Taiwan Tax Payment for Customs Clearance of Imported Used Cars
I. Since January 1 2002, new or used cars which are manufactured by the WTO members and imported under the tariff quota system of this country, have been subject to the following quota allocation and duty rates:
(1) Quotas for cars manufactured by the USA, Canada and the European Union shall be allocated by the Customs in accordance with the sequence of importation. Import cars within quota shall be declared under Chapter 98 of the Tariff with import duty rate of 24.6%, whereas those without quota shall be declared under Chapter 87 of the Tariff with import duty rate of 60%.
(2) Quotas for cars manufactured by other regions will be allocated by the Board of Foreign Trade of the Ministry of Economic Affairs (hereinafter referred to as BOFT). Import cars within quota shall be declared under Chapter 98 of the Tariff with import duty rate of 24.6%, whereas those without quota shall be declared under Chapter 87 of the Tariff with import duty rate of 60%.
II. Firms or organizations not registered with the BOFT, or natural persons who import cars, new or used, with the value over FOB USD20,000, shall apply for an Import Permit from the BOFT No. 1 Hukou Street, Tel: 886-2-23510271 Website: http://www.trade.gov.tw in advance.
III. There is no difference between the new and the used cars with regard to the method of computing import duties and other levies. Their respective amounts (including import duty, commodity tax, business tax, trade promotion service fee) are computed as follows:
Customs value = FOB value + F (freight) + I (insurance)
(1)Import Duty = Customs value x 24.6% (for cars with quota)
Import Duty = Customs value x 60% (for cars without quota)
(2)Commodity Tax = (Customs value + Import Duty)
Commodity Tax Rate
25% (for cars of 2000 c.c. and below)
35% (for cars of 2001 c.c. and above)
(3)Business Tax = (Customs value + Import Duty + Commodity Tax) x 5%
(4)Trade Promotion Service Fee = Customs value x 0.0415%
IV. For new cars being imported by inward passengers, no depreciation shall be allowed in determining Customs value. Used cars shall be depreciated on the basis of the FOB prices of the new cars of same or similar type and same model year. The depreciation rate for used cars of the same model year is 10¢M. For the subsequent five years, the depreciation rate is 20¢Mfor the first year, 35¢Mfor the second year, 50¢Mfor the third year, 60¢Mfor the fourth year, and 65¢Mfor the fifth year. From the sixth year, the depreciation rate will be determined rationally in accordance with the relevant data collected and investigated.
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