China has promulgated a series of regulations to reduce import-export taxes and duties to promote a higher level of openness and domestic consumption. These changes could affect companies that import and export taxable goods and services with China.
Governing this intricate system is a central list of general principles for foreign companies to abide by. Below, we explain the three types of taxes applicable to companies importing products from or exporting products to China – Value-added tax (VAT), consumption tax (CT), and customs duties, and outline the most significant issues relating to these taxes and duties that foreign companies should take note of.
From April 1, 2019, China’s import VAT on imported goods has been lowered to either 9 percent or 13 percent, down from the previous 10 percent or 16 percent, according to the Announcement of the State Taxation Administration (STA) on Deepening the Reform of VAT (STA Announcement  No.39).
The 9 percent tax is available for certain goods that fall mainly within the categories of agricultural and utility items, while the 13 percent tax applies to other goods subject to the VAT like manufactured goods.
Taxable services provided by foreign entities or individuals in China are subject to 6 percent of VAT as before.
The import VAT can be calculated based on the following formula:
Import VAT = Composite Assessable Price × VAT Rate
= (Duty-Paid Price + Import Duty + Consumption Tax) × VAT Rate
= (Duty-Paid Price + Import Duty) / (1-Consumption Tax Rate) × VAT Rate
China’s consumption tax (CT) is imposed on companies and organizations who manufacture and import taxable products, process taxable products under consignment, or sell taxable products.
Imported products taxable under China’s consumption tax include those that are harmful to one’s health like tobacco or alcohol, luxury goods like jewelry and cosmetics, and high-end products, such as passenger cars and motorcycles.
For imported goods, the consumption tax rate varies depending on the type of product being brought into the country.
Calculating consumption tax can be done by using either the ad valorem method, quantity-based method, or the compound tax method. The formulas to compute the consumption tax are as follows:
Consumption Tax Payable = Taxable Sales Amount × Tax Rate
Consumption Tax Payable = Taxable Sales Quantity × Tax Amount per Unit
Consumption Tax Payable = Taxable Sales Amount × Tax Rate + Taxable Sales Quantity × Tax Amount per Unit
Customs duties include import and export duties.
Customs duty rates on imports include most-favored-nation (MFN) duty rates, conventional duty rates, special preferential duty rates, tariff rate quota (TRQ) duty rates, general duty rates, and provisional duty rates for imports that may be implemented for a specified period of time.
Customs duty rates on exports are set with one type. But likewise, there might also be provisional duty rates for exports that can be implemented for a specified period of time.
From January 1, 2021, a total of 8,580 imported items and 102 exported items have been taxed in China, according to the Notice on the Tariff of Import and Export of PRC (2021) (Tariff Commission Announcement  No.11). You can check out the master list of various customs duty rates for the affected products here.
Customs duty rates on import goods consist of:
MFN duty rates apply to the following goods imported to China:
MFN duty rates are the most commonly adopted import duty rates. They are much lower than the general rates, which apply to non-MFN nations.
Starting January 1, 2021, China has adopted provisional duty rates on a total of 883 imported commodities which are subject to the MFN duties, and provisional duty rates are lower than the MFN tariffs, according to the Notice on Adjustment Plan of Import Temporary Tax Rate in 2021 (Tariff Commission Announcement  No.33).
Among them, cancer drugs and materials for making rare disease medicines will be tax-free when they are imported to China; import tariffs on heart valve prosthesis and hearing aid will also be reduced. Besides, China has scrapped provisional duty rates on solid waste imports and resumed the MFN duty rates.
In addition, from July 1, 2021, MFN duty rates on 176 of 484 information technology products will be further been trimmed, including on medical diagnosis machines, speakers, and printers.
The complete list of adopted provisional duty rates for 883 products and the to-be-reduced MFN rates for 176 information technology products can both be found here.
Conventional duty rates are applied to imported goods that originate from countries or territories that have entered into regional trade agreements containing preferential provisions on duty rates with China.
So far, China has signed bilateral or multilateral free trade agreements with more than 20 countries or regions. Imported goods originating in these countries and regions will be subject to conventional duty rates, which is normally lower than the MFN duty rates.
From January 1, 2021, China has reduced conventional duty rates with New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Georgia, Pakistan, and Asia-Pacific Trade Agreement countries.
Also, except for the products to which mainland China has made special commitments in relevant international agreements, zero tariffs will be applied to all products originating in Hong Kong and Macao.
Special preferential duty rates are applied to imported goods originating from countries or territories with trade agreements containing special preferential duty provisions with China. They are generally lower than MFN rates and conventional duty rates.
China’s tariff rate quota (TRQ) rates apply to eight categories of goods: wheat, corn, rice, sugar, wool, cotton, and fertilizer.
Under tariff rate quota (TRQ) schemes, goods imported within the quota are subject to a lower tariff rate, and goods imported beyond the quota are subject to higher duty rates.
For example, the TRQ rate for importing wheat products within the quota is as low as 1, 6, 9, or 10 percent – substantially lower than the MFN duty rate of 65 percent and the general duty rate of as high as 130 percent or 180 percent.
General duty rates apply to imported goods originating from countries or territories that are not covered in any agreements or treaties or are of unknown places of origin.
China usually updates provisional duty rates for certain imported goods annually in order to boost imports and meet domestic demand.
Where there is a provisional duty rate for the imported goods to which MFN tariff rate is applicable, the provisional duty rate should apply. Where provisional rates are applicable for imports on which conventional or special preferential duty rates apply, the lower of the applicable rates should apply. Provisional rates do not apply for imports subject to the general tariff.
Export duties are only imposed on a few resource products and semi-manufactured goods.
From January 1, 2021, China continues to impose export tariffs or impose provisional export duties on 107 export commodities with fixed and unchanged tax rates.
Considerably higher rates may be implemented according to Chinese regulations regarding dumping, anti-subsidies, and safeguard measures. Retaliatory tariffs could also be applied to goods originating from countries or regions that violate trade agreements.
Over the course of the US-China trade war, China has imposed retaliatory tariffs on US$185 billion worth of US goods, including beef, lamb, pork, vegetables, juice, cooking oil, tea, coffee, refrigerators, and furniture, among many other items.
At the end of 2019, China had released the Catalogue of State-supported Key Technical Equipment and Products (2019 version) and the Catalogue of Imported Key Components and Raw Materials of Key Technical Equipment and Products (2019 version), which took effect on January 1, 2020.
Importing certain key components and raw materials or exporting certain key technical equipment and products listed in the catalogue to eligible Chinese domestic enterprises is exempt from import VAT and customs duties.
The amount of import taxes and customs duty payable is calculated based on the price or value of the imported goods. This value is called the duty paying value (DPV).
The DPV is determined based on the transacted price of the goods – that is, the actual price directly and indirectly paid or payable by the domestic buyer to the foreign seller, with certain required adjustments.
DPV includes transportation-related expenses and insurance premiums on the goods prior to unloading at the place of arrival in China. Import duties and taxes collected by customs are excluded from DPV.
Import taxes and duties payable can be calculated after determining the DPV and the tax and tariff rates of the goods. The formulae are:
Import taxes and duties payable can be calculated after determining the DPV and the tax and tariff rates of the goods. Similar to consumption tax, customs duties are also computed either on an ad valorem basis, quantity basis, or compound formula. The formulas are:
Duty payable = DPV x Tariff rate
Duty payable = Quantity of imported goods x Amount of duty per unit
Duty payable = DPV x Tariff rate + Quantity of imported goods x Amount of duty per unit
Import taxes and duty payable should be calculated in RMB using the benchmark exchange rate published by the People’s Bank of China.
The tax base for export duties is the same as import duties – that is, the DPV.
The DPV for export duties is based on the transacted price, that is, the lump sum price receivable by the domestic seller exporting the goods to the buyer.
Export duties, freight-related expenses, and insurance fees after loading at the export spot, and commissions borne by the seller, are excluded.
This article was originally published in March 2013. It has been updated on June 11, 2019, July 15, 2020, and January 7, 2021.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at email@example.com.
We also maintain offices assisting foreign investors in Vietnam, Indonesia, Singapore, The Philippines, Malaysia, Thailand, United States, and Italy, in addition to our practices in India and Russia and our trade research facilities along the Belt & Road Initiative.
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I read your publication about the current Chinese export-import tarriff system with interest.However,I am short in getting answer for my immediate question.Perhaps you could help me,I hope
Is there any export duty imposed in China for 2013 for the commodity ISRI 27-28-29 used rail products?This is in the category of ferrous metal scrap.
Your early reply is appreciated.
Truly Yours,Laszlo Varadi
Dear Laszlo; Thank you for your question – I have intructed one of our staff at Dezan Shira & Associates to reply to you directly via your email.
Best regards – Chris
Dear Mr. Devonshire,
we are exporting weekly goods to Shenzhen district, but in last months it happens that a lot of containers have been stopped to Customs since Customs agents request specific declaration on the amount od Insurance Premium. For us it’s extremely difficult to declare this amount for each invoice since we pay a yearly premium.
Our Insurance compeny prepared a yearly declaration for Chinese Customs but it has been rejected…..
Moreover in February we increased some prices and Customs rejected our invoices!!! They told us to declare the reason of the increasing!! So, in accordance with customer, we decided to change all the commercial names of the items in order to avoid confusion!
We are a lit bit confused since we are working all over the world without problems.
which is the limit of action of the Chinese Customs?
is it correct they analyze our price policy?
What should we do in order to avoid troubles?
Thanks for your cooperation. Best regards. Paola Maffei
Dear Paolo, thank you for your comment.
Let me address the two main points you brought up:
Customs does not accept annual insurance declarations. However the Customs officer should advise the exporter how to make the declaration, so that this technicality can be resolved easily.
The exporter has the right adjust the prices of products. Customs does however check and asks for explanation of the adjustment. This is done to understand the reason for the change and to avoid human error.
I’m sending you a separate email as well with a few more insights on how to move forward in your specific case.
I am looking at setting up a repair centre in Guangzhou to repair my hearing aid devices, the idea would be to have all Asia Pacific countries to ship to Guangzhou for repair and then the repair centre to ship back to those countries. Currently I am going through many websites to understand all requirements, duties & VAT so I can complete a cost comparison to our current process, I am looking for as much information as possible and hoping that you can help me out.
Looking forward to your reply
@Fernando – my colleague Fabian Knopf from our Guangzhou office will reply to you directly.
I’m trying to launch a new range of gym equipment for distribution in India.
I know a dealer in town who has his equipment made in china. I too am trying to break into
this business and I’m confused as the information regarding taxes and pricing keep changing from person to person that i’ve come across. Can anyone give me information how I should proceed?
@Abdul – we have offices in both China and India. I have emailed you personally with details. Kind regards – Chris
I’m looking to ship polyester material from Shenzhen, China to San Juan, Puerto. What would the taxes be from China to ship material?
Hi Mark, thank you for your questions.
As mentioned in the article, export duties are only imposed on a small number of certain goods. In order to confirm the duties on export for polyester, we can check with the Customs Bureau. We will follow-up with you about this in a separate email.
I plan to import POLISHED PORCELAIN FLOOR TILES from Fushan, China, to Pakistan. Will be grateful to know any export tax / FTA or some other tax and the rate of tax applicable to this item. Thanks.
We are having our supplier in India, ship an individual component to our supplier in China, who assembles the entire product using this Indian component, packages and ships the finished assembly to our company in the U.S.
How do we avoid having our Chinese supplier pay a lot of duties and taxes on the component from India, when they are turning right around and exporting the component as part of the total assembly?
I am an Australian boat builder who is looking to get our boats built in China and then shipped back to Australia to sell. My question is what amount of Import tax and duty do I have to pay if I buy and ship the aluminium material from Singapore to the boat building yard in China ? Do I get any refund when the boat produced from this material is shipped from China back to Australia ? Looking foward to your thoughts, Adam.
Thanks for your question. The duty payable in China on imported aluminium into China could be zero if the boat building yard is located in a export processing or bonded zone. In this way they can be shipped to China, worked on but as the product is not intended for the Chinese domestic market they do not ‘officially” enter China. So you need to find a boatyard located in such a site. Otherwise duty will be payable, and as the product is not meant for the China market this just adds an unnecessary – and avoidable – element to the end cost. Let me know if you need assistance with site location, we have clients in the boat building industry in China. – Chris
We are a boat building company based in Indonesia. We plan to export a newly built 32 meter luxury yacht into Hainan, China. We will cruiser her straight from Jakarta into Hainan. What sort of taxes will my customer come across with the importation of this yacht? Just keeping a heads up for my client.
