Imports into China can be subject to value-added tax (VAT), consumption tax, and customs duties.

Value-added tax for imported goods and services

Agricultural and durable goods are taxed at 9 percent. Other goods subject to VAT, such as industrial goods, are at the default 13 percent tax.

Services provided by foreign companies or individuals are subject to a 6 percent VAT rate.

Excise tax for imported goods

Tobacco, alcohol, and cosmetic products can be subject to Chinese excise tax and some other high-value products such as cars and motorcycles.

The excise tax rate depends on the type of imported goods and from where the goods are imported.

Import duties

Similarly, there are different customs tariffs for imported goods based on the type of goods and source of import.

In China, a total of 8,580 imported items and 102 exported items were taxed on January 1, 2021 (Customs Commission Notice [2020] No. 11).

The chief ones include:

• Most Favored Nation (MFN) tariff rates;

• Conventional tariff rates;

• Special Preferential rates;

• General tariff rates; and

• Provisional (temporary) tariffs as a result of trade disagreements.

MFN Tariff Rates

The MFN tariff rate can be used on:

• Imports from WTO member countries that apply the MFN clause; and

• Imports from countries or territories that have bilateral trade agreements with China that contain MFN provisions.

It is worth noting that MFN tariffs are one of the most commonly used import tariffs in China. In general, these are much lower than the general rates that apply to non-MFN countries.

China regulates imported goods in a variety of ways. For example, for 2021, China has imposed provisional tariff rates that are lower than the MFN tariff rates for a total of 883 imported products subject to MFN tariffs. This follows the announcement of the adjustment plan for the provisional import tariff rate in 2021 (Customs Commission Announcement [2020] No. 33).

In addition, rates have been further reduced for information technology products and medical diagnostic equipment in the last few months.

Here is the complete list of adopted provisional tariff rates for 883 products and MFN tariff rates reduced for 176 information technology products.

Conventional tariff rates

If goods are imported from countries with regional trade agreements with China, the tariff rates can be lower.

So far, China has signed bilateral or multilateral free trade agreements with about 20 countries or regions. These countries are subject to conventional tariff rates, which are generally lower than the MFN tariff rates.

The following countries to show you which country will be subject to the conventional tariff rates as of January 1, 2021:

• Costa Rica,

• South Korea,

• Switzerland,

• Australia,

• New Zealand,

• Pakistan,

• Georgia,

• Peru,

• Iceland,

• and the Asia-Pacific Trade Agreement countries.

Except for goods for which Mainland China has made specific commitments in relevant international agreements, all goods originating in Hong Kong and Macao are exempt from customs duties.

Special preferential rates

Countries from which imported goods are subject to special preferential tariff rates, but only if trade agreements have been concluded with these countries. Within this framework, special preferential tariff provisions then apply to China. These are generally taxed at a lower rate than the most-favored-nation tariff rates and the conventional tariff rates.

General tariff rates

For goods imported from countries or territories for which no agreement or treaty has been recorded, no special preferential duty rate applies but the general rate of duty.

Export duties

Export duties are levied on only a few products. These mainly include raw materials and semi-finished products.

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