How Are Customs Duty and VAT Calculated for Natural Rubber Imports into China? (Including Zero Duty on Compound Rubber under HS 4002.80)

Three Classifications

TSR / RSS (HS 400121/400122, etc.): The MFN duty rate is 20% or CNY 1,500/tonne, whichever is lower. Under the China-ASEAN and RCEP frameworks, natural rubber (4001) is classified as a sensitive product and does not enjoy agreement preferences.

Concentrated Natural Latex (HS 400110): The MFN duty is 20%, with a provisional rate of 10% or CNY 900/tonne, whichever is lower, in recent years. Least Developed Countries (e.g., Laos, Myanmar, Cambodia) may enjoy zero duty, subject to Tariff Rate Quota (TRQ) limits; the application window is typically from mid- to end-October (per MOFCOM announcements).

Compound Rubber (HS 4002.80, a mixture of natural rubber and a small amount of synthetic rubber): The MFN duty is 7.5%, zero duty under ACFTA with an ASEAN Certificate of Origin, and VAT at 13%. This is the direct reason why Compound Rubber accounts for roughly half of China’s natural rubber-related imports.

VAT Changes

From July 2024, the import VAT rate for natural rubber under HS 4001 was reduced from 13% to 9%; however, Compound Rubber (4002.80) remains subject to 13%. Be mindful of the tax differential between the two classifications when quoting and calculating costs.

Compliance Red Lines

Customs Announcement (2019 No. 77) requires that Compound Rubber must be 'substantively blended': natural rubber and synthetic rubber must be uniformly mixed and not easily separable. Goods nominally declared as 'Compound Rubber' but actually being TSR will be reclassified and subject to additional duty assessment.

Import duties and taxes are subject to annual adjustments under the Customs Tariff. Before contracting, refer to the current Import and Export Tariff and announcements from the Ministry of Finance, the General Administration of Customs, and the Ministry of Commerce.