@Brian – thanks for your enquiry – I have responded to you directly via email. – Chris
Hi! Good day.
I need to know the import duty for canned tuna coming from El Salvador to China.
HS code: 160414
Also, where can I see a complete list of import duties by HS code?
Thanks in advance.
@Astrid – There is a search function on the official website of China Customs and Import duties of various goods abd their respective HS codes that can be found here:
For canned tuna, the lowest tax rate is 5 percent, the normal rate is 90 percent, and the value-added tax is 17 percent.
I would like to buy aluminium ingots from China, then transport to Turkey
Is there a export tax for aluminium ingots?
Thanks for your help
@Haluk: There are four different kinds of aluminum ingots listed under the China Custom’s Online Service Center. The site is in Chinese but does have a search function. It’s here: http://service.customs.gov.cn/default.aspx?tabid=9409
Anyway, exporting aluminum ingots from China is subject to both export duty and value-added tax. The tax rate of VAT is always 17%, while the export duty rate is 15% for such resources.
Best regards – Chris
Good day to you all,
i was trying to use link (http://www.customs.gov.cn/publish/portal0/tab9409/) for seaching HS codes by myself but i was not succesful. That page did not let me trough its verification code. So i decided to ask here and i would be grateful for any reply to my email.
My company is starting business with importing goods to Europe from China. I have a regular discussion about export duties with my china suppliers. I would like to have some sort of credible source which would give me straight and clear information about real export duties which my china supplier is facing. Is there some credible government source like this in english language?
We are importing to EU mainly HS8443999090 and HS4811900000, HS3703900000. Can i ask about real export duties with these goods? Im especially interested if i had to pay 17% China VAT when im exporting these goods from China to Europe.
Thank you very much again for any reply to my mail.
I have some issues with my commercialization strategy, your article was really useful but I wonder if there is any chance to email you with some doubts. I am planning on exporting menswear to china,
@C – I have sent you an email directly. Best regards – Chris
I think the problem you are facing on that website is that you are putting the “HS” in front of the code, which doesn’t work. You just have to put the numerical code in directly. However, yes it is only in Chinese and can be a bit confusing.
But I did research on the typical rates for the goods you mentioned and these are listed below:
HS8443999090 – 0% export duty, 17% VAT but could be subject to 15% export VAT refund
HS4811900000 – 0% export duty, 17% VAT, 0% VAT refund
HS3703900000 – Code “Does not Exist”
Hope that helps
Our China site has been importing goods from different countries. We had encountered an issue where in the China Customs is taxing us base on a higher value. We bought the goods from Singapore for like .05/unit. China customs is taxing us base on 0.162/unit. They do not accept that the real price for the item is just 0.05/unit.
What should we do?
I am administrating an international school in mainland china, and I want to order some textbooks from America. The American textbook publisher requires me to provide my customs registration number before I can complete the order, but I’m finding it very difficult to find out how to get such a number.
Can you provide me any information on shipping textbooks into mainland china, and/or information about the customs registration number?
@Herbie: You need to provide proof to China customs that the goods were purchased at the amount you said. However they do keep a database of prices on gloablly traded products to ensure the correct amount is being declared, and they can and do impose what they feel is the correct dutiable value on the goods if they wish. You need to negotiate with them and provide hard evidence of proof of the true cost. – Chris
@Nathan: Bringing in school textbooks from overseas can be very difficult as the Chinese government monitor very carefully the publications that can be brought in. It’s not just a matter of customs, it’s also a matter for several other Government departments as well, including the Ministry of Education and the Ministry of Propaganda. You will need professional assitance with this. I have sent you a personal email to discuss. – Chris
Dear Mr Devonshire,
Apologies if you have already answered this question before.
Can you let me know if there is a website where I can check the import duty rate of importing goods from HK into China?
Thanks and kind regards
@Kian – this China Ministry of Customs website lists all the applicable duties on HS codes for goods imported into China: http://www.customs.gov.cn/publish/portal0/tab9409/
It’s in Chinese, but just type in the HS code (only the number) and it’ll search and provide details. – Best regards – Chris
If a local Chinese living in PRC purchases Gold or Silver in either bars or coins from the UK but wants them sending to him/her from the UK to PRC, then are these items subject to any tax.?
Could you please help me check what are the HS codes of quartz-based engineered/artificial/man-made stone and natural stone (marble/granite) exported to China? Is it 68101100 or 68101910 or any number else?
Thank you in advance.
@John Scott: According to China’s customs regulations, gold, silver and the products made from them are duty-free and do not need to be declared if they are less than 50g (2 ounce) in weight. If the amount exceeds the limitation, you should declare it, and duty will be payable. On another note, I wouldn’t be sending gold or valuables through the post or even courier to China. It would be far safer to collect in UK and bring it back in personal luggage.
Artificial stone- HS code:6810191000
Lowest tax rate: 10.5%
Normal tax rate: 70%
Value-added tax rate: 17%
Natural stone- HS code:6801000000
Lowest tax rate: 12%
Normal tax rate: 70%
Value-added tax rate: 17%
Best regards – Chris
I would like to know ,Is it possible to buy a new made in China car and send it to my country(Saudi Arabia)?
Is there any tax exemptions in my case as it`s for personal use only?
can I buy a car from the manufacturer directly,because I want to add my personal needs` and modifications in the car?
can you kindly supply me with the names and address of the best chines cars manufacturers? and the tax rules and regulations in China.
thanks for your kind cooperation..
@O.A. Al Kabeli: You will be able to claim back the VAT upon export of the vehicle.
As for Saudi import duties, you’ll need to talk to a good tax agent there.
Modifications and so on you’re best talking to the manufacturer directly, and there are so many – you’ll need to conduct your own online research on that as I have no idea what specification or type of vehicle you want.
Best regards – Chris
Good Afternoon Mr Chris Devonshire-Ellis!!
I intend to import to the Philippines some stuffed toys (animals – dog, cats, etc.) coming off from a plant in China. My supplier intends to impose their local taxes on top of my acquisition cost. We are willing to accept this term. My question is: how would I know if proper taxes were really levied on the goods? I would like to know how it is calculated and their Tariff rates for such. Reason here is I would like to be fair and have a check & balance protocol for this “at-my-cost” field. Thank you!!
@Virgil: Tariff rates for all kinds of goods can be found here:
Stuffed toys- HS code: 9503002100
Lowest tax rate: 0%
Normal tax rate: 80%
Value added tax rate: 17%
Dear Mr Chris Devonshire-Ellis,
Our company is supplying business partners in China with special metal goods of purpose for car industry produced and developed in EU. Just recently custom in a way blocked one of last shipment and making complete due diligance of supplier and importer and finialy asking for paying of waranty fee, extra duty tax.
Would you be so kind and reply on my e-mail with with your suguestions and anwsers why this happen and how to resolve it?
Thank you in advanced for your reply.
@Deyuan – email sent.
I propose exporting rooibos tea(indigenous to South Africa) to China.As part of the BRICS’s trading block what are the import and or customs duties from South Africa to China?
We are looking to ship boats to China for sale in China. Let’s say the cost is $15,000 U.S dollars. What would be the taxes on this?
What if we decided to make the boats in China and use the materials available?
Thanks for your assistance.
@Rob Read: There are over seven kinds of HS codes for tea in China, however, none of them are specifically for the ‘Rooibos tea’ you enquired about. Overall, tariff duties for various kinds of tea are the same in the country. Specifically:
Lowest tax rate: 15%
Normal tax rate: 100%
Value added-tax rate: 13%
@Bryan Horridge: In China, tariff duties for a boat vary a lot depending on the size, engine and intended purpose of each boat. We need more information on the boats you intend to manufacture so we can provide detailed tax rates. You can email to firstname.lastname@example.org to get in touch. We’d also need to know the place of manufacture in China.
If you decide to make the boats in China and use the available materials in the country, the purchase of such materials and the sale of the finished boat is subject to value-added tax and consumption tax.
Best regards Guys – Chris
We are planning on making large quantities of copper imports from US to China. Much of the material may be raw, unprocessed scrap metal. What would be the tariffs I am looking at?
Thank you for your time!
Copper – HS code: 2603000090
Lowest tax rate: 0%
Normal tax rate: 0%
Value-added tax rate: 17%
Best regards – Chris
we are planning to import small amounts of DAP fertilizer and urea into Australia, what would we have to expect to pay in tarriffs for this?
I am ordering 400 Christmas Stockings from China, and have no experience with importing from China. How do I figure what the tax would be?
I failed to mention that I will be importing to the United States.
@Josephine: You’ll be helping make a lot of small children very happy on Christmas Day.
There’s no tax due when you buy product from China, just the purchase amount and the shipping costs which your supplier should be able to advise. However you may face import (customs) duties in the US.
There is an international system in place so that customs officials across each country and around the world can understand each other in relation to specific products. It is called the “Harmonized Tariff Schedule” (commonly referred to as the HS Code) and means nearly all products have a specific code number. If you know that number you can refer to the import duty as applicable in any country.
The US Harmonized Tariff Schedule is online here: http://hts.usitc.gov/
If you look up Christmas Stockings (probably under decorative stockings) that’ll give you the HS Code and you can find the import duty applicable in the United States.
That will tell you how much the total cost of these items is including purchase, shipping and US import taxes, and from there you can work out how much you need to add to that (marketing, transportation, packaging and your profit) to make this a viable business proposition.
Good luck with that (and an early Merry Christmas) – Chris
Your column is very insightful, thank you for writing it.
My company imports from China. What are the tax rates, and how do we get VAT back? From where do I get the information about logistic, foe example what roots are the shortest how much the prices are, what are my benefits from importing from China etc..
@Miss T: You can only claim back VAT in China if you have a legal presence there. However, your supplier should be deducting part of this from your invoices as they can claim VAT back when they export to you. If they are charging you the full 17% VAT then that is a mark up on your invoice that should be questioned.
In terms of logistics, you need to talk to a shipping company, and I suggest you google for that.
Best regards – Chris
We are exporting boats (luxury yachts) from China to HongKong, Europe and USA. We are looking for the exact types of certifications we need as it seems it is different if the boat is shipped by cargo or sailed on her own bottom.
It is hard to find regulation about the certifications (CE, Module B, Module F, CCS…) needed in each case. I know it is not the exact subject of the article but maybe you can help.
@Em: When exporting boats from China to other countries, the enterprises need to apply with the Chinese customs and submit all the required materials, including the application form, information of the ship and names of the crew. If such application has been approved, the customs will issue a certificate that allows the boat to exit the Chinese port. In terms of the type of the certification, it depends on the imported country of the boat. For example, CE certification is required for all recreational boats entering or sold in the European Union, while CCS certification may be required for importing boats to China.
This is quite a complicated procedural process. If you need assistance please contact one of our China offices for professional assistance with customs: email@example.com
my company wants to export rail scrap from south africa to china. what kind of taxes and duty are applicable
@Trust – The common import rate of rail scrap is 8%. Minimum rate is 0% if there are relevant treaties applied. The VAT rate is 17%.
Best wishes – Chris
I’m looking for some information on import duties if anyone is happy to help 🙂
I will be exporting watches from Hong Kong and importing to China does anyone know what duties i would need to pay?
Also what would be the case if they were pre-owned watches not new products
@James – There are six kinds of HS codes for watches in China, and tariff duties vary a lot depending on the materials and brands of the watches. Specifically:
Lowest tax rate: 11% – 23%
Normal tax rate: 80% – 100%
Value-added tax rate: 17%
Consumption tax rate: 20%
As China and Hong Kong have signed a series of CEPA deals, watches recognized by Chinese government as “Hong Kong’s Own Brand” can enjoy zero import tariff treatment when exporting to China. A full list of Hong Kong’s own watch brands can be found here:
As at now, pre-owned watches are not allowed to be exported to China.
For your information, Chinese brands such as Seagull http://www.seagullwatches.com and the French-Chinese brand The Chinese Timekeeper http://www.thechinesetimekeeper.com are gaining more in desirability because they are making some very fine watches and are Chinese in origin.
