china tarriffs on lcd monitors quotation

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All the information, data and documents are provided by ETCN only for your reference. ETCN promises to collect and edit them in due care but shall not be liable for their correction and accuracy. In case of any discrepancy, official versions and interpretations shall prevail.

WASHINGTON (Reuters) - U.S. President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

The delay which, affects about half of the $300 billion target list of Chinese goods - along with news of renewed trade discussions between U.S. and Chinese officials - sent stocks sharply higher and drew cautious relief from retailers and technology groups.

Trump’s 10% tariffs will be effective from Dec. 15 for thousands of products including clothing and footwear, possibly buttressing the holiday selling season from some of the fallout from the protracted trade spat between the world’s two largest economies.

“We’re doing this for Christmas season, just in case some of the tariffs would have an impact on U.S. customers,” Trump told reporters in New Jersey. “Just in case they might have an impact on people, what we’ve done is we’ve delayed it so that they won’t be relevant to the Christmas shopping season.”

The U.S. Trade Representative’s Office announced the decision just minutes after China’s Ministry of Commerce said Vice Premier Liu He conducted a phone call with U.S. trade officials.

Liu agreed with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to speak again by phone within the next two weeks, the ministry said.

The delay in tariffs on a substantial portion of a $300 billion list of remaining Chinese imports sent U.S. stocks surging, after steep losses in the past week, with the Standard & Poor"s 500up 1.5% and the Nasdaq Compositegaining nearly 2%.

Shares of market bellwether Apple Incsoared 4.2% on news that its core iPhone, tablet and laptop computer products would be spared from tariffs for the time being.

But the Trump administration still plans to impose 10% tariffs on thousands of Chinese food, clothing and other consumer electronics products beginning Sept. 1.

Among these are Chinese-made smartwatches from Apple and Fitbit, smart speakers from Amazon.com Inc, Googleand Apple, and Bluetooth headphones and other devices, a category estimated at $17.9 billion last year by the Consumer Technology Association.

Flat screen televisions from China, a category worth $4.5 billion, also will face 10% tariffs on Sept. 1 after being spared from Trump’s first round of tariffs more than a year ago.

A trade group representative said USTR informed them that it opted to delay tariffs on items where China supplies more than 75 percent of total U.S. imports. Product categories where China supplies less than 75 percent will still face tariffs on Sept. 1, the representative said, speaking on condition of anonymity because the information was not publicly released.

Based on a Reuters analysis, the delay could extend to around half of the $300 billion list of remaining Chinese imports. Chinese imports subject to the tariffs on Dec. 15 totaled about $156 billion last year, according U.S. Census bureau data.FILE PHOTO: U.S. President Donald Trump meets with China"s President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019. REUTERS/Kevin Lamarque/File Photo

While most retailers would have stocked their holiday merchandise before the September deadline, some might have faced the tariffs for fill-in orders late in the holiday shopping season.

Still, the Retail Industry Leaders Association said “removing some products from the list and delaying additional 10% tariffs on other products, such as toys, consumer electronics, apparel and footwear, until Dec. 15 is welcome news as it will mitigate some pain for consumers through the holiday season.”

The Consumer Technology Association applauded the delay on some items, but added: “Next month, we’ll begin to pay more for some of our favorite tech devices – including TVs, smart speakers and desktop computers. The administration should permanently remove these harmful tariffs and find another way to hold China accountable for its unfair trading practices.”

The 21-page-list of products that will not get hit with tariffs until December also includes baby monitors and strollers, microwaves, instant print cameras, doorbells, high chairs, musical instruments, ketchup dispensers, baby diapers, fireworks, sleeping bags, nativity scenes, fishing reels, paint rollers and food products.

A separate group of products will be removed from the tariff list altogether, the USTR said, “based on health, safety, national security and other factors.” It did not immediately identify these items.

Trump announced the Sept. 1 tariffs less than two weeks ago, blaming China for not following through on promises to buy more American agricultural products during talks in Shanghai at the end of July. That move was met with a drop in China’s yuan currency a few days later, prompting the Trump administration to declare Beijing a currency manipulator and sending markets tumbling for several days last week.

In a sign the administration may be expecting something in return, Trump tweeted on Tuesday: “As usual, China said they were going to be buying ‘big’ from our great American Farmers. So far they have not done what they said. Maybe this will be different!” Trump tweeted.

Trump’s tariff delay comes amid growing concerns about a global economic slowdown. Goldman Sachs said on Sunday fears of the U.S.-China trade war leading to a recession were increasing and Goldman no longer expects a trade deal between the two countries before the 2020 U.S. presidential election.

Trump has also personally criticized Chinese President Xi Jinping for failing to do more to stem sales of the synthetic opioid fentanyl amid an opioid overdosing crisis in the United States.

Reporting by David Shepardson, David Lawder, Makini Brice and Susan Heavey in Washington; additional reporting by Jeff Mason in Morristown, New Jersey; Writing by David Lawder; editing by Tim Ahmann, Marguerita Choy and Cynthia Osterman

Otherwise, without such Approval, even if the goods have arrived at the China Customs, they will not be cleared normally, and the goods will be detained in the port till get such approval, or even be returned, causing you huge losses.

The United States Trade Representative office said Tuesday that new tariffs on certain consumer items would be delayed until Dec. 15, while other products were being removed from the new China tariff list altogether. It cited health and security factors.

The USTR said the delay affects electronics including cellphones, laptops and video game consoles and some clothing products and shoes and "certain toys."

The USTR did not specify which items will be removed from the list but said it will conduct an "exclusion process for products subject to additional tariff."

Trump said Tuesday his decision to delay tariffs ahead of the Christmas season was to avoid an impact on holiday shopping. Additionally he said all of the delays "help a lot of people."

Separately, China"s Commerce Ministry said Vice Premier Liu He had spoken by phone with U.S. Trade Representative Robert Lightizer and Treasury Secretary Steven Mnuchin and they agreed to talk again in two weeks.

