china - customs guide. duty and tax threshold vat and duty is applicable when combined they total...
DESCRIPTION
Tax Rules, Import Restrictions & Drawback Tax Calculation Tax is calculated on the CIF value plus applicable duties Types of Tax VAT only Tax Rates Standard VAT rate is 17% Some products qualify for a reduced VAT rate of 13% Common Import restrictions Radio Transmitting Receivers Jewelry Perishables More information on Import Restrictions can be found at Returns & Drawback No current drawback solutionTRANSCRIPT
China - Customs Guide
Duty and Tax Threshold VAT and duty is applicable when combined they total over 50 RMB
Minimum Tresholds & Duty rules
Duty Calculation Duty is calculated exclusively on CIF* value
Most Commonly Imported
Items with Duty Rates
• Clothing - 16%• Natural health products - 20%• Cosmetics – 5%• Wallets/handbags - 20%• CD & DVDs - 0%
• Auto parts - 10%• Footwear - 24%• Jewelry (imitation) - 17%• Vitamins – 20%• Costumes/festive goods - 0%
Free Trade Agreements
• Hong Kong, China-European Free Trade Association Free Trade Agreement• New Zealand-Hong Kong, China Closer Economic Partnership Agreement• New Zealand-People's Republic of China Free Trade Agreement• New Zealand-Taipei, China Economic Cooperation Agreement• People's Republic of China-Chile Free Trade Agreement• People's Republic of China-Costa Rica Free Trade Agreement• People's Republic of China-Iceland Free Trade Agreement• People's Republic of China-Singapore Free Trade Agreement• People's Republic of China-Switzerland Free Trade Agreement• People's Republic of China-Thailand Free Trade Agreement• Singapore-Taipei, China FTA
*CIF (Cost, Insurance, Freight: The import duty and taxes payable are calculated on the complete shipping value,
which includes the cost of the imported goods, the cost of freight, and the cost of insurance.
Tax Rules, Import Restrictions & Drawback
Tax Calculation • Tax is calculated on the CIF value plus applicable duties
Types of Tax • VAT only
Tax Rates • Standard VAT rate is 17%• Some products qualify for a reduced VAT rate of 13%
Common Import
restrictions
• Radio Transmitting Receivers • Jewelry • Perishables • More information on Import Restrictions can be found at
http://www.customs.gov.cn/publish/portal0/
Returns &
Drawback• No current drawback solution
Examples
Examples to Ch ina
Ex am p l e 1
Sw ea t e r o f 1 00 R M B
Ex am pl e 2
Sw e a t e r o f 50 0 RM B
Va l u e o f t h e goo d 100 RMB 500 RMB
Dut y a pp l i edClothing 16% (100*0,16)
= 16 RMB
Clothing 16% (500*0,16)=
80 RMB
Tax ap p l i e d
VAT 0,17%(100+16)*0,17
= 19.72 RMB
VAT 0,17%(500+80)*0,17
= 98.60 RMB
To t a l c os t o f go od s , d u t y & t a x pa i d b y a c l i e n t ( ex c l
sh i p p i ng c os t s )
100 RMB=
16+19.72 = less than 50 RMB
648.60 RMB=
50+98.60+500