Do You Have to Pay Customs and VAT When Importing Socks Into the EU?

Yes. When you import socks into the EU from China, you pay import duty of around 12% on the customs value of the goods, plus import VAT at the rate of the country where the goods enter free circulation, such as 21% in the Netherlands, 19% in Germany or 20% in France. You also need an EORI number and a customs declaration, which most small importers leave to a broker or the courier.

None of this is difficult once you know the pieces, but it regularly surprises studio owners who budgeted only for the socks. Since July 2021 there is also no longer a small-shipment exemption that lets low-value parcels slip through without VAT.

This guide is for EU studio owners who are considering whether to order custom grip socks directly from a factory in China and want to understand the customs side first. It is a general overview, not legal or tax advice. Rates and rules change, so confirm the details for your own shipment with a customs broker or accountant.

Who pays: the importer of record

Every import has an importer of record: the party that is legally and financially responsible for declaring the goods, paying duty and VAT, and keeping the paperwork. If you buy direct from a factory and the goods are shipped to you unpaid, that party is you.

In practice this means customs will not release the goods until the duty and VAT have been paid, either by you directly or by a courier or broker who pays on your behalf and then invoices you. If something is wrong with the classification or the stated value, the follow-up questions also come to you.

When you buy from a supplier that delivers to your door with duties paid, the supplier is the importer instead. That is how it works at PilatesGoods: as a custom sock manufacturer working with long-term factory partners in China, we handle shipping and import ourselves and pay the import duties, so the studio receives its grip socks with customs already taken care of and no surprise bill from the courier.

How much import duty applies to socks?

Knitted socks fall under heading 6115 of the EU tariff (hosiery, knitted or crocheted). For socks from China the standard EU duty for this category is generally around 12%. China has no trade agreement with the EU that lowers this rate, so the full rate normally applies. The exact rate still depends on the precise commodity code, which in turn depends on the fiber content, so let a broker confirm the code or check it in the EU's TARIC database.

Two details matter for your budget:

• Duty is charged on the customs value, not just the invoice price. The customs value is broadly the price you paid for the goods plus the cost of transport and insurance up to the point where they enter the EU. Cheap socks with expensive air freight therefore pay duty on more than the sock price alone.
• Duty is a real cost. Unlike VAT, you cannot reclaim it later, so it belongs in your cost per pair from the start. Duty is only one line of the full calculation, which we break down in our article on the real cost to import custom socks from China.

How import VAT works, and whether you get it back

Import VAT is charged on top of the duty. The basis is the customs value plus the duty (plus, in most cases, transport costs to the final destination inside the EU), at the standard rate of the member state where the goods are cleared: 21% in the Netherlands, 19% in Germany, 20% in France.

The table below shows how the amounts stack up for an illustrative shipment cleared in the Netherlands. The figures are rounded examples, not a quote.

If your business is VAT-registered and can deduct input VAT, you can usually reclaim import VAT through your normal VAT return, so it is mostly a cash-flow cost. Some countries let you avoid paying it at the border at all: the Netherlands has a so-called Article 23 license that shifts import VAT to your VAT return, and France applies postponed accounting for import VAT by default. If your studio is not VAT-registered, or uses a small-business scheme that does not allow deduction, import VAT is a permanent cost on top of the duty.

The end of the EUR 22 exemption, and what the EUR 150 threshold means

Until July 1, 2021, goods worth up to EUR 22 could enter the EU without import VAT. That exemption was abolished: since then, VAT is due on every commercial import into the EU, whatever its value. A box of sample socks sent by courier now carries VAT, and usually a handling fee from the courier.

At the same time the EU introduced the Import One-Stop Shop (IOSS). It lets sellers of consignments worth up to EUR 150 collect the VAT at checkout, so the parcel is not stopped at the border. Two things to keep in mind:

• IOSS is built for online sales to consumers. A studio order of branded grip socks is a business purchase and is usually well above EUR 150, so IOSS rarely applies.
• Consignments up to EUR 150 have long been exempt from customs duty, but not from VAT. The EU has agreed to phase out this duty relief for low-value parcels, so check the current rules before relying on it for samples.

Splitting an order into several small parcels to stay under EUR 150 is not a legitimate way around duty. Customs can treat linked parcels as one shipment, and you will pay courier fees on every box.

EORI number, documents and who clears the goods

To import commercially into the EU you need an EORI number, an identifier that links your business to customs. You apply once, through the customs authority of the member state where your business is established, and you can use it across the EU. Do this before the goods ship. Arriving at customs without one is a common first-timer stall that leaves stock in a warehouse while storage charges add up, which can quietly wreck the lead time for custom grip socks you planned around.

For the declaration itself, customs will want:

• A commercial invoice. It must show the real price paid, a clear product description, fiber content and the number of pairs. Never accept an undervalued invoice to cut duty: it is customs fraud, and the importer of record carries the consequences.
• A packing list and the transport document. These are the air waybill, bill of lading or courier tracking that matches the shipment.
• The commodity code. The code determines the duty rate, so it is worth getting right the first time.

Express couriers usually clear small shipments themselves and charge you the duty and VAT they advanced, plus a disbursement or customs handling fee. For sea or air freight, a customs broker files the declaration. A broker charges per shipment, but on a first import the fee usually pays for itself by preventing misclassification and delays.

DDP or DAP: who handles customs on your order

The Incoterm in your order decides who deals with all of the above. The two you will see most for delivered orders are DAP and DDP.

• DAP (Delivered At Place). The supplier pays for transport to your address, but you are the importer. You pay duty, import VAT and clearance fees when the goods arrive, often to the courier before it will deliver.
• DDP (Delivered Duty Paid). The supplier is the importer and pays duty and VAT. You pay one delivered price. The costs have not disappeared, they are included in that price.

DDP is easier, but check one detail with factories and marketplace sellers outside the EU. If the seller pays the import VAT but is not VAT-registered in the EU, you will not receive an invoice with VAT you can deduct, so the VAT simply becomes part of your cost. Ask who the importer of record is and what invoice you will get. If you are also weighing a marketplace seller against a delivered supplier, our comparison of Alibaba and a specialist supplier for grip socks covers the non-customs side of that choice.

Checklist before your first import

If you decide to import yourself, run through these points before you pay the factory:

1. Apply for your EORI number and wait until it is active.
2. Ask a broker to confirm the commodity code and duty rate for your exact fiber mix.
3. Agree the Incoterm (DAP or DDP) in writing, and ask who the importer of record will be.
4. Budget duty at about 12% of goods plus freight, and have cash ready for import VAT at your country's rate.
5. Ask your courier or forwarder what clearance and disbursement fees they charge per shipment.
6. Check whether you can use postponed accounting or a license such as the Dutch Article 23, so import VAT does not tie up cash.
7. Keep the customs declaration and invoices with your bookkeeping, since you need them to reclaim VAT.

If you would rather skip the customs side entirely, a delivered supplier takes it off your desk: with PilatesGoods your studio receives its socks with import duties already handled, and you can start your design with a free mockup before deciding anything.