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What is a Tariff?

A tariff is essentially a tax imposed on goods that are imported into a country. The purpose of tariffs is to protect domestic industries by making foreign goods more expensive, thus encouraging consumers to buy local products. Tariffs also serve as a significant source of revenue for governments. When you import products such as dental flossers or water dental flossers from China, understanding the tariff structure is crucial because it directly influences the final price.

Types of Tariffs

There are three main types of tariffs that are typically applied to imports:

1. Ad Valorem Tariff:

• This is the most common form of tariff and is calculated as a percentage of the customs value of the product. The customs value includes the cost of the product itself, plus insurance and freight (CIF).

• Example: If you import a cordless water flosser worth EUR2,000, and the tariff rate is 5%, you would pay EUR100 in tariffs.

2. Specific Tariff:

• This tariff is based on the quantity or weight of the product, not its value. For example, a specific tariff could be EUR100 per metric ton of goods.

• This type of tariff is commonly used for bulk items where the value of the product may not accurately reflect its weight or quantity.

3. Combined or Mixed Tariff:

• This tariff combines both ad valorem and specific tariffs. It’s used when a simple tariff system might lead to very low or very high tax rates. The combination ensures a more balanced approach to taxing goods.

Understanding which type of tariff applies to your imports from China will help you calculate the full cost of importing products.

The Importance of TARIC Code

Each product is assigned a TARIC code (Tariff Integrated System code), which is used to classify goods for tariff purposes. This system helps determine the correct tariff rate that should be applied based on the product's classification. For instance, oral care products like Wealadvance Oral Irrigator or water flossers will have a specific TARIC code that determines how they are taxed.

• The TARIC code will give the exact tariff percentage and any other requirements needed for the import process.

• The Chinese supplier typically provides the TARIC code for the product, helping you understand the tariffs, VAT, and potential additional fees (such as import licenses or inspection services).