Detailed explanation of import enterprise tax payment and overseas warehouse operation precautions

In international trade, import companies face various tax payment and fund management issues. At the same time, there is a growing trend to use overseas warehouses to facilitate cross-border transactions. This article will integrate the payment preparation, calculation methods and overseas warehouse precautions for import taxes and fees to guide companies to better understand and manage related processes.

Tax payment preparation matters

From October 1, 2018, enterprises need to use a new generation of electronic payment system for taxes and fees to pay customs taxes and fees, including import and export duties, anti-dumping duties, import tax collection and other related fees. Enterprises should prepare the following matters in advance:

1. Network registration: Enterprises need to register as network users at the China Electronic Port, obtain corporate corporate cards and operator cards, and complete user registration at the “single window”.
2. Commercial bank account opening: Open an account at a commercial bank that has launched a new generation of tax payment services, and register for a unified credit code.
3. Sign the agreement: Enterprises need to log in to the electronic payment system for taxes and fees and sign a three-party cooperation agreement on electronic payment with the customs and commercial banks.

After paying the tax, the enterprise can download the electronic “Customs Special Payment Book” through the “Internet + Customs” platform and print it by itself.

Accounting of import taxes

During the import process, the main taxes include import duties, consumption tax and value-added tax. Here is an overview of how each type of tax is calculated:

1. Import tariff calculation

Duties are usually calculated based on the duty-paid value of the imported goods, usually based on the CIF price. For different trade terms (such as FOB or CFR), the corresponding price conversion formula must be used. In addition, import tariffs are also calculated and levied in the following ways:

• Ad valorem taxation: [Formula] Tax payable = Dutiable price x tariff rate
• Volume-based taxation: For example, the calculation formula for beer and crude oil is tax payable = quantity of goods x unit tax amount
• No insurance policy: The customs calculates the insurance premium based on 3‰ of the total “price plus freight”.

2. Consumption tax calculation

Consumption tax mainly targets taxable consumer goods in the import process. The calculation methods are:

• Ad valorem calculation: [Formula] Amount of consumption tax payable = Component tax price x consumption tax rate
• Volume-based taxation: [Formula] Amount of consumption tax payable = Quantity of taxable imported goods x Applicable fixed tax rate
• Compound tax calculation method: [Formula] Amount of consumption tax payable = component tax price x consumption tax rate + import quantity x fixed tax rate

3. Value-added tax calculation

VAT is an extra-price tax, and its calculation is based on the composition taxable price. The formula is as follows: [Formula] VAT payable = composition taxation price x VAT rate, where composition taxation price = customs duty paid price + tariff + Excise tax.

Notes on overseas warehouse operations

As an important support for cross-border transactions, overseas warehouses require special attention to the following points during operation:

1. Expense management

Choosing the right products and maintaining smooth operations are the keys to reducing the overall cost of overseas warehouses. Insufficient order volume will lead to high warehouse rent, and improper inventory management will affect corporate cash flow. Therefore, sellers should closely monitor inventory and arrange shipments reasonably to ensure that there are no slow sales or out-of-stock items.

2. Inventory management

Reasonable control of cargo inventory is an effective strategy to avoid financial pressure. Improper inventory management can result in lost funds, unsold goods, or product returns. Sellers need to adjust inventory in a timely manner according to market demand, especially when dealing with highly seasonal products.

3. Compliance risks

Overseas warehouse operations involve laws and regulations in multiple countries, such as product quality standards, tariffs and online sales tax requirements. Ensuring that the goods you sell comply with local laws is a necessary step to avoid potential legal risks. Therefore, it is crucial to choose a reputable service provider to cooperate with.

Tax issues for international postal parcels

During international mailing, whether a package needs to pay taxes depends on the value of the package and the customs policy of the destination country. Many countries have tax-free quotas. For packages exceeding this quota, corresponding taxes and fees must be paid. Before sending packages, companies should understand the customs policies of the destination country and accurately fill in the declaration information to avoid trouble.

In short, through reasonable tax payment and overseas warehouse management measures, companies can improve the efficiency of cross-border transactions, reduce potential financial risks and operating costs, and pave the way for the development of international business.