Is there tax on re-export trade of imported cars? Find out now!
Solved#Entrepot trade#
I'm planning to enter the re-export trade business of imported cars recently, but I'm not very clear about the tax situation in this regard. I'd like to ask: is there tax on re-export trade of imported cars? If yes, what tax types are involved? What are the general tax rates? Will there be differences based on vehicle brand, model or re-export region? I hope knowledgeable friends could explain in detail so I can have a clear understanding and make proper plans in advance.
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Re-export trade of imported cars is subject to taxes. It typically involves customs duty, VAT and consumption tax.
For customs duty, different countries of origin have different rates according to relevant trade agreements. For example, under MFN treatment, most automobile customs duty rates are around 15%. But if there's no relevant agreement with the country of origin, the rate could be higher.
The VAT rate is generally 13%, calculated based on the sum of customs-cleared price and customs duty.
Consumption tax varies according to engine displacement. For example, the rate is 1% for 1.0L (inclusive) or below, and up to 40% for above 4.0L. Different vehicle brands and models mean different displacements and thus different taxes. If re-export regions involve special trade policy zones, there might be different tax administration practices. Therefore, detailed understanding of tax policies at each stage is necessary before starting business.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
There's definitely tax. Customs duty is basic, and rates vary significantly between different importing countries, so you need to check in advance. Also, when goods stay at transit locations during re-export trade, there might be local tax regulations to consider.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
There's tax. Besides common customs duty, VAT and consumption tax, sometimes additional taxes may be involved. Although the proportion might be small, they shouldn't be ignored. It's best to confirm specific situations with professionals.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Tax definitely exists in re-export trade of imported cars. Moreover, if there's storage during transportation, related warehousing taxes should also be considered. Although not major costs, small amounts can add up to significant sums.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Tax exists. The consumption tax brackets based on engine displacement are crucial. For luxury car re-export trade, large displacement means high consumption tax and significantly higher costs - this requires special attention.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Tax in re-export trade is complicated. Different trade methods like general trade, bonded zone re-export, etc. have different tax policies. You need to understand based on actual trade models.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
There's tax on re-export trade of imported cars. Moreover, different regions have different environmental standards for imported cars. If standards aren't met, there might be additional fees, which can be considered part of "tax" in a broad sense.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
There's tax. Besides the above, exchange rate fluctuations also significantly impact costs because tax calculation involves currency conversion. When exchange rates change, tax costs change too.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
For tax issues in re-export trade of imported cars, it's best to consult professional companies like Zhongshitong. They have more accurate policy understanding and can help avoid many risks.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
There's definitely tax. Some ports also charge handling and port miscellaneous fees for re-export vehicles, which should be included in costs.