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Importing PCB Assemblies from China: Incoterms, Duties and DDP Explained

Importing PCB Assemblies from China: Incoterms, Duties and DDP Explained

Two PCBA quotes can look 15% apart on paper and end up nearly identical once the boards are on your dock, or the other way round. The difference is almost always in what the quote leaves out: freight, duties, brokerage, and who carries the risk in transit. This guide explains how to compare quotes from Chinese PCBA suppliers on a landed-cost basis, so the number you approve is the number you actually pay.

Start with the Incoterm, not the unit price

Every export quote is priced under an Incoterm, the standard rule that says where the supplier's responsibility ends and yours begins. For PCBA, four come up constantly:

IncotermSupplier pays forYou pay forBest when
EXW (Ex Works)Boards ready at the factoryPickup, export clearance, freight, import duties, deliveryYou have a forwarder in China who handles everything
FOB (Free On Board)Export clearance and delivery on board the vessel at the named port of shipmentMain freight, insurance, import duties, deliveryYou ship regularly and have your own freight rates
DAP (Delivered At Place)Freight to your doorImport duties, taxes and customs clearanceYou want simple logistics but handle customs yourself
DDP (Delivered Duty Paid)Freight to the named destination, customs clearance and applicable duties and taxesUnloading unless included in carriage; costs arising from failure to meet buyer obligationsYou want the seller to manage freight and import clearance

FOB applies only to sea and inland waterway transport. For air freight, courier shipments or container handover before vessel loading, consider FCA at an agreed named place instead.

An EXW quote will always look cheapest because it includes the least. Before comparing suppliers, ask every one of them to quote under the same Incoterm, or convert their quotes yourself.

What actually drives your duty cost

Import duty on a PCB assembly depends on three things: its tariff classification, its country of origin, and its declared value.

Classification. A loaded circuit board is usually classified according to what it is a part of, not simply as "a PCB". A board for a computer, a control panel, a telecom device or a motor drive can each fall under a different HTS heading, with different duty rates. Getting this right matters more than any other single factor. Your customs broker should confirm the classification, ideally before your first order.

Origin. US customs origin depends on substantial transformation and the actual manufacturing process. Complex PCBA manufacturing in China may establish Chinese origin; simple final assembly or shipment from China does not automatically change a product's origin. Since 2018, many Chinese electronics have carried additional duties on top of the standard rate, and those rates have changed several times since 2025. Treat any tariff figure older than a few weeks as out of date, and check the current rate with your broker before each purchase order.

Value. Duty is calculated on the declared customs value. Tooling, stencils and engineering charges may need to be included depending on how they are invoiced, so ask your supplier to list them clearly.

As of October 7, 2026, US duty-free de minimis treatment for commercial low-value shipments from all countries is suspended indefinitely, for both postal and non-postal shipments. Appropriate customs entry procedures and applicable duties, taxes and fees apply; confirm the current requirements with your customs broker before shipping.

Build a landed-cost comparison

To compare two suppliers fairly, add up the full cost per board delivered to your facility:

  1. Board price × quantity
  2. One-time charges (stencil, NRE, test fixture)
  3. Freight from the factory to your door
  4. Import duties and any additional tariffs
  5. Customs brokerage and carrier fees
  6. Cost of delay: if one option arrives two weeks later, what does that cost your schedule?

Divide by quantity. That landed cost per board is the number to compare, not the unit price on the first page of the quote.

When DDP makes sense, and when it doesn't

DDP can suit prototypes and early batches when the seller manages freight and import clearance. Buyers may still need to provide customs information. Confirm in writing who acts as importer of record, the named delivery point, and whether unloading, carrier handling or other delivery charges are included.

For regular production, many buyers prefer DAP or FOB with their own broker. You keep control of classification and customs records, which matters for audits, for duty-recovery programs, and for customers who ask about your supply chain. If you use DDP, ask the supplier how they classify and value the goods, because the import entry is still made under someone's name.

Practical checklist before you place the order

  • All quotes compared under the same Incoterm
  • HTS classification confirmed by your customs broker
  • Current duty and additional tariff rates checked this month
  • One-time charges itemized on the commercial invoice
  • Packaging specified for export: ESD, moisture and shock protection (see our PCBA export packaging and logistics guide)
  • Shipping method agreed: express for prototypes, air or sea freight for volume
  • Commercial invoice, packing list and certificate of conformance requested

How we quote

At PCBA Partner we itemize every quote, including PCB fabrication, components, assembly, testing, one-time charges and freight, so you can see exactly what you are paying for. We can quote EXW, FOB, DAP or DDP: tell us which fits your setup and where the boards are going, and we will quote on that basis. Request a PCBA quote →

This article is general guidance, not customs or legal advice. Duty rates and import rules change frequently; confirm current requirements with a licensed customs broker.

Official sources: ICC sea and inland waterway rules; ICC rules for any transport mode; CBP origin ruling N335815; US low-value shipment rule; US international postal shipment rule.