Uncertainty around the trade war has weighed on the markets. U.S. stocks had their worst day of the year on Aug. 5, when China let its currency weaken, crossing the 7 yuan-per-dollar threshold and said it would halt imports of agricultural goods from the U.S.

Washington, DC -The United States Trade Representative (USTR) today announced the next steps in the process of imposing an additional tariff of 10 percent on approximately $300 billion of Chinese imports.

On May 17, 2019, USTR published a list of products imported from China that would be potentially subject to an additional 10 percent tariff. This new tariff will go into effect on September 1 as announced by President Trump on August 1.

Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.

Further, as part of USTR"s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles. Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.

The USTR will publish on its website today, and in the Federal Register as soon as possible, additional details and lists of the tariff lines affected by this announcement.

Correction: An earlier version misstated how cellphones would be affected by the USTR announcement. The office says tariffs on cellphones are being delayed.

The sudden escalation of the trade war between the U.S. and China in recent days could lead to longer-term shifts in not just China’s import programs but also in global manufacturing arrangements, according to experts at Wharton and the University of Pennsylvania. U.S. trade policies that are not rooted in economic considerations but are driven by political postures could prove costly for U.S. businesses and consumers, in addition to eroding the country’s leverage in global trade, they warned.

The latest conflict between the two countries has seen tit-for-tat actions. China on Monday announced that it will raise tariffs to between 5% and 25% on certain U.S. products entering its country, worth some $60 billion in annual trade. That came after the U.S. move on Friday to increase tariffs to 25% on $200 billion worth of Chinese goods, with a threat to extend that to another $300 billion worth of imports from China. In 2018, U.S. exports to China were $179.3 billion; imports were $557.9 billion. The U.S. goods and services trade deficit with China was $378.6 billion in 2018, according to government data.

“Tit-for-tat is an understatement,” said Wharton emeritus professor of management Marshall W. Meyer of the retaliatory tariffs China has imposed. China could end up hurting itself with those higher tariffs, especially in its imports of agricultural products from the U.S. “China has its own food crisis right now; they’re losing about half their pigs to African swine flu,” he pointed out. “So, not only do they need soybeans from the U.S., they’re going to need pork from the U.S. And it looks like they’re about to impose tariffs on a variety of U.S. farm products.”

“The real pain will come if China resorts to other methods which are within the Chinese repertoire,” said Jacques deLisle, professor of law and political science at the University of Pennsylvania, who is also director of the Center for East Asian Studies and deputy director of the Center for the Study of Contemporary China. “There’s quite a rich menu” of actions China could take, he added. “Tariffs are certainly part of the mix … but there are a lot of other mechanisms for making it painful for U.S. companies and for U.S. exporters.”

Meyer and deLisle discussed the Sino-U.S. tariff wars on the Knowledge at Wharton radio show on SiriusXM. (Listen to the podcast at the top of this page.)

Among the actions at China’s disposal that could hurt the U.S. include “slow or extra-probing inspections” at customs when U.S. goods arrive, deLisle said. They could extend to “more zealous enforcement of any number of Chinese regulatory laws against American companies that are on the ground in China doing business, such as safety and licensing inspections,” he added.

“We’ve seen this happen before, and it’s very hard to police because it is essentially somewhat selective enforcement of legitimate laws on the books,” deLisle noted. In the past, China has slowed imports at customs and launched investigations into foreign companies during times of tension, according to a New York Times report.

There also have been instances where American firms have been “quite frustrated” about what they see as not fully fair scrutiny of investments such as with mergers and acquisitions of Chinese firms by American acquirers, deLisle continued. “The Chinese claim that as sort of tit-for-tat for the way we use the Committee on Foreign Investment in the U.S. (CFIUS) to police Chinese investment,” he said. “It’s getting fairly politicized, and one could easily see that ratcheting up. China now has laws that resemble U.S. laws that are somewhat more flexibly applied to undertake national security and national economic security scrutiny of acquisitions and investments.”

Meyer noted that the U.S. employs other tools beyond CFIUS to restrain China. “Maybe the most powerful tool would be export controls,” he said. “What if Qualcomm chips, for example, did not go to China? That would have a significant impact on their industry.”

A similar situation arose last year when the Trump administration banned U.S. companies from doing business with Chinese telecommunication equipment maker ZTE after the latter was found guilty of exporting controlled technology to North Korea and Iran. It eventually lifted that ban after Xi Jinping personally intervened in the matter and raised it with Trump.

“ZTE almost faced the death penalty when the Trump administration was going to impose [tariffs on] chip exports — that would have killed the company,” deLisle noted. The move could also have disrupted global supply chains in the telecom industry, according to a Knowledge at Whartonreport at the time.

If the trade war escalates, the U.S. risks “a permanent shift” in China’s supply base for soybeans, Meyer warned. “Brazil can produce almost as many soybeans as the U.S. [can],” he said. “We risk a long-term weakening of our agricultural sector, and that can’t be a good thing economically or strategically.”

“Going further with the tariff war is damaging for both countries,” said Wharton management professor Minyuan Zhao. “As we learned from game theory, the outcome in equilibrium is not always the optimal one.”

Similar threats lie in store for the U.S. in manufacturing as well, deLisle said. “If people start to think this [trade war with China] is a lasting phenomenon, you could see significant dislocations,” he added. “You could see companies relocating their supply chains; in some cases, that’s going to be moving production into China to avoid tariffs on goods exported from the U.S., and in some cases [it could mean] moving sources out of China to countries that don’t face the tariffs that China does – all that could be very disruptive.”

Higher tariffs on Chinese goods would make them costlier for U.S. consumers, but they may weather that in the short-term, DeLisle said. His bigger worry was about the longer-term effects of disrupted supply chains. “There is a pretty efficient global supply chain out there right now. If you start messing with it for reasons that are not rooted in economic fundamentals, but are rooted in policy choices about bilateral trade wars, then that’s costly,” he added.

The U.S. tariffs on imports from China could bring “a potentially seismic jolt to the global economy that is expected to raise prices for everyday products such as cell phones, sunglasses, cameras and televisions,” said a Washington Post report. “There will be price hikes at Target, Costco, Home Depot and Walmart,” the report added, quoting Nelson Dong, a Seattle-based partner with the law firm of Dorsey & Whitney.

