Comprehensive overview of imported equipment taxes and fees

In equipmentImport RepresentationIn business operations, tax costs typically account for 25%-40% of total cargo value. The 2025 tariff implementation plan includes adjustments to 137 tariff items for electromechanical equipment. Professionalforeign tradeagents need to precisely control the following tax elements:

Core tax analysis

• Tariff
  • Basic tariff rate: Determined by HS code (2025 average rate for electromechanical products: 7.8%)
  • Preferential tariff rate: FTA rates (as low as 0% under RCEP)
  • Calculation formula: CIF price × applicable tariff rate
• Value - added Tax
  • Standard VAT rate: 13% (remains stable in 2025)
  • Special policy: Staggered VAT payment for major technical equipment imports
  • Calculation formula: (CIF price + tariff + consumption tax) × 13%
• Consumption Tax
  • Scope: Specific energy equipment, environmental protection equipment
  • Tax rate range: 1%-10% (floating based on equipment energy efficiency level)

Key points of the 2025 tax policy reform

• Semiconductor manufacturingEquipment ImportsTariff reduction extended to 2027
• New energyVAT credit refund ratio for vehicle production equipment increased to 120%
• Used equipment imports requireThird - party test report(New requirements for 2025)
• Cross-border E-commerceB2B equipment imports eligible for simplified declaration policy

Four-step compliance method

• Commodity classification verification

  Case: A company imported intelligent sorting system originally declared under HS84289000 (8% tariff), which should be reclassified as HS84312000 (5% tariff) upon review

• It is recommended to verify through the following methods:Clear management

  Under RCEP, both certificate of origin and movement certificate must be submitted

• Dutiable value declaration

  Royalty fees, transportation insurance costs must be fully disclosed

• Tax reassessment mechanism

  Recommend establishing a three-tier verification process: declaration-review-audit

Typical scenario tax calculation

Case: A company imported precision machine tools from Germany (HS84581000):

• CIF price: €500,000
• MFN tariff rate: 9% / RCEP agreement rate: 6.5%
• VAT: 13%
• Total tax difference: €500,000×(2.5%+13%×2.5%)=€16,125

Warnings about Common Misunderstandings

• Confusing equipment vs component rates (e.g. complete industrial robot 5% tariff, reducer separately imported 8% tariff)
• Overlooking urban construction tax and education surcharge in import process (10% of actual VAT payment)
• Incorrect application of FTA (cross-comparison between China-Korea and RCEP rates)