What are the types of taxes that companies face when importing goods to China and how are they different?

There are three types of taxes that companies face, which are value-added tax (VAT), consumption tax and customs duties. Consumption tax is imposed on companies that sell products whose overconsumption is harmful to health, social order and the environment, luxury goods and non-necessities, high-energy consumption products, non-renewable and non-replaceable petroleum products and motor vehicle tires. However, the tariff rate for the goods differs per product, based on the product’s HS code and import VAT is calculated based on the price of the goods. It is usually 17 percent and sometimes can be subject to a lower rate of 13 percent depending on the selection. Also, there are two types of Export VAT rebates, one for manufacturing companies and one for companies that do not engage in manufacturing. Non-manufacturing and trading companies need to follow the Exemption-Refund (ER) system which means that no VAT is withheld by the company when selling goods overseas. However, it is not always a fully refundable but rather depends on the percentage of the goods. On the other hand, manufacturing companies follow the Exemption-Credit-Refund (ECR) system.