You May Go to Prison If You Don't Declare Items to Customs!

Shenzhen Customs officials once reported the case of a man attempting to enter the Futian port with what seemed to be an empty watch box inside the passenger’s suitcase. X-ray images showed it was completely void.

The watch in question was from Patek Philippe, a Swiss luxury brand, which the man was wearing on his wrist at the time of the altercation.

After being questioned, the traveler revealed that his precious belonging was worth RMB 2.5 million and that he tried evading customs and taxes by wearing the watch instead of leaving it inside the box.

The case is currently being handled by the anti-smuggling department of customs.

After proper calculation, it was revealed that the man should be paying taxes worth RMB 1.37 million on the watch. While most netizens are in support of customs policies enforced upon visitors bring such luxurious belongings, others are questioning the validity of this particular enforcement:

“Why should someone pay a tax on a watch they bought for themselves?”

Other than the 20 special types of commodities that are subject to a customs tax according to Chinese laws, the total value of imported items purchased abroad for personal use by ordinary residents should not exceed RMB 5,000, otherwise, they must be reported.

The 20 special types of items include: TVs, video cameras, video recorders, disc players, audio equipment, air conditioners, refrigerators, freezers, washing machines, cameras, copiers, program-controlled telephone switches, microcomputers and peripherals, telephones, wireless paging systems, fax machines, electronic calculators, typewriters and word processors, furniture, lamps and lanterns, food.

Ordinary non-resident passengers bringing personal and self-use items with a total value of more than RMB 5,000 into China need to declare them to customs and go through the formalities of tax collection and returns.

If the total value exceeds RMB 5,000, they should voluntarily declare tax. If a passenger brings in any of the above-mentioned 20 special items, he or she will need to declare them and incur a tax, regardless of their total value.

In 2016, Chinese customs introduced a new tax system with three levels of post-tax rates: 15%, 30%, and 60%. These three rates are used to determine the amount of taxes someone will need to pay upon arriving in China.

What’s a post-tax? It relates to the import of baggage and postal items, which is levied when you bring them in as an individual or send them home.

In November 2018, the state council adjusted the tax rates for postal services, lowering them down to 15%, 25%, and 50%.

But don’t think you can get away with not paying taxes at customs so easily.

In January 2018, Mr. Li, the co-pilot of an international cargo airline, wore a woman's watch bought in Frankfurt on his wrist, carried two Cartier rings in his upper pocket, and a wallet in his bag. Li also commissioned Mr.Yang, a flight attendant, to carry a man's watch.

When entering the country, Mr. Li and Mr. Yang chose to go through the undeclared channel.

Customs officers at the Beijing airport found the excess consumer goods when they checked their luggage and carry-on items.

According to the calculation and verification by customs officers, the value of their smuggled items totaled RMB 194,000.

Li was sentenced to 10 months in prison, suspended for one year, and fined RMB 200,000 for smuggling those goods.

Q&A

Q1: Why should I pay customs taxes when I bring back personal items I bought for myself?

A1: The post-tax is imposed on individuals purchasing items for personal use from a foreign country and bringing them inside China.

Q2: How can customs know if I bought it in China or elsewhere?

A2: You should have the invoice of the items you purchased, or declare them on your own.

Q3: How do you declare taxable items when you enter the country?

A3: Inbound passengers should go to the customs declaration desk to report their items in person, fill in the declaration form, declare the carry-on baggage and articles truthfully, and bring along their passport, flight ticket, carry-on articles and invoices for customs review.

Source: Shenzhen customs

Editor: CH

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