The tariff calculation for the import of high-end cosmetics involves multiple stages and taxes. The following are detailed calculations and the relevant legislation:
In accordance with the relevant provisions of the regulations of the people's republic of china on import and export tariffs, customs duties are paid on imported cosmetics. Specific rates are based on different types of cosmetics, such as 1 per cent for common skin and cosmetics, 5 per cent for lip, eye and nail cosmetics and 3 per cent for perfume and dew. The tariff formula is: tariff = tariff completion price x tariff rate。
Ii. Vat calculations
In addition to customs duties, vat is required for the import of high-end cosmetics. According to the provisional regulations of the people's republic of china on value added taxes, taxpayers import goods that are taxable on the basis of the amount of the tax which constitutes the taxable price and the established rate. Comprising tax-based prices = tariff-exempt prices + tariffs + excise taxes. The vat rate is generally 17 per cent (currently subject to some adjustment under the latest policy, for example, the general vat rate for cosmetics is 13 per cent) and the taxable amount = constitutes the tax-based price x rate。
Consumption tax calculations
High-end cosmetics also require a consumption tax. According to the provisional regulation of the people's republic of china on consumer taxes, duties are levied on imported dutyable consumer goods at the time of declaration of import. The excise tax rate for high-end cosmetics is 30 per cent. The excise tax formula is: excise tax = sales = excise tax rate. It should be noted that sales do not include vat from buyers。
In summary, the tariff calculation for the import of high-end cosmetics includes three components: customs duties, value added tax and excise tax. Specific taxes and methods of calculation are subject to the relevant legal and policy provisions。
