0 tariff=0 import tax

I stumbled upon this website dzmotor.com, a reputable bike dealer in shanghai "so i heared"claiming they can get u a bike which is imported from thainland with 0 import tax.

The owner mentioned in the shop forum that due to ASEAN free trade agreement, no rediculous import tax is required, meaning its 100% legit for registration.

Any thoughts?

Its BS... discussed this before at length.. some so called "dealers" will tell you anything you want to hear - TIC and a very wise person once said "a fool and his money are easily parted" and no truer words were spoken when it comes to anything PRC/TIC...
As to the thread discussion on the subject of import duties and taxes ... search and you will find the thread...

Quote:

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Originally Posted by crismoe'

I stumbled upon this website dzmotor.com, a reputable bike dealer in shanghai "so i heared"claiming they can get u a bike which is imported from thainland with 0 import tax.

The owner mentioned in the shop forum that due to ASEAN free trade agreement, no rediculous import tax is required, meaning its 100% legit for registration.

Any thoughts?

---

The ASEAN free trade with Thailand and China is not in place yet just last year i exported some UTV from China to Thailand and had to pay 80% duty to the Thail Goverment and 80% was based on the The valuation method is CIF (Cost, Insurance and Freight), so duty paid on insurance and shipping cost ?? not just the cost of the goods

a good up to date web site for duty cost for all over the world is found here

http://www.dutycalculator.com/new-im...x-calculation/

Quote:

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Originally Posted by bikerdoc

Its BS... discussed this before at length.. some so called "dealers" will tell you anything you want to hear - TIC and a very wise person once said "a fool and his money are easily parted" and no truer words were spoken when it comes to anything PRC/TIC...
As to the thread discussion on the subject of import duties and taxes ... search and you will find the thread...

---

yeah doc, that's my first impression too but this shop is one of the biggest supplier of imported bikes in Shanghai. If u pay them a visit you will understand why i'm giving them the benefit of the doubt. The shop is known for their big displacement BMW's and Suzuki with tags that you normally expect.

Im aware of the thread you mentioned, quite informative i might say. My concern is maybe we are missing something, maybe there's really a revision in the import/export law or the ASEAN free trade agreement really exist (i.e. motorbikes). Not saying i'm a believer but a little optimism wont hurt:icon10:

No harm having such optimism but it (the ASEAN agreement allowing import of bikes manufactured in an ASEAN member country into China) maybe true... I get plenty of inside motorcycle specific dealer new bulletins that is all about global markets including China (though that doesn't mean something might not slide under the radar), and the previously discussed ASEAN market deal for China in terms of our collective interests - hasn't made a mention in the biweekly mailer I refer to. Not to say that it's not happening though.

It would be interesting though to call the dealers bluff... place an order with 1000-2000 deposit down, and see what comes of it. Proceed with caution...

Hopefully good things are happening behind the scenes though. If the ASEAN agreement is true meaning lowering of tarrifs on bikes landed into China, then that can only be good...

There is a an agreement with China and ASEAN.
http://www.mfea.org.my/Data/Sites/1/.../AChinafta.pdf


It does not detail motorcycles specifically, it does include automobiles, in that it has them listed under both sensitive and highly sensitive.


Sensitive items will be reduced to 20% that happened last year, and further reduced to 0-5% by 2018.
Highly sensitive will be capped at 50% by 2015 and not on the table for further reduction currently.


That 250 Kawasaki has an import duty rate of 45% and VAT rate of 17%, Consumption Tax rate is 3%.
Its retail price in China would be conservatively over 10k USD.
http://www.dutycalculator.com/


It is pretty safe to say that the CFTA with ASEAN is in place and that over 80% of traded goods are tariff free, however motorcycles are not on that list and are not even being considered to be on the list until after 2015.

It is entirely possible that the people that own that shop really believe that there is a CFTA with ASEAN that will allow them to import bikes from Thailand at wholesale prices in Thailand. They would be waiting for an event not scheduled to occur, they would be misinformed and are actually advertising that they are.


If they get your deposit you would be waiting with them….


