1. The most-favored-nation (MFN) rate of duty is the rate of duty on imports from a country's most-favored-nation (MFN). According to the principle of most-favored-nation treatment, the most-favored-nation rate of duty shall not be higher than the rate of duty on similar products from a third country now or in the future.
2, the ordinary rate of duty refers to a country's tariff rules on imports of goods specified in the higher rate of duty. It applies to the imported goods of the countries which have not signed the trade mutual benefit treaty or agreement with the country, and it is 1-2 tax levels higher than the preferential tax rate, reflecting the differentiated treatment policy of the country on the imported goods, and it is an important part of the country's protective tariff policy.
3. Value-added tax (VAT) is a tax levied on the value-added amount realized by the units and individuals who sell goods or provide processing, repair and fitting services and imported goods.
4. Customs tariffs are for imported and exported goods, and do not include tax rebates. Customs tax rules refers to the basis for the collection of customs duties. It is a list of all taxable commodities, duty-free commodities and prohibited imports to be systematically categorized.
Expanded Information
Principles of Import Duty:
Import duty is divided into most-favored-nation rate, agreement rate, preferential rate, ordinary rate, tariff quota rate, temporary rate and other rates. The basic principle of applying a variety of tax rates is "from the low", except in special cases.
1, the ordinary tax rate applies to countries without diplomatic relations and imported goods of unknown origin, the highest tax rate, the ordinary tax rate does not apply to other preferential tax rates.
2, the most-favored-nation (MFN) tax rate applies to WTO members and countries that have diplomatic relations with the signing of the mutual granting of most-favored-nation (MFN) status. The tax rate is much lower than the general tax rate.
3, the agreement rate applies to countries that have signed regional trade agreements with China with preferential tariff provisions, the tax rate is lower than the most-favored-nation rate.
4, preferential tax rate applies to countries originating in regional trade agreements with China with special tariff preference provisions, the tax rate is lower than the agreement rate. Customs Tariff Rules