Import tariff rate table for 2021

Legal Analysis: According to the provisions of the Table of Tax Rates (Tax Amounts) for Consumption Tax Items attached to the Provisional Regulations on Consumption Tax of the People's Republic of China*** and the State of China, 11 categories of goods, including cigarettes, wines and alcohols, cosmetics, skincare and haircare products, precious jewelry and jewels and jades, firecracker fireworks, gasoline, diesel oil, automobile tires, motorcycles, and cars, are excise-taxable goods. The table also lists the tax rates applicable to each taxable good, with the highest being 45% and the lowest 3%. China implements the ad valorem fixed-rate method to calculate the import consumption tax, and the taxable price consists of the price of imported goods (cost plus transportation and insurance fees) (i.e., the duty-paid price) plus the amount of customs duty. China's consumption tax adopts in-price tax calculation method, therefore, the composition of taxable price includes consumption tax. Composition of the taxable price formula: composition of the taxable price = (customs duty-paid price + customs duty) ÷ (1 - consumption tax rate) ad valorem consumption tax tax formula: taxable amount = composition of the taxable price multiplied by the consumption tax rate.

Legal Basis: The Law of the People's Republic of China on Administration of Tax Collection

Article 1 This Law is enacted for the purpose of strengthening the administration of tax collection, standardizing the behavior of tax collection and payment, safeguarding the state tax revenue, protecting the legitimate rights and interests of taxpayers, and promoting economic and social development.

Article 2 This Law shall apply to the collection and management of all kinds of taxes levied by the tax authorities in accordance with the law.

Article 3 The levying and suspension of taxes, as well as tax reductions, exemptions, refunds and compensatory taxes shall be carried out in accordance with the provisions of the law; where the State Council is authorized by law to make such provisions, they shall be carried out in accordance with the provisions of the administrative regulations formulated by the State Council.

No organ, unit or individual shall, in violation of the provisions of laws and administrative regulations, make decisions on the introduction and suspension of taxes, as well as tax reductions, exemptions, refunds and compensatory taxes, or any other decisions that are in conflict with the laws and administrative regulations on taxation.　

Article 4 The units and individuals who are obliged to pay taxes under the laws and administrative regulations shall be taxpayers.

Laws and administrative regulations provide for the obligation to withhold and collect taxes on behalf of units and individuals as withholding agents. Taxpayers, withholding agents must pay taxes, withholding and collection of taxes in accordance with the provisions of laws and administrative regulations.