The China Import Magazine

I am Enrico Pasotti from the company Feinrohren in Italy, we are copper tubes producers and we would like to know how is the import duty in China for copper and capillary tubes.

I saw on th website of European Commission that for the PRUDUCT CODE 74.11.10 is about 2% or 4%, could you confirm that?

Is there any FTA or GSP to add on it???

Lookind forward to receive a kind answer from you.

Dear Enrico Pasotti,

I have checked on the database of China Customs, below is the import duty on the code 741110.
HS code Preferential Import Duty General Import Duty
7411101100 4% 14%
7411101901 2% 14%
7411101990 4% 14%
7411102000 4% 14%
7411109000 4% 14%

For products originated from most countries from EU(including Italy), it should adopt preferential import duty, so, it is right the rate is either 2% or 4%.

This rate is actually based on the GSP scheme between China and EU.

As far as we researched, there is no FTA signed between China and EU country(including Italy).

Hope this information helps.

Regards,

Dear Steven Chow,

Thank you very much for the information that you gave me.

Another question that for me is very important to clarify:

I have heard that in China, if I am a local producer and I buy from a local supplier the Government will accomodate me in the transaction to give me back the VAT.

Looking forward to receive your kind answer.

Regards,

Dear Enrico,

For tax refund, if you own a chinese company to do the export, and if your supplier can issue VAT(some of them are not qualified), then your chinese company can get the tax refund.

Please be noted, that only chinese company can get tax refund from the government.

Steven

Dear Steven,

I understand but,

let me explain what I mean in order to have no doubts, for example:

1) Feinrohren sells Copper Tubes from ITALY to a Chinese company in CHINA, name: Red Company (casual name), and have from 2% to 4% of IMPORT DUTY TO BE ADDED
2) Red Company uses the Copper Tubes in the production to obtain a final product (ex: refrigerator)
3) Red Company sells the Refrigerator outside China (export)

The Red Company can't get any tax refund from the Government???

Kind regards

Enrico Pasotti

Dear Enrico,

In this case, it should be called processing trade, it is different to normal import and export.

For processing trade, the import company should not pay import duty and VAT, also can't get tax refund for the export(as they didn't pay any VAT or tax for the import, so no refund).

Steven

So if I am doing PROCESSING TRADE I WON'T have ANY import duty???

Yes, you don't need to pay any import duty and VAT, meanwhile you can't get any tax refund when export the finished products.

Please read the following link to know more about processing trade in China:
http://www.chinaimportexport.org/introd ... ing-trade/