Navigating the complexities of customs duties and import processes in China is essential for international traders. This guide provides a comprehensive overview of China's customs duty types, calculation methods, and specific import procedures to ensure compliance and efficiency in trade operations.

Customs duties include importation and exportation taxes which represents 8 294 objects subject to a charge according to the customs tariff plan 2017/2018.  Customs duties are calculated either on the basis of « ad valorem » or on quantity.

IMPORT DUTIES

Customs duties applicable for importations of goods are divided in several categories:

• Most Favored Nation (MFN) Tariffs: Applicable to imports from WTO member countries, countries with bilateral trade agreements with China, and Chinese exports.
• Conventional Customs Duties: Applied to imports from countries with regional trade agreements specifying customs duty provisions with China.
• Special Preferential Customs Duties: Lower than MFN rates, applied to imports from countries with preferential trade agreements with China.
• General Customs Duties: Enforced on imports from countries without agreements or of unknown origin.
• Quota Customs Duties: Lower tariff rates for imports within quotas, higher rates for imports exceeding quotas.
• Temporary Customs Duties: Lower than MFN rates, applied to specific products as decided by China.

CUSTOMS DUTIES ON MOST FAVORED NATIONS (MFN)

MFN taxes (Most Favored Nation) are the most often followed customs duties.

Broadly speaking, it is widely less important than overall rate Applied on non – MFN countries. Products concerned by This taxes are :

• Imported goods towards China from a WTO member country.
• Goods from countries or Territories having ratified a bilateral trade agreement which stipulate the provisions of the application of MFN taxes with China.
• Goods from China

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CONVENTIONAL CUSTOMS DUTIES

This provision is applicable to goods imported from countries or territories that have ratified a regional trade agreement, which includes specific provisions regarding customs duties in conjunction with China.

SPECIAL PREFERENTIAL CUSTOMS DUTIES

It is Applied on imported goods from countries or Territories having ratified a trade agreement which stipulates the provisions of preferential laws with China.

In general, these tariffs are lower than MPF rates and conventional customs duties.

GENERAL CUSTOMS DUTIES

The general tax is enforced on imported goods from countries or Territories with any agreements and treaties or from unknown origin.

QUOTA CUSTOMS DUTIES

The tariff quota law submitted imported goods to a lower tariff rate. For imported goods which outreach quotas, there is a more significant tariff rate.

For example, respecting the quota, tariff quota Applied on soft wheat is 1% – It is significantly lower comparing to MPF (65%) and to general customs duties (which represents130 % of tax applied).

TEMPORARY CUSTOMS DUTIES

In 2016, China have been adopted these temporary customs duties which are lower than MPN.

These 787 imported Products concerned by this tax are:

• Baby diapers (2%)
• Sun glasses (6%)
• Kaolinite (1%)
• Health care products (Skin cosmetics = 2%)

Since 1th June 2015, China decreased its customs tariffs for 14 types of goods.

This measure has been implemented as a result of the Chinese government's decision to alter its tax policy, aimed at stimulating and boosting domestic consumption.

Here is the list of imported goods concerned by customs duties:

• Cosmetics 2 % instead of 5%
• Shoes 12% instead of 22%
• Products made from fur 10% instead of 23%
• Outside clothes: 8 to 10% instead of 17,5 to 24%
• Cashmere and hosiery items: 7% instead of 14%
• Baby diapers : 2% instead of 7,5%

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OTHER CUSTOMS DUTIES

In China, there are instances where customs duties carry a higher tariff rate.

This decision was deemed necessary to combat practices such as dumping, misuse of funds, and to enforce safeguards.

Should a country fail to adhere to a trade agreement, it becomes feasible to impose such deterrent measures; however, this is considered an exceptional course of action.

DUTY APPLIED TO TECHNICAL EQUIPMENT

In 2017, has been published a “catalogue of products and technical equipment’s approved by the government “since 1st January 2018.

Taxes and customs duties on imported products are calculated in function of the value of the article and the price paid by the buyer.

It is called Duty Paying Value (DPV)herefore, export some specific tools is not anymore subject to customs duties for Chinese companies (Tariffs depending on the goods which are imported).

DPV takes freight charges and insurances into account, however customs duties and paid taxes are not.

HOW IT IS POSSIBLE TO CALCULATE TAXES AND IMPORT DUTIES?

It is possible to calculate import tax and customs duties in relying on the DPV (Duty Paying Value) and tax rate on goods.

• Importation
• Exportation

A few of raw Materials picked and semi-finished products are subject to customs duties. In 2016, some products including crude oil, fertilizers or iron alloys are submitted to temporary customs duties to preserve natural resources

Import Duties calculation
	DPV x Customs tariff
	Quantity of imported goods x cost of customs duties per unit
	DPV x Tariff + Quantity of imported goods x cost of customs duties per unit
	Calculation with RMB method and strandard exchange rate from The People’s Bank of China.

