There isn't a unified "entrepot trade tax rate" for China's entrepot trade itself. The taxes and fees involved in entrepot trade are mainly related to the goods themselves and the import and export links. For the import link, common taxes and fees include customs duties, value-added tax, etc. The customs duty rate is determined according to the HS code of the commodity, and there are significant differences among different commodities. For example, the customs duty for some ordinary consumer goods may be between 5% and 20%. The value-added tax is generally 13%, but there are also special cases such as 9%, like for agricultural products, etc. For the export link, most commodities implement the export tax refund policy to encourage exports. The tax refund rate is also distinguished according to the HS code of the commodity. For some commodities, the tax refund rate can reach 13%, and for some low-value-added commodities, the tax refund rate may be lower or even 0. In addition, there may also be some additional taxes and fees involved, such as urban maintenance and construction tax, education surcharge, etc., which are based on the actually paid amounts of value-added tax and consumption tax. In short, to accurately know the tax rates involved in entrepot trade, it is necessary to first clarify the specific commodities and trade flow directions.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
There isn't a unified "entrepot trade tax rate" for China's entrepot trade itself. The taxes and fees involved in entrepot trade are mainly related to the goods themselves and the import and export links. For the import link, common taxes and fees include customs duties, value-added tax, etc. The customs duty rate is determined according to the HS code of the commodity, and there are significant differences among different commodities. For example, the customs duty for some ordinary consumer goods may be between 5% and 20%. The value-added tax is generally 13%, but there are also special cases such as 9%, like for agricultural products, etc. For the export link, most commodities implement the export tax refund policy to encourage exports. The tax refund rate is also distinguished according to the HS code of the commodity. For some commodities, the tax refund rate can reach 13%, and for some low-value-added commodities, the tax refund rate may be lower or even 0. In addition, there may also be some additional taxes and fees involved, such as urban maintenance and construction tax, education surcharge, etc., which are based on the actually paid amounts of value-added tax and consumption tax. In short, to accurately know the tax rates involved in entrepot trade, it is necessary to first clarify the specific commodities and trade flow directions.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
The taxes involved in entrepot trade are quite complicated. Besides what was mentioned above, sometimes there is also consumption tax, but not all commodities are subject to it. Only specific consumer goods such as tobacco, alcohol, and cosmetics are levied, and the tax rates also vary.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If the goods in entrepot trade are transferred in special areas such as bonded areas, the tax policies will be different. There may be tax incentives for storage, processing, etc. in the area, and it depends on the local policies specifically.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
When calculating the tax rate, attention should be paid to the determination of the dutiable value, which is the basis for the calculation of customs duties, etc. Generally, it is adjusted based on the transaction price of the goods.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Trade agreements will also affect the tax rates. If countries with free trade agreements are involved, the customs duties of eligible commodities may be reduced or exempted.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
For some special commodities, such as products made from endangered animals and plants, entrepot trade may also involve special taxes and fees or restrictive regulations.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
For the service part in entrepot trade, such as agency services, etc., value-added tax may be involved, and the general tax rate is 6%.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In actual operation, it is best to consult professional customs brokers, such as Zhongshitong. They are more familiar with the tax rates of various commodities and policy changes.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If entrepot trade involves inspection and quarantine, etc., there may also be related fees. Although this does not belong to the category of tax rates, it also has an impact on costs.