Customs in China - The Facts
China Customs (the GACC) is a government agency that supervises and manages all arrivals in and departures from the customs territory of the People's Republic of China. It exercises a centralized management structure. It’s essential tasks are customs control, revenue collection, fighting smuggling and foreign trade statistics compilation. It shoulders such major responsibilities as duty collection, customs control, supervision and management of bonded operations, foreign trade statistics compilation, audit-based control, customs intellectual property rights protection, fighting smuggling, and port management.
Customs Valuation of goods entering into the European Union
Imports into any of the 28 countries of the European Union (EU) may attract a number of import taxes such as VAT, duty or anti-dumping duty. When due, it is important that the correct amount of these taxes is paid as the customs authorities in all EU countries have the power to impose various financial penalties against you, or even seize your goods. The question therefore is - how should importers calculate the value of the goods to ensure they do not fall foul of these penalties but also ensure they do not pay too much tax?
Dramatically and Legally Reducing Landed Costs for Your Exports in Multi-Tiered U.S./EU Import Transactions: The First Sale Rule
The “First Sale” rule is a collaborative and proper legal process available to U.S. and EU importers and global exporters to substantially reduce duties and taxes. This rule has been the law of the land in the U.S. since Sandler, Travis & Rosenberg, PA (“ST&R”), won the seminal case establishing first sale as a viable option for valuation of merchandise in 1988. ST&R has also successfully applied it to save significant duties for US and EU imports from over 512 global vendors.
Simply stated, the First Sale rule can be applied when there are two or more sales that give rise to an importation of merchandise. As long as all the rules substantiating first sale are met and documentation is established, the basis for dutiable value can be the first sale between the factory and the middleman/vendor, rather than the middleman/vendor and the importer.
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