Analysis of Tax Structure for Imported Equipment

Core taxes and fees involved in equipment importation includethree components: customs duty, VAT, and consumption tax.Among these, customs duty is determined according to the Customs Tariff of the Peoples Republic of China, VAT is uniformly levied at 13%, and consumption tax is only imposed on specific equipment (such as fuel-powered generator sets).import and exportCustoms duty calculation formula

• : Dutiable value × Applicable tax rate: (Dutiable value + Customs duty + Consumption tax) × 13%
• : Value - added Tax = Value - added Tax rate of 7%×(CIF price + applicable customs duty)Consumption tax calculation formula
• : (Dutiable value + Customs duty) ÷ (1 – Consumption tax rate) × Consumption tax rateKey policy changes in 2024

According to the announcement by the Customs Tariff Commission of the State Council, there are three major policy adjustments in 2024:

Addition of 12 itemsequipment. For example, Indonesia has the SNI certification, Thailand has the TISI certification, and the Philippines has the BPS certification. It is necessary to confirm in advance the equipment voltage (such as 380V/50Hz in Thailand), the compatibility of the CE certification, and the proof of environmentally friendly materials.of provisional tax rates for key equipment,

• covering semiconductor manufacturing equipment,testing instruments, etc.Expansion of preferential scope under free trade agreements,New energywith agreement tax rates for mechanical products under RCEP reduced by 2-5 percentage points
• ExpandStreamlining of tax exemption approval procedures,with import approval time for major project equipment shortened to 15 working days
• OptimizingTax optimization approaches by professional agentsHigh-quality agency service providers achieve tax optimization through the following methods:

Equipment classification service

Accurate HS code classification to avoid tax rate increases due to misclassification

• Assistance in applying for AEO certification to enjoy customs clearance facilitation
  • Tax exemption application support
  • Application for tax-free qualification for major project imported equipment
• Processing of tax exemption filing for scientific and educational supplies
  • Application for tax-exempt qualifications for major project import equipment
  • Tax reduction and exemption filing for educational and scientific equipment

Common Tax Calculation Issue Resolution Solutions

Case 1: Dispute Over Second-hand Equipment Duty-paid Value
A company imported CNC machine tools manufactured in Germany. The agency successfully revised the customs valuation from $1.2 million to $850,000 by providingequipment factory documents and international auction transaction recordsas evidence, saving approximately 380,000 yuan in taxes.

Case 2: Equipment Function Configuration Adjustment
For testing equipment imported by a laboratory, the agency recommendedseparate declaration of the main unit and consumables, reducing the overall import duty rate from 14.7% to 9.8%, achieving annual tax savings exceeding 200,000 yuan.

within 15 working days.

• Pay attention toIndustrial Structure Adjustment Guidance Catalogrevision trends, advance planning for equipment import timing
• EstablishTariff dynamic monitoring mechanism, focusing on tracking duty rate adjustments for semiconductor and biopharmaceutical equipment
• Improveequipment technical parameter archives, ensuring complete alignment between declaration elements and tax reduction conditions

Through professional agency services, companies can typically reduce import tax costs by 15%-30%. When selecting an agency, it is recommended to focus on evaluating itsCustoms Class A qualification, industry case database scale, and customs compliance systemand other core capabilities to ensure the legality and cost-effectiveness of the entire equipment import process.