A breakdown of the real costs of importing from China to Pakistan & Bangladesh, including shipping, duties, taxes, currency conversions and payment fees
Key takeaways
- The total cost of importing from China is a stack of separate charges which can be difficult to compile together
- Sea freight can be less expensive than air freight, but the choice depends on the product, its value density and how quickly the goods need to arrive.
- Pakistan and Bangladesh apply different tax stacks on imports including customs duty, sales taxes and regulatory duty. Bangladesh charges customs duty, supplementary duty, VAT, advance income tax and advance trade VAT
- Sending PKR or BDT to a Chinese supplier typically involves conversion into USD, then USD into CNH at the supplier’s end, with fees at each step
- A multi-currency account like the World Account lets importers hold and send CNH directly, avoiding the double conversion and reducing per-order payment costs
Trade between South Asia and China is already deep. Chinese goods dominate categories from consumer electronics to industrial machinery, textiles to construction materials. For importers in Pakistan and Bangladesh, that trade relationship is often the operational core of the business.
But the sticker price on wholesale products is only the starting point. By the time goods reach a warehouse in Karachi or Dhaka, the landed cost can be 30% to 60% higher than the invoice value, driven by shipping, duties, taxes and payment fees that stack up along the way. Getting this wrong can affect margins and even potentially turn a profitable order into a loss.
This guide breaks down each cost layer involved in importing from China to Pakistan and Bangladesh, and how to think about the payment side of the transaction.
Shipping costs
Shipping is the first major cost layer after the supplier’s invoice. The two main options are sea freight and air freight, and the right choice depends on volume, value and timing.
Sea freight is the standard for larger orders. Costs are typically calculated by container (a 20-foot or 40-foot container) or by cubic metre (CBM) for smaller shipments consolidated with other cargo (LCL, or Less than Container Load). Transit times from Chinese ports (Shanghai, Shenzhen, Ningbo) to Karachi Port or Chittagong Port typically run 25 to 45 days.
Air freight can be fast (5 to 10 days from China to South Asia) but significantly more expensive per kilogram. It suits smaller shipments, high-value goods, or products where speed to market matters more than freight cost.
Beyond the base freight cost, expect additional charges:
- Documentation fees at both origin and destination
- Port handling charges at the South Asian ports
- Terminal handling charges at the Chinese port
- Customs clearance fees paid to the freight forwarder or clearing agent
- Local delivery from the port to your warehouse
A licensed customs broker or freight forwarder handles most of these charges as pass-through costs. Their own fees are usually invoiced separately.
Customs duties and taxes
These can vary depending on the country and region.
Pakistan
Pakistan’s Federal Board of Revenue (FBR) administers the WeBOC (Web-Based One Customs) system, which handles import declarations and duty assessments. Every importer needs to register on WeBOC before commercial shipments can be cleared.
The main charges applied on imports include:
- Customs duty: Ranges from 0% to around 35%, depending on the HS code classification of the product. Basic raw materials often attract lower rates; finished consumer goods attract higher rates.
- Sales tax: Typically 17% on the value of the imported goods including duty.
- Income tax withholding: Around 5.5% for non-filers and 1% for active taxpayers, calculated on the value of the imports.
- Additional customs duty: An extra layer on specific product categories, typically 2% to 7%.
- Regulatory duty. Applied on certain categories, often to protect local industry, and can add 5% to 30% on top of the base customs duty.
- Federal Excise Duty (FED): Applied on specific product categories like tobacco, beverages and vehicles.
Bangladesh
Bangladesh’s National Board of Revenue (NBR) oversees imports through the ASYCUDA World system. Importers need a valid Import Registration Certificate (IRC) from the Chief Controller of Imports and Exports (CCI&E), along with a Business Identification Number (BIN).
The main charges include:
- Customs duty: Ranges from 0% to around 25%, based on HS code.
- Supplementary duty: Applied on certain product categories, typically for goods considered non-essential.
- VAT (Value Added Tax): 15% on the assessable value including duties.
- Advance income tax: 5% on the value of imports.
- Advance trade VAT: 5% on commercial imports.
- Regulatory duty: Additional duty on specific categories, similar to Pakistan.
Insurance and inspection costs
Cargo insurance is not always mandatory but is often worth the cost. Rates typically run 0.3% to 0.5% of the shipment value. For high-value or fragile shipments, insurance is usually built into the freight forwarder’s quote.
Third-party inspections can add US$200 to US$400 per inspection, depending on the scope. For first-time orders with a new supplier, or for larger orders where quality issues would be expensive to resolve after shipment, inspections are often worth the cost.
Payment costs
Currency conversion is one of the biggest hidden costs of importing. For a business making multiple supplier payments per month, these costs can end up increasing the total transaction value. So it’s important to choose the right payment provider that can give you access to competitive exchange rates.
Pay your shipping partners and suppliers in China with your World Account
The World Account is a multi-currency account from WorldFirst, an international payments provider for cross-border businesses. For South Asian importers importing from China regularly, it changes the payment flow in a few practical ways.
- Send CNH directly to Chinese suppliers, without routing through USD as an intermediate step. This removes one full conversion cycle for every time you pay Chinese suppliers and shipping partners
- Send payments in 100+ currencies to 200+ countries and regions, useful for importers with suppliers across multiple markets.
- Receiving accounts in 15+ currencies, including USD, GBP and EUR, for importers who also sell internationally and receive marketplace or client payouts in those currencies.
- World Pay for 1688.com payments, the authorised international payment provider for 1688.com, for importers sourcing on the wholesale platform
- The World Card, a Mastercard-powered business payment card linked to the account. Up to 20 virtual cards can be issued at no additional cost, with no fees when paying in any of the 15 supported currencies (with sufficient balance held in that currency). Cashback is available on eligible spending (Terms and Conditions Apply).
This article is intended for informational purposes only and does not constitute legal advice or professional advice. This article should not be regarded as constituting an offer or a solicitation to buy or sell any regulated or financial products or services. WorldFirst makes no representations or warranties regarding the accuracy, completeness, or applicability of the content, and readers are encouraged to consult with legal professionals or other professionals for advice tailored to their specific situation. WorldFirst does not guarantee the accuracy and completeness of this article and expressly disclaims any and all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance on this article.
