HomeNews > Industry News > Content

China Greatly Reduces Import Tariffs on Jewelry

2018-06-04 Source:GuangDong Gems & Jade Exchange


The Customs Tariff Commission of the State Council issued the "Notice on Reducing the Import Tariffs of Daily Consumer Goods". According to the notice, starting from July 1, 2018, the reduction of the MFN (Most Favored Nation) tariff rate for imports of daily consumer goods involves 1,449 tax items. The average tax rate for goods subject to tax reduction was reduced from 15.7% to 6.9%, with an average drop of 55.9%.
 
What categories are relevant to the jewelry industry?
 
There are 18 tax items involving jewelry. As for the MFN import tariff rate, Gold and silver jewelry products are reduced from 20% to 8%, platinum and other precious metal products are reduced from 35% to 10%, and natural or cultured pearl products, gemstones or semi-precious stones products are reduced from 35 % to 10%. The average tax rate of the above 18 tax items was reduced from 30.67% to 9.89%, an average decrease of 67.75%.
The general import tax is mainly divided into the MFN tax and ordinary tax. The former applies to goods imported from countries (or regions) that have signed the most-favored-nation treatment treaty (or agreement) with the country, and the latter applies to imports from countries (or regions) where the country (or commodity) has not signed the above-mentioned treaty (or agreement).
The tax reduction concerning this time belongs to the former, the MFN tax. Whatever products are imported, taxes are required: import tariff and value-added tax (VAT). However, the collection of these two types of taxes is not simply a sum, it involves the issue of a comprehensive tax rate, calculated by the following formula:
 
1. If products are not subject to consumption tax collection at the import stage, the formula for calculating the comprehensive tax rate = import tariff rate + VAT rate + import tariff rate * VAT rate
2. If the product is subject to consumption tax collection at the import stage, the formula for calculating the comprehensive tax rate = (import tariff rate + consumption tax rate + VAT rate + import tariff rate * VAT rate) / (1-consumption tax rate)
In practical applications, how do you embody this? Let's take an example!
 
1. Take 7113191100 gold jewelry inlaid with diamond as an example (not subject to consumption tax collection at the import stage), with a VAT rate of 16%, and MFN tariff rate dropping from 20% to 8% from July 1st on, its comprehensive tax rate will drop from the current 39.2% to 25.28%. For example, at the goods value of RMB 1 million yuan, the comprehensive tax paid for imports from general trade will be reduced from 392,000 yuan to 252,800 yuan, a decrease of 35.51%.
 
2. Take 71162000 precious or semi-precious stone as an example ( There is consumption tax collection at the import stage), with a VAT rate of 16%, and MFN tariff rate dropping from 35% to 10% from July 1st , its comprehensive tax rate will drop from the current 74% to 41.778%. For example, at the goods value of RMB 1 million yuan, the comprehensive tax paid for imports from general trade will be reduced from 740,000 yuan to 417,780 yuan, a decrease of 43.54%.
 
Please feel free to contact us and got the “Jewelry Tax Rate Table” from us. Remarks: Information and data are for reference only. Accurate results are subject to verification and publication by the Customs.
 
 
Costs of Jewelry Clearance Reduced, Further Expanding the Consumer’s Demands
                         
For the jewelry companies, when importing the above-mentioned tax-related jewelry items in general trade mode, a large amount of comprehensive tax cost will be saved, and the domestic market's consumption demand for imported jewelry items will further increase.
 
Guangdong Gems &Jade Exchange “Easy customs clearance” Service
 
Guangdong Gems & Jade Exchange (GDGJE)  provides general trade import and export customs clearance services for jewelry enterprises, helps them to simplify the customs clearance procedures. GDGJE has a mature and comprehensive customs clearance system covering multiple ports
 
For details of the services, please contact Ms.Lu at +86-13672375951 of the Trading Department of Guangdong Gems&Jade Exchange.
 

Company News

More

Guangdong Gems & Jade Exch...

On March 1, 2018, The Guangdong Gems & Jade Exchange (GDGJE) and the International Colored Gemstone Association (ICA) signed the MOU in Hongkong [ Detail ]

International Jewelry & Dia...

On 24 November 2017 the grand opening for one of the series of annual meetings of the Guangdong Assets and Equity Exchange Group was held in Panyu, Guangzhou [ Detail ]

Global Colored Gemstone Ind...

On 21 -24 October 2017,International colored gemstone association (ICA) Congress 2017 with the theme of “Celebrations of Colours” held successfully in the India Jaipur [ Detail ]

97