How is the tariff on parallel imported vehicles calculated?
2 Answers
In daily life, taxes are levied on the purchase of any goods. The types of taxes involved in this process include: tariff, consumption tax, and value-added tax. The calculation method for the tariff on parallel imported vehicles is divided into two scenarios, as follows: 1. When the tariff is reduced to 15%, the calculation method for the import vehicle tariff is: total tax rate = 133.4% x consumption tax rate ÷ (1 - consumption tax rate) + 33.4%. 2. When the tariff becomes 40%, the total formula for tariff calculation changes to: total tax rate = 162.4% x consumption tax rate ÷ (1 - consumption tax rate) + 62.4%.
I understand that the tariff imposition on parallel-imported vehicles is a multi-step process, primarily involving the comprehensive calculation of import duties, value-added tax (VAT), and consumption tax. First, customs determine the dutiable value based on the vehicle's actual transaction price plus costs such as shipping and insurance. Then, import duties are levied at different rates depending on the engine displacement—for example, smaller-displacement vehicles generally have a lower rate, around 15%. Next, a 13% VAT is mandatory. For larger-displacement vehicles, an additional consumption tax applies. The sum of these taxes constitutes the tariff burden for parallel-imported cars, making the final landed price significantly higher than the advertised price. However, by controlling procurement costs and working with professional import agents, buyers can still secure a lower price compared to 4S dealerships. I also recommend that buyers review a complete cost breakdown in advance to avoid unexpected clearance fees later. Keeping an eye on policy changes is crucial, as tariff adjustments can impact cost savings. In short, this is a technical task that requires careful calculation to ensure a worthwhile purchase.
