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Full Question I'd like to set up a business in China to export goods to Indonesia but am finding the various taxes hard to understand. The China-ASEAN FTA (free trade agreement) is also complicating matters. Say I'm trying to export HTS Code 29032910. 1) The newly reduced China-ASEAN tariff rate indicates there's no tariff. Does this mean I don't need to pay export tax from China? 2) I've heard both 7% and 17% retail tax rates from Forwarders. What is the actual tax rate and is it avoidable via rebate etc? 3) Is any of the above affected by third-party invoicing that's not based in China? Appreciate any guidance from the experts.
Answer I checked into the situation and as I understand it, the goods that are imported into China from ASEAN may have a lower import tax as part of the FTA (free trade agreement), but for the majority of goods that are exported out of China there are no export taxes regardless of where they are being sent. The tax you need to be most concerned about would be the tax applied by Indonesian government when Chinese goods are imported into Indonesia. The amount of tax may be lower than before thanks to FTA.
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