.
2. Prepare your import documents. The Chinese import customs clearance process involves the following documents: the commercial invoice, bill of lading, air waybill, customs declaration, insurance certificate, sales contract, and any licenses certifying safety and quality. These must be submitted to Chinese customs officers upon arrival.
3. File an advance customs declaration. Importers may submit declarations in advance by providing the description, specifications, and quantity of goods prior to their arrival. Chinese customs authorities will then examine the goods on arrival and release them promptly, as the necessary information was provided ahead of time. This speeds up the clearance process considerably.
4. Calculate and pay duties and taxes. The importer must settle all applicable customs duties, VAT, and consumption tax before goods are released. Having your HS codes and valuation documents accurate at this stage prevents holds or reassessments.
5. Await inspection and release. Chinese customs may conduct a physical or document-based inspection before releasing the shipment. Ensuring your paperwork is complete and consistent across all documents is the most reliable way to clear this step without delays.

Navigate China's customs regulations with DHL Express

Planning your customs clearance on your own is possible, but relying on a trusted international logistics service provider can help to streamline and smoothen the process for you. With DHL Express, you get to enjoy various logistics solutions and services when exporting to China, including digitalized tools when preparing customs documentation and access to the latest regulatory changes in the customs regulations landscape. 

Create a DHL Express account today and find out how we can help you.