This is a form of tax that the government imposes on imports from other countries. Import duty is the amount payable on imported goods according to the import volume. For instance, when someone imports certain goods into the US, the import duty they pay is a percentage of the price of the goods imported. Such an increase in imports is often aimed at making the product seem less “attractive” so consumers can shop in their own domestic markets instead. The current trend towards e-commerce in the world makes it of utmost importance for business owners to study how import duties affect their online business. Generally, the amount of customs duty payable depends on the volume of products imported, the type of product, and the country of origin. In China, the General Administration of Customs is responsible for collecting import duties and enforcing import controls.
What it is
They are taxes imposed by certain authorities when goods are brought into the country. The value of the imported goods often determines the tariffs imposed by the government. Import duties are sometimes confused with duties, customs fees, or import taxes. Economically, they are imposed to generate national income and protect domestic commodities from the rise of foreign products. However, another reason for collecting taxes is to stop these foreign goods from flooding local markets.
Import duties in the country
Chinese import duties are levied on goods entering the territory and are enforced by the General Administration of Customs. Import duty rates in China vary depending on the type, origin, and value of the imported goods. The country implements a customs list having different import duty rates that apply to different types of goods. Tariff rates range from 0 percent to 50 percent, with an average rate of approximately 7.5 percent. Some goods such as humanitarian items, and certain types of medical equipment do not require duties. In addition to import duties, certain taxes and duties may also be imposed on imported goods; Value Added Tax (VAT) and Excise Tax. China’s standard VAT rate for imported goods and services is 13 percent, but some goods and services are subject to a reduced rate of 9 percent or are wholly exempt from VAT. Excise taxes are levied on some luxury goods, and environmental taxes are levied on specific polluting products.
Chinese importers need to have import licenses for some goods such as weapons, ammunition, and some chemicals. They may be subject to other regulatory requirements depending on the type of goods being imported. It is important that importers have knowledge of the taxes and duties that apply when importing goods into China, to avoid penalties and undesired delays at the border. Importers may contact the General Department of Customs or Customs Broker for further details of import duties and regulations.
Collecting import duties
Import duties vary by country. They are usually calculated as a percentage of the customs value including insurance and shipping. Most persons do not know what import duties are levied on their shipments. However, as a business owner, it is very important to inform your international customers about the taxes you will be charged. That way you won’t be suffocated if you have to pay extra for delivery. They can easily calculate the tax they should pay based on their home country’s tax rate and add this to the price of the product they want to buy to know how much they actually paid. If you are unsure how to calculate import duties, please consult an expert or business support company.
Note that all importers must pay import duties before the goods clear customs. Failure to pay the duties imposed may result in fines, penalties, and even confiscation of goods.