If they can get one new, it would cost allot more and if not it would have to have been smuggled in. Suzuki formally/legitimately imports only two models, they import those through Jinan Qingqi Suzuki.
http://www.qssuzuki.com.cn/


The GSX1300R and the M109R are legitimate and dealers selling them are buying them through formal channels established in China. The duty on those are actually less then the 250 would be, however they would have a higher consumption tax rate.
Import of Motorcycles over 970cc from Japan to China have an import duty rate of 30% and VAT rate of 17% and a Consumption Tax rate of 10%

great feedback guys!:thumbsup:
I guess we just need to wait and see.
FYI the site went down after i post it here, i wonder why.....:confused1:

it's back and running!:clap:

The existing shop in pubei road with some c50 ready for inspection.
The last image is their up and coming branch located at North Zhai Road, Changning District.

According to the store owner the new branch will be the showroom of their imported bikes and the old one will cater the domestic models.

still look dodgy?:mwink:
(see image)

http://fta.mofcom.gov.cn/topic/chinaasean.shtml

they have files that can be downloaded,
one is tariff reduction list to Thailand, see if motorcycles are on that list.

If these guys are planning and building a showroom based on the assumption the rates will be coming down they may want to verify the source of that information. They may be the first in line for an event not scheduled to ever happen.
But it does not matter they can be a special importer for Kawasaki current advertised prices seem impossible though.

and don't forget to factor in the special 元30K administrative fee payable / bike if attempting to import a vehicle. Refer to my import duties taxes thread...

I'd assume that the ASEAN agreement does away with this 'fee'...

Thread update:

Significant price drop on the Hayabusa GSX1300R, reduced from 239800 to 199800... still a ridiculous price IMHO... but there ya go, there's some movement on pricing... mainly downward...
制造者：日本铃木株式会社（SUZUKI） 建议零售价：
19.98万元 (199800 plus tax)

http://tonjoy.me/

Price update on the Kwaka ER-6F ABS (made in Thailand)
制造者：日本川崎重工业株式会社（Kawasaki） 建议零售价：7.95万元（本车接受预定） (79500 plus tax)

and Kwaka ER-6N ABS (made in Thailand)
制造者：日本川崎重工业株式会社（Kawasaki） 建议零售价：7.6万元（本车接受预定） (76000 plus tax)
Seems the price of the ER-6N has gone up since I last looked.

Compare those prices to the Suzuki V-Strom DL650 ABS
制造者：日本铃木株式会社（SUZUKI） 建议零售价：13.98万元 (139800 plus tax) Not made in Thailand though so not part of the discussed secretive ASEAN import agreement...

Hopefully we'll start to see a few other models manufactured in ASEAN so we might benefit before too long...

CB500? CB500? CB500?

Made in Thailand 60,000 is surely possible on this bike.

Its probably true but the bike has to be manufactured there.. So you can't get a tax free beemer or ........

Quote:

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Originally Posted by crismoe'

I stumbled upon this website dzmotor.com, a reputable bike dealer in shanghai "so i heared"claiming they can get u a bike which is imported from thainland with 0 import tax.

The owner mentioned in the shop forum that due to ASEAN free trade agreement, no rediculous import tax is required, meaning its 100% legit for registration.

Any thoughts?

