The State Council's Tariff Commission and the General Administration of Customs have comprehensively optimized the tax and regulatory policies for incoming postal items, officially taking effect on December 1st. This change undoubtedly brings tangible benefits to every recipient of incoming mail. Let's explore the latest policy updates!
I. The single-item limit for incoming postal items has been increased to ¥2,000, and indivisible single items for personal, reasonable use can exceed this ¥2,000 threshold.
1. Latest Policy Updates
Article 6 of the Measures for Collection of Customs Duties, Value-added Tax and Consumption Tax on Entry Articles includes the following provisions:
The following incoming items, upon customs verification as personal and reasonably used, will have customs duties, value-added tax, and consumption tax collectively levied under a simplified assessment method:
(I) Luggage items;
(II) Postal items with a total value of up to ¥2,000, or indivisible single postal items valued over ¥2,000.
GACC Announcement No. 176 [2024] (Regarding the Modification and Abolition of Relevant Documents for the Management of Incoming Items) Article 1:
The following modifications are made to the GACC Announcement No. 43 [2010] (Regarding Adjustments to the Management Measures for Personal Postal Items Entering and Exiting the Country): Clause 2 is changed from "Items personally sent from or to Hong Kong, Macau, and Taiwan regions have a single shipment limit of ¥800; items sent from or to other countries and regions have a single shipment limit of ¥1,000" to "Incoming items personally sent from abroad have a single shipment limit of ¥2,000. Items personally sent to Hong Kong, Macau, and Taiwan regions have a single shipment limit of ¥800 RMB; items sent to other countries and regions have a single shipment limit of ¥1,000 RMB."
2. Customs Q&A
Q: With the incoming package value limit increased to ¥2,000, are all items below ¥2,000 now tax-exempt?
A: Not exactly! According to Article 13 of the Measures for Collection of Customs Duties, Value-added Tax and Consumption Tax on Entry Articles, "Postal items with a taxable amount of up to ¥50 will be exempted and released by customs." If the taxable import tax amount is ¥50 (inclusive) or below, customs will exempt it. Items exceeding ¥50 will still require the corresponding taxes to be paid.
Q: What should be done if the value of a single incoming postal item exceeds ¥2,000?
A: According to Article 3 of CCAG Announcement No. 43 [2010], "If personal postal items sent or received exceed the specified limits, return procedures should be handled or customs clearance procedures should be carried out according to goods regulations. However, if there is only one item in the package and it is indivisible, even if it exceeds the specified limit, and is verified by customs to be for personal use, it can be cleared under personal item regulations." Additionally, Article 4 states, "Commercial mail sent or received via postal services should undergo customs clearance procedures according to goods regulations." Therefore, if a personal postal item exceeds ¥2,000 and is indivisible, and is confirmed for personal use, it can be cleared normally as a personal postal item. If it exceeds ¥2,000 but is not indivisible, return procedures should be followed or customs clearance should be handled according to goods regulations. If it is commercial mail, customs clearance should be handled according to goods regulations.
Q: Can personal incoming items purchased online before December 1, 2024, benefit from the new policies?
A: It depends on the date the item is declared! According to Article 20 of the Tariff Law of the People's Republic of China, "Import and export goods, as well as incoming items, shall apply the tax rates in effect on the day the taxpayer or withholding agent completes the declaration." If the relevant items are declared after midnight on December 1, 2024, the new policies will apply; otherwise, the original policies will be used to calculate the taxes. For example, if Ms. A purchases an electronic blood pressure monitor from a foreign website on November 15 and, due to lengthy logistics, completes the incoming declaration on December 2, she can apply the new policy with a tax rate of 13%.
