With the full implementation of national customs clearance integration by the customs,taxpayers can now make independent declarations and pay taxes according to their actual needs,which has improved customs clearance efficiency and enterprises operational autonomy to a certain extent.However,for many practitioners,the calculation and declaration of tariffs remain a complex task.So,how exactly are tariffs calculated?Today,we will answer this question.

I.Objects of Tariff Levy

Simply put,tariffs mainly targetGoods and incoming articles permitted by the Peoples Republic of China.Basically,all commodities entering or leaving Chinas territory,as long as they meet the customs import and export conditions,need to be taxed.Taxpayers of tariffs include the following categories:

II.Taxpayers of Tariffs

Consignee of imported goods

• :WhenimportedgoodsenterChina,theimporterisusuallyresponsibleforpayingtariffs.:Shipperofexportedgoods
• :Exportersneedtoassumetheobligationofpayingtariffswhenexportinggoods.:Bearerorrecipientofincomingarticles
• :Ifarticlesenterthecountrybyexpress,logistics,orcarriedbyoneself,tariffsalsoneedtobepaid.:Thebasisoftariffcalculationliesincorrectlydeterminingthetax-calculationelements,mainlyincludingthefollowingaspects:

III.Determination of Tax - Calculation Elements

Determine commodity classification

• Commodityclassificationisthefirststepintariffcalculation.EnterprisesneedtodeterminetheclassificationcodeofgoodsaccordingtodocumentssuchastheRegulationsofthePeoplesRepublicofChinaontheAdministrationoftheClassificationofImportandExportGoodsoftheCustomsandtheImportandExportTariffofthePeoplesRepublicofChinatoensuretheaccuracyoftaxratesandsupervisionconditions.Determinethetax-calculationpriceandconvertitintoRMB
• Determiningthetax-calculationpriceisequallyimportant.ItneedstobedeterminedaccordingtodocumentssuchastheMeasuresofthePeoplesRepublicofChinaforDeterminingtheTax-CalculationPriceofImportandExportGoods.Thecustomsdeterminesthetax-calculationpriceaccordingtotheactualsituationofthegoods,andthenconvertsitintoRMBatthelevyexchangerateasthebasisforcalculation.Determinetheplaceoforigin
• DeterminingtheplaceoforigininvolvestariffpreferencesandtradeagreementsandneedstobeimplementedaccordingtodocumentssuchastheRegulationsofthePeoplesRepublicofChinaontheOriginofImportandExportGoods,especiallyincasesinvolvingfreetradeagreementssuchasChina-AustraliaandChina-EU.Determinethetaxrateapplicabletotaxablegoods
• Determiningtheapplicabletaxrateneedstobebasedonthecategoryofgoodsandinternationalagreements.Therearemainlythefollowingsituations:Rulesfortheapplicationoftaxratesunderdifferentconditionssuchasmost-favored-nationtaxrates,temporarytaxrates,agreementtaxrates,andpreferentialtaxrates.
  • Ifanti-dumpingduties,counter-vailingduties,safeguardmeasures,etc.areapplicable,thetaxrateshallbeimplementedinaccordancewiththecorrespondingregulationsandpolicies.
  • Pre-rulingmanagement
• If there are doubts about the classification,tax - calculation price,place of origin,etc.of goods,an application for pre - ruling can be submitted to the direct - affiliated customs 3 months before the planned import or export. This measure provides enterprises with higher certainty and trade convenience.After confirming the above tax - calculation elements,tariffs can be calculated through the following formula: Tariff calculation formula

IV.Tariff Calculation Formula

Ad valorem tariffs:

• Calculationformulaoftariffs:
  • Advaloremtariffs:

The amount of customs duty payable = Taxable value × Proportional customs duty rate

The amount of customs duty payable = Quantity of goods × Specific customs duty rate

The amount of customs duty payable = Taxable value × Proportional customs duty rate + Quantity of goods × Specific customs duty rate

• Import-stageconsumptiontaxcalculatedadvalorem:

Tax payable = [ (Taxable value + Customs duty amount) / (1 - Proportional consumption tax rate) ] × Proportional consumption tax rate

Tax payable = Quantity of goods × Specific consumption tax rate

Tax payable = [ (Taxable value + Customs duty amount + Quantity of goods × Specific consumption tax rate) / (1 - Proportional consumption tax rate) ] × Proportional consumption tax rate + Quantity of goods × Specific consumption tax rate

Tax payable = (Taxable value + Customs duty amount + Import - stage consumption tax amount) × VAT rate

V.Key Precautions for Tariff Calculation

• Self-declarationandtaxpayment

Under the background of national integrated customs clearance,enterprises can flexibly arrange the time and process of customs declaration,maximizing the advantages of free declaration and self - payment of taxes.However,they should also ensure the authenticity and integrity of information in all links.

In the confirmation of elements such as tax rates,classification,taxable value,and place of origin,it is necessary to be meticulous.Once an error occurs,it will not only cause deviations in tax payment but may also lead to administrative penalties and even delay the entire customs clearance process.

Through pre - rulings,the classification of goods and relevant tax rates can be known in advance,avoiding subsequent disputes and uncertainties,thus improving customs clearance efficiency.

Conclusion

For everypractitioner,the calculation of customs duties is a very important part.Especially after the national integrated customs clearance,the convenience of self - declaration and self - payment of taxes also means that enterprises need to have higher professional qualities and more meticulous work attitudes.Only by fully understanding the objects of customs duty collection,taxpayers,tax - calculating elements,and their calculation methods can enterprises ensure efficient and compliant operations in import and export businesses and safeguard the long - term interests of the enterprise.