---

http://tariffdata.wto.org/ReportersAndProducts.aspx

Reporter	Year	MFN Tariff Original Nomenclature			MFN Applied Tariff
HS-code level	HS version	HS code	Number of subheadings	Number of TL	Number of AV duties	Average of AV Duties	Minimum AV Duty	Maximum AV Duty	Duty Free TL (%)	Number of Non-AV Duty	List of Non-AV Duties (for HS 6-digit codes only)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)	(13)	(14)
China	2010	6	HS07	871130	1	2	2	45.0	45	45	0.0	0
China	2010	6	HS07	871140	1	1	1	40.0	40	40	0.0	0
China	2010	6	HS07	871150	1	1	1	30.0	30	30	0.0	0
China	2009	6	HS07	871130	1	2	2	45.0	45	45	0.0	0
China	2009	6	HS07	871140	1	1	1	40.0	40	40	0.0	0
China	2009	6	HS07	871150	1	1	1	30.0	30	30	0.0	0
China	2008	6	HS07	871130	1	2	2	45.0	45	45	0.0	0
China	2008	6	HS07	871140	1	1	1	40.0	40	40	0.0	0
China	2008	6	HS07	871150	1	1	1	30.0	30	30	0.0	0
Thailand	2011	6	HS07	871130	1	4	4	60.0	60	60	0.0	0
Thailand	2011	6	HS07	871140	1	3	3	60.0	60	60	0.0	0
Thailand	2011	6	HS07	871150	1	2	2	60.0	60	60	0.0	0
Thailand	2010	6	HS07	871130	1	4	4	60.0	60	60	0.0	0
Thailand	2010	6	HS07	871140	1	3	3	60.0	60	60	0.0	0
Thailand	2010	6	HS07	871150	1	2	2	60.0	60	60	0.0	0
Thailand	2009	6	HS07	871130	1	4	4	60.0	60	60	0.0	0
Thailand	2009	6	HS07	871140	1	3	3	60.0	60	60	0.0	0
Thailand	2009	6	HS07	871150	1	2	2	60.0	60	60	0.0	0

There is no Asean free trade zone for finished goods, it starts at 20% and goes up to 30%


Goods are valued at wholesale costs, that is the cost that would represent them being liquated on the spot of import and with no loss of capital.


That is not always adhered to and products can be valued at what like goods have been historically valued at entering the market.


The valuation can be set and likely are for what is sometimes referred to as licensed for import. If not licensed then it get stopped and subjectively valued.

http://www.asean.org/communities/ase...afta-an-update

I would assume that Kawaski is getting licences so to speak to import. In that the value is set on what they pay a wholesale cost at import. Being out of a low cost production center as Thailand makes them taxed less then if out of a high cost center like Japan. Since we cannot see the cost at wholesale you can only assume the variance is profit at retail.

We kind of know what costs of production are in china, that can be applied to Thailand as similar.
But the production and goods are different, Thailand has Japanese’s companies that operate there and they likely pay more per unit since they integrate them into their international systems. Basically they assign unit costs for all costs incurred in research development etc, support and warranty costs? Where that begins and ends is debatable. If only production costs are assigned then the after production costs are assigned to distribution.


These discounts reflect tariffs on wholesale costs of importing, they also reflect high margins on sales. However unit sales will not be that high and likely dispersed across the market? Where they can be sold and ridden is complex in China.


They intend to be eventually duty free in Asean, but China is not in Asean. I only can rely on the WTO for rates and the table has not changed since 2011, I assume neither has the rates.

Quote:

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Originally Posted by bikerdoc

I'd assume that the ASEAN agreement does away with this 'fee'...

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Well if thats the case its good news for us enthusiast for having kawasaki part of our "bike list" in the near future or should i say now.... Finally the eagle has landed!:riding: If id hold off until now i would probably posting pics of er6n by now and sharing it with you guys.... :taz:

But atleast its here now with reasonable price, i wont be surprise if joymotor starts to import selected Honda's cb and cbr series in mainland. Another great thing to look forward to.:icon10:

If the rates are above 30% they are classified as sensitive and or protected, why would they drop from that to zero? Free trade zones are misnomers, they are and have tariff tiers all of them, NAFTA, Mercosur and ASEAN all have different rates on different goods. Some are duty free and some are highly taxed.


Based on the rates for importing a 600cc with a value of 4000 USD (wholesale) the landed cost in china would be 8,000 USD the variance is 4,984, represents the profit at distribution. That covers all costs it then transfers to retail they share that and it also supports all incurred overhead and warranty claims. That is shared with the retail outlet.


The unknown is the wholesale cost, I can estimate the cost out of the factory at or around 4000 USD. The prices would be fluctuating based on cost to distribute and support, not on tariffs they are likely locked in (set as licensed) and in that easier to manage importation.


The 600cc motorbike has an import duty rate of 40% and VAT rate of 17%, Consumption Tax rate is 10%. According to Chinese laws and Regulation for Compulsory Product Certification, importation of this item may be subjected to CCC (China Compulsory Certification) certificate.



That all fluctuates on what ever the real unknown is and that is the wholesale cost.

