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. 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.Tariff 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)