A buyer in Ohio ordered $4,000 of 925 silver rings from overseas and assumed duty would be a flat few percent. When the freight forwarder sent the landed-cost sheet, duty, VAT brokerage, and handling added another 11% on top. She had built her retail margin on the FOB price, not the delivered price. The order still worked, but the second order was priced correctly because she had seen the full sheet.

Import duties are not a single tax. They are a stack: the customs duty on the goods, a value-added tax or sales tax on the landed value, plus brokerage and handling fees. This overview explains the stack for first-time jewelry importers shipping from China to the US, UK, and EU.

The Duty Is Tied to the Metal, Not the Price Tag

Customs classifies jewelry by what it is made of. The HS code determines the duty rate, and the code changes with the material: silver jewelry, gold jewelry, platinum, base-metal costume jewelry, and imitation jewelry each sit in different tariff lines. A 925 silver ring and a brass CZ ring of the same retail price are taxed differently. This is why the HS code and tariff walkthrough matters before you ship.

For the US, the governing labeling and marketing rules are in 16 CFR Part 23 (the FTC Jewelry Guides), which also covers how metal content must be marked. Duty rates themselves change with trade policy, so always confirm the current rate with a broker or the local customs schedule rather than relying on a 2023 number you read online.

VAT, GST, and De Minimis Thresholds

Duty is only half the landed cost. Most destination countries also charge VAT or GST on the customs value plus duty. The EU standard VAT runs 19-27% by member state, the UK 20%, and Canada GST 5% plus provincial sales tax. The US does not have a federal VAT, but many states collect use tax on imported goods above the de minimis threshold.

De minimis is the value under which a shipment enters duty-free or simplified. Thresholds have changed repeatedly in recent years, and what was duty-free last quarter may not be duty-free now. Treat the de minimis route as a planning option, not a strategy. For EU importers, the REACH and nickel rules also apply on top of duty; read REACH and nickel release for importers before your first EU shipment.

What Adds to the Landed Cost Beyond Duty

The forwarder's landed-cost sheet usually includes more than duty. Expect line items for: customs brokerage, entry filing, ISF or security filing in the US, AMS manifests, currency conversion, and inspection fees. On a small parcel these can look tiny in dollars but reach 3-5% of the goods value. On a $2,000 shipment that is $60-$100 you did not budget.

Shipping method also changes the duty math. Express courier (DHL, FedEx, UPS) clears faster but often charges higher handling. Sea freight clears cheaper per kilo but adds days. For small first orders, courier is usually simpler; for reorders over $5,000, sea freight wins on cost. Our note on insured parcels from China covers the insurance angle.

How to Build a Landed-Cost Number Before You Order

Before you place a wholesale PO, ask your forwarder for a sample landed-cost sheet on a typical SKU. Plug in: FOB price x quantity + freight + duty + VAT + brokerage. That is your true cost. Use that number, not the FOB number, to set retail. If the margin looks thin at landed cost, the supplier discount you are chasing is not the lever; the HS code or the shipping mode might be.

For EU buyers, also confirm the supplier's paperwork: invoice, packing list, and a statement of metal content. Missing paperwork can hold a shipment at the border for days. The EU customs basics guide lists the documents in order. And for the export side, China-side HS code basics explains how the exporter codes the goods.

FAQ

Do I pay duty on every jewelry shipment?

Not always. Small shipments under the de minimis threshold may enter simplified, but thresholds change and small-parcel rules have tightened. Confirm the current rule with your broker before assuming duty-free entry.

Is duty higher on gold or silver jewelry?

Duty is set by HS code, and gold, silver, platinum, and base-metal jewelry sit in different lines. The rate depends on the code, not the retail price. Ask the supplier for the exact HS code they use.

What is the difference between duty and VAT?

Duty is a tax on the imported goods itself. VAT/GST is a consumption tax on the landed value (goods + duty + freight). Both are usually collected at the border.

Can I avoid duty by splitting shipments?

Splitting a single commercial order to stay under a threshold is customs evasion and carries penalties. Plan honest order sizes and use the de minimis rule only where it genuinely applies.

Who calculates the duty, the supplier or me?

The supplier declares the value and HS code on the commercial invoice. Your customs broker or forwarder calculates the duty you owe. Check both: a wrong HS code on the invoice can under- or over-declare.

Need a landed-cost estimate for a first import? HOLYCOME supplies a commercial invoice and packing list with the correct HS code and metal content, so your broker can clear the shipment fast. Send us a draft order and we will walk the landed-cost lines with you.