Latest Duty Regulations in China

Duty regulations are changeable in China. As the cross-border ecommerce is becoming more and more popular, the Chinese government also tries to catch up with this trend.

As we all know, there are several types of cross border ecommerce. The first one is sales though a global website, the second one is sales through bonded warehouse and the third is sales through a Chinese website.

In the first two cases, if the imported packages by mail for personal use have a total value of RMB1, 000 or less, or the package only contains 1 article with the exceeding RMB1,000, China Customs uses an “assessed value” approach to impose customs duties.chinacustom

There are 4 ranks of customs duty rates (i.e. 10%, 20%,30% and 50%). And articles having a customs duty payable of RMB 50 or less can be imported free to duty (Personal Parcel Exemption), unless the articles belong to “20 commodities prohibited from duty exemption”, such as camera and TV. There is no VAT for this type of cross border ecommerce.

On the other hand, if the imported package by mail having a total value exceeding RMB 1,000(except for only 1 product contained),it should be regarded as a “general goods”, rather than as an article for personal use purpose. Duty and VAT are payable based on the commercial value of imported goods. The duty rates are based on the HS codes of the imported goods.

Starting June 1, imported goods such as skincare products, cosmetics, sneakers, diapers, and other daily use products will become less expensive as tariffs will be reduced by almost two-thirds in some cases.

Revised taxes on imported goods include: a 7-10 percent tariff on Western clothing goods, down from 14-23 percent; a 12 percent tariff on footwear, down from 22-24 percent; a 2 percent tariff on cosmetics, down from 5 percent; a 2 percent tariff on skin care products, down from 6.5 percent; and a 2 percent tariff on diapers, down from 7.5 percent.

The Ministry of Finance explained the temporary adjustments are intended to stabilize economic growth and stimulate domestic consumption.

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