consumption tax

According to the Provisional Regulations of the People's Republic of China on Consumption Tax, China currently only collects consumption tax on four types of goods.

the tax rate of luxury goods is decreasing

the first category: special consumer goods, such as cigarettes, alcohol, alcohol, firecrackers and fireworks, which will cause harm to health, social order and ecological environment.

category ii: non-necessities such as luxury goods, such as precious jewelry and jade, cosmetics and skin care products.

the third category: high-end consumer goods with high energy consumption, such as cars, motorcycles and automobile tires.

category iv: non-renewable and replaceable petroleum consumer goods, such as gasoline and diesel oil.

(I) consumption tax levied at an ad valorem

1. Types of taxable goods and their tax rates

According to the Table of Tax Items and Tax Rates of Consumption Tax attached to the Provisional Regulations of the People's Republic of China on Consumption Tax, cigarettes, wine and alcohol, cosmetics, skin care products, precious jewelry and jade, firecrackers, fireworks, gasoline and diesel oil. The table also lists the tax rates applicable to taxable goods, with the highest being 45% and the lowest being 3%. 2. taxable value and tax calculation

China adopts the method of ad valorem fixed rate to calculate the import consumption tax, and taxable value is composed of the price of imported goods (cost plus freight insurance) (i.e. customs duty paid price) plus customs duty. China's consumption tax adopts the method of in-price tax, so the composition of taxable value includes consumption tax.

the formula for calculating the composition taxable value is:

the composition taxable value = (customs duty paid price+customs duty tax) ÷ (1-consumption tax rate)

the formula for calculating the consumption tax levied ad valorem is:

the tax payable = the composition taxable value × consumption tax rate

(2) the consumption tax levied on specific quantity

The consumption taxable goods levied on specific quantity include yellow wine. 24 yuan per ton of rice wine, 22 yuan per ton of beer, .2 yuan per liter of gasoline and .1 yuan per liter of diesel.

The formula for calculating the consumption tax levied by specific quantity is:

Taxable amount = unit tax amount × imported quantity

The conversion standard for the unit of measurement of goods subject to specific quantity tax is:

1 ton of beer =988 liters

1 ton of rice wine =962 liters

1 ton of gasoline = 1,388 liters

1 ton of diesel 335ml = 1. The general tariff rate is 7.5 yuan/liter, and the consumption tax rate is 22 yuan/ton.

quantity of imported beer: 335ml× 1 × 24 ÷ 1 ml = 8 4l =8.1377 tons

customs duty: 7.5 yuan× 8 4 = 6 3 yuan

consumption tax: 22 yuan× 8.1377 = 1 79.29 RMB.

Value-added tax

(I) Tax rate

All taxable goods of value-added tax in China are levied at ad valorem fixed rate, and the basic tax rate is 17%, but for some important materials related to the national economy and people's livelihood, the tax rate of value-added tax is lower at 13%.

The VAT rate of the following goods is 13%:

1. Grain, edible oil and vegetable oil;

Oil import tax is lowered

2. Tap water, heating, cold air, hot water, gas, liquefied petroleum gas, natural gas, biogas and coal products for residents;

3. Books, newspapers and magazines;

4. Feed, chemical fertilizer, pesticide, agricultural machinery and plastic film;

5. products such as metallic minerals and nonmetallic minerals (excluding gold powder and forged gold, which are at zero tax rate);

6. Other goods specified by the State Council.

(II) taxable value and tax calculation

According to the Provisional Regulations of the People's Republic of China on Value-added Tax, the value-added tax is levied by the tax authorities and the value-added tax on imported goods is levied by the customs. Taxpayers export goods at zero tax rate. Value-added tax on articles brought by individuals or mailed into the country for their own use shall be levied together with customs duties. The formula for calculating the composition of taxable value is:

composition taxable value = customs duty paid price+customs duty amount+consumption tax amount

calculation formula for value-added tax amount:

payable tax amount = composition taxable value × value-added tax rate

handling fee

customs supervision handling fee refers to the reduction of import tariff in accordance with "The People's Republic of China * * and China Customs Impose Tax Reduction, Exemption and Bonded Goods".

(I) Scope of collection

The customs supervision fee is only levied on imported goods with duty reduction or exemption, and the specific scope is as follows:

1. Supply fuel, materials for ships (machines), parts and components of machinery and equipment and other goods that are duty-free when imported into international navigation ships and aircraft;

2. machinery and equipment imported by existing enterprises for technological transformation with tax reduction or exemption;

3. Scientific research institutions and universities import duty-free special equipment for scientific research and teaching;

4. Duty-free goods imported by domestic institutions and enterprises with loans from foreign governments or international financial organizations;

5. Duty-free goods imported by domestic and foreign-funded projects encouraged by the state; Materials imported by foreign-funded enterprises for business purposes and materials imported for domestic sales after processing are still subject to tax reduction or exemption;

6. Imported raw materials, materials, auxiliary materials, parts, components and packaging materials that are processed in China and re-exported after assembly and provided by overseas merchants are allowed to be imported duty-free temporarily;

7. Imported duty-free goods bonded and consigned in China;

8. Other imported duty-free goods specified by the State Council;

9. Goods imported with temporary duty reduction or exemption that have been examined and approved by the General Administration of Customs or the General Administration of Customs in conjunction with the Ministry of Finance in accordance with the provisions of the State Council.

