China Customs to implement Measures on Taxation of Import and Export Goods from December 1

Customs of China announced the revised "Administrative Measures for the Collection of Taxes on Import and Export Goods of the Customs of the People's Republic of China" (Order No. 272 of the General Administration of Customs) on October 28, which will be

The relevant contents include:

New regulations on cross-border e-commerce, personal information privacy protection, data informatization, etc.

The consignee of imported goods is the taxpayer of import tariffs and taxes collected by customs at the import stage, while the consignor of exported goods is the taxpayer of export tariffs. E-commerce platform operators, logistics companies and customs declaration companies engaged in cross-border e-commerce retail imports, as well as units and individuals who are obliged to withhold, collect and pay tariffs and taxes collected by customs at the import stage as stipulated by laws and administrative regulations, are withholding agents for tariffs and taxes collected by customs at the import stage;

Customs and its staff shall, in accordance with the law, keep confidential the commercial secrets, personal privacy and personal information of taxpayers and withholding agents that they become aware of in the course of performing their duties and shall not disclose or illegally provide them to others.

The prescribed tax rate and exchange rate must be calculated based on the date of completion of the declaration.

Import and export goods shall be subject to the tax rate and exchange rate in effect on the day when the taxpayer or withholding agent completes the declaration;

If the imported goods are declared in advance upon approval by the customs before arrival, the tax rate in effect on the day when the means of transport carrying the goods is declared to enter the country shall apply, and the exchange rate in effect on the day when the declaration is completed shall apply;

For imported goods in transit, the tax rate and exchange rate implemented on the day when the customs at the designated destination completes the declaration shall apply. If the goods are declared in advance with the approval of the customs before entering the country, the tax rate implemented on the day when the means of transport carrying the goods declares to enter the country and the exchange rate implemented on the day when the declaration is completed shall apply; if the goods are declared in advance after entering the country but before arriving at the designated destination, the tax rate implemented on the day when the means of transport carrying the goods arrives at the designated destination and the exchange rate implemented on the day when the declaration is completed shall apply.

Added a new formula for calculating the tax amount of tariffs with a compound tax rate, and added a formula for calculating the value-added tax and consumption tax at the import stage

Tariffs shall be calculated on an ad valorem, specific or composite basis in accordance with the provisions of the Tariff Law. Taxes collected by the customs at the import stage shall be calculated in accordance with the applicable tax types, tax items, tax rates and calculation formulas stipulated in relevant laws and administrative regulations. Unless otherwise provided, the taxable amount of tariffs and taxes collected by the customs at the import stage shall be calculated in accordance with the following calculation formula:

The taxable amount of the tariff levied on the basis of ad valorem = taxable price × tariff rate;

The amount of tax payable for the tariff levied on a volume basis = the quantity of goods × the fixed tariff rate;

The taxable amount of the compound tariff = taxable price × tariff rate + quantity of goods × tariff rate;

The amount of import consumption tax payable levied on the basis of value = [(taxable price + tariff amount)/(1-consumption tax proportional rate)] × consumption tax proportional rate;

The amount of import consumption tax payable levied on a volume basis = quantity of goods × fixed consumption tax rate;

The taxable amount of the composite import consumption tax = [(taxable price + tariff amount + quantity of goods × fixed consumption tax rate) / (1 - proportional consumption tax rate)] × proportional consumption tax rate + quantity of goods × fixed consumption tax rate;

The VAT payable at the import stage = (taxable price + tariff + consumption tax at the import stage) × VAT rate.

Adding new circumstances for tax refund and tax guarantee

The following circumstances are added to the applicable circumstances for tax refund:

Imported goods for which duties have been paid shall be re-exported in their original condition within one year due to quality or specification reasons or force majeure;

Export goods for which export tariffs have been paid are re-imported into the country in their original condition within one year due to quality or specification reasons or force majeure, and the relevant domestic taxes refunded due to export have been re-paid;

Export goods for which export tariffs have been paid but have not been shipped for export for some reason are declared for customs clearance.

The following circumstances are added to the applicable circumstances of tax guarantee:

The goods have been subject to temporary anti-dumping measures or temporary countervailing measures;

The application of retaliatory tariffs, reciprocal tariff measures, etc. has not yet been determined;

Handle consolidated taxation business.

Source: General Administration of Customs of China