Best wishes – Chris
i am looking some information.i am from Bangladesh.If i import Ready made Garments (RMG) from Bangladesh what is the tax rate or tariff duties?can someone let me know?
I’m a student and actually i’m doing my master work about China market for a company.
Currently I am going through many websites to understand all requirements, duties & VAT so I can complete a cost comparison to
current process, I am looking for as much information as possible and hoping that you can help me out.
Looking forward to your reply
@Solaiman Siddique: There is some variation about the exact HS code for these products as RMGs made by different materials vary a little within their normal rate. Generally, the minimum tariff rate is 16%, and normal rate ranges from 9% to 13%. They are also subject to 17% VAT.
@Nuno: I will send you a back issue of China Briefing magazine on the subject, also please use our ‘search’ function on this website at the top of the page, Just type in “VAT” and it’ll provide you with all our articles on the subject.
Hope that helps guys – Chris
We have been offered a MGO manufacturing plant in Nanjing in an ordinary manufacturing zone, not an export zone that I am told holds an export licence, Need advice we wish to purchase PC items out of China doors windows and produce our own MGO board in china for our own use back in Australia for housing construction, First is the export licence an advantage?
Do we need to been in a tax free zone, and I am told there are many empty factories available
that can be obtained thru Government to help with employment, Do we have to have Chinese partners to set up in China.
@Alfred – my colleague Richard Cant in the Shanghai office of Dezan Shira & Associates will contact you directly via email concerning this issue. – Chris
Sir or madam,
What is the China Customs duty rate for the importation by individuals (entering at the airport with said items in possession not intended for sale) for gold and silver coins and bullion that exceed 50 grams. And, how is the dutiable value determined on the coins, by their face value or weight??
Thank you very much.
@Mr. G: Gold and silver coins and bullion that exceed 50 grams in weight being brought into China are required to go through custom declaration. Chinese customs will determine how many quantities of gold and silver exceed their “reasonable range for self-use” based on relevant criteria. For excess self-use they items may be subject to import duties at 10% on their recent market value.
Best wishes – Chris
i have been exporting many goods to different countries from china
recently some of my competitors have tried to contact my custom agent in china and tried to get the information of the invoices i submit for custom clearance of my goods
i need to know if custom agent can freely provide this information to any third party for my goods?
if yes then can i take legal action for this??
moreover can i take legal action against the competitor for this action?
awaiting for valuable advise
@Jorge – No, your customs agent should NOT be divulging this information to your competitors. But that doesn’t mean that he isn’t. If you think he is leaking this data then I suggest changing your customs agent. It would be difficult to bring a legal case in this instance, although I agree it is wrong it would be a very hard case to prove. – Best regards – Chris
Hello I am looking at exporting plastic decking material to Hong Kong from England. Please advise the necessary taxes I have to allow for. Can you please confirm ASAP. Thank you
@Titus: Hong Kong is a free port and does not impose any customs tariff on imports and exports except for four types of dutiable commodities: liquor, tobacco, hydrocarbon oil, and methyl alcohol. So you have no customs duties to pay when shipping the items described to HK.
Best regards – Chris
Hi, I just want to know, is it possible for us to expor product (from China to Indonesia) whereas we don’t have registration number for this product?
Thank you, Yuni
We are looking to export Centrifugal fans to China and are keen to know how duties and taxes would be calculated and if there is a different rate if the fans are assembled or shipped as components.
@Yuni – You need to find out the HS code for the product. This is an internationally recognized code that customs officials worldwide use to identify specific products. If you don’t have this you will be unable to export it from China or import it into Indonesia as no-one will be able to identify what it is. So you need to find this out. I suggest you visit http://www.hscode.org to help identify the relevant number.
@Bill – The common rate and minimum rate for import duty of Centrifugal fans are 30 percent and 8 percent respectively, and 50 percent and 0 percent for fans with power less than 125w. Tax rate is usually lower for importing components and then assembling in China. However, the customs of China will assess the value of the components, and if the total price of the components accounted for more than 60 percent of the price for a complete equipment, tax rate for complete equipment will be applied.
Dear Mr Devonshire,
Apologies if you have already answered this question before. Can you let me know if there is a
export tax for copper rod 8 mm size from china to Dubai, is it come under rare earth metal
waiting for your valuable advice
thanks and regards
Hello I am looking at exporting computer hard disk drive to india from
china. Please advise the necessary taxes I
have to allow for?
@Said Mansoor – The copper rod is under the “copper bars, rods and profiles” section and the export tax rate from China is 0% (zero). – Chris
@Sam – Well that’s really an India import tax question. But we can answer that we have offices in India. On the hard disks imported into India, Basic Customs Duty is zero. However, a Counter-Vailing duty @ 6% and Central excise and customs education cess are imposed @ 3%, each. Further there is Special duty imposed @ 4%.
Best regards – Chris
We are interested to export Aluminum scrap wheels from China to the USA.
Would you kindly advise what export taxes or other costs may be involved if any?
Thank you – best regards, Stephen
I’m working on a cost simulation for selling Lithium Carbonate ( it seems that HS 28369100 covers both technical/industrial grade and battery grade) to countries in the Asia Pacific block and eventually Europe. As far as what I’ve learned from your different answers, exporters would get the VAT back on one side and the Chinese company wouldn’t pay duties if it reimports a purified product within 6 months assuming the company exports a product concentrate to Vietnam (for instance) where it gets purified (No HS# change though).
All that said, what are the regular export duties for Lithium Carbonate ? If exceeding the 6 months to re import, what would be the import duties then?
Many thanks in advance and great learning from all your wise comments.
@Stephen W –
Aluminum Waste or Scrap
HS code – 7602000090
Export Tax Rate – 15%
Best regards – Chris
@David: The HS Code 2836910000 covers all types of lithium carbonate, and the export rate from China is 0%.
If the lithium carbonate failed to be re-imported within six months, you can apply for extension with relevant customs and such period can be extended for another three months upon approval. However, if the lithium carbonate failed to be re-imported within nine months after being exported, the regular import duties shall apply.
Import duties for lithium carbonate are:
The lowest tax rate – 2%
The normal tax rate – 30%
We are a rope manufacturer in the US. We are exporting some cordage to a manufacturer in Qingdao China that will add them to sport bags they are making for us. They will ship the finished product back to us in the States. Will there be taxes and duties placed on this item in China ? Should I place any special wording on the commercial invoice to eliminate taxes since this will be used for manufacturing and shipped back to us. Thanks
hi , I have export out good frequently to china, and every time I stuck with china custom, due to import licence in china, how should we go about applying for this licence, and as for custom duty is there any bench mark or how percent charge ??
@Mark: You shouldn’t face any export duties on these items – but it’s best to check that the manufacturer won’t add on any unnecessary surcharges. Let us know if you need assistance with this.
@Sharim: You can get an Import-Export license by setting up your own Trading Company in China. Our China Briefing magazine issue “Trading With China” details this and can be downloaded here: http://www.asiabriefing.com/store/book/trading-with-china-398
Again, if you need assistance with the setup procedures let us know. In terms of duties, they vary from product to product but the same rate should always apply for each specific item unless regulatory changes occur to adjust this.
I am curious about the taxes and duties I would have to pay if say I purchased tobacco products, more specifically, 100 Cuban cigars, from Hong Kong to China mainland (Shandong province). I am having a difficult time attempting to figure this out (new to the system).
Thank you, very much appreciated.
You have a wonderful resource here with Asia Briefing and I’m a regular reader of the magazine and newsletter. My situation is I live in Shanghai and am interested in having 8 oil paintings shipped to me from a friend in the States. Will there be any trouble with customs, and if so how do I go about taking care of this ahead of time and avoiding any hassle? How would any import duty rate be implemented on something like artwork where prices are largely speculative?
Separate question – these will be for my personal collection, but if I want to sell one or two off in the city down the road what will my tax liabilities be?
Thanks from a fellow aficionado of the arts
@Art Collector: Personal articles will be considered as import and subject to import duty when the value of a single article exceeds 1000 RMB and has been determined by the customs as “not for personal use”. Once the paintings are considered imported goods, the import duty = duty paying value * import duty rate. The import duty rate is temporarily reduced to 6% for oil paintings since 2012, and the duty paying value of the paintings will be determined by either the price on the invoice or the recent market price of similar goods from the same source, whichever is applicable.
Incomes from selling the paintings will be subject to individual income tax (IIT). The IIT rate is usually 20%. 3% IIT rate will be applied if the original value of the painting is unable to be determined. If the sales are conducted by an enterprise, the incomes will be subject to corporate income tax instead, with the tax rate of 25%.
Value-added tax will be imposed at 4% on the auction company if applies. The consignor is not subject to any VAT.
I never import such items into China anymore, even for personal use as sometimes things have just gone missing. I’d certainly never rely on China Post, who have a 50% failure rate of delivery whenever I’ve had things sent in from overseas. I’d encourage you to ship to Hong Kong and then hand carry in.
Hope that helps – Chris
Please let me know:
1- what is the export VAT rate for Mobile SD Card HS Code: 85235100 and Roots Blower HS Code: 8414599010 ???
2- Does this export VAT rate differ from city to city in China?
3- Can we get back this VAT after export?? if so, how?
4- How much of the paid VAT will be paid back to us for above items?
Thanks a lot!
@Adeleh: The VAT rate for both SD cards and Roots Blowers are 17%, and the rate is the same for the same products in all cities of China. The VAT is included in the price you paid to the suppliers. After the export, you could file export refund at local tax bureau. Currently, the VAT rebate rate for both of these products are also 17%, so all of the VAT paid will be paid back. The process will take months though.
Many thanks for your reply.
I have to say that roots blower is not manufactured in China. It is going to be imported from France to China and then to be re-export from China. Please confirm if 17% VAT rat and 17% VAT refund rate is still applicable or not??
Thank you again!
Could I ask if I export brass parts made in Australia to China for processing and then shipped back to Australia, I understand that there will be duties and VAT etc that is unavoidable on the import transaction into China, however as I am not actually selling anything to China, can I declare a nominal value – for example 5000 parts would in reality cost say $20,000 – can I declare $1 per part – so just $5000. No actual payment is made for the parts – the only transaction is a payment from Australia to China for the reprocessing and return shipping. Thanks in advance.
@Ian: This type of processing service is characterized as “processing with supplied material” (PSM) by the Custom and the Tax bureau. Under PSM, no tariff, VAT, or consumption tax will be imposed as long as the quantity of the parts imported match the export quantity of the processed parts. The relevant information of the parts will be put into a manual issued by the Custom when the parts coming into the country. Also the processing company in China must have the qualification approved by relevant government authorities to conduct PSM.
Hi! We are purchasing plastic packaging from a factory in Shenzen. This packaging will then be shipped to a factory in Taishan. This Taishan factory manufactures the product and will load the product into the packaging. This is all being done and paid for by a US based company. The packaged products will then be exported to the US. Should we be paying VAT taxes on the packaging from the Shenzen factory to them? Or would the Taishan factory who is doing the final packout and shipping bill us for the entire VAT tax total?
Thanks for all the information on this page. I’m trying to find out what regime applies to Chinese export of rolled aluminium. Is there a rebate, and if so does it apply to both the export tax and VAT, or just VAT. I am trying to work out the price of exported aluminium from China, if you have any information on internal pricing within China or links to where I can find that information that would be excellent.
@Faye C: The Taishan factory will pay VAT for purchasing the packaging, and this amount of VAT is included in the price of the packaging paid to the Shenzhen factory. For example, if the original price of the packaging is 100, then the final price that Taishan factory will pay for will be 117 (100 plus 17% VAT). If the buyer of the packaged products produced by the Taishan factory is a company in China, then this amount of VAT can be passed to this buyer (again included in the selling price, which will be 117 plus 17% VAT = 136.89).
Therefore, yes, usually the final consumer will bear the entire VAT generated from all value chain. However, when the Taishan factory export the products to the U.S., it can apply for VAT rebate after the export. The VAT rebate rate depends on the product and varies from 5% to 17%. Usually, the foreign buyer could bargain the price with the exporter to cut the part of VAT that the exporter could get back later from VAT rebate.
