The three taxes
| Tax | Rate | Base |
|---|---|---|
| Customs duty | Depends on HS code and origin | Customs value (usually CIF) |
| Import VAT | 13% (most goods) or 9% | Customs value + duty + consumption tax |
| Consumption tax | Specific goods only (e.g. luxury items, alcohol, cars, cosmetics) | Varies |
What sets the duty rate
- HS code: the product’s classification decides the base rate. Getting it wrong is the most common cause of customs penalties.
- Origin: most-favoured-nation rates apply by default, free trade agreement rates may be lower, and additional duties can apply to goods from some countries.
- Customs value: generally the transaction value plus freight and insurance; royalties and related-party pricing can affect it.
Getting VAT back
A WFOE that is a VAT general taxpayer can usually credit import VAT against its own output VAT, so for regular importers it’s mainly a cash-flow cost.
Cross-border e-commerce
Retail goods sold directly to Chinese consumers through approved cross-border e-commerce channels use a separate regime with per-transaction and annual limits per consumer and reduced import taxes. It’s a different model from importing stock into your own company.
Our team, including our customs and trade lawyers at ChinaTradeLawyer.com, can review classification and import structure. See also accounting & tax.
Reviewed by Choi & Partners · 3 October 2026. This page is general information, not legal advice.