U.S. Wine Soars to Highest Cost Due to Additional Tariff
With the ongoing and intensified trade war between the United States and China, effective June 1, 2019, China will impose an additional 25% customs tariff on U.S. wines, which will make the total incidental costs soared to the highest, and makes the U.S. wines less favorable to the Chinese consumers. * Aggregate tax includes 10% excise tax (a.k.a. consumption tax) and 13% value-added tax besides the customs tariff. For bulk wine and large-size bottled wine (capacity > 2 liter
One-percent Down Slight Adjustment on VAT
Released by State Administration of Taxation in early April and was effective from May 1, 2018, the value-added tax rate was slightly adjusted 1% down from 17% to 16%. This made the aggregate tax (custom duty + consumption tax + value-added tax) of imported wine from the previous 48.2% (on CIF price basis) reduced slightly to 46.93%. To wine producing countries (New Zealand, Chile, and Georgia who have entered Free Trade Agreement (FTA) with China, the new aggregate tax (cons
More Expensive US Wines to Chinese Consumers
The US-Sino trade war sparkled and caused the U.S. wine imposed an extra 15% custom duty (on top of the original 14% for bottled wine & 20% for 2-liter up packaged wine and bulk wine), which made the aggregate tax rate to 67.7% (from 48.2%) and 75.5% (from 56%) respectively, inclusive of the 10% consumption tax and 17% value-added tax. The new tariff was effective April 2, 2018. This made the U.S. wine has an average 13% increase on cost to the Chinese importers and distribu
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 wi