What makes up cost per unit
- Goods: 1688 unit price × quantity × exchange rate
- Domestic China shipping: seller → forwarder warehouse
- Buying-agent fee: usually a percentage of the goods price
- International freight: sea or air freight, forwarder shipping
- Inspection, packing and other forwarder costs
- Duty and import VAT
- Brokerage fee (customs broker) and domestic delivery
Price from the unit price alone and items 4 to 7 disappear, so you think every sale makes money when it barely does.
How duty and import VAT are calculated
Duty = customs value × duty rate
Import VAT = (customs value + duty) × 10%
Under the Korean Customs Act, the buying commission a buyer pays to an agent is not part of the customs value, but freight is. Customs may judge individual cases differently, so check large imports with a customs broker.
Duty rates depend on the HS code. Many general goods carry the 8% base rate, and some, like clothing and shoes, are higher at 13%. Check exact rates with the classification and tariff lookup on Korea Customs UNI-PASS or a customs broker.
Calculate with the sourcing cost calculator →
Worked example
200 units at 12.5 yuan, exchange rate 1 yuan = 195 KRW (sample), China shipping 30 yuan, agent fee 5%, international freight 85,000 KRW, inspection and packing 20,000 KRW, brokerage 30,000 KRW, duty rate 8%.
| Item | Calculation | Amount |
|---|---|---|
| Goods | 12.5 × 200 × 195 | 487,500 KRW |
| China shipping | 30 × 195 | 5,850 KRW |
| Agent fee | 487,500 × 5% | 24,375 KRW |
| Freight, other, brokerage | 85,000 + 20,000 + 30,000 | 135,000 KRW |
| Customs value | 487,500 + 5,850 + 85,000 | 578,350 KRW |
| Duty | 578,350 × 8% | 46,268 KRW |
| Import VAT | (578,350 + 46,268) × 10% | 62,461 KRW |
| Total cost | 761,454 KRW | |
| Cost per unit | ÷ 200 units | about 3,807 KRW |
An item that is 2,438 KRW on unit price actually costs about 3,807 KRW, 56% more. A general taxpayer later recovers the 62,461 KRW import VAT as input tax, so the real cost is about 3,495 KRW per unit. For simplified taxpayers, with only a 0.5% purchase credit, treat import VAT as part of cost.
Checklist for lowering cost
- Quantity: fixed costs like freight and brokerage are shared, so larger orders cut cost per unit sharply. Try changing only the quantity in the calculator.
- Volumetric weight: light but bulky items may be charged on volume rather than actual weight.
- Korea–China FTA certificate of origin: with one, the FTA rate (0% or reduced, depending on the item) can apply.
- KC certification: kids’ products, electrical goods and some household goods need KC certification. Cost and lead time can be significant, so check before you buy.
Personal duty-free is not the same as importing for resale
Korea’s 150 USD duty-free limit (200 USD for US list clearance) is for items you use yourself. Splitting stock for sale into personal-style orders may not count as personal use, and repeated imports can be treated as commercial, with duty and VAT collected later. If it is for sale, cost it as a formal import from the start. For personal purchases, use the duty & VAT calculator.
Frequently asked questions
Does the 150 USD duty-free limit apply to small imports for resale?
The exemption is for personal use, so it does not fit goods for sale. Include duty and import VAT in your cost as a formal import declaration.
Which exchange rate should I use?
The goods are paid at your actual payment rate, and taxes use the weekly rate published by Korea Customs. For costing, using the higher of the two is the safe choice.
Can I get import VAT back?
General taxpayers credit (or get a refund of) it as input tax. Simplified taxpayers only get 0.5% of purchases credited.
Where do I check duty rates?
Look up the HS code in the classification and tariff search on Korea Customs UNI-PASS, or ask a customs broker to classify the item.
Calculate my cost per unit → Box volumetric weight →
Reference date: 2026-10-08 · Sources (Korean): Toss Bank on overseas purchase duty, glasswallet duty-free rules, and the Customs Act principle excluding buying commissions from customs value. Check item rates on Korea Customs UNI-PASS.