Royalties refer to fees paid by the buyer of imported or exported goods for permission to use patents, trademarks, proprietary technologies, copyrighted works and other rights. When royalties are related to imported goods and the payment of fees is a condition for the sale of imported goods into the territory of the People’s Republic of China, such fees should be included in the dutiable price of the imported goods. Fees paid for the right to use and reproduce imported goods within the territory, or costs of technical training and overseas inspections separately listed as true by the customs, should not be included in the dutiable price of the imported goods.
When importing goods involving royalties, the consignee should declare them to the customs in a comprehensive and truthful manner and submit relevant documents for inspection. If there is any suspicion of false or concealed declaration, and it is verified that it violates customs regulations or constitutes smuggling, the customs will pursue legal liability in accordance with relevant regulations.
Pay taxes according to regulations and tax deadlines
The consignee or consignor of imported or exported goods or their agents have the obligation to pay taxes. Taxpayers of imported and exported goods shall pay the taxes payable on their imported and exported goods to the designated bank within 15 days from the date when the customs issues the tax payment notice. The payment period for ship tonnage tax is the same as the tariff. The collection and management of customs taxes collected on behalf of importers shall be subject to the provisions of customs duty collection and management. Imported goods shall be taxed at the tax rate implemented on the date when the consignee or his agent declares the import. If the imported goods are declared in advance with the approval of the customs before arrival, they shall be taxed at the tax rate implemented on the date when the means of transport carrying the goods declares entry.