How to buy and import enterprise servers from China: EXW, DAP & DDP explained
If you have never imported hardware before, the vocabulary trips people up more than the shipping does. This guide walks through Incoterms, the order flow, customs and VAT by region, and how to keep your payment protected, the way we run orders every week.
Why buy servers from China in the first place
Most of the world's enterprise servers are assembled in China regardless of the badge on the front. Dell, HPE, Lenovo and Huawei all run large manufacturing and integration lines here. Buying closer to that source removes a layer of regional distributor margin, which on a fully-populated rack node is rarely trivial money.
The second reason is availability. When a specific CPU stepping, a 64GB RDIMM part number or an H100 allocation is back-ordered for months through a Western channel, it is often sitting on a shelf in Shenzhen or Hangzhou. And because we build to order, you are not stuck with a fixed SKU: you pick the exact CPU count, memory layout, drives, RAID controller, NIC and GPU you want, and the machine is assembled and burned in before it ships. That is what "factory CTO" (configure-to-order) means in practice.
- Price, you buy nearer the factory, not at the end of a distribution chain.
- Availability, parts that are back-ordered elsewhere are frequently in stock here.
- Factory CTO, the exact CPU, RAM, storage, RAID, NIC and GPU spec you specify, assembled and tested to order.
Incoterms decoded, who pays for what, and where the risk sits
Incoterms are the international rulebook for "where does my responsibility end and yours begin." They decide who books the freight, who clears customs, who pays duty and tax, and, importantly, at which exact point the risk of loss transfers from seller to buyer. Get this clause right and there are no surprises; get it wrong and a shipment can stall in customs with nobody willing to pay the next bill.
Here are the five terms you will meet when buying servers. Read the table as a gradient: EXW puts almost everything on you and DDP puts almost everything on the seller. We sell EXW Hangzhou only; FOB and CIF are listed for reference because other suppliers quote them.
| Incoterm | Seller pays | Buyer pays | Risk transfers |
|---|---|---|---|
| EXW (Ex Works) | Goods ready at our facility | Everything from our door: export, freight, insurance, duty, VAT, delivery | At our warehouse |
| FOB (Free On Board) | Export clearance + delivery onto the vessel | Sea/air freight, insurance, import duty, VAT, last mile | When goods are loaded at origin port |
| CIF (Cost, Insurance, Freight) | Freight + insurance to destination port | Import duty, VAT, clearance, last mile | When goods are loaded at origin port |
| DAP (Delivered At Place) | Everything up to your door except import duty/VAT | Import duty + VAT (billed on arrival) | At your delivery address |
| DDP (Delivered Duty Paid) | Everything, including duty + VAT, to your door | Nothing further | At your delivery address |
How we ship, and what we do NOT do
We sell EXW Hangzhou only. That is the honest scope of a hardware exporter: we build your servers, handle export documentation and clearance, and hand the shipment to your forwarder in Hangzhou. Every server travels by air. From that moment the freight, the import clearance and the taxes are on the import side of the border, which is exactly where a customs authority expects the importer of record to be.
If you have imported before, EXW is clean and you run your own forwarder. If you have never done this, that can feel like a lot. So we help you appoint a freight forwarder who delivers to any country in the world on DAP or DDP terms, 1–2 weeks door to door. The distinction matters: the forwarder, a licensed logistics company on your side of the border, advances and settles your duty and VAT, and you keep a transparent, itemised invoice. We are not silently prepaying your taxes and burying them in the unit price. You keep control and you can see every line.
We do not claim to deliver DDP. We arrange it through a forwarder; we do not pretend to be your customs broker in a country where we are not established.
Step by step, from quote to delivered rack
A typical order runs through the following stages. Nothing here is unusual; it is the same rhythm any competent B2B hardware trade follows, and knowing it up front is what makes a first import feel routine rather than risky.
- Quote, you send the spec; we confirm parts, price and lead time.
- Proforma invoice, a formal document with the full configuration, Incoterm, bank details and validity date.
- Payment, usually a deposit to start the build and the balance before shipment, with a pre-shipment inspection so you approve the goods before the balance clears.
- Assembly + burn-in, the machine is configured, then run under load for 24–72 hours; serial numbers are verified against the invoice.
- Export documents, commercial invoice, packing list, air waybill and the Chinese export declaration are prepared.
- Air freight, every server flies, and the forwarder delivers to any country in 1–2 weeks door to door.
