A Shenzhen resident in the IT industry, Mr. Zhang, bought an iPad in Hong Kong then returned to Shenzhen through customs. Despite his repeated explanation that it’s for personal use, he was still only allowed to clear customs after paying tax. When mainland resident Miss Zhu went back to Shenzhen via Hong Kong, customs made her pay 1000 RMB in tax, despite proving to the customs officer that her iPad contained documents, photos and other information from nearly a month of use. So do you need to pay tax in China when purchasing iPads and iPhones overseas? How are they relevant to the same provisions as cosmetics and milk? Yesterday, Shanghai Customs reminded travelers when entering and exiting the country, to understand the relevant customs rules and to declare goods truthfully to avoid unnecessary trouble.
Goods 5,000 RMB or less for personal use exempt from tax
According to the “2007 General Administration of Customs Announcement No. 72", people entering should declare five kinds of goods. First: animals, plants and their products including microbes, biological products, human tissues, blood products; second: residents’ personal belongings that are valued at 5000 RMB or more; non-resident passengers to remain in the territory of China no more than 2,000 RMB worth of goods; third: more than 1500 milliliters of alcoholic beverages (alcohol content above 12 percent), or more than 400 cigarettes, more than 100 cigars, or more than 500 grams of tobacco; fourth: no more than 20,000 RMB in cash notes, or foreign currency equivalent to over 5000 USD; fifth: unaccompanied baggage, cargo, samples and advertising materials.
iPad is not duty-free
A lot of people don’t understand why iPads should be taxed when they cost around 4,000 RMB, so less than 5000 RMB cap. In this regard, the officers explained that the iPad is classified as a computer belonging to one of the 20 kinds of commodities that are subject to tax, and is therefore subject to a tax rate of 20%. Under the "2004 General Administration of Customs Announcement No. 7", regardless of whether the price of purchasing an iPad is less than 5,000 RMB, it still should be taxed. Moreover, according to the import duty tariff classification list of "incoming passengers’ baggage and personal mail articles" and the "incoming passengers’ baggage and personal mail articles duty price list," the duty price for each computer costs 5,000 RMB and has a tax rate of 20%. So if you buy an iPad outside the country, you need to pay 1,000 RMB in tax.
There are 20 types of goods that are not tax free; mostly those dealing with food and beverages. Under Annex 2 of the “2004 General Administration of Customs Announcement No. 7â€, the top five categories of all 22 categories include alcohol, food and beverages; fruit; spices; aquatic products, and meat, eggs, vegetables and dairy products.
Emphasis on reporting goods
To general visitors, if leaving the country carrying more than 20,000 RMB in cash or foreign currency equivalent to over 5000 USD; or needing to re-enter with cameras, camcorders, portable computers or personal use items worth more than 5,000 RMB, you should fill out the "PRC Customs outgoing Passengers declaration†form to declare your items. Passengers should keep the declaration which serves as the re-entry duty-free certificate for the relevant items upon re-entry.
20 types of goods that are not tax-free
Under the "2004 General Administration of Customs Announcement No. 7", 20 types of goods that are not duty-free goods are as follows: TVs, video and film cameras, camcorders, video players, audio equipment, air conditioners, refrigerators (freezer), washing machines, cameras, copiers , program-controlled telephone switches, micro computers and peripherals, telephones, wireless paging systems, fax machines, electronic counter, typewriters and word processors, furniture, lighting and food materials.
Common Goods Tax Price List:
Cellphone: 150 RMB/unit
Laptop computer: 1000 RMB/unit
Desktop computer: 400 RMB/unit
All in one display: 600 RMB/unit
Digital camera: 400 RMB/unit
Milk powder, coffee, tea: 20 RMB/kg
Mp3 player: 20 RMB/unit
Mp4 with 2’’ display or smaller: 100 RMB/unit
Mp4 with 2’’ display or larger: 200 RMB/unit
USB flash drive: 20 RMB/unit
High end wrist watch (10,000 RMB or higher): customs evaluation ×30%
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