VAT and duty is applicable when combined they total over 50 RMB Minimum Tresholds amp Duty rules Duty Calculation Duty is calculated exclusively on CIF value Most Commonly Imported Items with Duty Rates ID: 644429
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Slide1
China - Customs GuideSlide2
Duty and Tax Threshold
VAT and duty is applicable when combined they total over 50 RMB
Minimum Tresholds & Duty rules
Duty
CalculationDuty is calculated exclusively on CIF* valueMost 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 AgreementsHong Kong, China-European Free Trade Association Free Trade AgreementNew Zealand-Hong Kong, China Closer Economic Partnership AgreementNew Zealand-People's Republic of China Free Trade AgreementNew Zealand-Taipei, China Economic Cooperation AgreementPeople's Republic of China-Chile Free Trade AgreementPeople's Republic of China-Costa Rica Free Trade AgreementPeople's Republic of China-Iceland Free Trade AgreementPeople's Republic of China-Singapore Free Trade AgreementPeople's Republic of China-Switzerland Free Trade AgreementPeople's Republic of China-Thailand Free Trade AgreementSingapore-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.Slide3
Tax
Rules, Import Restrictions & Drawback
Tax Calculation
Tax is calculated on the CIF value plus applicable duties
Types of TaxVAT onlyTax RatesStandard VAT rate is 17%Some products qualify for a reduced VAT rate of 13%Common Import restrictionsRadio Transmitting Receivers Jewelry Perishables More information on Import Restrictions can be found at http://www.customs.gov.cn/publish/portal0/Returns & DrawbackNo current drawback solutionSlide4
Examples
Examples to ChinaExample 1
Sweater of 100 RMB
Example 2
Sweater of 500 RMBValue of the good100 RMB500 RMBDuty appliedClothing 16% (100*0,16)= 16 RMBClothing 16% (500*0,16)=80 RMBTax appliedVAT 0,17%(100+16)*0,17= 19.72 RMBVAT 0,17%
(500+80)*0,17
=
98.60 RMB
Total cost of goods, duty & tax paid by a client (excl shipping costs)
100 RMB
=
16+19.72
= less than 50 RMB
648.60 RMB
=
50+98.60+500