Zhao noted that Trump last week tweeted a claim that the U.S. loses $500 billion in trade with China. “The $500 billion that the U.S. pays every year to China is not just for Chinese goods and services,” she said. “It is also for Korean memory chips, Japanese touch screens, and Malaysian electronic components that are assembled into a ‘made-in-China’ product. It is for the German machinery, Australian iron ore, and Saudi oil that made the production possible. In fact, China runs a trade deficit with all these countries.”

In such a setting, any disruption to trade with China will be a disruption to the global supply chain, Zhao warned. “Of course, some countries will benefit, replacing China as the new assembler, while others will lose, facing reduced demand for their touch screens and iron ore. After all, if the eventual cost for imports increase, demand will go lower, and so will the need for all the intermediary inputs.”

According to deLisle, an escalating trade war with China seemed imminent after the Trump administration followed up its latest tariff increase on some Chinese products with a threat to extend that to all imports from China.

A New York Times report tracked the tariff actions and retaliations by the U.S. and China over the past year. On July 6 and August 23, 2018, the U.S. imposed 25% tariffs on $50 billion worth of Chinese technology goods including machinery, semiconductors, autos, aircraft parts and intermediate electronics components. That was part of a Section 301 probe by the U.S. into China’s intellectual property practices. China immediately retaliated with 25% tariffs on $50 billion worth of U.S. goods including soybeans, beef, pork, seafood, vegetables, whiskey and ethanol.

Next, on September 24, 2018, the U.S. imposed a 10% import tariff on $200 billion worth of Chinese goods including computer modems and routers, printed circuit boards, chemicals, building materials and furniture.

On May 10, 2019, the U.S. increased import tariffs on those products to 25%. On May 10, Trump also directed the U.S. Trade Representative to begin the process to impose 25% tariffs on remaining Chinese imports worth about $300 billion. They include consumer products such as cell phones, computers, clothing and toys. Three days later, China announced tariffs of between 5% and 25% on imports from the U.S. worth about $60 billion. About half the 5,140 U.S. products it listed would attract 25% tariffs, and they include liquefied natural gas, soy oil, peanut oil, petrochemicals, frozen minerals and cosmetics.

After all those moves, China would only have about $10 billion in U.S. imports left to levy in retaliation for any future U.S. tariffs, the report noted. However, it warned that retaliation could come in other forms, such as increased regulatory hurdles for U.S. companies doing business in China.

The timing of the tariff war is unhelpful for China because it is already facing slowing economic growth, deLisle said. For the U.S., a big unknown is the impact of higher tariffs on Chinese goods after they take effect, he added.

The higher U.S. tariffs on imports from China apply to those that are shipped after the May 10 announcement; it would be a couple of weeks before the first shipments after that date arrive at U.S. ports, deLisle said. U.S. exporters have a little more time; China has said its new tariffs will go into effect after June 1.

The U.S. has also lost much leverage in its China dealings after it pulled out of the Trans-Pacific Partnership trade agreement two years ago, deLisle said. The TPP has since been replaced by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), with Japan taking the lead role. “The U.S. is now being shut out of certain Asian markets – not completely, but it’s doing less well because it’s not inside that grouping, and that’s going to start to hurt some U.S. companies, especially U.S. exporters and service providers,” deLisle said. China is currently considering joining the 11-nation CPTPP.

Now that the U.S. is out of the TPP, Meyer noted that the U.S. is forced to act unilaterally against China, especially when it is not able to muster the support of its allies. “Some of our allies, particularly in Europe, are wavering as to who will set the agenda for trade and who’s going to set the platforms for technology going forward,” he said. “The U.S. is in a weakened position as a consequence.”

According to deLisle, no easy solutions are in sight. “Both sides are now in a position where it’s going to be politically very tough to back down,” he said. “Xi Jinping needs not to appear to be caving [in] to the Americans. This image of him as the strong man and the wise leader is something he can’t afford easily to give up.”

Also, China has declared that it will stand firm in response to the increased U.S. tariffs on social media platforms and other media that are controlled by the Chinese government, deLisle said. That posturing was evident in China’s reaction when the U.S. accused it of reneging on promises to change Chinese laws, he noted. “The reaction in China – at least in the way it was sold to the Chinese public – was the U.S. can’t tell us how to make our domestic laws. That’s neocolonialism and extraterritorial reach.”

“As we begin to regionalize, and as we begin to set up fences globally, we’re also limiting commerce in a way that has nothing to do with tariffs.” –Marshall Meyer

“Both parties believe that their demands are the legitimate ones, and both could be right at the same time,” Zhao noted. “Because of the very different economic models and growth paths followed by the U.S. and China, we have not had a consensus on what is ‘right’ and what is ‘wrong,’ and what it really means to have a ‘level playing field.’”

Zhao recalled that Trump took office with the promise to “Make America Great Again,” and Xi took office with the promise of the “China Dream,” i.e., a return to the glorious days of the past. “So, even if they rationally see the advantage of a compromise, they may not want to put it in ink for fear of disappointing their support base,” she said.

The U.S. position on China is one of the few issues where there is bipartisan agreement, said Meyer. “[However], I’m worried that the Trump administration is being pushed on this by the far right – by the Steve Bannons of the world,” he added. Bannon, who was formerly Trump’s chief political strategist, has said that the “ultimate success is regime change [in China]. If we go down that path, we will have huge problems,” Meyer warned.

Chances of a reconciliation appear dimmer with the next U.S. presidential election approaching, said deLisle. According to him, both sides misread the likely outcomes of their respective positions. The Trump administration did not correctly gauge the effect of its tough stance on getting China to cave in to its demands.

“They underestimated the degree to which China would see [backing down] as a political setback – to be perceived as deferring too much to American demand,” deLisle said. On the other hand, China underestimated the degree to which its stance has eroded its support base in U.S. political circles. “There are people who are calling for a new Cold War, [while others] are much more skeptical about engaging [with] China,” he added.

