As the EU’s biggest trading partner, China has some specific tariff regulations that business owners have to pay attention to. The Ministry of Commerce of the People’s of Republic China has made an announcement regarding the implementation of tariffs of up to 25% on products from the international market. These tariffs can be implemented on products including textiles, fruits, wineries, etc, therefore, a thorough understanding of the Chinese tariffs regulation is needed before building the financial plan for any company, entering the Chinese market.
One of the most important things for businesses to consider before entering other countries is their customs clearance
policies. What are they? And what do they include?
First of all, the tariff rates. Just like other countries, China applies and collects tariffs. The tariffs that they collect include general rates, rates for most-favored nations, rates based on agreements, preferential rates, provisional rates, and rates based on quota. There are surely some regulations that have been agreed to simplify trades with certain countries, such as special agreements with the economic zone, open cities, and foreign trade zones.
Next, customs valuation is also a critical aspect. China commits to giving the fair value of all imported goods. Therefore, China looks to the fairness of the goods’ price, insurance, freight price, packaging, as well as the commissions for sellers or brokers, if any. These are the prices that companies need to prepare before they enter the Chinese market.
Moreover, China has policies not only for the tariffs that it adds but also for the taxes. These apply to both domestic and international businesses that work within the Chinese market. The regulations ask the companies to pay value-added taxes (VAT) for all goods being traded in the market.
An important note, China has recently cut import tariffs to help Chinese citizens engage more with the international market and become a bigger part of the competition. This means that not only will the Chinese benefit from this policy, but it will also be easier for companies from abroad to enter the Chinese market and take advantage of its huge population. However, even though the country has minimised several restrictions, businesses still need to learn and understand its customs clearance policy before selling and buying things internationally. This is not only to help companies maximise profits but also to minimise possible loss.
There are three main things to consider before selling and buying anything to and from China. These are the tariff rates, customs valuation, and taxes.
Contact our team at Project.Kparcel.Marketing@k-parcel.com for more details.
