The company is preparing to entrust an agency for importing goods and wants to understand how to make payments and what precautions to take due to inexperience. The best answer suggests that the entrusting party and the agent should first sign an agreement, and the agent should then go to the bank to make the payment with relevant documents. Common payment methods include payment upon arrival and advance payment of goods. It is important to pay attention to exchange rate fluctuations, comply with foreign exchange regulations, prepare documents as required, and promptly track the import of goods.
What taxes are levied on agency imports? Please help me answer!
Resolved
Our company plans to find an agent to import a batch of goods. We have no prior experience with agency imports and are unsure about the taxes involved. We've heard that customs duties and value-added tax are involved, but what exactly is the situation? We hope friends who know about this can explain it in detail so that we can have a clear understanding and make budget arrangements in advance.
Trade Expert Insights Answers
Agency imports generally involve the following taxes:
First is customs duty, calculated by multiplying the dutiable value by the customs duty rate. The dutiable value is usually the CIF price of the goods, which is the cost, insurance, and freight price. Different goods correspond to different customs duty rates. You can check the Customs Import and Export Tariff of the People's Republic of China for specific details.
Second is value-added tax (VAT), calculated using the formula: (dutiable value + customs duty) × VAT rate. The VAT rate for most imported goods is 13%, while some specific goods, such as agricultural products, are subject to a 9% rate.
In addition, if the imported goods are taxable consumer goods, such as tobacco, alcohol, or cosmetics, consumption tax must also be paid. Consumption tax has various calculation methods, including ad valorem, ad valorem with quota, and composite taxation. The actual tax paid will vary depending on factors such as the type of goods and origin. It is recommended to understand the relevant policies and regulations in detail before importing.
In addition to customs duty and VAT, if you import luxury goods, such as high-end watches, there may be consumption tax. The calculation of consumption tax depends on the specific product. For high-end watches, it is calculated by multiplying the selling price excluding VAT by a 20% tax rate.
Agency imports may involve customs supervision and handling fees, but this usually applies to specific goods with tax exemptions or reductions. General goods rarely involve this. If the goods have wooden packaging, fumigation fees and related charges may be incurred, but these are not taxes.
There may also be anti-dumping duties. If a product is found to be dumped, additional duties will be imposed. The amount of anti-dumping duty is the product of the dutiable value and the anti-dumping duty rate, with the rate determined by specific rulings.
For goods subject to consumption tax in the import process, pay attention to the calculation of the composite taxable price for consumption tax. When calculated using the ad valorem method, the composite taxable price = (dutiable value + customs duty) ÷ (1 - consumption tax proportional rate).
Some specific imported goods, such as certain educational and scientific items, may be eligible for preferential policies for customs duty and VAT reduction or exemption. It is important to confirm whether the goods meet the relevant tax reduction or exemption conditions before importing.
Pay attention to exchange rate issues. When calculating taxes such as customs duty and VAT, foreign currencies are converted to RMB using the central parity rate of RMB on the date the customs duty payment form is issued.
If imported vehicles are for special purposes, vehicle purchase tax may be involved. The taxable price is the dutiable value plus customs duty and consumption tax.
If imported goods are returned due to quality or other reasons, the already levied customs duty, VAT, etc., can be refunded, provided that the relevant regulations and procedures are met.
For cross-border e-commerce retail imports, the tax policies differ somewhat from general trade agency imports, with specific limits and tax calculation methods.