“So far, the trade talks have provided little evidence that the two nations have found a formula for how to negotiate successfully” since Trump and Xi met last December, according to a Wall Street Journalreport that traced the sequence of events in this case.

According to Meyer, the question both countries have to consider is: “Are we working cooperatively, or are we sliding toward protracted conflict that could go beyond the economic realm?” He advised that both sides “take a break, step back from the brink and explore arenas where maybe U.S. and China can cooperate.”

I read your publication about the current Chinese export-import tarriff system with interest.However,I am short in getting answer for my immediate question.Perhaps you could help me,I hope

we are exporting weekly goods to Shenzhen district, but in last months it happens that a lot of containers have been stopped to Customs since Customs agents request specific declaration on the amount od Insurance Premium. For us it’s extremely difficult to declare this amount for each invoice since we pay a yearly premium.

Moreover in February we increased some prices and Customs rejected our invoices!!! They told us to declare the reason of the increasing!! So, in accordance with customer, we decided to change all the commercial names of the items in order to avoid confusion!

Customs does not accept annual insurance declarations. However the Customs officer should advise the exporter how to make the declaration, so that this technicality can be resolved easily.

The exporter has the right adjust the prices of products. Customs does however check and asks for explanation of the adjustment. This is done to understand the reason for the change and to avoid human error.

I am looking at setting up a repair centre in Guangzhou to repair my hearing aid devices, the idea would be to have all Asia Pacific countries to ship to Guangzhou for repair and then the repair centre to ship back to those countries. Currently I am going through many websites to understand all requirements, duties & VAT so I can complete a cost comparison to our current process, I am looking for as much information as possible and hoping that you can help me out.

this business and I’m confused as the information regarding taxes and pricing keep changing from person to person that i’ve come across. Can anyone give me information how I should proceed?

As mentioned in the article, export duties are only imposed on a small number of certain goods. In order to confirm the duties on export for polyester, we can check with the Customs Bureau. We will follow-up with you about this in a separate email.

I plan to import POLISHED PORCELAIN FLOOR TILES from Fushan, China, to Pakistan. Will be grateful to know any export tax / FTA or some other tax and the rate of tax applicable to this item. Thanks.

We are having our supplier in India, ship an individual component to our supplier in China, who assembles the entire product using this Indian component, packages and ships the finished assembly to our company in the U.S.

How do we avoid having our Chinese supplier pay a lot of duties and taxes on the component from India, when they are turning right around and exporting the component as part of the total assembly?

I am an Australian boat builder who is looking to get our boats built in China and then shipped back to Australia to sell. My question is what amount of Import tax and duty do I have to pay if I buy and ship the aluminium material from Singapore to the boat building yard in China ? Do I get any refund when the boat produced from this material is shipped from China back to Australia ? Looking foward to your thoughts, Adam.

Thanks for your question. The duty payable in China on imported aluminium into China could be zero if the boat building yard is located in a export processing or bonded zone. In this way they can be shipped to China, worked on but as the product is not intended for the Chinese domestic market they do not ‘officially” enter China. So you need to find a boatyard located in such a site. Otherwise duty will be payable, and as the product is not meant for the China market this just adds an unnecessary – and avoidable – element to the end cost. Let me know if you need assistance with site location, we have clients in the boat building industry in China. – Chris

We are a boat building company based in Indonesia. We plan to export a newly built 32 meter luxury yacht into Hainan, China. We will cruiser her straight from Jakarta into Hainan. What sort of taxes will my customer come across with the importation of this yacht? Just keeping a heads up for my client.

@Astrid – There is a search function on the official website of China Customs and Import duties of various goods abd their respective HS codes that can be found here:

@Haluk: There are four different kinds of aluminum ingots listed under the China Custom’s Online Service Center. The site is in Chinese but does have a search function. It’s here: http://service.customs.gov.cn/default.aspx?tabid=9409

Anyway, exporting aluminum ingots from China is subject to both export duty and value-added tax. The tax rate of VAT is always 17%, while the export duty rate is 15% for such resources.

i was trying to use link (http://www.customs.gov.cn/publish/portal0/tab9409/) for seaching HS codes by myself but i was not succesful. That page did not let me trough its verification code. So i decided to ask here and i would be grateful for any reply to my email.

My company is starting business with importing goods to Europe from China. I have a regular discussion about export duties with my china suppliers. I would like to have some sort of credible source which would give me straight and clear information about real export duties which my china supplier is facing. Is there some credible government source like this in english language?

We are importing to EU mainly HS8443999090 and HS4811900000, HS3703900000. Can i ask about real export duties with these goods? Im especially interested if i had to pay 17% China VAT when im exporting these goods from China to Europe.

I have some issues with my commercialization strategy, your article was really useful but I wonder if there is any chance to email you with some doubts. I am planning on exporting menswear to china,

I think the problem you are facing on that website is that you are putting the “HS” in front of the code, which doesn’t work. You just have to put the numerical code in directly. However, yes it is only in Chinese and can be a bit confusing.

Our China site has been importing goods from different countries. We had encountered an issue where in the China Customs is taxing us base on a higher value. We bought the goods from Singapore for like .05/unit. China customs is taxing us base on 0.162/unit. They do not accept that the real price for the item is just 0.05/unit.

I am administrating an international school in mainland china, and I want to order some textbooks from America. The American textbook publisher requires me to provide my customs registration number before I can complete the order, but I’m finding it very difficult to find out how to get such a number.

@Herbie: You need to provide proof to China customs that the goods were purchased at the amount you said. However they do keep a database of prices on gloablly traded products to ensure the correct amount is being declared, and they can and do impose what they feel is the correct dutiable value on the goods if they wish. You need to negotiate with them and provide hard evidence of proof of the true cost. – Chris

@Nathan: Bringing in school textbooks from overseas can be very difficult as the Chinese government monitor very carefully the publications that can be brought in. It’s not just a matter of customs, it’s also a matter for several other Government departments as well, including the Ministry of Education and the Ministry of Propaganda. You will need professional assitance with this. I have sent you a personal email to discuss. – Chris

@Kian – this China Ministry of Customs website lists all the applicable duties on HS codes for goods imported into China: http://www.customs.gov.cn/publish/portal0/tab9409/

Could you please help me check what are the HS codes of quartz-based engineered/artificial/man-made stone and natural stone (marble/granite) exported to China? Is it 68101100 or 68101910 or any number else?

