China - Customs Guide. Duty and Tax Threshold VAT and duty is applicable when combined they total...
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![Page 1: 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.](https://reader036.fdocuments.in/reader036/viewer/2022082908/5a4d1acc7f8b9ab05996fb31/html5/thumbnails/1.jpg)
China - Customs Guide
![Page 2: 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.](https://reader036.fdocuments.in/reader036/viewer/2022082908/5a4d1acc7f8b9ab05996fb31/html5/thumbnails/2.jpg)
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.
![Page 3: 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.](https://reader036.fdocuments.in/reader036/viewer/2022082908/5a4d1acc7f8b9ab05996fb31/html5/thumbnails/3.jpg)
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
![Page 4: 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.](https://reader036.fdocuments.in/reader036/viewer/2022082908/5a4d1acc7f8b9ab05996fb31/html5/thumbnails/4.jpg)
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