In past decades, China has been the largest exporter of goods in the world. China exports goods and products all over the world. In June 2021, the export value of China is increased by 32.2% compared to its previous year. Many small or big businesses are investing in importing goods from china.
The customs of a country play a vital role in the import and export of goods. They are responsible for collecting taxes and controlling the flow of goods either they are importing in or exporting out of the country.
China has announced a series of laws to reduce import and export taxes and jobs to promote higher levels of openness and domestic use. These changes could affect companies importing and exporting goods and services to China.
When we are importing headsets you also have to pay customs duties and taxes for the product as the importer.
If you are willing to import headsets from China then this article is just for you. We will give you a brief description of the costumes and taxes when importing headsets from China.
Chapter 1: Custom and taxes for headsets importing from china to the USA.
Chapter 2: Custom and taxes for headsets importing from china to European Union.
Chapter 3: Custom and taxes for headsets importing from china to Australia & New Zealand.
Chapter 4: How to pay import duties and required taxes.
Chapter 5: Are taxes paid on the replaced and repaired merchandise?
Chapter 6: A quick guide to import products from China.
Chapter 1: Custom and taxes for headsets importing from china to the USA
The United States;
- Custom value: FOB
- Import duties: 3-6%
- Harbor Maintenance Fee (HMF): 0.125%
- Merchandise Processing Fee: 0.3464%
Free On Board
FOB contracts relieve the seller of liability once the goods have been shipped. Once the goods have been loaded – legally, it is considered to be delivered into the hands of the buyer. When the trip starts, the buyer takes out all the bills, so the buyer can negotiate the cheapest price of the luggage with the insurance and the chosen carrier.
Harbor Maintenance Fee
HMF is collected from the importation of marine goods. It was created in the late 80s and is intended to require importers to share the cost of storing container terminals in the United States. However, HMF will not have much effect on your bottom line – the current HMF rate is only 0.125% of total assets.
Merchandise processing fee
Merchandise Processing Fee is user fees collected by the U.S. Customs and Border Protection to help process sales entering the U.S. As well as monitoring cultural and commercial compliance. The MPF is checked and paid at the time of the entry summary, and the amount is based on the value of the imported sales.
Chapter 2: Custom and taxes for headsets importing from china to European Union
The European Union;
- Custom fee: CIF
- Import duties: 3-4 %
- Value Added Tax (VAT)
Cost, Insurance, and Freight (CIF)
Cost, Insurance, and freight (CIF) is a global shipping agreement, which represents the costs incurred by the seller to cover costs, insurance, and freight of the buyer’s order while the goods are moving. Costs, insurance, and freight apply only to goods shipped by water, sea. CIF contract terms define when a seller’s debts end and when a consumer’s debt begins. CIF is only used when shipping goods overseas or by water route. The seller has to pay CIF.
Value-Added Tax (VAT)
A value-added tax (VAT) in some countries called GST (Goods Service Tax) is a usage tax levied on a product whenever the value is added to each category of purchase, from production to the point of sale. The amount of VAT paid by the user is in the cost of the product, reducing any cost of the items used for the product already taxed.
Chapter 3: Custom and taxes for headsets importing from china to Australia & New Zealand
Australia & New Zealand;
- Custom fee: FOB
- Goods & Service Tax (GST): 10%
- Import Processing Charge
- Import Processing Charge (IPC)
Import processing charges are the cost of services related to the reporting of cargo and the importation of imported goods, which are called services involved in the processing of import transactions. These charges only apply to the processing of imported goods and do not apply to items related to customs protection functions, such as border protection and the detecting or intercepting of prevented drugs and imported goods.
Chapter 4: How to pay import duties and required taxes
There are various means of payment of taxes and duties when having importation from China. You even have the option of paying them directly to the Chinese supplier. Here are some of the cases;
- Paying other taxes to the freight forwarder and import duties–is one of the simplest options. Your cargo will arrive at the station and the customs authority declares the fees to be charged based on the value of the item. After then, it would be invoiced by the shipping company. However, a better payment term may arise if one has an account with the freight company.
- Application for customs from the local customs authority– customs credit is offered by the authorities to the importers. The credit allows one to acquire the cargo at the station of destination and pay at a later date. The transactions can be made directly to the banked to customs authority, instead of making it to a freight company.
- Purchasing delivery duty directly from the supplier– is usually a fee in addition to the shipping and port fees. Taxes are paid upon delivery therefore the VAT is not included in the cross-border tax.
Chapter 5: Are taxes paid on the replaced and repaired merchandise?
Well, in the cases whereby one has to ship defaulted units back to China for repair, he or she shall not be required to pay the import fees twice. However, if paid for the second time one can get a refund or credits on the same. The only necessary thing that is of importance to have is the official documentation the goods are indeed for replacement.
Chapter 6: A quick guide to import products from China
To start the process of importing headsets first, you have to make a list of your products, recheck it and then find the importing services from china for your headsets. After you find the services choose a trustworthy and credibly freight forwarder partner.
To avoid delays and mishaps, keep track of your shipment and make the appropriate arrangements for its arrival well ahead of time. When goods arrive, make arrangements for your customs retailer to clear those using customs (and separate them separately if necessary).
If all goes well, it is your right to pick up your belongings. If you choose the door-to-door service, you can simply wait for your delivery to arrive at your designated address. Once you have received your goods and have received quality, packaging, instructions, and labels, it is best to email your supplier and let them know that you have received your goods but have not reviewed them.
Tell them you will contact them once you have reviewed the items and hopefully, you will place another order for further products in the future.
China is has been and is still the best country in the production of electronics and to be precise the headset. Prices are varied depending on the brand and the level of technology in use making it one of the best places to source headsets from. Customs and tax is calculated depending on the value.