@John Scott: According to China’s customs regulations, gold, silver and the products made from them are duty-free and do not need to be declared if they are less than 50g (2 ounce) in weight. If the amount exceeds the limitation, you should declare it, and duty will be payable. On another note, I wouldn’t be sending gold or valuables through the post or even courier to China. It would be far safer to collect in UK and bring it back in personal luggage.

Modifications and so on you’re best talking to the manufacturer directly, and there are so many – you’ll need to conduct your own online research on that as I have no idea what specification or type of vehicle you want.

I intend to import to the Philippines some stuffed toys (animals – dog, cats, etc.) coming off from a plant in China. My supplier intends to impose their local taxes on top of my acquisition cost. We are willing to accept this term. My question is: how would I know if proper taxes were really levied on the goods? I would like to know how it is calculated and their Tariff rates for such. Reason here is I would like to be fair and have a check & balance protocol for this “at-my-cost” field. Thank you!!

Our company is supplying business partners in China with special metal goods of purpose for car industry produced and developed in EU. Just recently custom in a way blocked one of last shipment and making complete due diligance of supplier and importer and finialy asking for paying of waranty fee, extra duty tax.

I propose exporting rooibos tea(indigenous to South Africa) to China.As part of the BRICS’s trading block what are the import and or customs duties from South Africa to China?

@Rob Read: There are over seven kinds of HS codes for tea in China, however, none of them are specifically for the ‘Rooibos tea’ you enquired about. Overall, tariff duties for various kinds of tea are the same in the country. Specifically:

@Bryan Horridge: In China, tariff duties for a boat vary a lot depending on the size, engine and intended purpose of each boat. We need more information on the boats you intend to manufacture so we can provide detailed tax rates. You can email to tax@dezshira.com to get in touch. We’d also need to know the place of manufacture in China.

If you decide to make the boats in China and use the available materials in the country, the purchase of such materials and the sale of the finished boat is subject to value-added tax and consumption tax.

We are planning on making large quantities of copper imports from US to China. Much of the material may be raw, unprocessed scrap metal. What would be the tariffs I am looking at?

There’s no tax due when you buy product from China, just the purchase amount and the shipping costs which your supplier should be able to advise. However you may face import (customs) duties in the US.

There is an international system in place so that customs officials across each country and around the world can understand each other in relation to specific products. It is called the “Harmonized Tariff Schedule” (commonly referred to as the HS Code) and means nearly all products have a specific code number. If you know that number you can refer to the import duty as applicable in any country.

That will tell you how much the total cost of these items is including purchase, shipping and US import taxes, and from there you can work out how much you need to add to that (marketing, transportation, packaging and your profit) to make this a viable business proposition.

My company imports from China. What are the tax rates, and how do we get VAT back? From where do I get the information about logistic, foe example what roots are the shortest how much the prices are, what are my benefits from importing from China etc..

@Miss T: You can only claim back VAT in China if you have a legal presence there. However, your supplier should be deducting part of this from your invoices as they can claim VAT back when they export to you. If they are charging you the full 17% VAT then that is a mark up on your invoice that should be questioned.

We are exporting boats (luxury yachts) from China to HongKong, Europe and USA. We are looking for the exact types of certifications we need as it seems it is different if the boat is shipped by cargo or sailed on her own bottom.

It is hard to find regulation about the certifications (CE, Module B, Module F, CCS…) needed in each case. I know it is not the exact subject of the article but maybe you can help.

@Em: When exporting boats from China to other countries, the enterprises need to apply with the Chinese customs and submit all the required materials, including the application form, information of the ship and names of the crew. If such application has been approved, the customs will issue a certificate that allows the boat to exit the Chinese port. In terms of the type of the certification, it depends on the imported country of the boat. For example, CE certification is required for all recreational boats entering or sold in the European Union, while CCS certification may be required for importing boats to China.

This is quite a complicated procedural process. If you need assistance please contact one of our China offices for professional assistance with customs: china@dezshira.com

@James – There are six kinds of HS codes for watches in China, and tariff duties vary a lot depending on the materials and brands of the watches. Specifically:

As China and Hong Kong have signed a series of CEPA deals, watches recognized by Chinese government as “Hong Kong’s Own Brand” can enjoy zero import tariff treatment when exporting to China. A full list of Hong Kong’s own watch brands can be found here:

For your information, Chinese brands such as Seagull http://www.seagullwatches.com and the French-Chinese brand The Chinese Timekeeper http://www.thechinesetimekeeper.com are gaining more in desirability because they are making some very fine watches and are Chinese in origin.

i am looking some information.i am from Bangladesh.If i import Ready made Garments (RMG) from Bangladesh what is the tax rate or tariff duties?can someone let me know?

@Solaiman Siddique: There is some variation about the exact HS code for these products as RMGs made by different materials vary a little within their normal rate. Generally, the minimum tariff rate is 16%, and normal rate ranges from 9% to 13%. They are also subject to 17% VAT.

@Nuno: I will send you a back issue of China Briefing magazine on the subject, also please use our ‘search’ function on this website at the top of the page, Just type in “VAT” and it’ll provide you with all our articles on the subject.

We have been offered a MGO manufacturing plant in Nanjing in an ordinary manufacturing zone, not an export zone that I am told holds an export licence, Need advice we wish to purchase PC items out of China doors windows and produce our own MGO board in china for our own use back in Australia for housing construction, First is the export licence an advantage?

@Alfred – my colleague Richard Cant in the Shanghai office of Dezan Shira & Associates will contact you directly via email concerning this issue. – Chris

What is the China Customs duty rate for the importation by individuals (entering at the airport with said items in possession not intended for sale) for gold and silver coins and bullion that exceed 50 grams. And, how is the dutiable value determined on the coins, by their face value or weight??