@Pierre Shepherd: Only the VAT can be refunded. There is no rebate for export duty. The export rate for rolled aluminum varies from 0% to 15% depends on the application of different HS code. The internal pricing model varies for different company. Generally, the price would include all the costs (material, labor, transportation, etc. ), and export companies usually want to put the cost of VAT in the price as well even if they could get the amount back after the export through VAT rebate. All in all, the final price depends on the bargain and negotiation with the sales person of the export company.
Your website is very helpful and I thought I would trouble you with a question since you all have been so willing. We are importing engines to China from the United States in order to attach them to lawn machinery that will then be immediately exported to the United States. In other words, the engines are only in China long enough to be assembled into a machine and then exported back to their country of origin. Will the engines be taxed by the Chinese government on either end of this transaction? I greatly appreciate it if you could point me in the right direction.
@Mike – It depends upon where the assembly is taking place. Ideally this should be based in a free trade or other bonded zone – the engines are imported into the zone (but not into the mainland as they do not pass through customs). Then they can be re-exported as a finished item with the lawn machinery. VAT can also be claimed back upon export on the Chinese sourced component as well.
If the assembly is taking place after the engines are imported into China then this is inefficient – you are paying import duty on the engines and then have to wait to complete the assembly to claim that – and any VAT – back.
Hope that helps. Email us if you need further assistance: firstname.lastname@example.org
I purchase many ceramic vase decoration from Jingdezhen. total is FCL 20 feet.
Will try to send from Jiujiang,Jianxi Port.
I want to send it to Indonesia port in Medan.
But I confius with the shipping cost from China to Indonesia,
because every agent I ask give different cost to be paid.
I want to ask what include in the shipping cost from China port to Indonesia Port.
@Ester – well shipping is a competitive business so you are getting competing quotes. However I’d recommend using a broker that is well known and reliable, and suggest doing some homework on who they are and their reputation when choosing which one to use.
Best regards – Chris
I would like know about the import taxs on importing used books for six school libraries. The used can be bought bought for $200 for about 800 books
@Debra: Importation of educational material in China isn’t just a matter of import duties, its also a matter of having them approved by the Ministry of Education. China also has a monopoly on all imported books, magazines and so on and this is a very difficult area to make any headway. Publishing and selling books to China is not a viable business, take my word on this.
Best wishes – Chris
We are looking to export scrap copper millberry from China to Australia can you advise all tax and duty we will encounter in China. Thanks. Barry Eadie.
@Barry: For export of scrap copper millberry from China to Australia, the following taxes and duties shall apply:
Export tax rate: 11%
Value-added tax rate: 17%
We are looking to import slate into china for use in producing product which will be exported to North America. What is tax and duty on slate from India to China
@Doug: Depending on the material of the slate (e.g. marble, granite) and the process procedure (e.g. polished, unpolished), the common import rate ranges from 70 percent to 90 percent. If the tax treaty applies between India and China, the minimum import rate could apply, which ranges from 0 percent to 10.5 percent. Import VAT rate is 17%.
hi. i dont know if im out if toppic , i wish you help me.
i want to report a china seller for cheating taxes. i pay 435$ he write in receipt i pay 100$. a link for china taxes reports? thank you
We’d like to get hospital linen and gowns made in China for us to sell in Australia.
We must provide our specialised woven polyester textiles to the clothing maker so need to know what rate of import duty would be payable in China on this type of textile.
@Manolis: To report tax fraud in China, you could call (86) 10 6354 3714, being the report line of China’s State Administration of Taxation (SAT). You could also write a letter to them at the following address:
China’s State Administration of Taxation
Tax Fraud Department
68 Zao Lin Qian Street,
Xuan Wu District,
To make an online tip-off, you need to register on the SAT website by providing your legitimate personal information, then report the details. Here is the link to make an online report: http://hd.chinatax.gov.cn/jzxx/jicha.jsp#
@Gary North: In terms of the woven polyester textiles, the common import rate is 130 percent, but the minimum import rate to China could be 10 percent with relevant tax treaties. VAT rate is 17 percent.
I WANT EXPORT FELDSPAR POWDER FROM INDIA TO CHINA , WHAT IS PROCEDURE FOR THIS WHAT COULD BE THE TAX STRECTURE , DUTY
PLEASE REPLY ME AND HELP ME TO KNOW THE PROCEDURE – NOOR
FOR EXPORTING IRONSTONE FROM IRAN TO CHINA WOULD YOU PLEASE TELL ME THE TAX AND DUTIES?
I am going to send 30 kg pashmina(Scalfs) to Beijing from Nepal. So i want to know about duty tax of Beijing for pashmina . Please could you tell me about this ? how much percents tax i have to pay in total invoice value ?
We are planning to export of papers and paper board from China to third countries. Please let us know the rate of Import duty and other taxes in china.
The paper h.s. Code No.48181000
Super Multicolor printers Pvt Limited
The common import rate for feldspar powder is 50 percent. Minimum import rate of 3 percent could apply if there is a relevant tax treaty between India and China. The VAT rate is 17 percent.
The import rate for ironstone is 0 percent, and the VAT rate is 17 percent.
The common import rate for pashmina is 130 percent which could be reduced to 14-16 percent (minimum import rate) if tax treaties exist. The VAT rate is 17 percent.
@Ram Kumar Mittal
The export rate for the paper board (HS Code No.48181000) is actually 0 percent. By the way, thank you for providing the HS Code which makes our job easier and more accurate when answering these questions.
I want to export device from europe for mould trial to china, after trials this device will be sent back to Europe, How looks taxes with temporary export
Can you kindly advice what procedures I have to do to apply for tax exemptions? Recently purchased a LCD monitor from China and it arrived faulty. Seller informed to send it back but I have checked and the cost to send it back plus the duties and taxes already outweighs the cost of the item. Is there a term that returned goods can be exempted? I only received the item about a week ago. Any documents I can provide to help? The third party courier did not hand me any invoice from the seller in the first place.
@Raf – You could declare the device as a temporarily imported good to the Chinese Customs and obtain an ATA (Admission Temporaire/Temporary Admission) carnet. In order to be granted ATA, certain amounts of deposit or other types of guarantee will be required by the customs. In addition, to be qualified for temporarily imported goods, the goods should be exported generally within 6 months, any extension will need approval from the customs. The import and export duty and VAT are exempted for temporarily imported goods.
I don’t think there will be any taxes imposed on the LCD monitor as long as the customs are convinced this product is for personal use instead of sales purpose.
We are purchasing fashion jewellery items from suppliers in Qingdao, China. The jewellery will contain components that have been imported to China from Austria and the price of these components includes 17% VAT. When the supplier exports the jewellery can they claim back any of the VAT on the components used? If yes what % can they claim back?
@Joanne: The suppliers could claim VAT refund for the jewelry items. Depending on the material of the jewelry, the VAT refund rate generally ranges from 0 percent to 13 percent.
We are a company based in Boston, MA. We ordered crude oil lab analysis from Shanghai, China. The invoice we received contains VAT tax. Do we have to pay VAT taxe in this case? We are no a Chinese company, and we are not importing/exporting goods. If our activity can be classified as anything it would be more along the lines of services exporting.
Hi, great article.
We’re looking at importing dried fruit from Australia into Shanghai…what specific export/import taxes are applicable?
@Tina: Generally speaking, Chinese companies providing consulting or authentication services to foreign companies should be VAT exempted unless the subject matter (the products or goods) for which the services are provided for are located or produced in China.
@Hamish: The normal import rate for importing dried fruit into China is 70 percent, but it could be reduced to 25 percent if there are tax treaties applied between Australia and China. The import VAT is 13 percent.
Thank you Chris, can they claim the refund on totoal cost of the item or just the component? How do i find a list of the materials and their % refund rate?
@Joanne: In China, enterprises have to satisfy the following criteria to claim VAT back:
The enterprise has obtained the ‘export rebate’ qualification from the tax authority; and
The enterprise has valid certificates to prove it has paid the value-added tax.
In your case, the supplier can claim the VAT back based on the valid tax certificates (for components) they should have. The refund rates are not available online, they will need to check with the customs for detailed information.
This is Tina (I have already asked you a question on Nov 21), after that I asked the lab in China to remove the VAT from our invoice.
But they referred me to this
I do not understand everything there. Any advice?
Me and a freind want to import candy from Sweden to sell in China. What custom or tax fees could we expect?
Thanks for good article
I would like to know tax refund rate for exports from China HS Code-wise, primarily for Chapters 48,72,73,74,75,76,84,85 & 90 of BTN.Thanks.
@Tina: If the subject matter (the products or goods) which the services is conducted on is located or produced in China, you are subject to VAT.
For more information, please contact email@example.com.
@Jonas: The normal rate for import candy is 50 percent. The minimum rate of 10 percent could apply if you enact the relevant tax treaty between China and Sweden. This article explains: https://www.china-briefing.com/news/2010/12/16/using-double-tax-treaties-to-maximize-china-investment-financial-effectiveness.html
The VAT rate is 17 percent.
What duty/taxes will apply with exporting a large fabricated steel boom structure from China (Shanghai) shipping to Sierra Leone, Africa??
And how do you calculate it against a
$300,000.00 USD (Steel Boom) + $190,000.00 USD Shipping Charge??
@KS: The customs duty for exporting steel boom structure is 0 percent. VAT rate is 17 percent.
Where can I find the rules and regulations for import of Gold and Silver into China? Can one set up a trading company in China to import Gold and Silver and sell the same to Jewellers and Traders? What are the applicable VAT and other taxes for the same?
@VB: You can find relevant provisions here:
You can set up a trading company to sell gold and silver ornaments in China, the VAT rate is 17 percent, plus 5 percent consumption tax and applicable corporate income tax and import duties. For setting up a China Trading Company please see: http://www.asiabriefing.com/store/book/trading-with-china-398
and for assistance contact our firm at firstname.lastname@example.org
dear sir i want to import some agriculture machinery from china to india. how much tax and vat i have to pay
@Sandeep: There is no export duty imposed on agricultural machinery. Exporters in the country are subject to 17 percent VAT rate, but they are able to declare VAT rebate and the rebate rate varies on different types of machine, usually ranging from 11 percent to 14 percent.
@Chris: Thank you. How do you go about properly calculating the VAT. Shipping cost + goods, or just on the goods?
I plan to open a new plant of door Profile in China, then manufacturing at China or export all material to India
So what is the taxes will be calculated for China nation
@Anil: The major taxes you will be subject to are value-added taxes and customs duties. You’ll need help with planning all this out, together with planning your registered capital and all these issues properly to cater accurately for the start up costs. For more information, please contact email@example.com let us know where you’ll be establishing operations and our relevant regional office will be pleased to assist.
i wan to know the taxes an custom duties for importing Marble from Italy to China
@Varun: The following taxes and custom duties apply to the import of marble:
Lowest tax rate: 0%
Normal tax rate: 80%
Value-added tax rate: 17%
i want to tax planning on import goods from china to india ,
@Sunil; That is an Indian import tax question.
You can refer to our India Briefing at http://www.india-briefing.com and type in “import taxes” in the search function. Alternatively contact our Delhi office directly at firstname.lastname@example.org
I need your help Chris. i have been searching Chinese taxes for week. I would like to know import sunflower oil to third country China from Russia and what would be the taxes and custom duties. Is it legal to Import sunflower oil to china? because last time we try to import arabseed from Russia but china don’t allow to buy arabseed from Russia .
Many thanks Chris
@Babuna – It is legal to import sunflower oil from Russia to China. The normal import duty is 160 per cent, but it would be 9 per cent if there are relevant treaties between China and Russia. It is also subject to 13 per cent value-added tax.
perhaps you can help here: we may export artworks temporarily from China. I know that after 6 months it is possible to request an extension for another maximum 6 months, right? After that, what happens if:
-we sell the artwork and it won’t return to China
-we return the work late
-don’t return the work at all because we changed our mind
Thanks for your help!
@Elena – we called the national customs hotline about this and was told that:
1) It is possible to request an extension for another 6 months, and the application should be made 30 days prior to the expiration of the first 6 month period;
2) When they apply to temporarily export artworks, they are required to pay a deposit fee that is equivalent to the amount of export duties for exporting the artwork. The deposit fee will be returned if the artwork is reimported to China within the stipulated period. But if the artwork is not returned to China within the period stipulated, the deposit fee will automatically be converted into export duties and paid to the Customs, regardless of whether the work has been sold, returned late, or not returned at all.
