Determining tariffs, duties and fees of imported goods into China
Import tariffs
After determining the HS code of a product according to China's HS system, the importer can identify the import tariff rate applicable to that product. Most tariffs are calculated based on a percentage of the customs value of the goods.
For Vietnamese goods imported into China, there are 3 tariff options, each option corresponding to a certain tariff rate and conditions for enjoying it. Importers will base on the specific conditions of the goods to choose the most appropriate and beneficial tariff for themselves. Specifically:
- MFN tariff: This is the tariff rate that China imposes on imported goods from WTO member countries. The tariff rate is determined by China in compliance with its commitments in the WTO, and is applied to goods from WTO member countries without any conditions on origin. Vietnam is a WTO member, so Vietnamese goods naturally enjoy this tariff rate without having to meet any conditions.
- ACFTA tariff: This is a preferential tariff rate that China imposes on goods from member countries of ASEAN-China Free Trade Agreement (ACFTA). The preferential tariff rate shall be determined by China, but in no case shall be higher than the tariff rate committed in the ACFTA. To enjoy the preferential tariff rate under the ACFTA Agreement, Vietnamese goods must meet the ACFTA’s rules of origin and have ACFTA certificate of origin.
- RCEP tariff: In RCEP, China has a separate Schedules of Tariff Commitments for goods from ASEAN member countries (including Vietnam). The preferential tariff rate under RCEP shall be determined by China, but in no case should be higher than tariff rate committed in RCEP. To enjoy the preferential tariff rate under the RCEP Agreement, Vietnamese goods must meet the RCEP’s rules of origin and have RCEP certificate of origin.
Businesses can look up the tariff rates applicable to their goods at the following link: https://hs.e-to-china.com/
Other taxes and duties
In addition to import tariffs, goods imported into China are also subject to other taxes, such as:
- Value added tax (VAT): Goods imported into China are subject to value added tax (VAT), and VAT rates vary between products. From April 1, 2019, China’s VAT on imported goods has been lowered to either 9 percent or 13 percent, down from the previous 10 percent or 16 percent. VAT rates applied to goods imported into China include:
+ Tax rate of 13%: applies to most imported goods
+ Tax rate of 9%: is available for certain goods that fall mainly within the categories of agricultural and utility items
- Consumption tax: Imported products taxable under China’s consumption tax include (i) those that are harmful to one’s health like tobacco or alcohol, (ii) luxury goods like jewelry and cosmetics, (iii) high energy consuming products and high-end products, such as passenger cars and motorcycles, and (iv) non renewable products such as gasoline and petroleum. There are also differences in consumption taxes between different imported products
- Anti-dumping duty, anti-subsidy duty and safeguard duty: Some goods imported into China will be subject to anti-dumping tax, anti-subsidy or safeguard tax if they fall within the scope of application of these taxes.
Source: Center for WTO and International Trade
