Global Guide to Prefabricated House Trade: Countries with Tariff-Free or Low-Tariff Imports
🌍 Global Guide to Prefabricated House Trade: Countries with Tariff-Free or Low-Tariff Imports
Free trade agreements are reshaping global construction supply chains—lowering costs and creating new opportunities for developers, contractors, and investors worldwide.
For international buyers, importing prefabricated houses (such as modular homes and container houses) from China can be highly cost-effective. However, tariffs remain a key factor influencing the final landed price.
Fortunately, many countries now offer tariff-free or preferential tariff policies for temporary and modular buildings originating from China, especially under Free Trade Agreements (FTAs) and Special Economic Zones.
This guide highlights the key regions and countries with tariff advantages, helping you reduce costs, optimize imports, and increase profitability.
✅ Countries with Tariff-Free or Low-Tariff Imports
1. ASEAN Member States (China–ASEAN FTA & RCEP)
Under the China–ASEAN Free Trade Agreement and the Regional Comprehensive Economic Partnership (RCEP), ASEAN members gradually reduce tariffs on many Chinese products—including prefabricated houses—to 0%.
| Country | HS Code | Tariff Rate | Conditions for Exemption |
|---|---|---|---|
| Thailand | 9406900090 | 0% | Form E / RCEP Certificate |
| Vietnam | 9406900090 | 9% | RCEP Certificate |
| Malaysia | 9406900090 | 0% | Form E Certificate |
| Indonesia | 9406900090 | 0% | Form E Certificate |
| Philippines | 9406900090 | 0% | Form E / RCEP Certificate |
| Singapore | 9406900090 | 0% | Form E / RCEP Certificate |
| Myanmar | 9406900090 | 0% | RCEP Certificate |
| Cambodia | 9406900090 | 0% | Form E / RCEP Certificate |
| Laos | 9406900090 | 0% | Form E Certificate |
| Brunei | 9406900090 | 0% | Form E / RCEP Certificate |
📌 Example: Since RCEP took effect, Indonesia now applies zero tariffs on over 700 categories of Chinese goods, including prefabricated houses.
2. Asia-Pacific Trade Agreement (APTA) Members
APTA members (China, Bangladesh, India, Laos, South Korea, Sri Lanka, Mongolia) grant tariff reductions on selected Chinese exports.
| Country | HS Code | Tariff Rate | Certificate Required |
|---|---|---|---|
| India | 9406900090 | 9.3% | Form B Certificate |
| Sri Lanka | 9406900090 | 0% | Form B Certificate |
| South Korea | 9406900090 | 0% | Form B Certificate |
3. Other Key FTA Partners
China has signed bilateral FTAs with several countries across Asia, Europe, Latin America, Africa, and Oceania. Many of these provide zero tariffs for prefabricated houses.
| Country | HS Code | Tariff Rate | Certificate Required |
|---|---|---|---|
| Chile | 9406900090 | 0% | Form F Certificate |
| New Zealand | 9406900090 | 0% | Form N / RCEP Certificate |
| Peru | 9406900090 | 0% | Form R Certificate |
| Costa Rica | 9406900090 | 0% | Form L Certificate |
Other FTA partners: Pakistan, Maldives, Georgia, Switzerland, Iceland, Serbia, Colombia, Ecuador, Nicaragua, South Africa, Mauritius, Australia.
4. Least Developed Countries (LDCs) with Zero Tariffs
By 2025, China grants 100% zero-tariff treatment to all taxable items from least developed countries (LDCs) with diplomatic ties to China.
🌍 Coverage includes:
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Africa (33 countries): Ethiopia, Tanzania, Uganda, Zambia, Mozambique, etc.
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Asia & Pacific (8 countries): Bangladesh, Myanmar, Laos, Nepal, etc.
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Oceania (2 countries): Kiribati, Solomon Islands.
This unilateral policy makes importing prefab housing from China to these countries tariff-free.
📊 Why Free Trade Agreements Matter
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Lower Import Costs: Tariffs reduced to 0% save millions annually for large-scale projects.
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Easier Customs Clearance: Origin accumulation rules (like in RCEP) simplify qualification for tariff benefits.
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More Competitive Pricing: Lower costs mean stronger bids for contractors and developers.
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Expanded Opportunities: Infrastructure, humanitarian aid, and housing projects all benefit from affordable prefabs.
📌 Example: In 2023, companies in Hunan, China, saved 1.185 billion CNY in tariffs through FTA origin certificates.
🔎 How to Check the Latest Tariff Rate
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Confirm HS Code: For prefab houses, the common HS Code is 9406900090.
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Check Baseline Tariffs: Verify the country’s standard tariff before FTA benefits.
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Confirm Applicable FTA: Identify agreements between China and your target country.
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Compare & Choose: Select the lowest rate option (e.g., RCEP vs. Form E).
💡 Example: Exporting container houses to Indonesia → RCEP tariff = 11%, but with Form E Certificate, tariff = 0%.
✅ Conclusion
Using FTA tariff exemptions strategically can significantly cut costs and improve profit margins for prefab house imports. With RCEP expanding and more FTAs signed, even more products will qualify for reduced tariffs.
👉 Before shipping, always confirm with official customs websites and prepare the correct Certificates of Origin to secure tariff benefits.
Disclaimer: Data is based on 2024–2025 trade agreements. Tariffs may vary by product specifications and updated policies. Always check with customs for final confirmation.