How to calculate import equipment taxes? Foreign trade agents explain three key points

Professional Perspective Analysisequipment. For example, Indonesia has the SNI certification, Thailand has the TISI certification, and the Philippines has the BPS certification. It is necessary to confirm in advance the equipment voltage (such as 380V/50Hz in Thailand), the compatibility of the CE certification, and the proof of environmentally friendly materials.Composition of Taxes and Fees

Under the latest 2025 trade policy framework, equipment import tax calculation presents three core elements:Tax applicability determination,Dutiable value verificationandSpecial clause application.foreign tradeThe tax planning capability in agency services directly affects the extent of cost reduction for enterprise equipment imports.

In-depth Analysis of Three Major Equipment Import Taxes

• Tariff:
  • MFN rate: 8%-15% (2025 provisional tax rate catalog for electromechanical equipment)
  • FTA rate: 0%-5% (requires verificationIt is recommended to verify through the following methods:Form A)
• Value - added Tax:
  • Standard VAT rate 13%
  • Simplified taxation equipment catalog applies 3%
• Consumption Tax:
  • Specific industrial equipment (e.g., high-energy-consumption equipment) 3%-10%
  • Consumption tax reduction policy for environmental protection equipment

2025 Dutiable Value Calculation Method

Equipment import tax calculation followsfour progressive steps:

• Step 1: Confirm CIF value (including freight and insurance)
• Step 2: Apply tariff rate calculation
• Step 3: VAT tax base = dutiable value + tariff
• Step 4: Consumption tax overlay calculation (if applicable)

Typical Industry Equipment Tax Case

A company imports $5 million worth of medical equipment:

• Tariff: Applies medical equipment provisional rate 3% → $150,000
• VAT: (500+15)×13% = $669,500
• Total tax: 150+669.5=$819,500 (16.39% of goods value)

Through FTA origin certification, tariff can be reduced to 0%, saving $150,000.

Guide to Avoiding Common Declaration Misunderstandings

• Myth 1: Ignoring annual updates to provisional tax rate catalog (21 new equipment items added in 2025)
• Myth 2: Overseas freight not included in dutiable value
• Misconception 3: Not utilizing cross-border repair equipment tax exemption clause

Value embodiment of professional agency services

The core advantages of quality foreign trade agents lie in:

• Dynamic tracking of 2025 tax regulation changes (especially new semiconductor equipment rules)
• Establishing three-level HS code verification system for equipment
• Providing financial tools such as tariff guarantee insurance

In the entire equipment import process, professional agency services can achieve5%-15% comprehensive cost optimizationIt is recommended that enterprises involve foreign trade agents in contract clause design during the equipment procurement stage to control tax risks from the source.