IMPORT AND EXPORT CUSTOMS DUTIES ARE CALCULATED WITH THE DPV

For exportation, DPV is based on a negotiate Price, it means on the price paid by the local seller who is exporting.

CUSTOMS FEES AND TAXES IN CHINA

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IMPORTATION PROCESS IMPLEMENTED BY CUSTOMS.

Customs clearance can be a time-consuming process that may delay your shipping schedule. To mitigate this risk, it is advisable to prepare in advance by providing all the necessary information required for customs declarations.

Once you've initiated the shipment of your goods, proper planning will facilitate a smooth transport process between countries. The customs declaration for your goods can be completed online. Simply log in to the website, input the delivery address, and fill in the required details.

After you've provided all the essential information, a thorough review will be conducted to ensure the accurate and timely delivery of your goods.

The payment on customs duties is done by bank transfer.

Documentation that it must be provided to customs authorities will depend on the category of the product transported.

However, some documents are mandatory:  Bill of landing, receipt, la facture, packing, customs declaration insurance, sales contract.

The customs clearances can take times and retard your shipping. In order to prevent from that, it is recommended to anticipate the declaration of all the information whose customs need.

After having submitted the shipment of your goods, you will help for the good execution of the shipping between these two countries.

The declaration of goods submitted to customs authorities can be done by Internet. You only need to Connect to the web site and indicate the delivery address and some information’s.

After having complete all the information, an analysis will be done to confirm the delivery of your goods.

The payment on customs duties is done by bank transfer.

Documentation that it must be provided to customs authorities will depend on the category of the product transported.

However, some documents are mandatory: Bill of landing, receipt, la facture, packing, customs declaration insurance, sales contract.

SPECIFIC PROCEDURES OF IMPORTATION

Some categories of products need a specific inspection such as Agri-food products (by the Health service)

It exists also some categories of products forbidden to import in China such as:  weapons, documents which could push the Chinese government back and the economy or poison, drugs, some animals, hazardous plants, food or medicine from countries affected by diseases.

SAMPLE IMPORTATION

All samples imported in China have to be declared to the customs authorities for inspection. Samples and goodies are taxable according to the product code (HS) Number and nature. Only a few exceptions exist.

Goods intended to exhibition or demonstrations for fairs/ commercial events are not submitted to customs duties

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CUSTOM VALUE OF GOODS WHEN YOU IMPORT:

• General rules for determinate the value according to customs authorities.
• The method Applied by all customs in the world is based on HS code and the declared value of goods.

It is evaluated to determinate duties and taxes. If you have any regulatory questions, contact the economic action center and general direction of customs in your region.

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IN THE CASE OF SALE OF GOODS IMPORTED

When goods are sold during the importation, an evaluation is done according to the transactional value.

Also, it could have an increase or decrease in accordance with fees to ad or to reduce on its value.

FACTORS ADDED ON THE PRICE

Here the list of cost, products, delivery on production, usage and transit:

• Commissions on sales
• Cost of packaging
• Price of contribution
• Cost of amount fees and license fees
• Value of each part of the product
• Cost of transportation, insurance and handling fees

Each factor which is added to the paid price or to be paid has to be based on datas which are objective and measurable.

FACTOR DEDUCTIBLE TO THE PRICE

After the importation of some goods, there are some costs which are not to be consider and not to be included in the paid price/ to pay.

• Fees on works
• Cost of post-shipment transportation.
• Duty and taxes on sales or importation
• Reproduction right
• Purchase Commissions
• Interest on deferred payment

All these fees are deductible on the cost when they have not been included in the price and the most import thing, when it is possible to quantify and identify it.

WHEN THERE ARE NO SALES OR A REJECT OF THE TRANSACTION VALUE

In instances where imported goods are not intended for sale, such as free samples, consignment goods, borrowed or rented items, or when the transactional value is not accepted, special considerations apply to their customs valuation and duty assessment.

In these case, we have different method to determinate the value:

Comparative method	Transactional value allows us to establish the custom value which is accepted by customs authorities and concerns the same goods, from the same country, imported at the same time and with the same commercial value.
Deductive Method	Value is fixed from a resale cost
Calculated value	We determine value according to the cost of raw materials, the manufacturing process, profits and shipment costs.
Last resort Method	Here, reasonable ways are used in giving objectives that we can easily quantify.
Generally, this application is aimed to use one of the methods in the simplest way. It exists two others case to consider it, which are the AVP and the AJ as well.

Understanding China's customs duty system and import procedures is crucial for international traders to comply with regulations and ensure smooth trade operations. By following this guide, businesses can navigate the customs process efficiently and avoid potential delays or penalties.