When handling import business, feeling confused about the concepts of customs clearance and agency import goods, and asking if customs clearance is considered agency import goods. The best answer points out that agency import goods covers numerous stages, and customs clearance is only a part of it. For instance, if an enterprise completes some import stages itself and only entrusts a customs clearance company for clearance, this is not considered agency import goods, and customs clearance is not equivalent to agency import goods.
What taxes are involved in agency imports? Come and find out!
Resolved
I plan to find an agency company for import business and want to understand in advance what taxes and fees will be involved. I haven't dealt with this before and don't know how much money I need to prepare for taxes and fees besides the cost of goods. For general trade agency imports, what are the main taxes involved? I hope you can explain in detail. Thank you.
Trade Expert Insights Answers
Generally speaking, agency imports mainly involve customs duty and value-added tax (VAT), and some goods may also have consumption tax.
Customs duty is a tax levied on imported goods. Its tax rate is determined by the HS code of the goods and trade agreements signed between the importing country and our country. The calculation formula is: Customs Duty Amount = Dutiable Value × Customs Duty Rate. The dutiable value is usually determined based on the CIF price (cost, insurance, and freight).
VAT is a tax levied on the added value during the circulation process of goods. The VAT rate for most imported goods is 13%, and for some it is 9%, etc. The calculation formula is: VAT Amount = (Dutiable Value + Customs Duty Amount) × VAT Rate.
Consumption tax is a tax levied on specific consumer goods, such as tobacco, alcohol, and cosmetics. Its calculation methods include ad valorem, specific, and composite taxation. For example, in ad valorem taxation, the Consumption Tax Amount = (Dutiable Value + Customs Duty Amount) ÷ (1 - Consumption Tax Rate) × Consumption Tax Rate. Different goods have different applicable tax rates, so it is recommended to inquire and determine based on the specific imported goods.
In addition to the above, there may be some surcharges, such as urban maintenance and construction tax and education surcharge. These are calculated based on the actual VAT and consumption tax amounts paid. However, if imported goods are exempt from VAT and consumption tax during the import stage, these surcharges are usually not required.
Furthermore, some goods imported may involve anti-dumping duties or countervailing duties. These are levied on goods imported at unfair prices or with subsidies, causing damage to domestic industries. Whether they are levied and the tax rates depend on the ruling of the relevant authorities.
In agency imports, customs supervision fees may also exist, although they have been canceled in many cases now. Previously, they were levied on imported goods that enjoyed tariff and VAT exemptions or reductions, calculated as a certain percentage of the goods' CIF price.
Port construction fees may also be involved, generally levied on goods transiting through ports. They are calculated based on the weight or volume of the goods, and the standards may vary across different ports.
There are also inspection and quarantine fees. Imported goods generally undergo inspection and quarantine, and the fees vary depending on the type of goods and the inspection and quarantine items, used to cover the related work costs of the inspection and quarantine agencies.
Remember to pay attention to whether there are specific tax preferential policies. Some eligible imported goods may enjoy tax reduction or exemption policies, such as certain scientific research equipment, which can save a lot in tax costs.
If you are importing products related to endangered species, there may also be corresponding special taxes and fees to protect endangered species. The fee standards vary depending on the species and relevant regulations.
Sometimes there are late payment fees. If taxes and fees are not paid within the prescribed time, customs will impose a late payment fee calculated as a certain percentage of the unpaid tax amount per day. Therefore, it is important to pay taxes on time to avoid additional expenses.