The Chinese factories are not making high unit margins, many operate with very small profit margins it’s the nature of the industry, mass production and flood the markets. Low margins on high numbers, the profit is after all costs are incurred. So everyone is paid and all costs covered, then the small margins are used or go to some top dogs.


Units are averaging at around 600.00 each, that is the average so higher line models like the GW250 wholesale for what? Considering the low margins in the hyper competitive segment and retail prices on units like the YG250 retailing $ 2800, they are likely costing around what to make? A decent 250 probably cost 2500 each, the YG likely much less as it is primarily off the shelve parts.


Then you have the 600 CFMOTO and what would its production costs be? Bet that they are close to that of an original Kawasaki in Thailand. Now consider that Kawasaki sold the designs to CFMOTO then on one side costs go up and the others goes down?

1
49,554.25 CNY = 8,098.16 USD


Edit

Importing from:	Thailand
Importing to:	China View country guide

2
The type of product, its value and where it was manufactured


Edit

Product description:	Motorcycle
Product category:	Engine Capacity: 501 - 800 cc (Upgrade account to get HS code)
Product value:	US$4000.00
Country of manufacture:	Thailand

3
The cost of shipping and insurance of importing


Edit

Shipping costs:	US$300.00
Insurance costs:	US$150.00

Calculation results


Edit

Total customs value (CIF):	CH¥27227.61	This is the amount that customs values your import at
- Duty:	CH¥10891.04
- Consumption tax:	CH¥4235.41
- VAT:	CH¥7200.19
Total import duty & taxes due:	CH¥22326.64	This is the amount that needs to be paid to customs
Total landed cost:	CH¥49554.25	This is the total cost of importing, including product, shipping, insurance and import duty & taxes
		at USD/CNY exchange rate of 6.1186

Calculation notes


Notes on duty & taxes rates

• Motorcycle has an import duty rate of 40% and VAT rate of 17%, Consumption Tax rate is 10%. According to Chinese laws and Regulation for Compulsory Product Certification, importation of this item may be subjected to CCC (China Compulsory Certification) certificate

Notes on import taxes due

• Please note that your shipping provider may add an additional handling fee

Retail prices

79,500.00 CNY = 12,991.89 USD
less estimated cost at import
49,554.25 CNY = 8,098.16 USD
Profit at distribution
29,945.75 CYN = 4,829.84 USD

From Thailand to the USA....assuming the same cost of $4000.00

Edit

Importing from:	Thailand
Importing to:	United States View country guide

2
The type of product, its value and where it was manufactured


Edit

Product description:	Motorcycle
Product category:	Engine Capacity: 501 - 800 cc (Upgrade account to get HS code)
Product value:	US$4000.00
Country of manufacture:	Thailand

3
The cost of shipping and insurance of importing


Edit

Shipping costs:	US$300.00
Insurance costs:	US$150.00

Calculation results


Edit

Total customs value (FOB):	US$4000.00	This is the amount that customs values your import at
- Duty:	US$0.00
- Merchandize Processing Fee:	US$25.00
- Internal Revenue Tax:	US$0.00
Total import duty & taxes due:	US$25.00	This is the amount that needs to be paid to customs
Total landed cost:	US$4475.00	This is the total cost of importing, including product, shipping, insurance and import duty & taxes

Calculation notes


Notes on duty & taxes rates

• Motorcycle is duty free

Notes on import taxes due

• In rare cases, state sales tax may be collected in addition to import duty & taxes
• Please note that your shipping provider may add an additional handling fee

Retail price of $8,000.00
less $4,475.00 landed costs.
profit at distribution is $3,525.00

I thought the PRC import duty rate for tariff code 8711.5000 (large motorcycles) is now 30%, not 40%. You also did not list the PRC motor vehicle purchase tax which is 10%. Isn't that also imposed on imports?

I note that the ol' DZMoto website no longer exists and instead forwards to TonJoy (SH)

Any new SH dealers (legitimate) in the works?
Down in Ningbo, there's a new dealership (understood to be a partnership or similar combination) opening a '4S' moto specific shop early in June. Shop will combine QianJiang-Benelli with KTMR2R-CFMoto AFAIK.