What are the Import Custom Duty and Other Taxes on Wine ?


China imposes three types of taxes on import wine, i.e. import custom duty, excise tax and value-added tax. The rate to each of them is 14%* (wine with 20% or lower alcohol content by volume), 10% and 17% respectively.

The calculation methodology is listed below:

Custom duty ** = CIF (or C&F) price x 14%

Excise tax = [ (CIF + Custom Duty ) / (1 – 10%) ] x 10%

Value-Added Tax = { CIF + Custom Duty + Excise Tax } x 17%

The total aggregate tax to an imported wine is: 48.2% , which means if your invoice price is EUR 10,000 CIF China harbor, the importer (or your customer) will bear to pay another EUR 4,820 altogether on these taxes. This hasn’t included other documentary and handling fees charged by the shipping company, freight forwarder, the Custom, … etc.

* Custom duty rate is 20% to imported wine whose individual packing more than 2 liters. Chinese Custom classifies this packing size as bulk wine no matter, e.g. it’s a 3-liter bottle or in an oak barrel.

** To countries who entered into bi-lateral Free Trade Agreement (FTA) with China, the custom duty will be subsequently decreased to 0% in a certain period of years.

#VAT #consumptiontax #customduty #aggregatetax

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