Customs, Shipping & the Import Process
How to safely get your goods from China to Korea
Hi, this is GreenFrog Seoul.
In the previous post, we covered price negotiation, MOQ, and OEM contracts. Once you've chosen a factory, signed the deal, and sent the payment, there's one final hurdle left.
That hurdle is customs clearance, shipping, and import.
"The factory says the goods are ready, but how do I actually get them to Korea?"
"I have no idea how much customs duty I'll end up paying..."
"My shipment got held at customs — how do I get it released?"
This is where a surprising number of importers fall apart. Today, we'll walk you through the entire process of safely getting your goods from China to Korea, step by step.
1. Shipping Methods — Which One Should You Choose?
When shipping from China to Korea, you have four main options. The right choice depends on your product type, quantity, and urgency.
| Method | Transit Time | Cost (per kg) | Best For |
|---|---|---|---|
| Ocean LCL (Less than Container Load) | 10–15 days | ~$0.30–0.60 | Small volumes, low-value goods |
| Ocean FCL (Full Container Load) | 10–15 days | Even cheaper | Large orders (full 20ft/40ft container) |
| Air Freight | 3–5 days | ~$4.50–9.00 | Urgent shipments, lightweight high-value items |
| Express (DHL/EMS/FedEx) | 2–4 days | $7.50+ | Small samples, low quantities, all-inclusive customs |
How to Decide
- Under 100 kg total — Express or air freight
- 100–500 kg, time-sensitive — Air freight
- Over 500 kg, no rush — Ocean LCL
- Over 1 CBM (cubic meter) — Ocean LCL is almost always the better deal
- Full container volume — Ocean FCL
Tip
If you're new to importing, you should work with a freight forwarder — a logistics agent that handles international shipping on your behalf. Trying to book vessels and clear customs yourself is a recipe for headaches. A good forwarder manages pickup, loading, customs clearance, and domestic delivery end to end.
2. Incoterms — The Terms That Define Who Pays for What
You've probably seen terms like "FOB Shenzhen" or "CIF Busan" on factory quotes. These are Incoterms — internationally standardized rules that define where the factory's responsibility ends and where yours begins.
The Four Incoterms Every Beginner Needs to Know
| Term | Meaning | Who Benefits |
|---|---|---|
| EXW (Ex Works) | Factory gate only. Everything after that is the buyer's responsibility. | Factory |
| FOB (Free On Board) | Factory covers costs up to loading at the Chinese port. Buyer pays from there. | Balanced |
| CIF (Cost, Insurance, Freight) | Factory covers costs up to arrival at the Korean port, including insurance. | Buyer |
| DDP (Delivered Duty Paid) | Factory covers everything — delivery to your Korean warehouse, duties included. | Buyer |
Recommended for beginners: CIF or DDP
- The factory absorbs most of the risk, so you don't have to worry about shipping logistics
- However, shipping costs are baked into the unit price, so always convert back to EXW/FOB pricing when comparing quotes across suppliers
Warning
- A factory that only offers EXW may lack experience working with overseas buyers — without a forwarder, you'll struggle
- "We'll do DDP, but customs duties are on you" — This contradicts the definition of DDP. Reject vague conditions like this outright
- Make sure Incoterms are explicitly stated on all documents (PI, Invoice, Packing List)
Tip
Whenever a factory quotes you a price, always ask: "Is this FOB or CIF?" If the Incoterms are different, the unit prices aren't comparable.
3. Customs Documents — Miss One and Your Shipment Gets Stuck
The following documents are mandatory for customs clearance:
- Commercial Invoice — Transaction details and total value
- Packing List — Contents, quantities, and weight per carton
- Bill of Lading (B/L) / Air Waybill (AWB) — Proof of shipment
- Certificate of Origin (C/O) — Required to claim FTA tariff benefits
- HS Code — The product classification code that determines your tariff rate
The most critical item here is the HS code. Depending on how your product is classified, the tariff rate can range from 0% to 13%.
