After April 8, 2016, the legal entry of goods or articles can be divided into general trade, cross-border e-commerce, and mail articles, and their tax policies are different.
General trade import tax:
(i) Taxpayer
General trade import tax applies to bulk goods imported through customs declaration under general trade mode, and its tax payer is the consignee of the imported goods.
(ii) Calculation method
For goods imported through general trade mode, the import tax calculation methods include ad valorem tax, specific tax, compound tax, and sliding scale tax.
(iii) Dutiable price
For goods imported through general trade mode, the dutiable price refers to the price determined by the customs based on the international trade transaction price of the goods, and should include the transportation and related expenses, insurance premiums, etc. before the goods arrive in my country for unloading. Under general trade mode, the dutiable price of imported goods can be understood as the transaction price (CIF price) of the goods, but the specific amount is ultimately determined by the customs according to the existing regulations.
(IV) Calculation method and tax rate
1. Calculation method
For goods imported by general trade, import taxes include tariffs, value-added tax and consumption tax. When levied according to ad valorem tax,
the calculation formulas are:
Tariff amount = Duty-paid price x tax rate
Consumption tax amount = [(Duty-paid price + tariff amount) ÷ (1-consumption tax rate)] x consumption tax rate
Value-added tax amount = (Duty-paid price + tariff amount + consumption tax amount) x value-added tax rate
2. Determination of tax rate
For goods imported by general trade, import tax rates are divided into most-favored-nation tax rates, agreed tax rates, preferential tax rates, ordinary tax rates, tariff quota tax rates, provisional tax rates, etc. The specific applicable tax rate should be determined in combination with the origin of the goods, the type of goods, and the declaration materials provided by the consignee of the imported goods.
(V) Calculation Example
A company imports 5,000 cans of Wyeth milk powder from Australia in general trade mode, with a CIF price of AUD 25.36 per can. It is known that the milk powder is of Australian origin and the commodity tax number is 0402.2900. The goods entered the country on July 3, 2017. Try to calculate the total import tax payable for this batch of goods.
1. Determine the duty-paid price
Under general trade mode, the duty-paid price of this batch of imported goods is the transaction price (CIF price). The applicable conversion rate is the Australian dollar exchange rate on the third Wednesday of the month before the date of entry of the goods (i.e. June 21). After consulting the RMB exchange rate midpoint announcement of the Monetary Policy Department of the People’s Bank of China, it is known that the applicable exchange rate is 1 Australian dollar to 5.1662 RMB, as shown in Figure 2-5-1. The duty-paid price is calculated as follows:
Duty-paid price = 5,000 x 25.36 x 5.166 2 = 655,074.16 (RMB)
2. Determine the tax rate
According to the 2017 Customs Import and Export Tariff, the ordinary tariff rate for goods with the tax number 0402.2900 is 40%, the most-favored-nation tariff rate is 10%, the Australian agreement tariff rate is 7.5%; the value-added tax rate is 17%; there is no consumption tax. The details are shown in Figure 2-5-2. Since this batch of goods is of Australian origin, the agreement tariff rate of 7.5% is applicable.
3. Calculate the tax amount (1) Tariff amount.
Tariff amount = Duty-paid price x tariff rate = 655,074.16 x 7.5% = 49,130.56 (RMB) (2) Value-added tax amount.
VAT amount = (duty-paid price + tariff + consumption tax) x VAT rate
=(65,5074.16+49,130.56) x 17% = 119,714.80 (RMB)
(3) Total tax amount.
Total tax amount for this batch of goods = tariff + VAT + consumption tax
=49,130.56+119,714.80 = 168,845.36 (RMB)
Tax per unit = 168,845.36/5000 = 33.77 (RMB)