I trust that clarifies the issue
Hi Chris, could you please help us to figure out all taxes involved in selling HS code 711790 from Spain into China & HK?
Many thanks in advance and best regards,
@Ana; Please find the tax info for HS 7117900000 as follows:
Normal import duty: 130%
Minimum import duty (applies in the existence of relevant tax treaties): 35%
VAT rate: 17%
Could you please assist us to clarify import taxes/duties to China for Hs code 39129000
Many thanks in advance!
Have a nice day!
@Julia: The normal import duty rate for HS code 39129000 is 45%. The minimum import duty rate of 6.5% will apply if there are certain tax treaties between the export country and China. The product will also be subject to 17% value added tax.
I want to import cut and polished natural semi precious stone in to china from India or Hong Kong , then what will be the import duty ,VAT and other duties applicable.
In other case i export rough gems stone from china to other countries what duties will be applicable. Would you suggest any agency in guangzhou city ,china who can assist me in documentation at competitive prices.
How much for import duty ,consumption tax and valuated tax if we import thr hand bags (H.S.Code 4202.21) from Hong Kong to China?
Can I refund the import duty ,consumptiontax,VAT when exporting?
Thank you very much for your kind assistance.
@ Angati: The normal import rate of polished natural semi precious stone is 14 percent, the minimum import rate of 3 percent applies if tax treaty status applies and relevant provisions are activated. The VAT rate is 17 percent. There is no export rate imposed on rough gemstones.
@ Kamolrat: The normal import rate is 100 percent, the minimum import rate of 10 percent applies if tax treaty exists and relevant provisions are activated. The VAT rate is 17 percent. Import duty and consumption tax are not refundable. VAT is refundable only when you are exporting from China.
For more information, please contact email@example.com
Could you please help me to know that in which category cotton linter pulp comes and what will be the custom duty on this when importing from china to India. Also please advise me the whole process for importing any material from China to India.
IOL Chemicals & Pharmaceuticals Ltd
Punjab – India
@Amit: The normal import rate for cotton linter pulp is 8 per cent, the export rate is 10 per cent and the value-added tax rate is 17 per cent (H.S code: 4701000000). The minimum import rate is zero if tax treaties and relevant provisions are activated.
In regards to the whole process for importing, please see our magazine on sourcing from China here: http://www.asiabriefing.com/store/book/sourcing-from-china-413 or contact firstname.lastname@example.org
Many thanks for your words…
I chanced by your website when I was searching for information about import to China.
I would appreciate if you could help to enlighten me on the below:
Our company is based in Singapore and we fabricate steel structure for our client in China. Our client is a Shipyard in China building oil rigs and we supply them some fabricated steel structures for their rigs. Upon completion of the fabricated components, we ship them to China and listing them as the consignee. I would like to check who is liable for the import duty, taxes & VAT in China?
If our client pays for these import duty, taxes & VAT, can they claim it back when they export the oil rig?
Thank you very much for your kind assistance.
@Hui Ling: The consignee is liable for import duties and VAT in China. They cannot claim refunds on the import duties, however, they could claim up to a 17% export VAT refund when exporting the oil rigs. If you require professional assistance, please contact our firm at email@example.com
Planning on importing a food additive from US to china. The additive will be used in the processing of the food and then the food will be exported back to the US. Does this fall under PSM thus no VAT or duties?
@Rob – To be qualified for PSM, all the material used in producing the food must be supplied by the U.S. company.
I present Yarmarka Company Russia, we’re producing brand packaged cereals beans (and mixtures with them with no flavoring agents and even salt) and would love to start collaboration with China. I’d be very grateful if you could answer which certificates and documents are necessary for us in Russia to successfully export our products (grocery) to China ? Thank you in advance!
@Anna – I have replied to you via your email address.
My email in April used the wrong terminology. The food additive I am exporting to China will be PIM, not PSM. I plan on shipping product to bonded warehouse wherein the food processor will receive product. I am advised that the processors have the Processing Trade Agreeement “handbook” on file with customs. Is any VAT or Duty the responsibility of the processor to have them exempt? Do I need a Trading License is it unnecessary? Thank you.
@Rob: These are very specific questions. Our team will get back to you directly and we need to know more details. Bear in mind we may need to charge for time here, this is more than a simple query about tariffs. However we’ll reply via email and you can follow up from there.
Could you please help me check what are the HS codes of dairy product? we want to export sunflower cooking oil and Milk to china. By the way please how much tax costs and tariffs.
I am looking for a reliable HS consultancy service based in Hong Kong able to deliver training to my team of Merchandisers regarding HS codes in to the UK.
I have consultants that I regularly use within the UK but I am interested in what options may be available closing to my Sourcing office.
Are such services available?
Are able to provide some recomendations?
@Simon – we don’t source suppliers – we’re tax lawyers. We do have an office in Hong Kong but it does company formation, accounting, China business planning, that sort of service.
I guess the best thing to do is to google and see who you can find. Or reach out to the Hong Kong General Chamber of Commerce – http://www.chamber.org.hk and ask if they have a member that does this type of work.
1. If my product is subjected to a MFN Duty Rate of 10% but an Interim Duty Rate of 2%. Does that mean I only have to pay 2% instead of 10%?
2. Also, do I have to pay VAT of 13%?
3. Are the above Duty and Tax (VAT) subjected to products imported to China for domestic consumption? If I were to import raw materials to China for reprocessing and export, do I have to pay for the Duty and Tax (VAT)? Or do I have to pay upfront first and collect them back when I export?
@Joshua: According to the “Regulations of the People’s Republic of China on Import and Export Duties”, if an Interim Duty (Temporary duty) applies to import goods which are also subject to MFN Duty, the duty should be paid based on the Interim Duty rate. Therefore, you only have to pay 2 percent instead of 10 percent. But you still have to pay VAT of 13 percent. The products imported to China for domestic consumption should be subject to VAT. If you were to import raw materials for the purpose of re-export, the raw materials imported to China should be exempt from import VAT or consumption duty. The “Tax Exemption Certificate for Processing of Supplied Materials” shall be provided for the exempt of VAT and consumption duty of the re-export goods.
I would like to import hand made goosedown comforters from Hungary to China (Beijing).
What fees (tax, duty) should we count with? Who should pays the tax, and duty rates (Our company or my customers)?
Thank you in advance.
@Tamas: Your products shall be subject to a MFN (most-favored-nation treatment) duty rate of 10 percent and a value-added tax rate of 17 percent. The tax and duties should be paid by your company.
My company is based in Singapore and we are planning to export electronics components (Capacitors, resistors etc) to a new China customer in Beijing. Assuming the value of the goods is worth USD$10,000 what is the import taxes and other costs of importing into China?
@Jeremy – Your product should be subject to a value-added tax rate ranging from 15 per cent to 17 per cent (this depends on the materials used and the exact kind of electronic components). The import tariff rate should be zero based on the Free Trade Agreement (FTA) signed between China and Singapore. Best wishes – Chris
I would like to import Bulgarian Rose Oil and Rose Oil Cosmetic Products from Bulgaria to China.
What fees (tax, duty or others) should we pay? Who should pay the tax and the duty?(Our company or our buyers)?
@Mariana – Your products shall be subject to a MFN (most-favored-nation treatment) duty rate of 6.5 percent and a value-added tax rate of 17 percent. The tax and duties should be paid by your company.
We purchase goods from China as components for a product we assemble in Canada, and we sometimes need to send samples of these same components back to our supplier for quality review.
We get charged VAT. Is there any harmonized code that can be applied to samples being returned, that would avoid the VAT?
@Gerald: For this question, I think we will need more information/description from you on the specific component you are sending to China and that is being returned in order for us to find the harmonized code that applies. I have emailed you about this directly.
Hi, Informative article. Thanks.
We import chemicals and intermediates from China. I heard that the export rebate for chemicals and intermediates used in antibiotics is reduced from July ’14. Is this information correct. if so, let me know the rebate allowed for antibiotic intermediates.
eagerly await your feedback.
Please advise the percentage for the import duty for imported garments (children’s clothing). Belgium to China.
how is the Chinese custom handling if a foreigner takes standard/ regular coins (no historic or bullions – just regular current currency e.g. USD or EUR) out of the country? Especially if exceeding the USD 5.000 threashold?
What if I declared the higher value of currency (albeit paper, but monex nevertheless) when entering – and thus now going back with just “another” form than paper?
Thank you very much!
@Duraimani: To date this year there has been no news related to the reduction of export rebates for chemicals and intermediates for this year. I clarify as follows:
•The current export rebate rate for general medicine is 15%.
•The current export rebate rate for antibiotics is 13%.
•The current export rebate rate for intermediates is 9%.
@Graham Smith: As China granted MFN (Most-Favoured-Nation) status to Belgium, preferential tariffs can be applied to items imported from Belgium to China. Basically, there are six different tax rates of the import duty for children’s garments: 14%, 16%, 17.5%, 19%, 20%, and 25%. To make sure which rate is applicable, more detailed information such as the type of materials and percentage used in the finished garment, plus the type of product (coat, pants, underwear, etc.), and style (jacket, cloak, etc.) also need to be provided. You can email us for further details at firstname.lastname@example.org with specifics if you wish.
@AV: This question is regulated by “Provisional Administrative Measures on Cash in Foreign Currencies Brought into and out of China” (Hui Fa (2003) No.102). Both coins and bank notes (paper) are regarded as “cash”. Consequently, whether you take bank notes or coins, it does not make any difference. Additionally, please note that according to Chinese regulations:
•If the foreign currency you take does not exceed the amount of declared in your last entry into China, you shall not be required to apply for the Permit for Bringing Foreign Exchange out of China and the Customs shall refer to the records of the amount of cash in foreign currencies declared by you for your last entry into China and allow exit.
•If there is no record of declared amount or the amount exceeds the amount of cash in foreign currencies declared for the last entry:
– Where the amount of cash in foreign currencies to be brought out of China is US$5,000 equivalent or below, you shall be allowed exit without having to apply for the Permit, unless you make multiple trips within a day or within a short period.
– Where the amount of cash in foreign currencies to be brought out of China ranges from US$5,000 equivalent to US$10,000 equivalent, you shall be required to apply for the Permit with a bank and be allowed exit upon presentation of the Permit bearing the seal of the bank. However, if you present several Permits and the total amount of such Permits exceeds US$10,000 equivalent, you shall not be allowed exit.
– Where the amount of cash in foreign currencies to be brought out of China exceeds US$10,000 equivalent, you shall be required to apply to a branch of the State Administration of Foreign Exchange at the location of the account opening bank of foreign currency deposit or the bank selling such foreign currencies to you. The Customs shall allow exit upon presentation of the Permit bearing the seal of the SAFE bureau.
Hope that helps guys
I would like to make photo luminescent (luminous) paints and do that I need to mix white paint with some pigments.
I would like to import the pigment (this is in a powder form) from China to the UK. Is this considered as importing raw materials? How much tax will I have to pay? Is there a difference if the pigment is in a liquid form?
Please help me out, I would be grateful to you, for ever.
My company is exporting CO2 modules to China (HS CODE: 90279080 or 90271010)
As far as I know it is duty free since it is environment related product.
However, we’ve been charged with 7% + 17% tax.
I am guessing the 17% is the VAT but what could the 7% be?
Thank you very much in advance for your help!
@Georgie: First, as a buyer and exporter, you have no import duty to pay tax to China tax authorities. But you do need to fulfil any import tax in the UK and will need to search for a UK firm to advise you on this.
@Angela Lee: The HS code you provided above does not exist. However, based on the information you offered, the most probable answer is the 17% is VAT, the 7% is the preferential tax for import products.
how is it, to import sheet music into China? Does I only have to pay the VAT (13%) or is there a special Tax? I heard all book have to cecked of the Ministary of Probaganda and you have to pay 15% extra Taxes. Is it right?
@Andreas: The importation of sheet music into China falls under the category of import of books. The only tax imposed on it is VAT at the rate of 13%. There are no other direct taxes. However, all imported manuscripts must go through preliminary reviews, while the reviewer is not the Ministry of Propaganda, but the state-owned companies which have the exclusive right to import books. They typically ask for a 75% cut of the retail price, which usually renders the transactions deliberately unprofitable. – Best regards, Chris
Hello to all;
I would like to import 845730 – Multi-station transfer machines for working metal to China.
