Customs Justifies Entry Tax on Goods Worth 5,000 Yuan or More

Imposing a duty-free cap on the goods carried by inbound passengers into Chinese mainland is in line with international practice, Huang Yi, director of the Customs Control and Supervision Department of the General Administration of Customs (GAC), said on Nov. 14. He said that the customs authorities' move to crack down on purchasing agents of overseas untaxed goods is aimed at creating a convenient and efficient customs clearance environment and protecting fair trade principles.

The "Notice on Customs Declaration and Approval Standards for Articles Carried by Inbound Passengers" earlier released by the GAC has attracted much public attention and controversy. Some believe that the regulations are too strict, under which, a duty-free cap has been set at 5,000 yuan for personal goods of inbound Chinese mainland residents and 2,000 yuan for inbound non-Chinese mainland residents.

Huang said that imposing a duty-free cap on the goods carried by inbound passengers into Chinese mainland is consistent with international practice, and levying a tax on dutiable goods based on the full value of the goods is also a method universally applied by each country.

It is known that the duty-free cap for personal goods carried by inbound passengers is 900 Australian dollars in Australia, 390 pounds in Britain, 430 euros in Germany, 400 U.S. dollars in South Korea and is 800 U.S. dollars for U.S. residents and 100 U.S. dollars for non-U.S. residents in the United States.

Currently, the duty-free cap for personal goods of inbound passengers into Chinese mainland is 5,000 yuan for Chinese mainland residents and 2,000 yuan for non-Chinese mainland residents. Given the difference in economic development levels between China and developed countries, China's current duty-free cap for personal goods of inbound passengers is generally at the same level as that of developed countries.