Imported cotton price conversion
The conversion of imported cotton price into RMB cost depends on whether it is in the form of “general trade” or “processing trade”.
A. In the case of “general trade”. According to the CNF price of a certain variety reported by the “cotton merchant”, the import cost includes the following expenses:
1. Marine insurance premium: The current level is generally about two thousandths to four thousandths of the CNF price.
2. Import tariff: 3% of the customs declaration invoice amount (will be reduced to 1% after 2001).
3. Value-added tax: 13% after customs duty is paid.
4. Port fees: including port construction, port miscellaneous fees, customs three inspection fees, container removal fees, container return fees, commercial phytosanitary fees, etc. Although there will be some differences in the level of each port, basically the cost per ton will not exceed RMB 200.
5. Export agency fee: According to current national regulations, general trade must go through designated companies, such as “China Textile Cotton Import and Export Company” to order and renew import licenses, and import companies need to pay a 1% agency fee.
6. Internal shipping charges: vary depending on the distance between the cotton usage area and the port. Import enterprises should calculate based on actual railway freight or road freight.
B. In the case of “processing trade”: Processing trade does not need to pay tariffs and value-added tax (the customs sets up a ledger for the enterprise, and tariffs and value-added tax are collected first and then refunded). However, the processed products must be exported. Since no value-added tax is collected at the time of import, there is no tax refund when the finished product is exported.
AAA
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