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

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

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

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