How Taxes on Goods Imported to China Calculated?

Contributed by Ms. Zhao Jing, Hylands Law Firm. For more posts about China Customs Affairs, please click here.

China imposes customs duty, consumption tax, and value-added tax on goods imported into its territory.

Table of Contents

1. Customs Duties

Customs duties are calculated based on the price or quantity of imported goods.

The customs duties for most goods are calculated based on their prices.

Duties Payable = Dutiable Value * Duty Rate

The customs duties for a small number of goods, such as frozen chicken, crude oil, and beer, are calculated based on quantity.

Duties Payable = Quantity of Goods * Unit Duty Rate

Customs shall levy consumption tax on alcoholic drinks, tobacco, automobiles, and jewelry.

Tax Payable = [(Dutiable Value + Dutiable Levied)/(1- Consumption Tax Rate)] * Consumption Tax Rate

Tax Payable = Quantity of Goods*Unit Consumption Tax

Value-added tax is collected by customs instead of tax bureaus at the time of import.

Tax Payable= (Dutiable Value + Duties Levied +Consumption Tax Levied) * Value-added Tax Rate

Contributor: Zhao Jing

Position/Title: Partner

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