Taxes in Import from China

Sourcing goods from Chinese vendors is becoming a more favorable choice for wholesalers all over the world. Tax and duty are key concerns for them. If you are among them, having a rough outline of the taxation system before you import from China is the basic foundation to start wholesale business in China.


Normally, for import from China, the Custom Bureau will impose two types of import tax and value-added taxes. The amount of import taxes and customs duty payable is calculated on the basis of the price or value of the imported goods. The value is called as the duty paying value. Another one, valued-added taxes is compulsory in some countries or areas. And this tax is not calculated based on the amount of imported goods but the total amount of import tax, shipping cost and the value of goods. Sometimes, the valued-added taxes may be a large portion. Therefore bear in mind that do not register until the amount reach the threshold.  But for different countries, the regulation and ratio of tax are different, so you have to check out the regulation carefully. The category of the product you source is also another factor that decides the amount of taxes. In each country, certain kinds of products such as high-end luxury will be imposed higher taxes and non-profitable product or service including goods like scientific educational supplies and medical equipment, on the contrary, enjoys lower tax ratio. 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. The origin of imported good also matters of the imposing amount. In few circumstances, anti-dumping tax and patent-protection tax are likely to impose for the protection of inner-house companies and products. For various regulations and tax systems may create puzzles, you have to make sure before make a decision to import from China.

The tax system is always a complex concept in international trade. For order and parcel of small quantity or value is usually free of tax. As a result, in your startup phase, start with a small quantity can not only test the feasibility with less risk and exempt the additional charge of taxes.

Now is a comparatively perfect moment for small stores import from China, as Chinese government has many beneficial policies for Chinese exporters and cross-board e-commerce is highly encouraged in Chinese financial plan these years. For example, to attracting foreign customers, Customs Bureau may provide tax rebate for the order amount reaching a certain amount and for certain industries. Therefore, you can pay attention to the tax policies and find one favorable regulation when you import from China. Although tax system is kind of complex, you should not hesitate to become one wholesaler to import from China with the government paying much attention and the relatively cheap price.