The following goods that are tax-free, duty-free or bonded are exempted or temporarily exempted from customs supervision fees:

1. Goods listed in the Import and Export Tariff as imported duty-free;

2. materials donated by foreign governments and international organizations free of charge;

3. Gifts given by foreign organizations and individuals and materials donated by overseas Chinese and compatriots from Hong Kong, Macao and Taiwan for public welfare;

4. materials used for disaster relief;

5. Confess the special equipment and articles for the disabled, as well as the machinery and equipment imported from the welfare factory for the disabled;

6. Official articles imported by foreign institutions enjoying diplomatic privileges and immunities;

7. Imported goods damaged before customs release and granted tax reduction or exemption;

8. Imported goods claiming compensation from foreign countries for tax reduction or exemption;

9. Goods that have not been processed after import and are re-exported after less than 9 days of bonded storage;

1. Temporary import of goods;

Calculation of import tariffs

11. Direct military orders for duty-free imports;

12. Other tax-free and bonded goods that are exempted from supervision fees by special permission of the State Council and the General Administration of Customs.

(II) Collection standards

The customs supervision fee is collected according to the following standards:

1. Goods that belong to the re-export of processing and assembling mechanical and electrical products during the processing of incoming materials are levied according to 1.5‰ of the CIF price of the goods approved by the customs;

2. Advanced technology and equipment introduced in processing materials, as well as materials and parts imported for processing jewelry, furs, high-grade clothing, woven sweaters and pieces of sweaters, and plastic toys, shall be assessed at 1‰ of the CIF price of goods approved by the customs;

3. Goods that have been stored in bonded storage for more than 9 days (including 9 days) after import and are re-exported without processing shall be taxed at 1‰ of the customs duty paid price;

4. Import duty-free goods shall be taxed at 3‰ of the CIF price of the goods approved by the customs;

5. For imported goods with tax reduction, the tax shall be levied at 3‰ of the CIF price of the goods with actual tax reduction;

6. Other imported bonded goods shall be taxed at 3‰ of the CIF price of the goods approved by the customs.

(III) Time limit and method of payment

According to the regulations, the consignee or consignor or his agent of imported duty-reduced and bonded goods is the payer of customs supervision fees. The payer shall pay the handling fee to the customs within 7 days from the day after the customs issues the certificate of payment of supervision fees. If it fails to pay within the time limit, the customs shall, in addition to recovering it according to law, impose a late fee of 1‰ of the total handling fee on a daily basis from the due date to the date of paying the handling fee. The threshold for late fees is RMB 5 yuan, and those below 5 yuan are exempted.

the customs supervision fee shall be collected by the port customs when the goods are imported, and may be collected by the competent customs when examining and approving the goods with tax reduction or exemption under special circumstances. After the customs collects the handling fee, it will issue a certificate of formalities payment to the payer.

calculation example of customs supervision fee:

a domestic company imported a batch of materials for assembling export mechanical and electrical products, with a price of RMB 18, CIF Shanghai, which were re-exported without processing after 1 days of bonded storage. What is the customs supervision fee?

solution: the customs stipulates that the goods that are stored in bonded storage for more than 9 days (including 9 days) after import and re-exported without processing shall be subject to customs supervision fee of 1‰ of the customs duty-paid price.

supervision fee amount = CIF price × handling fee rate

customs supervision fee for this batch of goods = 18, yuan ×1‰=18 yuan.

tariff reduction editor

import tariff reduction

On March 28th, 212, Premier Wen Jiabao of the State Council presided over the the State Council executive meeting to study the policies and measures to promote the balanced development of foreign trade.

the meeting decided to reduce import tariffs on some energy raw materials, some daily necessities closely related to people's lives, and key parts and components needed by primary energy raw materials and strategic emerging industries that cannot be produced in China or whose performance cannot meet the needs by means of provisional tax rate. We will continue to implement zero-tariff treatment for some goods imported from the least developed countries, speed up the process of tax reduction, and further expand the scope of zero-tariff goods. Guide enterprises to expand imports from members of free trade zones in combination with tax reduction arrangements in free trade zones.

on December 17, 212, the Ministry of finance announced that in order to actively increase imports and meet domestic economic and social development and consumer demand, the tariffs on 784 kinds of imported goods will be adjusted from January 1, 213, and the annual import provisional tax rate will be lower than the most-favored-nation tax rate. Among them,

the tariff of special formula infant milk powder decreased by 75% in 213

The import tariff rate decreased considerably, from the original MFN rate of 2% to 5%, down by 75%; The tariff on imported soy sauce was reduced from 28% to 15%, and the tariffs on basketball, football, volleyball and treadmills were reduced from 12% to 6%, which was also reduced by about 5%.

the State Council Customs Tariff Commission proposed and reported to the State Council for approval. From June 1, 215, China will reduce the import tariff rate of some consumer goods such as clothing, shoes and boots, skin care products and diapers, with an average reduction of more than 5%. In this adjustment, the import tariffs on suits, fur garments, etc. will be reduced from 14-23% to 7-1%, booties, sports shoes, etc. from 22-24% to 12%, diapers from 7.5% to 2%, and skin care products from 5% to 2%. [2]