China is a big exporter of wholesale toys. About 75 percent of the world’s toys are produced in China. If you want to buy toys, Sourcing Toys from China is a good choice.
Sourcing Toys from China requires the completion of a list of different items which, if not done correctly, can result in shipping delays and penalties. Therefore, importers need to be well versed in Chinese import tariff rules. Make the Sourcing Toys process from China to the United States as smooth as possible.
Why do you need to know about import duties on toys sourced from China?
From the perspective of China’s toy import and export amount of trade data, China’s toy export amount and import amount increased year by year, toy export amount is much higher than the import amount. Chinese toy manufacturing technology is more mature, toy production enterprises are numerous. In the first half of 2022, China imported $380 million of toys and exported $21.4 billion.
From the perspective of the export situation of China’s toy products, China’s toy products are exported in large quantities. The main export toys are animal toys, followed by intellectual toys and dolls. The export amount of toy products is generally on the rise. With the development of economy and the scientific education, the market demand for puzzles is increasing day by day. In 2021, China exported 2 billion sets of puzzles with an export amount of 5.632 billion US dollars.
From the perspective of China’s toy product import regions, in 2021, the main import region of Chinese tricycles, scooters and other wheeled toys is Germany, Sourcing Toys amount of 1.666 million dollars, accounting for 66%; The main import area of animal toys was Indonesia, with the import amount of 2.041m US dollars, accounting for 52%; The main import regions of dolls were Vietnam and Japan, with the import amount of US $11.775 million and US $8.066 million, accounting for 39% and 31% respectively. The major importers of puzzles were Poland and the Czech Republic, accounting for $63.862 million and $52.40.1 million, respectively, accounting for 38% and 31% of the total imports.
Sourcing Toys from China Import and Export taxes
China has issued a series of regulations aimed at reducing Chinese import duties and levies in order to promote greater openness and domestic consumption. All of these changes could have implications for companies that import and export a variety of taxable products and services in China.
A core list of general guidelines followed by foreign companies governs this complex structure. We explain the 3 types of import tariffs that apply to Sourcing Toys from China by companies that import or export :
1. Value-added Tax (VAT)
All imported goods are subject to VAT. According to the State Administration of Taxation’s announcement on the VAT, starting from April 1, 2019, the import tariff rate on Chinese imports will be reduced to 9 percent or 13 percent from the previous 10 percent or 16 percent.
Certain goods, mainly agriculture and utilities, are subject to a 9% tax, while other goods subject to VAT, such as manufactured goods, are subject to a 13% tax.
2. Consumption tax (CT)
Enterprises and organizations that produce and import various types of taxable products, consign and sell taxable products are subject to China’s consumption tax (CT).
Imports on which China imposes the consumption tax include luxury goods such as alcohol, tobacco, jewelry and cosmetics, as well as a few high-end products such as passenger cars and motorcycles.
Consumption tax rates on imported goods vary according to the type of product being brought into the country.
3. Customs charges
Sourcing Toys import and export duties from china include the following different rates:
- Most favored nation
- Special offers
- Regular responsibilities
- Tariff Quota (TRQ)
- The general rate
- Temporary tariff rate
A tariff rate was set for exports. However, there may be temporary tax rates on exports that will be enforced for a limited period of time.
Declaration information Sourcing Toys from China
1. HS Code (Customs code)
2. Determine whether 3C certification is required
3. Wood fumigation certificate (issued by foreign countries, if the pallets used for shipping to China are wooden or wooden packaging, not wooden is not needed);
4. invoice, contract, packing list, bill of lading/waybill.
5. Import and export right
Documents to Fill When Sourcing Toys from China for your reference.
You need to be very careful when preparing the above documents. Any minor inaccuracies in the document could be considered fraudulent. It can cause delays in shipments and even lead to heavy fines. Especially when you are working with multiple suppliers in China, the chances of documentation errors are high. Therefore, making these files requires great care. Here are some common mistakes.
1. The cargo information does not match the actual shipment information (quantity, product category, etc.)
2. Product values in invoice and bill of exchange do not match
3. Currency input error
4. Use the letter of credit after the expiry date
5. Using electronic signatures where not allowed
6. Wrong company document entered when withdrawing a bill of exchange
7. Spelling error when entering product details
Import clearance procedures for Sourcing Toys
1. The customer shall provide the arrival notice, original bill of lading or telex release bill of lading to the shipping company to exchange bill of lading, dock fee and so on for import bill of lading.
2. Prepare documents required for import declaration
3. After the import declaration, the customer shall provide the relevant price proof if the customs needs to review the price. Such as letter of credit, insurance policy, original factory invoice, tender letter and other documents required by the customs.
4. After the customs prints the tax form, the customer shall pay the tax within 7 working days. If the time limit is exceeded, the customs will levy a late fee per day.
5. After customs clearance, the customer shall timely pay the customs clearance and inspection agent fee to the agent company.
Sourcing Toys duty rate and calculation method
Commodity code 3926909090
Other plastic products
Value-added tax rate 13%
The most favored Nation tax rate is 10%
1. Import tariff: Import tariff = CIF price × import tariff rate
2, import VAT: VAT tax =(CIF + import tariff + consumption tax)× VAT rate