What are the custom rates for it.
@Çağrı Ardıç: For the importion of ” 845730 – Multi-station transfer machines for working metal”:
• The general tariff rate is 20%
• The preferential tariff rate is 5% (whether one can enjoy this benefit depends on the country of origin of the goods)
• The VAT rate is 17%
we are preparing to set up production of 6, 7.5 and 9 meter electric boats. Currently looking at what the best strategic location for production will be. Could you help us with the following scenarios:
1. produce entire boat including engine + batteries etc. in China and sell both in China.
2. produce entire boat including engine + batteries etc. in The Netherlands and import into China.
3. produce only the hull in China, import engine + batteries into China, then assemble in China and sell in China.
The value of engine is 20.000 EUR, value of batteries is 35.000 EUR. What would we pay on top of that for import taxes, VAT and custom duties?
@Michael: For the engine, the general tariff is 14%, the VAT is 17%, the sales tax is 0% . For the battery, the general tariff is 90%, the VAT is 17% and the sales tax is 0%.
So the highest tax rate would be: 20,000×（14%+17%）+35,000×（90%+17%）=43650 EUR.
As to the suggestion for location, it’s best you consult with one of our professional team to get a comprehensive report, including the analysis of price, market, transportation and policies – email for this to email@example.com
We are planning to import German Beer (HS 22030000) from EU into Guangdong/China.
Its unclear to me what the Importduty and Consumertax rates are.
At the moment we are investigating if its wiser to set up a own company in China.
Thanks in advance
Could you kindly tell me if I carry in three American Gold Eagle coins (total value approx $3600USD) will I have to declare it even though it is less than the 5,000 limit? And if so, would I have to pay duty on it?
Susan J Allen
@Lee: We have replied to you directly on this.
@Susan: As the value is under USD5000 you may not need to declare it. However, customs may still challenge you and ask you if these are to be resold. That would break a number of laws, and consequently could cause some issues as regards why you are carrying such unusual personal belongings with you.
Hi, We are planning to import Dried Fish products( fish maw) (HS code 0305) from south asia (Sri lanka, Inda, Bangladesh ) into Guangdong/China.
Its pretty confusing as to what are the applicable Importduty and Consumertax rates if we wish to sell it in retail. Also what are the taxes for E-retailing.
Also Please Advise as to if its wiser to set up our own company in China.
Thank You in advance.
Dear Zahid, thanks for your comment and I sent you a seperate email with more insights and questions.
Regarding the import duty and consumption tax, we will need a more precise HS code of at least 8 figures to narrow down the exact product category. The current four figure-code yields over 70 pages with multiple product categories on each of them.
The tax specific to retail (including through electronic channels, e.g. e-commerce) is Value-added Tax: VAT, a turnover tax charged on sale of goods at 17%. Additionally, a local surcharge will be added to the VAT, i.e. for Guangzhou the surcharge is 0.72%.
Besides VAT, there is the Corporate Income tax (CIT), a tax on net profits at 25%.
The distribution of products through e-commerce channels remains to be difficult to control for foreign capital investors. An easy entry into the market can be distribution companies that specialize in your kind of product. At the same time you can put together a plan to build your own infrastructure through a wholly foreign-owned enterprise (WFOE) and the right partners.
For your business in 2015, we wish you all the best!
Hi. First of all, thanks for the service you provide which is no less than precious!
In the next couple of weeks, I am looking to import a large quantity of women’s perfume from France into China. I need to choose whether to import packaged perfume in 50ml bottles, ready for retail, or bulk perfume to be bottled in China. I was told that the import duties on packaged perfume in bottles is extremely high, whereas in bulk it’s a lot less. Also, I heard that from July, there is a new 30% (?) tax on all imported perfume or cosmetics. Could you please give me some insight on this, or point me in the right direction to find all the information I need?
Thanks in advance for your help and happy new year!
@Santo: The tax rates for perfume(H.S. Code. 3303000000 ) are not distinguished by packaged bottles or bulks. The relative tax rates are as follows:
• General tariff rates: 150%
• Preferential tariff rates: 10%
• VAT: 17%
• Consumption tax: 30%
However, if your goods can be classified under H.S. Code 3302900000, then the tax rates are as follows:
• General tariff rates: 130%
• Preferential tariff rates: 10%
• VAT: 17%
• Consumption tax: 0
@Santo: Just to clarify further, HS code 3302900000 is for raw aromatics used to manufacture perfume, whereas 3303000000 is for processed perfume.
Good luck with this endeavour!
We propose to export water meters to China from Europe. Does the Chinese govt. provide any export incentives to manufacturers? Also, kindly let me know of the taxation structure (taxes & duties) with respect to water meters.
Please send a reply directly on my email.
@Amit – Reply sent to you directly.
Hi. We are an American owned International Company with Offices and Warehouses in Many Countries including the UK, and China (Shanghai) .
We export a range of Isolators for use predominantly in the Oil and Gas industry, from the UK into China and many other countries. HSS Code 85389091
We recently found that due to cancelled orders stock had built up in our Shanghai warehouse and we could utilise it elsewhere in the world and so wanted to “Buy” it back into the UK.
However our Shanghai office has told us that they are not able to reclaim VAT and Duty in China nad so the “transfer” price would be uplifted by *1.09 (duty)*1.17(VAT), without consider any transportation cost ( generally 1.03)..
Looking on the Web it would appear that VAT at least should be reclaimable. Can you confirm if this is the case?
Dear Bob, thanks for your inquiry.
I have sent you a seperate email with more insights.
Generally speaking, reclaiming import VAT and custom duty may be allowed within 1 year from the date of import custom clearance, if the the imported goods are genuinely of poor quality or poor standards, and is returned intact. This fact of poor quality or standards needs to be supported by quality inspection report issued by relevant quality inspection authorities.
May I seek for your advice ? Could you advise the export duty, VAT and Export refund rate for wire rope HS 7312100000 and anchor bolt HS 7318 (i don’t have 10 digit code). We are sourcing from china these two products
Also, could you share the link page ? I visited the customs website but they are all in chinese.
Thank you for your help
For the Goods under H.S. code 7312100000, the export duty is 0%, VAT is 17%, and the export refund rate is 5%.
For the anchor bolt, I’m also not sure which HS code he referred to, but all the goods under H.S.7318 group share the same tax rates:
Export duty 0%
Export refund rate 5%
This information is unavailable outside of Chinese language websites.
Hi, we are planning to import gasoline generators (85022000) and diesel generators (85021100) from China to Indonesia. How much is the tax % payed to bring these products from China to Indonesia?
Thanks in advance,
@Sarah: There are no export duties payable when exporting from China. I contacted our Jakarta office who advise me that importing generators from China into Indonesia, and specifically
gasoline generators (85022000) and diesel generators (85021100), are covered under the China-ASEAN FTA, so accordingly the import duty rate is 0% into Indonesia.
Downloadable copies of the China-ASEAN Free Trade Agreement may be obtained from our ASEAN Briefing website here: http://www.aseanbriefing.com/regions/asean.html
We want to know the Duties and tax structure for Fuel Oil #180cst in China after FOB Prices, plese let us know the structure for FO is it different from diesel?
Vikram M Avina
I would like to know the import tariff of men’s woven shirt ( 6205 2020 ) from Vietnam
Re your kind reply of 4th Jan to my question about importing perfume (thanks a million!), well it’s still stuck in storage in Hong Kong because the customer ran out of money… Anyway things should move again in early April. The question I need to ask you is about the difference between general and preferential duties. I was led to believe by some locals that general was for finished products (ready for retail sales) and preferential was for bulk product (i.e. still to be bottled and packaged). I understand from your e-mail that this is not the case. Therefore, my question is: in what cases is the preferential tariff applied, particularly with reference to finished perfumes and raw materials to make perfumed and cosmetics in China?
Thanks once again!
Hi Ming Wong, thank you for your comment!
Under Most Favored Nation (MFN) duties, which applies to Vietnam, the import rate for products with the HS code 62052000 should be 16% at the moment. Without MFN status, the rate is 90%.
This may change in December of this year. You can find more information here: https://www.china-briefing.com/news/2014/02/27/chinas-agreement-with-asean-what-it-means-for-china-based-foreign-manufacturers.html
Hope this is helpful!
@Vikram: Sent you a private email to follow up with HS codes. Happy to look into duty structure for you.
We were unable to find a product listed under H.S. code 62052020 in China. The closest approximation we found, H.S.code 62052000, enjoys conventional tariff rates of 0% for imports into China from Vietnam. There were similar 0% duties listed for a number of products in the larger category of 6205, so we would expect this would hold true in your case as well.
Hello I’m A Project assistant of a company that would like to create a business in Shenzhen whether in FTZ area or others part in the city. our project is developping, manufacturing & exporting electronic equipments of a specific product but would like to ask if we pay VAT for export goods from China to abroad or not ? Thanks a lot for your support
Thank you for your comment. Generally, there is no VAT payable on export of products. However, it would be wise to collect information about the “specific product” you mentioned. I’m contacting you via email as well to collect some information and create bit more certainty in the context of your project.
Thanks for your reply.
Our project is : developping, manufacturing & exporting electronic equipments of headsets.
I red on documentation in the internet that VAT is subject to 17% but I am not sure. the reason why I’m asking you as an export. normaly, it’s not fair as all our products will be manufactured in China.
Hello Salim, I sent you another email, but would like to address your comment here as well.
VAT on goods is generally not applicable when sold to entities outside of Mainland China. Within Mainland China, the standard rate is 17% for goods. When exporting goods, exporters may apply for a VAT rebate that can refund a significant part of the 17% that was paid to suppliers by the exporter. It is important for the exporter however to receive proper VAT invoices from suppliers. Otherwise a VAT refund application will not be successful.
I hope this helps you going forward.
I would like to buy a hydroelectric turbine and generator from China for my personal use to be installed on my property. I have a quote that includes shipment to Port of NY. I have no experience dealing with the Chinese and no experience importing. If this unit is shipped to the Port of NY, I am concerned about customs, duties, tariffs, entry fees and whatever else I may not even know about.
Is this a relatively routine transaction that can be easily accomplished by someone like myself?
Are there folks or companies out there that can be contracted to assist in doing this.
What would you recommend to be the safest and provide the best value and least amount of hassle.
Should I go it alone or hire someone?
Can you recommend someone or some entity that I can deal with.
@Mark Henson: Your question relates to import duties levied by the United States, not by China. You are best advised to contact a US Customs Agent in NY to assist with this type of question. There are several listed if you search google.
On this forum we are only able to provide advise concerning China import rates and duties.
@Santo: We had to work a bit to get an answer to you on the issue you raised, hence the delay. It is a complicated subject you raise. However, to answer you in detail, customs duty rates for imports shall include most-favored-nation tariff rates, conventional tariff rates, preferential tariff rates, general tariff rates and tariff rates for quota items. Provisional rates of import duties may be implemented for a specified period of time.
Most-favored-nation tariff rates shall apply to imports originating from any member country of the World Trade Organization that applies the most-favored-nation treatment clause, imports originating from a country or region that has signed a bilateral agreement with the People’s Republic of China which includes a clause on reciprocal granting of most-favored-nation treatment, and imports originating from the People’s Republic of China.
Conventional tariff rates shall apply to imports originating from a country or region that has signed a regional trade agreement with the People’s Republic of China which includes a clause on preferential tariffs.
Preferential tariff rates shall apply to imports originating from a country or region that has signed a trade agreement with the People’s Republic of China which includes a clause on special tariff concessions.
Where applicable, provisional rates shall apply for imports subject to most-favored-nation tariff. Where provisional rates are applicable for imports on which conventional and preferential tariff rates apply, the lower of the applicable rates shall apply. Provisional rates shall not apply for imports subject to general tariff.
Specifically for your question, to apply the preferential tariff rates, the goods must be sourced from a country or region which has treatment contained preferential tariff rates clause with China, or sourced from a MFN country.
I trust that explains the issue.
First af all congratulations on your column and labor. Found it very helpfull for many entrepenuers.
