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โครงการหนังสออเล็กทรอนกสด้านการเกษตร เฉลมพระเกียรตพระบาทสมเด็จพระเจ้าอยู่หัว
5.3 Taxation
What

The key functions of Taxation include:

1) Customs Duty (Tariff);
2) VAT (value-added tax).

Who
The functions above are carried out by:

1) GACC (General Administration of Customs of China).

How

The key functions of Taxation are fulfilled through the following process:

1) The customs duty is 0% for all fruits from Thailand under the CAFTA
(China ASEAN Free Trade Area);
2) The VAT for imported fruit has been reduced from 13% in 2017 to 9%
in 2019;
3) VAT = (CIF+Tariff) x VAT rate, where CIF means the price quoted,
including Cost, Insurance, and Freight.

Observation

1) Some Thai exporters consider the VAT of China as an NTB (Non-Tariff
Barrier) as Thailand exempts VAT on the import of agricultural
products;
2) Some Thai exporters complained about different VAT in different
provinces in China. This might be explained by different transportation
costs in CIF, or different values of cost in CIF as claimed by the
shipper, which is the base for calculating VAT;
3) Another reason for different VAT is the case of “cross border retailing
e-commerce import”, where VAT is charged at 70% of the normal
level for a customer within his personal quota.

66 Supply Chain