Different taxes are applied to goods imported into China:

• Custom duties: China’s custom duties include (i) general duty rates; (ii) temporary duty rates; (iii) MFN duty rates; (iv) Conventional duty rates; (v) Special preferential duty rates; and (vi) Tariff rate quota (TRQ) rates. Custom duty rates are updated every year in December. EU exporters should refer to MFN duty rates.

Certain imports may be temporarily exempt from custom duties (mostly relating to items urgently needed by China). Occasionally, higher custom duties may be applied as retaliation to political disputes or trade wars (see FAQ “Dairy products: EU producers authorised to export to China”). Finally, custom duties are exempted for many products originating from countries with which China has signed Free Trade Agreement.

• Value-added tax (VAT): China’s import VAT rate is:
  • 13%, applicable mostly to manufactured goods;
  • 9%, applicable mostly to agricultural and utility goods;
  • 6%, applicable to services.

• Consumption tax: applicable to products that are harmful to health (e.g. tobacco or alcohol), luxury products (e.g. jewellery and cosmetics), as well as high-end products (e.g. passenger cars, boats, etc.). The specific rate of the Consumption Tax varies (from 1% to 56%) depending on the type of product, and can be calculated by using either the ad valorem or quantity-based method.