How it is calculated
- Customs value = (goods total + local shipping) × exchange rate + international freight
- Duty = customs value × duty rate
- Import VAT = (customs value + duty) × 10%
- Total cost = goods + local shipping + agent fee + international freight + other + brokerage + domestic delivery + duty + import VAT
- Cost per unit = total cost ÷ quantity
The agent fee, inspection/packing and brokerage are not included in the customs value. In an actual declaration, customs may include some of these costs.
Checklist for lowering your cost
- Ordering more spreads freight and brokerage over more units, so cost per unit drops a lot. Try changing only the quantity.
- Bulky items may be charged by volumetric weight rather than actual weight. Check your forwarder’s volume rules.
- With a Korea–China FTA certificate of origin, many items get 0% or reduced duty.
- For items that need KC certification (kids’ products, electrical goods, etc.), build the certification cost and lead time into your cost.
FAQ
Isn’t it duty-free under 150 USD, like personal overseas shopping?
Imports for resale do not qualify for the personal-use exemption. Even small quantities for sale should be costed as a formal import declaration. For personal-use items, use the overseas purchase duty & VAT calculator.
Which exchange rate should I use?
The goods are paid at your actual payment rate (card or transfer), while taxes use the Korea Customs Service rate. If the two are close, one rate is fine for costing.
Do simplified taxpayers get import VAT back?
Simplified taxpayers only get 0.5% of purchases credited, so treat import VAT as part of your cost.
Related: Guide: 1688 import cost and customs clearance
Estimate for reference only. Actual duty rates depend on HS code classification; confirm with a customs broker or the Korea Customs Service classification lookup.