@Mr. G: Gold and silver coins and bullion that exceed 50 grams in weight being brought into China are required to go through custom declaration. Chinese customs will determine how many quantities of gold and silver exceed their “reasonable range for self-use” based on relevant criteria. For excess self-use they items may be subject to import duties at 10% on their recent market value.

recently some of my competitors have tried to contact my custom agent in china and tried to get the information of the invoices i submit for custom clearance of my goods

@Jorge – No, your customs agent should NOT be divulging this information to your competitors. But that doesn’t mean that he isn’t. If you think he is leaking this data then I suggest changing your customs agent. It would be difficult to bring a legal case in this instance, although I agree it is wrong it would be a very hard case to prove. – Best regards – Chris

Hello I am looking at exporting plastic decking material to Hong Kong from England. Please advise the necessary taxes I have to allow for. Can you please confirm ASAP. Thank you

@Titus: Hong Kong is a free port and does not impose any customs tariff on imports and exports except for four types of dutiable commodities: liquor, tobacco, hydrocarbon oil, and methyl alcohol. So you have no customs duties to pay when shipping the items described to HK.

We are looking to export Centrifugal fans to China and are keen to know how duties and taxes would be calculated and if there is a different rate if the fans are assembled or shipped as components.

@Yuni – You need to find out the HS code for the product. This is an internationally recognized code that customs officials worldwide use to identify specific products. If you don’t have this you will be unable to export it from China or import it into Indonesia as no-one will be able to identify what it is. So you need to find this out. I suggest you visit http://www.hscode.org to help identify the relevant number.

@Bill – The common rate and minimum rate for import duty of Centrifugal fans are 30 percent and 8 percent respectively, and 50 percent and 0 percent for fans with power less than 125w. Tax rate is usually lower for importing components and then assembling in China. However, the customs of China will assess the value of the components, and if the total price of the components accounted for more than 60 percent of the price for a complete equipment, tax rate for complete equipment will be applied.

@Sam – Well that’s really an India import tax question. But we can answer that we have offices in India. On the hard disks imported into India, Basic Customs Duty is zero. However, a Counter-Vailing duty @ 6% and Central excise and customs education cess are imposed @ 3%, each. Further there is Special duty imposed @ 4%.

I’m working on a cost simulation for selling Lithium Carbonate ( it seems that HS 28369100 covers both technical/industrial grade and battery grade) to countries in the Asia Pacific block and eventually Europe. As far as what I’ve learned from your different answers, exporters would get the VAT back on one side and the Chinese company wouldn’t pay duties if it reimports a purified product within 6 months assuming the company exports a product concentrate to Vietnam (for instance) where it gets purified (No HS# change though).

All that said, what are the regular export duties for Lithium Carbonate ? If exceeding the 6 months to re import, what would be the import duties then?

If the lithium carbonate failed to be re-imported within six months, you can apply for extension with relevant customs and such period can be extended for another three months upon approval. However, if the lithium carbonate failed to be re-imported within nine months after being exported, the regular import duties shall apply.

We are a rope manufacturer in the US. We are exporting some cordage to a manufacturer in Qingdao China that will add them to sport bags they are making for us. They will ship the finished product back to us in the States. Will there be taxes and duties placed on this item in China ? Should I place any special wording on the commercial invoice to eliminate taxes since this will be used for manufacturing and shipped back to us. Thanks

hi , I have export out good frequently to china, and every time I stuck with china custom, due to import licence in china, how should we go about applying for this licence, and as for custom duty is there any bench mark or how percent charge ??

@Mark: You shouldn’t face any export duties on these items – but it’s best to check that the manufacturer won’t add on any unnecessary surcharges. Let us know if you need assistance with this.

@Sharim: You can get an Import-Export license by setting up your own Trading Company in China. Our China Briefing magazine issue “Trading With China” details this and can be downloaded here: http://www.asiabriefing.com/store/book/trading-with-china-398

I am curious about the taxes and duties I would have to pay if say I purchased tobacco products, more specifically, 100 Cuban cigars, from Hong Kong to China mainland (Shandong province). I am having a difficult time attempting to figure this out (new to the system).

You have a wonderful resource here with Asia Briefing and I’m a regular reader of the magazine and newsletter. My situation is I live in Shanghai and am interested in having 8 oil paintings shipped to me from a friend in the States. Will there be any trouble with customs, and if so how do I go about taking care of this ahead of time and avoiding any hassle? How would any import duty rate be implemented on something like artwork where prices are largely speculative?

Separate question – these will be for my personal collection, but if I want to sell one or two off in the city down the road what will my tax liabilities be?

@Art Collector: Personal articles will be considered as import and subject to import duty when the value of a single article exceeds 1000 RMB and has been determined by the customs as “not for personal use”. Once the paintings are considered imported goods, the import duty = duty paying value * import duty rate. The import duty rate is temporarily reduced to 6% for oil paintings since 2012, and the duty paying value of the paintings will be determined by either the price on the invoice or the recent market price of similar goods from the same source, whichever is applicable.

Incomes from selling the paintings will be subject to individual income tax (IIT). The IIT rate is usually 20%. 3% IIT rate will be applied if the original value of the painting is unable to be determined. If the sales are conducted by an enterprise, the incomes will be subject to corporate income tax instead, with the tax rate of 25%.

I never import such items into China anymore, even for personal use as sometimes things have just gone missing. I’d certainly never rely on China Post, who have a 50% failure rate of delivery whenever I’ve had things sent in from overseas. I’d encourage you to ship to Hong Kong and then hand carry in.

@Adeleh: The VAT rate for both SD cards and Roots Blowers are 17%, and the rate is the same for the same products in all cities of China. The VAT is included in the price you paid to the suppliers. After the export, you could file export refund at local tax bureau. Currently, the VAT rebate rate for both of these products are also 17%, so all of the VAT paid will be paid back. The process will take months though.