II. Latest Changes to the Rules for Determining Taxable Values
1. Latest Policy Updates
Article 3 of Announcement No. 175 [2024] of GACC (Announcement on Matters Concerning the Promulgation of Principles for Classification and Determination of Taxable Values of Inward Articles):
The taxable value of imported articles shall be determined in accordance with the following principles:
(I) The taxable value of imported articles shall be determined on the basis of the actual purchase price. When the customs deems it necessary, taxpayers of imported articles shall provide purchase vouchers or materials related to imported articles that reflect real transaction prices before the articles are released, and bear corresponding legal responsibilities. The customs may examine and determine the taxable price of dutiable articles according to law based on the above-mentioned purchase vouchers or materials provided by the taxpayer;
(II) Where the Customs believes that the actual purchasing price of imported articles is doubtful or cannot be determined, or there is no actual purchasing price for imported articles, the Customs shall use the following prices in turn to determine the taxable value:
1. The taxable price listed in the Taxable Price List, except that the customs examines and believes that the price of imported articles is 2 times or more of the taxable price listed in the Taxable Price List, or 1/2 or less of the taxable price listed in the Taxable Price List;
2. The taxed price determined by other reasonable methods shall be given priority to the latest market retail price of the same goods in the same place of origin.
2. Customs Q&A
Q: What should be noted when making a declaration?
A: The taxable value of incoming items is determined based on the actual purchase price. When deemed necessary by customs, the taxpayer must provide shopping receipts or documents that reflect the true transaction related to the incoming items before they are released. Failure to do so may result in corresponding legal responsibilities. To enable customs to quickly and accurately determine the taxable value of items and expedite their release, individuals purchasing items abroad or through online platforms must retain transaction invoices or receipts, shopping receipts, payment confirmations, electronic order information, online transaction vouchers, and other relevant documents. These should be truthfully declared to customs as required during the clearance process. Underreporting the value of items or providing false or concealed information about items constitutes illegal behavior. Customs will pursue corresponding legal actions in accordance with the law.
Q: How is the taxable value determined for items gifted by friends or relatives when purchase receipts cannot be provided?
A: According to the announced principles for determining taxable values, if incoming items have no actual purchase price or the actual purchase price cannot be determined, customs will follow Principle (II) to establish the taxable value. This involves using the values listed in the Taxable Price List in order, or other reasonable methods. However, if customs determines that the price of the incoming item is twice or more, or half or less than the taxable value listed in the Taxable Price List, the listed taxable value will not apply.
III. Latest Updates to the Classification Table for Incoming Postal Items
1. Latest Policy Updates
List of Classification for Entry Articles of the People's Republic of China
Taxable Price List of Entry Articles of the People's Republic of China
For details, please visit the official website of GACC (http://www.customs.gov.cn/) to find the GACC Announcement No. 175 [2024] on Matters Concerning the Publishing of the Principles for the Classification and Determination of Taxable Values of Imported Articles. Annex 1 of the announcement is the List of Classification for Entry Articles of the People's Republic of China, and Annex 2 is the Taxable Price List of Entry Articles of the People's Republic of China.
2. Customs Q&A
Q: Why do some high-end and ordinary cosmetics and skincare products have the same taxable values but different applicable tax rates?
A: The tax rates for cosmetics and skincare products are determined based on the comprehensive tax rate table in the Measures for Collection of Customs Duties, Value-added Tax and Consumption Tax on Entry Articles. High-end cosmetics and skincare products (taxable value ≥ ¥10 per milliliter or gram, or ≥ ¥15 per piece) are subject to a 50% tax rate, while ordinary cosmetics and skincare products (taxable value < ¥10 per milliliter or gram, or < ¥15 per piece) are subject to a 20% tax rate. The specific taxable values for cosmetics and skincare products listed in the Taxable Price List of Entry Articles of the People's Republic of China reflect the general price levels of these goods, corresponding to packaging units such as "bottle," "tube," "box," etc. Since the unit capacity of each product varies, the average unit price must be calculated based on the specific capacity to distinguish between high-end and ordinary cosmetics and skincare products, thereby determining the applicable tax rate.
Overview of the Latest Policy Documents:
1. Announcement of the Customs Tariff Commission of the State Council on Promulgating the Measures for Collection of Customs Duties, Value-added Tax and Consumption Tax on Entry Articles (Announcement No. 11 [2024] of the Customs Tariff Commission);
2. Announcement No. 175 [2024] of GACC (Announcement on Matters Concerning the Promulgation of Principles for Classification and Determination of Taxable Values of Inward Articles):
3. Announcement No. 176 [2024] of GACC (Announcement on Amending and Repealing Relevant Documents for the Administration of Inward Articles)
Disclaimer：The above content is translated from Chinese version of Alayongguan. The Alayongguan version shall prevail.