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

April 22, 2016

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Eddie Wong

Same as wine, China imposes also three types of taxes on import spirits, i.e. import custom duty, excise tax and value-added tax, except in different rates. The rate to each of them is 10% (wine and spirits with more than 20% alcohol content by volume), 20% and 17% respectively.

The calculation methodology is listed below:

Custom duty = CIF (or C&F) price x 10%

Excise tax = [ (CIF + Custom Duty ) / (1 – 20%) ] x 20% + Nett multiplier *

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

A quick look to the comparison of wine and spirits on those taxes:

* Nett multiplier - is the total net net weight (in the unit of kg) of the imported spirit (excluding any packing, i.e. no bottle and only the liquid itself) x 0.912. Most important of all, this Nett multiplier is counted in Chinese Yuan. That means, for easier calculation and not to make a mistake, it is advised to exchange to Chinese Yuan of all taxes before the calculation.

Tags:

custom duty

consumption tax

VAT

import

spirits