How to Find Your HS Code
- Search on Korea Customs Service's UNIPASS portal (unipass.customs.go.kr)
- Look up your product by keyword and confirm the 10-digit code
- When in doubt, consult a licensed customs broker (typically $40–80, but highly accurate)
Common Pitfalls
- Filing under the wrong HS code can result in back taxes and penalties down the line
- Don't blindly use the HS code your factory provides — Chinese and Korean classification standards differ
- Under-invoicing (declaring a lower value) is customs fraud. The penalties if caught are severe
Tip
For your first import, let a licensed customs broker handle the paperwork. The fee is typically $40–120, which is a fraction of what you'd pay in back taxes and fines if you file incorrectly. Most freight forwarders can connect you with one.
4. Customs Duties & VAT — How Much Will You Actually Pay?
There are two taxes you pay when importing into Korea:
1) Customs Duty = CIF value x Tariff rate
- Tariff rates vary by HS code (0%–13%, most products around 8%)
- You can apply the Korea-China FTA for 0% or reduced tariffs on eligible products
2) VAT = (CIF value + Customs duty) x 10%
Worked Example
CIF value: $10,000
Tariff rate: 8% → Customs duty: $800
VAT: ($10,000 + $800) x 10% = $1,080
Total taxes: $1,880
Total cost to importer: $10,000 + $1,880 = $11,880De Minimis Thresholds (as of 2026)
- Personal imports for own use: Duty-free under $150 (from the US) / $200 (from other countries)
- Commercial imports by a registered business: No exemption — duties and VAT apply from the first dollar
- Some express shipment items may qualify for simplified clearance exceptions
Common Pitfalls
- "It's a small amount, so I probably don't need to pay taxes" — Not true for business imports
- "What if I split it into multiple personal shipments to stay under the threshold?" — If caught, you'll be charged full duties on the entire amount plus surcharges
- VAT refund — If you're a registered business and file properly, you can claim back the 10% input VAT. Missing this means leaving 10% on the table
Tip
Make sure you have a business registration number (or a customs registration code) before you start importing. You can get one for free in under 5 minutes through Korea Customs' UNIPASS system. Without it, every shipment gets processed as a personal import, and you lose your ability to claim VAT refunds.
5. Certifications — Sell Without These and Face a Full Product Recall
Even after your goods clear customs, many product categories require separate domestic certifications before you can legally sell them in Korea.
Key Mandatory Certifications
| Product Category | Required Certification | Approximate Cost |
|---|---|---|
| Electronics (chargers, earphones, cables, etc.) | KC Certification | $750–3,800 |
| Children's products (toys, clothing, accessories) | Safety Confirmation / Supplier Conformity | $230–2,300 |
| Food & health supplements | MFDS Import Declaration | Varies by item |
| Cosmetics | Functional Review / Responsible Seller Registration | $750+ |
| Medical devices | Medical Device Approval | $1,500–$15,000+ |
| Products containing batteries | KC + MSDS | $1,500+ |
What Happens If You Get It Wrong
- Customs hold — warehouse storage fees pile up every day
- Selling without certification and getting caught — full product recall, disposal, and fines
- Online platforms (Naver, Coupang) may suspend your seller account
Tip
Check certification requirements before you place your order. If your goods arrive and you discover they can't be certified, you'll have to dispose of the entire shipment. The Korean Electrical Appliances and Consumer Products Safety Act covers an extremely broad range of products, and this is the area where first-time importers get tripped up most often.
Summary
- Choose your shipping method based on volume, weight, and urgency — Express for samples, air for mid-size urgent loads, ocean for large volumes
- Understand Incoterms — Beginners should aim for CIF or DDP, but always compare quotes on an apples-to-apples basis
- Prepare all 5 customs documents + get your HS code right — Use a licensed customs broker to be safe
- Duties & VAT = (CIF x tariff rate) + (CIF + duty) x 10%. Register your customs code and leverage FTA benefits
- Check certifications (KC, MFDS, safety act, etc.) before ordering — Non-compliance means full product recall
🐸 GreenFrog Seoul Can Help
From forwarder selection and Incoterms negotiation to HS code classification, duty simulation, and certification guidance —
our experts will see you through the final mile of China sourcing.
📞 Phone 010-9980-9959
✉️ Email greenfrogseoul@gmail.com
💬 KakaoTalk pf.kakao.com/_XkfuX
🌐 Website greenfrogseoul.com