Expert Interpretation in July 2019


1. The enterprise confirm whether the royalty is taxable?

Three months before the goods imported or exported, an application for price pre-determination shall be submitted to the customs directly under the place of registration through the electronic port “Customs Affairs Contact System” or  ”Internet Customs“.

2. How should an enterprise declare that it has already paid royalties when declaringimports?

Which is included in the actual and payable price of imported goods but if it cannot be quantified and divided,it can be reported in the total price without reporting in the miscellaneous fees column. This fee is only related to some imported goods of the same batch, and the declaration form shall be split for declaration

3. If the enterprise fails to confirm the payment of royalties when declaring the import of goods, can it declare according to the subsequent supplementary tax?

No. For this kind of situation, if an enterprise finds that it fails to of Royalty Fees report the taxable royalties through self-examination, it can take the initiative to disclose it to the customs

4.  How to determine the payment date of royalty fees?

That is, the actual date of payment of royalties, subject to the date of receipt and deduction certificate issued by the bank