I. Relevant Background
According to the Customs Tariff Law, the simplified taxation method for import duties on goods entering the country and the amount exempt from duties are stipulated by the State Council and reported to the Standing Committee of the National People's Congress for the filing. Starting December 1, 2024, the Measures for Levying Tariffs, Value-added Tax, and Consumption Tax on Imported Goods of the People's Republic of China will come into effect. In recent years, with continuous economic development, the increase in domestic residents' income, and the transformation and upgrading of the consumption structure, "cross-border online shopping" has become a very popular way of shopping. However, sending desired overseas goods back to the country may require paying certain taxes when going through customs. What kind of tax is being paid? What are the customs taxation standards? What are the ways to pay taxes? At the time of the implementation of this new policy, this article will provide a detailed introduction.
II. FAQ
(I) What does "mail items" refer to?
The term "items for delivery" refers to personal-use items sent or received across borders in the form of mail or express delivery, excluding cross-border e-commerce retail imports.
(II) What is the import duty on inbound goods?
(III) Who are the tax objects and taxpayers for imported goods?
The objects of taxation for inbound items are inbound items, which refer to luggage, postal items, and other articles permitted to enter the People's Republic of China.
The taxpayer of duty on inbound items is the bearer or recipient of the inbound items.
(IV) What are the parcel value limit and duty-free allowance for inbound items?
The value limit for inbound items is up to RMB 2,000 (including RMB 2,000), or indivisible single items with a total value exceeding RMB 2,000.
For mail items with a taxable amount of 50 RMB or less (including 50 RMB), customs will exempt them from taxes and release them. Items entering the country through delivery within the duty-free limit are limited to personal use and must not be used for commercial purposes.
(V) Under what circumstances will customs impose taxes?
The following inbound 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:
For inbound items exceeding reasonable personal use quantities, taxable personal-use automobiles, motorcycles, and their parts and accessories, as well as other inbound items specified by the State Council to be taxed as imported goods, shall be taxed according to import goods regulations.
Reasonableness refers to the fact that it conforms to the situation, travel purpose and residence time of the inbound and outbound personnel or meets the attributes, characteristics, use, value and other factors of the posted articles.
Self-use refers to the use by oneself rather than for sale or lease.
(VI) How should the taxes on imported goods be calculated?
The GACC develops the Classification Table of Imported Goods based on the Comprehensive Tariff Schedule. The customs authorities determine the applicable composite tax rate for taxable imported goods according to the Classification Table of Imported Goods and the principles of classification for imported goods. The taxable value is determined based on the actual purchase price. The tax payable is calculated by multiplying the taxable price by the comprehensive tax rate. (See Announcement [2024] No. 175 of GACC)
Currently, there are four levels of tax rates for personal imported items, specifically 3%, 13%, 20%, and 50%. Among them, items subject to a 3% tax rate mainly include anti-cancer drugs and rare disease drugs; items subject to a 13% tax rate mainly include food, beverages, medicines, health products, computers, digital cameras, etc.; items subject to a 20% tax rate mainly include bags, shoes, textiles, appliances, etc.; and items subject to a 50% tax rate mainly include tobacco, alcohol, luxury watches, high-end cosmetics, and precious jewelry and gemstones.
III. Tax Handling Guide
(I) Can the recipient of the email pay customs duties via mobile phone after receiving the customs tax notification?
Sure, customs supports mobile tax payment. The specific steps are as follows:
1. Customs "Agreement Deduction": Log in with real-name authentication on systems or apps like "Handheld Customs," "China International Trade Single Window," or "Internet + Customs." Search for the "Personal Goods Tax Payment" service, input the mail order number to check taxable information. After signing a tripartite agreement with the platform and the bank, use the corresponding bank account to pay the tax. The currently supported banks are China Merchants Bank and Industrial Bank.
2. "Query Tax Payment" on the Payment Institution Side: Use apps such as "Alipay," "UnionPay Cloud QuickPass," "China Merchants Bank," or "Industrial Bank" to log in with real-name authentication. Search for the "Individual Postal Tax Payment" service, enter the mail tracking number to query the taxable information, and confirm and pay the tax on the payment end.
(II) Is there a service fee for paying mail taxes?
By using the above mobile payment methods, you can directly pay taxes online to customs, or go to the customs mail supervision site to pay taxes. Customs do not charge any additional fees.
(III) How to check the tax payment receipt by mail after paying taxes online?
After the recipient has paid the tax online, they can log in to the "Handheld Customs" app or WeChat mini program to check their electronic tax payment receipt. The voucher details the specifications, models, quantities, taxable prices, tax rates, and tax amounts of taxable items.
(IV) Can you help relatives and friends pay mail taxes online?
Yes. During the tax payment process, the system will send a verification code to the recipient's mobile number registered on the mail label. Once verified, the tax payment can be made.
(V) How should express delivery companies pay taxes?
The customs currently allow the entire process of personal-use parcel tax inquiries, tax payments, and tax slip printing to be handled online. Courier operators can complete online self-payment through the "China International Trade Single Window." At the same time, it is also possible to go to the customs site to collect the Customs Duty Payment Form and pay the taxes at the bank.
(VI) How to handle online tax refunds for mail?
Recipients can submit a tax refund application to customs via the "China International Trade Single Window" (PC, mobile app) or the "Handheld Customs" WeChat mini program. The tax amount will be refunded immediately to the recipient's designated account after customs and the national treasury have completed the review and processing of the refund procedures.
IV. Specific Case
(I) Ms. A bought a doll worth 700 RMB and had it shipped from Japan back to China. How much tax does she need to pay?
Answer: According to the Classification Table of Imported Goods and the classification principles for imported goods, the comprehensive tax rate for dolls is 13%. As determined by customs, the taxable price is the actual purchase price of RMB 700. Ms. A's taxable amount is: RMB 700 x 13% = RMB 91.
(II) Mr. B purchased 10 cigars online with a total value of RMB 500 from Hong Kong and had them sent back to mainland China. How much tax does he need to pay?
Answer: According to the Classification Table of Imported Goods and the classification principles for incoming goods, the comprehensive tax rate for cigars is 50%. As determined by customs, the taxable value is the actual purchase price of RMB 500, and Mr. B's tax payable is: RMB 500 x 50% = RMB 250.
(III) Did Ms. C exceed the parcel limit by purchasing a handbag worth RMB 10,000 online and having it shipped from the United States back to China? How much tax needs to be paid?
Answer: Although the value of the shoulder bag exceeds the limit of RMB 2,000 for inbound parcels, the package contains only this one indivisible item, and it should be fully taxed. According to the Classification Table of Imported Goods and the classification principles for imported items, the comprehensive tax rate for a shoulder bag is 20%. The Customs determined that the actual purchase price of the bag was RMB 10,000, and Ms. C should pay tax: RMB 10,000 x 20% = RMB 2,000.
V. Reminders
The taxable value of incoming items is determined based on 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.
Disclaimer：The above content is translated from Chinese version of 12360 Hotline of Shenzhen Customs. The 12360 Hotline of Shenzhen Customs version shall prevail.