China country guide

• China’s population, increaing wealth, growing demographics, and economic shift brings an ubandance of opportunties for business.
• China is the biggest ecommerce market in the world.
• China has some regulations that could create barriers for business.

• China’s tax rate for imported goods is slightly below the global average, while its duty rate is midrange, making for a generally fair landed cost.
• Duty and tax is charged on all imports into China, which is unfavorable for landed cost.

• There are several stringent compliance regulations when importing into China.
• Registration requirements, permits, delays, operational uncertainty, and lengthy administrative procedures are common.

• All major carriers offer shipping services to China, allowing for easy access.

• China uses a variety of digital payment methods, including digital wallets (WeChat, Paypal, Alipay, etc.), Mastercard, and Visa.

Duty and tax will be charged only on imports into China where the total FOB value of the import exceeds China’s minimum value threshold (de minimis). China does not have a de minimis for ecommerce/courier shipments, which means duty and tax fees are charged on all ecommerce imports. Personal consumption imports have a duty and tax de minimis of 50.00 CNY, which means duty and tax will only be charged on personal imports with an FOB value over 50.00 CNY. Any personal shipments with a order value less than 50.00 CNY will be considered a duty and tax-free import.

Duty and tax de minimis

Ecommerce clearance shipments:

• Duty and tax de minimis: 0 CNY

Based on the FOB value of the order

Personal consumption shipments:

• Duty and tax de minimis: 50 CNY

Based on the FOB value of the order

VAT -Value-added tax

A 13% VAT applies to most imports into China; certain products are subject to a reduced rate of 9%. uses the CIF valuation method for calculating VAT.

• Average rate: 13%
• Reduced rate: 9%

Applied to the CIF value of the order

Parcel tax

Parcel tax is imposed at a standard rate of 25% on goods imported into China for personal use. Here’s some information about parcel tax for personal consumption imports:

• A single item, regardless of its value, is subject to the flat parcel tax.
• Multiple items with a combined value under 1,000 CNY are subject to the flat parcel tax.
• Multiple items with a combined value above 1,000 CNY are subject to the normal duty and VAT calculation.
• If the parcel tax amounts to less than CNY 50, the tax is waived.

Consumption tax

A consumption tax between 1% and 56% is imposed on all imports into China falling under the following categories:

• Products whose over-consumption is harmful to health, social order, and the environment, e.g., tobacco, alcohol, firecrackers, and fireworks
• Luxury goods and non-necessities, such as precious jewelry and cosmetics
• High-energy consumption and high-end products, such as passenger cars and motorcycles
• Non-renewable and non-replaceable petroleum products, such as gasoline and diesel oil and
• Financially significant products, such as motor vehicle tires.

Consumption tax is calculated over the CIF value plus any applicable duty.

Duty is charged on the CIF (Cost Insurance Freight) value of the item, which means that duty is calculated based on the price of the good, plus the cost of packing, freight, insurance, and seller's commission.

• Average rate: 12.5% Applied to the CIF value of the order

China has at least 17 trade agreements that offer a zero or highly discounted duty rate for goods manufactured in participating countries.

China is a member of the World Trade Organization

As a member of the World Trade Organization (WTO), China must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.

• DHL
• FedEx
• UPS
• China Post
• Hong Kong Post
• SF Express

Depending on the courier, additional shipping fees may include:

• Tracking
• Insurance
• Fuel surcharge
• Remote delivery charge
• Signature fee
• Overweight or oversized fee
• Special handling fee
• Dangerous goods fee
• etc.

Always required:

• Bill of lading or air waybill
• Commercial invoice (3 copies)

Required for Express clearance:

• For shipments of multiple boxes: a packing list
• For online purchases: proof of payment
• For CAT B personal shipments: a copy of the receiver's ID card or passport; "personal articles" should be written in the description of the goods on the commercial invoice

Required for Formal clearance:

• Packing list

Sometimes required:

• Customs declaration
• Insurance policy
• Sales contract
• Import quota certificate for general commodities (where applicable)
• Import license (where applicable)
• Inspection certificate issued by the General Administration of Quality Supervision
• Inspection, and Quarantine (AQSIQ) or its local bureau (where applicable)
• Other safety or quality licenses

Specific goods are subject to certain stipulations. To see a detailed list of these goods and the procedures and documentation they require upon entry into China, visit the following page: China stipulations on certain commodities.

Express clearance:

Shipment types and values:

CAT A - Documents - No commercial value: Declared value of documents should be 1 USD or 7 CNY.

CAT B - Personal effects, gifts, online purchases or a single item - Value is less than 1,000 CNY (800 CNY for parcels from Hong Kong SAR (China), Macau SAR (China) and Taiwan (China)): Value can be above 1,000 CNY for a single item personal shipment (e.g., handbag) if approved by customs. Taxes and duties still apply.

CAT C - Non-dutiable goods like samples, low-value products, advertising material - No commercial value: Total duty and taxes are less than 50 CNY.

CAT C - Some dutiable goods - Value is less than 5,000 CNY and goods are not regulated: Total duty and taxes are more than 50 CNY.

Customs processing time:

24 hours or less if all the paperwork is correct.

Formal clearance:

Shipment types and values:

CAT D - Dutiable goods that are subject to customs duties - Value is higher than 5,000 CNY: Value is less than 5,000 CNY, but goods are regulated.

At least 24 hours from receipt of complete and correct shipping paperwork.

No. When parcel tax applies to a shipment, it replaces both VAT and duty. The parcel tax is a flat rate of 25%.