Considering engaging in processing re-export trade, I want to know if this trade model is subject to taxes, if so, what types of taxes are involved, and what are the policy differences across different regions. The best answer states that re-export goods usually do not enter the national customs territory and therefore typically do not require payment of import-related taxes and fees. Domestic processing involves value-added tax, and imported materials processed under specific modes can be temporarily exempted or refunded. Policies differ across regions, so it is recommended to consult local customs and tax authorities.
What Taxes are Generally Involved in Re-export Trade? Come and Find Out!
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Our company plans to engage in re-export trade and would like to know in advance what taxes are involved? I heard that tax policies differ across countries and regions, are there any special points to pay attention to in this regard? Are the types of taxes involved in re-export trade significantly different from general trade? We hope a professional can help answer, thank you!
Trade Expert Insights Answers
Re-export trade typically involves customs duties, value-added tax, consumption tax, etc. Regarding customs duties, if goods circulate within specific areas such as bonded zones in the transit country and comply with relevant regulations, customs duties may not be payable. However, once they enter the domestic market of the transit country for sale, customs duties will need to be paid according to regulations.
For value-added tax (VAT), since the goods in re-export trade do not enter the domestic customs territory, domestic VAT is generally not incurred. However, if the re-export trade business involves domestic services, such as agency or logistics services, VAT may need to be paid.
Consumption tax: If the re-exported goods fall under the category subject to consumption tax, and relevant conditions are met, consumption tax may also be involved. The tax policies for re-export trade vary significantly across different countries and regions. Before engaging in business, it is crucial to have a detailed understanding of the policies of the transit country and relevant trading countries to avoid tax risks.
Re-export trade sometimes involves stamp duty. For example, for trade contracts signed, stamp duty may be levied at a certain percentage of the contract amount. The specific tax rate depends on local regulations, and attention should be paid to these tax requirements before signing the contract.
In some regions, there may be port construction fees. When goods are loaded, unloaded, or stored at transit ports, port authorities may charge this fee. Although not strictly a tax, it is part of the cost of re-export trade.
Customs supervision fees may also be involved, mainly levied on specific goods and items under customs supervision. If the conditions for collection are met during the supervision of re-exported goods, the fees need to be paid.
Some countries have local surcharges, which may be levied at a certain percentage based on main taxes such as customs duties and VAT. Re-export trade enterprises should also pay attention to local policies in this regard to accurately calculate costs.
Anti-dumping duties may be encountered. If the destination country considers imported goods to be dumped, it may impose anti-dumping duties. Re-export trade enterprises should pay attention to the dynamics of the destination country in this regard.
In re-export trade, if international transportation services are involved, the transportation enterprise may be subject to transportation tax, but this depends on the enterprise's place of registration and related regulations for transportation services.
In some cases, withholding tax may be involved. For example, for payments made to overseas enterprises, according to local tax regulations, withholding tax may need to be withheld and paid.
Some countries impose resource taxes on specific products. If re-exported goods fall into this category, attention should also be paid to whether relevant taxes need to be paid.
Environmental taxes may also be involved in some regions. If the transportation or other aspects of the re-exported goods have a specific impact on the environment, environmental taxes may need to be paid according to local policies.