China will impose a 25% tariff on American-made cars

A few days ago, the U.S. government issued a list of goods subject to tariffs, which will impose a 25% tariff on 1,333 items worth 50 billion U.S. dollars to the United States. The US measures violated the rules of the World Trade Organization and seriously violated China’s legitimate rights and interests and threatened the development interests of our country.

China Netcom learned from the Ministry of Finance that, with the approval of the State Council, the Customs Tariff Commission of the State Council has decided to impose a 25% tariff on 14 categories of goods, such as cars originating in the United States. Among them, automotive products include off-road vehicles, passenger cars ≤ 9 seats, pure electric vehicles, other trucks with gasoline types ≤ 5 tons, and other vehicle and motor vehicle parts. The actual implementation time is not yet announced.

Tariff increase involves the list of automotive products

The current tariff increase involves different displacement off-road vehicles, ≤ 9-seat passenger cars, pure electric vehicles, gasoline-type ≤ 5 tons of other trucks and other vehicles and motor vehicle parts and other commodities.

Form Source: Ministry of Finance website

The relevant matters are as follows:

1. The goods subject to tariffs are 14 categories of 106 commodities such as soybeans, automobiles and chemicals.

2. For the imported products originating in the United States, a 25% tariff shall be imposed on the basis of the current taxation method and the applicable tariff rate. The current policy on bonded and tax-exemption shall not change (The tariff imposed this time shall not be granted. Relief).

Third, the import tax calculation formula after adding tariffs:

Tariff = duty paid price × (current applicable tariff rate + imposed tariff rate)

Ad valorem rate goods import link consumption tax = import link excise tax calculation price × excise tax ratio tax rate

Taxes on the importation of compound taxable goods = Taxes on the consumption of consumption tax at the import link × Tax rate on the consumption tax + Import volume × Consumption tax Fixed tax rate

Ad valorem tariffs for goods import tax calculation = (tariff duty + duty) ÷ (1 - excise tax rate)

Taxes for consumption tax on the import of compound taxable goods = (tariff duty + tariff + import quantity × consumption tax fixed tax rate) ÷ (1-proportional tax rate for consumption tax)

Value-added tax for import link = Value-added tax for import link × Tax rate for import link VAT

Import link VAT taxation price = Customs Duty paid price + Customs duty + Import link consumption tax

Fourth, the implementation time will be announced separately.