In international trade, the frequency of "Royalty fee" is increasing, involving a large amount, which is related to the vital interests of enterprises. What "royalties" need to take the initiative to declare and pay taxes to the Customs has become a growing concern of enterprises.

1、 What is "Royalty fee"?
The term "Royalty fee" refers to the fees paid by the buyer of imported goods for obtaining the license or transfer of patent right, trademark right, proprietary technology, copyright, distribution right or sales right from the intellectual property right holder and the effective authorizer of the right holder.

2、 Why need pay taxes for "Royalty"
According to item (5) of Article 19 of the regulations of the people's Republic of China on import and export tariffs, the expenses that should be included in the customs value of imported goods include: "the Royalties related to the goods that the buyer must pay as a condition for the sale of the goods within the territory of the people's Republic of China".

3、 Which "Royalty" need to declare and pay taxes to the customs?
Royalties are related to imported goods. The payment of royalties constitutes a condition for the sale of the goods within the territory of the people's Republic of China, and the royalties are not included in the actually paid and payable prices of the goods. Royalties that meet the above conditions need to take the initiative to declare and pay taxes to the customs.

4、More information about "Royalty fee", pls contact us with mail to crystal.qian@mtfreight.com.