How Are Customs Duties Calculated for Furniture Imports?

To calculate customs duties on furniture imports, you need to determine the correct HS code for the furniture, calculate the CIF value (Cost, Insurance, and Freight), and apply the appropriate duty rates based on trade agreements and country-specific tariffs.

Importing furniture from Turkey to Germany is crucial for businesses looking to optimize costs and avoid unexpected expenses. The calculation of customs duties is based on key factors such as the value of the goods, transport and insurance costs (CIF), the applicable customs duty rate, and the VAT rate in Germany. But how do these factors impact total costs, and what should you take into account?

How Can You Check Customs Tariffs in Germany?

Germany, like all EU countries, uses the TARIC system to define customs duty rates and required documentation for each product. Ensure that your products are classified using the correct HS code (Harmonized System). Using an incorrect HS code can lead to higher customs duties and unnecessary costs.

To access the TARIC system and check the duty rates for your products, use the following link:
TARIC System Link

Here, you can input your HS code and view all relevant information about your product. For example:

  • HS Code: 9401 (Seats)
  • Duty Rate: 10%
  • Additional Requirements: Environmental taxes or specific EU regulations

Calculating Customs Duties

Customs duties for furniture imports are typically calculated based on the CIF value (goods value + transport costs + insurance). In our example, the figures are as follows:

  • FOB (Goods Price): €500
  • Transport Costs: €150
  • Insurance Costs: €50
  • CIF Value: €500 + €150 + €50 = €700

If the customs duty rate for your furniture product is 10%:
€700 x 10% = €70 Customs Duty

Calculating Value Added Tax (VAT)

VAT is applied to the sum of the CIF value and customs duties. In Germany, the standard VAT rate is 19%.

VAT: (CIF + Customs Duty) x 19%
(€700 + €70) x 19% = €146.30

In this case, the total import cost would be:
CIF Value (€700) + Customs Duties (€70) + VAT (€146.30) = €916.30

Key Considerations for Furniture Imports

  1. Accurate HS Code Classification
    Ensure your products are correctly classified. Different furniture categories, such as chairs and tables, have distinct HS codes and customs duties.

  2. Complete Documentation
    For a smooth customs process, ensure the following documents are complete:

  • Commercial Invoice
  • Packing List
  • Certificate of Origin
  • Transport Document (CMR or Bill of Lading)

Missing or incorrect documents can lead to delays and additional costs.

  1. Efficient Logistics Planning
    Choosing the right transport method significantly impacts costs:
  • Sea Freight: Cost-effective for large volumes
  • Road Transport: Faster delivery and door-to-door service

Consolidated transportation or groupage shipments can also help reduce logistics costs.

Why Choose Vermilion Foreign Trade?

At Vermilion Foreign Trade, we offer tailored solutions for importing furniture from Turkey to Germany.
Our services include:

  • Collecting your goods from multiple suppliers
  • Consolidating and inspecting your products
  • Completing customs clearance with a single document
  • Ensuring secure and timely delivery of your goods

Share Your Experience With Us!

Do you have questions or comments about furniture imports? Leave a comment, and our expert team will assist you!