We are a Company from Mexico currently working on promoting Packed Tuna (minced I believe is HS: 160420) and we would like to know the Tariff duties and taxes to be paid, in order to sell this product into China.
Parallel we see the eventual need to set up a representation office of our company in China in order to facilitate our imports and our dealss with Chinese clients. Since we are new on the subject we would like your oppnioin on that matter. Do you think its a good idea?, (Pros and cons), how hard or viable is it to establish it?, and where or in wich instance can we find accurate information related to begin this process.
Thank you in advance for your guidance.
Thank you for your inquiry.
In response to your question, normally the HS code of a product would have 10 digits and it seems that the HS code 160420 is incomplete.
Based on a preliminary search, the following two categories of products (might be close to the packed minced tuna) with their corresponding HS code, import customs duty (tariff) and applicable taxes were found. Please keep in mind that the information below is an estimate only and the actual import customs duty and tax rates may vary.
1. HS: 1604201990 Non-whole or diced other canned fish
2. HS: 1604209990 Other processed or preserved fish
Both categories are subject to the following import customs duty and tax rates:
– Most favored nation Import duty rate: 12% (this rate would be applicable if the packed minced tuna’s place of origin is Mexico, as Mexico is eligible for most favored nation rates)
– Value added tax (VAT) rate: 17%
I hope you find the above information useful.
Question about price adjustment, we have shippped some goods to US, customer received the goods
Instead of writing out a debit note, we have difficult to adjust the price from China government, what is the correct/better way to do it?
Thank you for your time and advise.
Thank you for your message. Let me address this on behalf of Chris.
The correct way of price adjustment will depend on the reason for why there is a price adjustment in the first place. There can be a considerable impact on value-added tax (VAT) and corporate income (CIT) – especially for VAT if your company has already collected the VAT rebate on export of the goods. Taken this into account, the customs, tax and foreign exchange authorities will need to thoroughly understand the reason for the price adjustment.
I am sending you a separate email where we can go into a bit more detail and see how we may be able to support you.
Can VAT taxes be refunded/credited on returned goods? We mistakenly shipped products to our Chinese customer that need to be returned (unused). Are the taxes applicable if the products were never used?
Based on section 61 of “Order 124 of General Administration of Customs of the People’s Republic of China”, return imported goods and claim refund on the import VAT paid is possible under the following grounds:
1. bad quality of goods imported, or
2. standard of the goods not meeting specification / requirements
If you shipped the goods to your Chinese customer by mistake, then we would presume that the goods are not meeting the specification / requirements for your Chinese customer.
On the other hand, in case if you have already used / credited some of the import VAT to offset against output VAT from domestic sales in the current period, you would have already enjoyed the benefit of the relevant import VAT through credit and that portion of import VAT credited would not be refundable.
I have a similar question ion how to handle penalties payments/FOB adjustments with my Chinese suppliers:
Occasionally, we receive sub-standard goods from our Chinese supplier due to quality issues with the input materials/material suppliers. Since my suppliers are fully responsible for the quality of the delivered goods I discuss penalty payments or price adjustments directly with my suppliers.
Now, my suppliers are telling me that that would have to include VAT in these penalty payments as they can only pass-on the penalty cost to their material suppliers in the form of VAT invoices.
I understand that there are at least 2 issues behind that:
– FOB adjustments would/could result in adjusted Output VAT and VAT Refund
– Internal processes at my suppliers on how they handle domestic payments/penalties/price adjustments
What is the current practice in China on penalties/price adjustments for exported goods?
What is the current practice in China on Credit Notes and Debit Notes between domestic suppliers and is it subject to VAT?
We manufacture our systems in China, our system contains parts that literally come from all over the world. At this point, we have parts located in the USA and Canada that were made in China, they need to be sent to China and will be re-exported integrated into our systems (machines) within 6 months.
How can i go about getting these items into China without paying the taxes being that they will be exported within a few weeks? As mentioned previously, these items are made in China, and the reason for sending them there again is because of the reduced manufacturing costs in China – having to pay high taxes would deter my company from wanting to manufacture in China.
In addition, I am at a point where I need to rush items to China and I will be going there next week – is there a process where I can bring these items through the border and clear customer, or do I have to send them separately by courier?
I am not able to find the HS code for ‘Tea Tree Essential oil’, could you let me know what is the correct HS code to use for import to China?
We are dealer with company registered in Singapore. We will ship the goods directly from Australia (it’s australia origin) to Port of Shanghai. What are the % of duty, VAT, Consumption tax etc?
If the incoterm is DDP, and I know that duty and VAT are based on CIF price. How do I present the CIF price in document (commercial invoice) for customs for calculation of duty and tax?
Is there another document that I need to present to customs at CIF price for duty and tax purposes?
what are rules and regulation to start a company in China?
please post the more details to me thanks.
I’m Andrea Toma, Purchasing Manager of the Italian company Fenyx srl.
Please read send me your e-mail adress because we want to send you a presentation and our cooperation proposal for products distribution in Italy.
Website: http://www.fenyx.it http://www.LEDdiretto.it
I have been in talks with factories that I work with and have been told that there is something called the “book” in China which basically means that one does not need to pay import duties on raw materials that will subsequently be used on product that will be exported out of China. Do you know where I could find more information on the “book”? Please advise.
Dear Sir Or Mam,
We need to help to check whether a Chinese exporter of Fluorspar (a Mineral) can get 100% VAT refund upon presenting the documents as a proof of export. We are an Indian group and are willing to set up an office here in Guangzhou.
I have heard that any foreign company if opens office in China get few advantages after fulfilling few terms,
I appreciate your swift reply on the matter and hope you can help us to setup a small office
Hello Reed, sounds like the factories are referring to a Customs Handbook. This is required by PRC Customs for management what is called “processing trade” in China. Companies eligible for PTR (Processing Trade Relief) are allowed to import materials, parts, sub-assemblies, etc. that will be used in the manufacture of goods for export, with the customs duties/import VAT suspended. Such companies, which are under the supervision of PRC Customs, are required to maintain records to track the receipt of materials, storage, use and ultimate export of products manufatured from these imported materials. The “book” is what is used to record the in and out of the goods as well as to track the process.
I wish to import finished stone cut to size and unfinished slab into China. the stone is Slate and Limestone?
Can you please inform me of the current import tax for both and the relevant HS codes.
Hi, I have machines made in china that are then exported out of china. All parts are sourced from within china with the exception of one part that needs to be sent from Germany to china, put into the machine so the machine can be completed and exported to USA. Is it possible for the factory I use in china to claim back the sales tax and duty on the imported part. If so, how is this done. Thanks in advance
This is G.Sarathy from India, our exporter have to export to China. So, kindly provide the duty structure of the below said commodity & if any duty exemption at china.
1. Commodity : Jatropha Oil
2. HS Code : 33012590
Thanks & Reg.
Would you kindly send me by e-mail info about import duty and taxes in China for BMW 4WD X5 and X6 upto 3l petrol engines?
Also if you know somebody interested from China to buy and import into China please let me know the contact. Thanks. Vlada
May I know what is the import duty tariff for edible oil in China? Has it changed in the last few years? If so, when was it implemented?
Thanks and Regards
I am planning to export part-finished silver and brass jewellery into China, for my supplier to do some work on them and then return these still part-finished pieces of jewellery to the UK.
Please could you inform me of the tax implication (if any) of this arrangement?
Great work helping so many here – thanks. I started a company in Cebu Philippines making melamine dishware. The original machines were made in Dongguan China. I have 4 melamine press machines I would like to ship back into China and relocate our Cebu factory to China. The machine ages range from 1 to four years old – all made by the same Chinese equipment maker. If I understand correctly there were be a VAT of 17% and then a duty rate of course. As a Chinese made product it would at least get MFN status. What would be the declared value for used equipment? Is shipping used equipment back into China frowned upon? My Chinese contacts are saying I would better off just selling the equipment and purchasing new again in China. Thanks
Thank you for your comment and questions. If I understand correctly, you with to import materials to China for (partial) assembly and then return these to the UK. There are several factors in play here that could affect the taxation, most importantly the use of bonded zones. If you are using a bonded zones as a location for the assembly then you could be exempt from taxation altogether.
Some factors to consider are where you will be assembling the products, who will do the assembly and what relationship you have with them.
I will send you an email and we can discuss this in more detail
Thank you for your kind words and questions. Allow me to explain as best I can here. Regarding your situation about relocating from Cebu to China, while it isn’t so much frowned upon to import used machinery, especially when being used within the same organisation, it’s the hassle that it will cause you. Your contacts in China may have been right in saying that it would be best to sell the equipment and just buy fresh when you move back to China.
Some issues that you could face would be valuing the machinery and declaring them as fixed assets. This would be easier to achieve through purchasing new machinery, and would also avoid customs and inspection.
I will send you an email and we can discuss this further
Good Day Sir/Madam,
I planning to import stone coated metal sheet from china to india can you please advice how much it cost on initial cost , as example 4 usd per square meter stone coated metal sheet cost how much after taxes in china to be ready for shipping. thanks in advance waiting for reply
I planning to export a used bore piles machine for use in foundations jobs from China to Malaysia. The machine was originally fabricate in Italy-Europe and import in China by the actual owner.
I need to pay any export duty. If yes how much?.
The owner will be able to claim VAT refund. If yes how much?.
Waiting for your positive reply.
Dear Sir or Madam,
searching in the website some information about my problem, i found your article and i will address my situation below.
we have a branch company in Guangzhou (a trading company for sales and service) which import goods in China and resell in China. this company also works as service centre for Chinese customers, but sometime we will need to send the good back to italy (to the headquarter) for repairing and then re-import the repaired good in China (it is mainly electronics product).
is there any smooth way for which i can declare the goods are to be repaired without having the problem of the second hands good?
thanks a lot in advance for your attention and help.
I’m curious to find out what blog system you’re utilizing? I’m experiencing some minor security issues with my latest website and I would like to find something more safe. Do you have any solutions?
Thank you for your comment. This is an issue that can have several outcomes. The company who imports the products declare the goods to be second hand and usually what happens in situations of overseas repairs is that the goods are just declared as new. Generally speaking this isn’t the right way to go about goods declaration. Any kind of deception could be met with consequences.
So essentially the goods should be declared as they are if they have been previously sold. Have the goods been previously sold or are they new goods that were damaged in transit? Could you you please send me an email and provide more detail.
I look forward to hearing from you.
I do love the way you have presented this matter plus it really does supply us some fodder for consideration. However, coming from everything that I have observed, I only wish as the actual remarks pile on that people today remain on issue and don’t embark on a tirade regarding some other news of the day. All the same, thank you for this excellent piece and while I can not necessarily concur with this in totality, I regard the point of view.
I hear that for China, imported brand from another country straight into free trade zone and sold on-line and delivered direct to the customer only incurs 10% duty not the normal 15% plus 17% vat. Do you know anything about this? I’m not clear if the goods need to be sold elsewhere or it is sold within china? Where can I get more information on it? thanks
I wish to import Amber roh stone from Ukraine into China.
Can you please inform me of the current import tax, any Quota and the relevant HS codes.
I enjoy what you guys are usually up too. This kind of clever work and exposure!
Keep up the very good works guys I’ve added you guys to my
Dear ladies, gentlemen
We would like to understand what kind of taxes, VAT, custom expenses we’ll see if we buy new machinery for electronic manufacturing from China and import it into Switzerland. The machinery is built originally in South Korea HS code 8479.89-9092 (Korean)
As you know Switzerland does not make part of the EU and as far as I know China has a special agreemnet with Switzerland.
thank you in advance for your reply
i want to export unpolished diamond (basic raw material of diamond ) from shanghai or hong kong to india….
some says their is after all taxation process you have to loose 2% tax and some says on unpolished diamond their is no tax for import and export in china and also in hong kong..
so i am little confused..
if can guide me proper than thanks to guider …
I am planning order two chandeliers from Aliexpress (Chine Seller) for $600. I want to import them to india. How much duty+tax, i may have to pay?
Anything, anyone can help with regarding:
1 – Consignee service pro viders in Beijing
2- Logistics Service providers for domestic transportation, esp. vis-a-vis hukou, i.e. have full access and transport capability from Beijing to anywhere else in China.[e.g. Dalian, Shanghai, Guangzhou]
3- Modern, secure, storage facilities or warehousing providers who are happy to provide long-term storage, with easy access, for a small amount of space – 10m3 to be exact.