I have to say that roots blower is not manufactured in China. It is going to be imported from France to China and then to be re-export from China. Please confirm if 17% VAT rat and 17% VAT refund rate is still applicable or not??

Could I ask if I export brass parts made in Australia to China for processing and then shipped back to Australia, I understand that there will be duties and VAT etc that is unavoidable on the import transaction into China, however as I am not actually selling anything to China, can I declare a nominal value – for example 5000 parts would in reality cost say $20,000 – can I declare $1 per part – so just $5000. No actual payment is made for the parts – the only transaction is a payment from Australia to China for the reprocessing and return shipping. Thanks in advance.

@Ian: This type of processing service is characterized as “processing with supplied material” (PSM) by the Custom and the Tax bureau. Under PSM, no tariff, VAT, or consumption tax will be imposed as long as the quantity of the parts imported match the export quantity of the processed parts. The relevant information of the parts will be put into a manual issued by the Custom when the parts coming into the country. Also the processing company in China must have the qualification approved by relevant government authorities to conduct PSM.

Hi! We are purchasing plastic packaging from a factory in Shenzen. This packaging will then be shipped to a factory in Taishan. This Taishan factory manufactures the product and will load the product into the packaging. This is all being done and paid for by a US based company. The packaged products will then be exported to the US. Should we be paying VAT taxes on the packaging from the Shenzen factory to them? Or would the Taishan factory who is doing the final packout and shipping bill us for the entire VAT tax total?

Thanks for all the information on this page. I’m trying to find out what regime applies to Chinese export of rolled aluminium. Is there a rebate, and if so does it apply to both the export tax and VAT, or just VAT. I am trying to work out the price of exported aluminium from China, if you have any information on internal pricing within China or links to where I can find that information that would be excellent.

@Faye C: The Taishan factory will pay VAT for purchasing the packaging, and this amount of VAT is included in the price of the packaging paid to the Shenzhen factory. For example, if the original price of the packaging is 100, then the final price that Taishan factory will pay for will be 117 (100 plus 17% VAT). If the buyer of the packaged products produced by the Taishan factory is a company in China, then this amount of VAT can be passed to this buyer (again included in the selling price, which will be 117 plus 17% VAT = 136.89).

Therefore, yes, usually the final consumer will bear the entire VAT generated from all value chain. However, when the Taishan factory export the products to the U.S., it can apply for VAT rebate after the export. The VAT rebate rate depends on the product and varies from 5% to 17%. Usually, the foreign buyer could bargain the price with the exporter to cut the part of VAT that the exporter could get back later from VAT rebate.

@Pierre Shepherd: Only the VAT can be refunded. There is no rebate for export duty. The export rate for rolled aluminum varies from 0% to 15% depends on the application of different HS code. The internal pricing model varies for different company. Generally, the price would include all the costs (material, labor, transportation, etc. ), and export companies usually want to put the cost of VAT in the price as well even if they could get the amount back after the export through VAT rebate. All in all, the final price depends on the bargain and negotiation with the sales person of the export company.

Your website is very helpful and I thought I would trouble you with a question since you all have been so willing. We are importing engines to China from the United States in order to attach them to lawn machinery that will then be immediately exported to the United States. In other words, the engines are only in China long enough to be assembled into a machine and then exported back to their country of origin. Will the engines be taxed by the Chinese government on either end of this transaction? I greatly appreciate it if you could point me in the right direction.

@Mike – It depends upon where the assembly is taking place. Ideally this should be based in a free trade or other bonded zone – the engines are imported into the zone (but not into the mainland as they do not pass through customs). Then they can be re-exported as a finished item with the lawn machinery. VAT can also be claimed back upon export on the Chinese sourced component as well.

If the assembly is taking place after the engines are imported into China then this is inefficient – you are paying import duty on the engines and then have to wait to complete the assembly to claim that – and any VAT – back.

@Ester – well shipping is a competitive business so you are getting competing quotes. However I’d recommend using a broker that is well known and reliable, and suggest doing some homework on who they are and their reputation when choosing which one to use.

@Debra: Importation of educational material in China isn’t just a matter of import duties, its also a matter of having them approved by the Ministry of Education. China also has a monopoly on all imported books, magazines and so on and this is a very difficult area to make any headway. Publishing and selling books to China is not a viable business, take my word on this.

We are looking to export scrap copper millberry from China to Australia can you advise all tax and duty we will encounter in China. Thanks. Barry Eadie.

We are looking to import slate into china for use in producing product which will be exported to North America. What is tax and duty on slate from India to China

@Doug: Depending on the material of the slate (e.g. marble, granite) and the process procedure (e.g. polished, unpolished), the common import rate ranges from 70 percent to 90 percent. If the tax treaty applies between India and China, the minimum import rate could apply, which ranges from 0 percent to 10.5 percent. Import VAT rate is 17%.

We must provide our specialised woven polyester textiles to the clothing maker so need to know what rate of import duty would be payable in China on this type of textile.

@Manolis: To report tax fraud in China, you could call (86) 10 6354 3714, being the report line of China’s State Administration of Taxation (SAT). You could also write a letter to them at the following address:

To make an online tip-off, you need to register on the SAT website by providing your legitimate personal information, then report the details. Here is the link to make an online report: http://hd.chinatax.gov.cn/jzxx/jicha.jsp#

@Gary North: In terms of the woven polyester textiles, the common import rate is 130 percent, but the minimum import rate to China could be 10 percent with relevant tax treaties. VAT rate is 17 percent.

We are planning to export of papers and paper board from China to third countries. Please let us know the rate of Import duty and other taxes in china.

The common import rate for feldspar powder is 50 percent. Minimum import rate of 3 percent could apply if there is a relevant tax treaty between India and China. The VAT rate is 17 percent.

The common import rate for pashmina is 130 percent which could be reduced to 14-16 percent (minimum import rate) if tax treaties exist. The VAT rate is 17 percent.

The export rate for the paper board (HS Code No.48181000) is actually 0 percent. By the way, thank you for providing the HS Code which makes our job easier and more accurate when answering these questions.