- Destination customs, your broker or forwarder files the import entry; import duty (if any) and import VAT are assessed and paid.
- Door delivery, the last-mile carrier brings the pallet to your address or data-center dock.
Customs & VAT by region
Tax is where most first-time importers get nervous, without much cause. Servers are one of the friendlier product categories: in most developed markets the customs duty on a server is zero, and the VAT you pay at the border is reclaimable if your business is VAT-registered. The figures below are the ones that matter in the markets we ship to most; treat them as orientation and confirm the exact rate with your broker, because classification and trade policy do change.
- European Union, servers classify under HS heading 8471 and carry 0% customs duty. Import VAT applies at the national rate (roughly 19–25%) and is reclaimable by a VAT-registered business. You need an EORI number to import.
- United Kingdom, 20% import VAT, an EORI number, and post-Brexit customs formalities. Duty on servers is generally nil, but the customs entry is now a real step.
- United States, no VAT at all. However, Section 301 tariffs can apply to China-origin goods, so the effective duty is not always zero; use a licensed customs broker to classify correctly and confirm the current rate.
- Africa. VAT is typically around 15–16% (for example Nigeria and South Africa), and some countries require an import permit or product registration before the goods arrive. Check your country page for specifics.
Landed cost: the number to model
A server costs you its landed cost, not its unit price. Model it before you commit, so the freight and customs invoices do not surprise you.
Landed cost = EXW price + air freight + duty/VAT + last-mile delivery. Every server we sell flies, and air freight is priced on volumetric weight, which punishes a bulky, half-empty rack. Ask your forwarder for a door-to-door quote so freight and last mile arrive as one number.
Buying safely across a border
The failure modes of international hardware buying are well known, and every one of them has a standard defence. Insist on these and a first-time import is low-risk.
- Staged payment, deposit to build, balance before shipment. You never pay 100% up front against nothing.
- Pre-shipment inspection, photos, serials, and a live check of the built machines before the balance is released.
- Correct classification, the right HS code (or NCM in Brazil) on the commercial invoice, so customs clears cleanly and you are taxed correctly.
- Warranty that survives the border, a 1-year warranty with cross-border advance-replacement RMA, so a failed part is shipped to you before the dead one goes back.
Sources & further reading
The tax and classification figures above are orientation, not a substitute for the primary sources. These are the authorities we point buyers to when they want to confirm a rate or a rule for themselves:
- World Customs Organization. Harmonized System nomenclature; servers classify under HS heading 8471: https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition.aspx
- European Commission. EU Customs Tariff (TARIC), for the duty and measures the EU applies: https://taxation-customs.ec.europa.eu/customs-4/calculation-customs-duties/customs-tariff/eu-customs-tariff-taric_en
- UK Government. Trade Tariff, to look up the commodity code, duty and VAT for imports into the UK: https://www.gov.uk/trade-tariff
- UK Government. Get an EORI number, required to import into the UK; in the EU each member state issues the equivalent: https://www.gov.uk/eori
Frequently asked questions
Do you deliver DDP yourselves?
No. We sell EXW Hangzhou only. If you want a door-delivered, duty-paid outcome we help you appoint a freight forwarder who delivers on DAP or DDP terms and advances your duty and VAT, with a transparent, itemised invoice. We do not prepay your taxes ourselves or bury them in the unit price.
How is my payment protected?
Payment is staged: a deposit starts the build and the balance is due only after a pre-shipment inspection, where you review photos, serial numbers and a live check of the assembled machines. You never pay in full before the goods exist and have been verified.
Which Incoterm should I choose?
We sell EXW Hangzhou. If you have imported hardware before and have a forwarder, your forwarder collects from us and runs the rest. If this is your first import, ask us to arrange a forwarder who delivers DAP or DDP so you get a door-to-door outcome without running customs yourself.
How long does the whole thing take?
Build and burn-in is typically a few days to two weeks depending on configuration and part availability. Every server then flies, and forwarder delivery to any country takes 1–2 weeks door to door. We give you a realistic date on the proforma invoice.
Is there warranty support once the server is abroad?
Yes. We provide a 1-year warranty with cross-border advance-replacement RMA: when a part fails we ship the replacement to you first, so you are not waiting on a return before you can fix the machine.
Related
Specs and ships enterprise and GPU servers from our Hangzhou warehouse. These guides come from real orders and burn-in benches, not spec sheets.
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