Any help with the above three would be hugely appreciated.
You can reach me at sgoconnor85 at gmail dot com
if i am importing certain goods in China, which after further processing is exported, to other countries let suppose India, will i be eligible to any exemption/duty drawback of duty on the imported goods. Kindly guide.
We are having a client Electrical project site at Tianjin China. We are located in Dubai UAE.
We need’s to send some Electrical Test Equipment’s to Tianjin and the same equipment’s will be,
re exported back to Dubai UAE, on completion of testing after 30 to 60 days.
What kind of Taxes & Custom duties applicable for the above and what are all the documents we need’s to produce while materials entering and leaving China.
Waiting for your valuable reply.
Thanks & Regards,
My mail ID was wrong in my earlier mail.
ID is firstname.lastname@example.org
I am going to China on a work visa and want to take my desktop computer with me. Want to know if there will be any tax I need to pay? This is my personal desktop computer for my personal use.
Thanks & Regards
@Stranger: Thanks for the question. There is no need to pay tax for your personal desktop computer.
Hello, I am importing a bicycle frame I bought in Belgium for 1600 euros. How much tax/fees will I have to pay in total? Thanks!
Dear Sir or Madam
I have opened import and export company in Shanghai WOFE, I want to know more about future tax and accounting procedures.
Please suggest me some books or source where I can get comprehensive explanations.
By the way I think The China Tax Guide: Tax, Accounting and Audit will be useful for me, please can you suggest where I can buy it in Shanghai.
Thank you and best regards,
I have opened import and export company in Shanghai WOFE, I want to know more about future tax and accounting procedures.
By the way I think The China Tax Guide: Tax, Accounting and Audit will be useful for me, please can you suggest where I can buy it in Shanghai.
– See more at: https://www.china-briefing.com/news/2013/03/11/import-export-taxes-and-duties-in-china.html#comment-892214
@Ramil: Thanks for your comment! Our 2015 China Tax Guide can be purchased here: http://www.asiabriefing.com/store/book/tax-accounting-audit-in-china-2015-7th-edition-484. We are also going to publish the 2016 tax guide soon. Please stay tuned to our website for more information and updates on China tax news.
Please allow me to ask a few questions regarding re-importation and the necessary contract.
1. My company is a manufacturing company and is currently using various equipment
2. Due to the product changes, we would like to ship some of our current equipment outside of China and have it retooled (i.e. remodeled or re-arranged for production of another similar but different product).
3 The equipment will be shipped back (i.e. re-imported to China)
4. In this case, can we seek customs duty exemption?
5. What kind of a contract between us (Chinese company) and the foreign company (in charge of the retooling) would be necessary?
Thank you in advance
WE are planning to develop an ongoing Chinese operation of production of aseptic packaging material for liquid food into an export business. Raw material is imported ( paper and polyethilene ) and after transformation the final product will be exported to Europe and Middle East.
How do you treat the import VAT paid on raw material ? Can it be offset vs the local sales of the product ? Do we get any export VAT rebate of any sort ?
Dear sir,we are importers of electric sightseeing bus which is battery operated.we want to avoid applying for import permit in malaysia. should we import as CKD or loose parts?what is your suggestion?
I’m looking to ship Urea Nitrogen fertilizer from Shenzhen to Pakistan What would the taxes be from China to ship material?
please email me in details
would you please inform us what’s the duty and taxes to import from Bangladesh to China of Ladies Trouser/Shorts (HS-6204) and Men’s Trouser/Shorts (HS-6203) to make of clothing from any where.
@Maksud: Thanks for your comment. The taxes for Ladies Trouser/Shorts (HS-6204) include a 17 percent VAT and a 16 or 17.5 percent import duty depending on the material of the trousers. Same with the Men’s Trouser/Shorts (HS-6203).
Hi Rainy Yao,
Thanks for your update, materials of product are 100% Cotton/99% Cotton 1% Elastane/98% Cotton 2% Elastane and manufacture will provide the certificate of origin along with goods. Would you advise as what the duty and taxes for import in china based on certificate of origin.
Hi, I want to import Electronic items from CHINA on a long run basis. Im new in this industry and googling i found this article Can you please tell me exactly what all taxes will i have to pay and at what points while importing electronics goods from China to Mumbai,India.
Waiting for your response asap.. Thank you !
I would like import about 100kg of mlesna tea from Sri-Lanka to China. I want to know what are the necessary procedures I have to go through before I can obtain my goods in Guangzhou. I will be glad if I receive answers…Thank you.
I’d like to buy a brand new car in China and take it with me to my country what are the taxes that I have to pay, and what are the ones that I’m exempted of payment. Thanks for any answer.
I have been staying in Beijing for 2years and I have bought some furniture to take with to South Africa and now I want to know how much am I going to pay for taxes.
Can you inform me the latest export taxes imposed on selected minerals in China ?
I only have the 2010 version
Kindly need your support.
Thank you very much!
I want to import 5 tonnes of basmati rice from Pakistan to Shenzhen port. How much tax I have to pay on it. What documents I would be needing to release my shipment at the port.
what wiil be the import tax in total for cotton yarn of 15s count from indian origin, await for your prompt reply
thanks a lot
i wish to send some broken bulldozer housings to China from Australia, to see if they can remake them for me what custom charges and duties will i have to pay and how do i pay them? many thanks Colin
I am planning to establish an export company in China to export goods (mainly in India). we are already importing goods from there. What is the the procedure to get export license in China.
Hi, I am not able to open the link for tariffs(http://www.customs.gov.cn/publish/portal0/tab9409/) given by Chris. Has the link changed. Please help me out with the correct link or the document itself.
Thanks in advance!
I exported Evaluation Equipment to China. My TIB request was denied. To get the product to my customer for a trial, I paid the duties and taxes. The customer is now returning the evaluation equipment to me. How do I request a refund of the duties and taxes that I paid to facilitate the delivery for the evaluation?
I’m not sure you can help me, but I ordered skincare products from South Korea to the value of USD$120. China Customs are refusing to release it until I pay USD$50. Could you advise if this is correct and how they calculated such a large amount?
Under chapter 33.04 classify as cosmetic products consumption tax 30%, MFN Import Tax
10% or 6.5%
I would like to import finished full grain leather from Turkey to China. What would be the import i need to pay what other taxes and cost would I have?
Please help to provide import tax of plastic bag (HS code: 39232119) from Vietnam to China.
Thank you very much.
Hi! I would like to import a Freezer machine from China Qingdao. By sea under FOB term. Malaysia government required IEC (CB Test Certificate). I am not sure what is this? Can someone guide me?
Hi, I woud like to know the exportrates for 9503.00.0090
What do I need to pay as export costs if item costs USD1800, postage (with customs clearance) is USD300?
Please advise, thank you so much!
Hi! May i know what is the import duty for 6307.90.0090 and 6505.00.9900 from China to US? Please help, thousand thanks.
Hi, I would like to inform you, please guide for me.
We purchase mould in india from china for production purpose but few mould not working in proper condition, we intimate our supplier for repairing our mould but supplier not agree for repairing due to tired for china customs. please see the warding from our supplier (As discussed that mould maker talk with his agent for old mould import. So his agent told him it is not possible to import old mould or old machine).
can you advise how can we send our mould to our supplier for repairing purpose.
Hello! I hope you can help me. I have established a ne limited company in Hong Kong to purchase goods in China and sell them in Europe to consumers.
But so far I have not yet opened a business bank account. I was using my personal bank accounts for the first business expenses
I am now willing to pay a supplier for an FOB delivery from this personal account. The supplier tells me that he can not accept payments from a personal account as this would not allow him to make the export tax reductions and also would not let him agree on FOB. To me this is new. Does this make sense?
I am planning to import some finished ready to wear cotton dresses from India in China. What is the total tax percentage that i might need to pay including all the taxes levied by china?
Thank you for your inquiry. Please contact our international tax planning team at http://www.dezshira.com/services/international-tax-planning for more information.
Hi, can you help me with these tariff codes HS480411, HS480419 and HS480511, is there any import taxes from Russia and what is VAT-%? Thank you very much in advance.
I am from india ,I am importing aluminium ingots from china to india my supplier selling me cheaper than other , my supplier selling me for 1200 $ per tonne cif rate aluminium ingots 99.70%,
Is it possible for him to send me cheaper than others as the market price in china for ingots are higher ,
Please help me with transparent response ,will my supplier can supply cheaper than market rate ? China maket rate more than 2000 $
Ge is offering me cif rate for india port please email me and is there any problem with aluminium scrap to import from china , no china customs problem right for aluminium ingots and scrap ????
If i am getting cif price for india port by my exporter supplier , then i dont need to pay any china taxes right ????
and will be any problem for my exporter to export aluminium ingots for cheaper than market rate ????
Thank you for your inquiry. Please contact our international tax planning experts here http://www.dezshira.com/services/international-tax-planning for more information.
I would like to ask a little ( very usefull) help from you as many people did. I would like to buy a machine from China to hungary the price is about USD1300. The company offered me this:
dear,we can offer the FORMA and lower the invoice value to min or 0 the tax
Can I trusth in them ?
Sorry for the same question but I have given a wrong mail.
Thank you for your answer.
Lowering the invoice tax value, though it is sometimes done, is illegal. The relevant tax bureau may therefore issue penalties. For more information, please contact our tax specialists here: http://www.dezshira.com/services/tax-compliance
This is Jayashankar from india. If the Customer from China ask us to ship aluminium castings automotive parts then what will be the import duty at China Customs on arrival. HS Code 76169990
Thank you for your inquiry. Please contact our business intelligence team for an HS code analysis: http://www.dezshira.com/services/business-intelligence-solutions
Can someone help me with the permits and license to get my products (fertilizers) into china?
please do contact me through this email:
Thank you for reading. A member of our team will be in contact regarding your query. If you have any further questions, please contact us here or here.
If a company is importing used PET blow molding machine (HS Code- 84773000) from Europe to China, how much import duty(%) need to be paid by the company.
Thank you for your inquiry. Please contact our business intelligence team for more information on HS codes and import duties: http://www.dezshira.com/services/business-intelligence-solutions
I would like to ship new sailing dinghys to China
Are there various categories for tax or just one?
Depending on the specific categories of the product, the following taxes may apply: preferential tariff rate of 15% (30% where the preferential tariff cannot be applied), VAT rate of 17%, and consumption tax rate of 10%. Please consult our tax specialists for more information on what taxes will apply to your product: http://www.dezshira.com/services/international-tax
I’m looking for a breakdown of Customs Duty, VAT & other taxes for my companies product into China
Tariff code 41150000,
What are the other duty components made up from & there value?
Also one of the major components we import from China, can we claim duty relief when reselling into China?
Many thanks in antisipatuon
I am interested in exporting Bulgarian rose oil and Bulgarian wine from Bulgaria to China. Do you happen to know what the tax might be for each of those goods? Also, I have been exporting baby formula from Germany and tax has been varying, is there a reason why its different every time other than when quantity changes? Shouldn’t it be one tax rate for baby formula? Any help with those issues is much appreciated. Thank you in advance.
Thank you for your inquiry. Please contact our specialists for advisory on your situation: http://www.dezshira.com/services/pre-investment-market-entry-strategy-advisory
Are there any exemptions to import duties if the items will be exported? I am planing to ship fabric in from Italy, have it shipped into mainland China, manufactured into garments then exported to Australia.
A member of our service team will be in contact with you shortly. In the meantime, if you have any questions, please contact email@example.com
We’ve returned some faulty circuit boards back to china for repair.
They have arrived in china, but we have been charged an import duty for these faulty parts, even though they should be there on a temporary import basis.
How can we stop the import charge, how do we claim it back? UPS are saying that it’s an import duty that has been charged.
Thank you for your inquiry. Please contact our legal and tax specialists for advisory on your situation: https://www.dezshira.com/services/tax
We are a manufacturing company with a assembly location in China. We buy parts and send it to China from the USA, and from withing Asia. The final assemblies are ship to the USA. what are the rule and duties that we have to pay on the items send to China?
Thank you for your inquiry. A member of our service team will be in contact with you shortly. In the meantime, if you have any questions, please email us at firstname.lastname@example.org
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