I want to export device from europe for mould trial to china, after trials this device will be sent back to Europe, How looks taxes with temporary export

Can you kindly advice what procedures I have to do to apply for tax exemptions? Recently purchased a LCD monitor from China and it arrived faulty. Seller informed to send it back but I have checked and the cost to send it back plus the duties and taxes already outweighs the cost of the item. Is there a term that returned goods can be exempted? I only received the item about a week ago. Any documents I can provide to help? The third party courier did not hand me any invoice from the seller in the first place.

@Raf – You could declare the device as a temporarily imported good to the Chinese Customs and obtain an ATA (Admission Temporaire/Temporary Admission) carnet. In order to be granted ATA, certain amounts of deposit or other types of guarantee will be required by the customs. In addition, to be qualified for temporarily imported goods, the goods should be exported generally within 6 months, any extension will need approval from the customs. The import and export duty and VAT are exempted for temporarily imported goods.

I don’t think there will be any taxes imposed on the LCD monitor as long as the customs are convinced this product is for personal use instead of sales purpose.

We are purchasing fashion jewellery items from suppliers in Qingdao, China. The jewellery will contain components that have been imported to China from Austria and the price of these components includes 17% VAT. When the supplier exports the jewellery can they claim back any of the VAT on the components used? If yes what % can they claim back?

@Joanne: The suppliers could claim VAT refund for the jewelry items. Depending on the material of the jewelry, the VAT refund rate generally ranges from 0 percent to 13 percent.

We are a company based in Boston, MA. We ordered crude oil lab analysis from Shanghai, China. The invoice we received contains VAT tax. Do we have to pay VAT taxe in this case? We are no a Chinese company, and we are not importing/exporting goods. If our activity can be classified as anything it would be more along the lines of services exporting.

@Tina: Generally speaking, Chinese companies providing consulting or authentication services to foreign companies should be VAT exempted unless the subject matter (the products or goods) for which the services are provided for are located or produced in China.

@Hamish: The normal import rate for importing dried fruit into China is 70 percent, but it could be reduced to 25 percent if there are tax treaties applied between Australia and China. The import VAT is 13 percent.

Thank you Chris, can they claim the refund on totoal cost of the item or just the component? How do i find a list of the materials and their % refund rate?

In your case, the supplier can claim the VAT back based on the valid tax certificates (for components) they should have. The refund rates are not available online, they will need to check with the customs for detailed information.

@Jonas: The normal rate for import candy is 50 percent. The minimum rate of 10 percent could apply if you enact the relevant tax treaty between China and Sweden. This article explains: https://www.china-briefing.com/news/2010/12/16/using-double-tax-treaties-to-maximize-china-investment-financial-effectiveness.html

Where can I find the rules and regulations for import of Gold and Silver into China? Can one set up a trading company in China to import Gold and Silver and sell the same to Jewellers and Traders? What are the applicable VAT and other taxes for the same?

You can set up a trading company to sell gold and silver ornaments in China, the VAT rate is 17 percent, plus 5 percent consumption tax and applicable corporate income tax and import duties. For setting up a China Trading Company please see: http://www.asiabriefing.com/store/book/trading-with-china-398

@Sandeep: There is no export duty imposed on agricultural machinery. Exporters in the country are subject to 17 percent VAT rate, but they are able to declare VAT rebate and the rebate rate varies on different types of machine, usually ranging from 11 percent to 14 percent.

@Anil: The major taxes you will be subject to are value-added taxes and customs duties. You’ll need help with planning all this out, together with planning your registered capital and all these issues properly to cater accurately for the start up costs. For more information, please contact china@dezshira.com let us know where you’ll be establishing operations and our relevant regional office will be pleased to assist.

You can refer to our India Briefing at http://www.india-briefing.com and type in “import taxes” in the search function. Alternatively contact our Delhi office directly at delhi@dezshira.com

I need your help Chris. i have been searching Chinese taxes for week. I would like to know import sunflower oil to third country China from Russia and what would be the taxes and custom duties. Is it legal to Import sunflower oil to china? because last time we try to import arabseed from Russia but china don’t allow to buy arabseed from Russia .

@Babuna – It is legal to import sunflower oil from Russia to China. The normal import duty is 160 per cent, but it would be 9 per cent if there are relevant treaties between China and Russia. It is also subject to 13 per cent value-added tax.

perhaps you can help here: we may export artworks temporarily from China. I know that after 6 months it is possible to request an extension for another maximum 6 months, right? After that, what happens if:

1) It is possible to request an extension for another 6 months, and the application should be made 30 days prior to the expiration of the first 6 month period;

2)When they apply to temporarily export artworks, they are required to pay a deposit fee that is equivalent to the amount of export duties for exporting the artwork. The deposit fee will be returned if the artwork is reimported to China within the stipulated period. But if the artwork is not returned to China within the period stipulated, the deposit fee will automatically be converted into export duties and paid to the Customs, regardless of whether the work has been sold, returned late, or not returned at all.

@Julia: The normal import duty rate for HS code 39129000 is 45%. The minimum import duty rate of 6.5% will apply if there are certain tax treaties between the export country and China. The product will also be subject to 17% value added tax.

I want to import cut and polished natural semi precious stone in to china from India or Hong Kong , then what will be the import duty ,VAT and other duties applicable.

In other case i export rough gems stone from china to other countries what duties will be applicable. Would you suggest any agency in guangzhou city ,china who can assist me in documentation at competitive prices.

@ Angati: The normal import rate of polished natural semi precious stone is 14 percent, the minimum import rate of 3 percent applies if tax treaty status applies and relevant provisions are activated. The VAT rate is 17 percent. There is no export rate imposed on rough gemstones.

@ Kamolrat: The normal import rate is 100 percent, the minimum import rate of 10 percent applies if tax treaty exists and relevant provisions are activated. The VAT rate is 17 percent. Import duty and consumption tax are not refundable. VAT is refundable only when you are exporting from China.

Could you please help me to know that in which category cotton linter pulp comes