Video Tutorials・Import Duties and Taxes・2026-06-28
“How much tax will I have to pay when this shipment enters Taiwan?” is the question freight-forwarding customer service teams hear most often. The method explained by HowBridge’s founder in just two and a half minutes follows the same sequence Taiwan Customs uses to assess taxes: customs duty first, commodity tax second, and business tax last—with a different tax base at each stage. This guide brings together the formulas, tax-rate tables, worked examples, and duty-free threshold so you can estimate your import costs with reasonable accuracy.
30-second summary: Taiwan’s import taxes are calculated in three cumulative layers—①customs duty = customs value (CIF: cost of goods + freight + insurance) × duty rate (the rate is determined by the tariff classification under the CCC Code and ranges from 0%～30%); ②commodity tax = (customs value + customs duty) × commodity tax rate (only certain goods are subject to this tax, such as air conditioners at 20% and refrigerators at 13%); ③business tax = (customs value + customs duty + commodity tax) × 5%. A separate Trade Promotion Service Fee = customs value × 0.04% also applies (waived if less than NT$100). Express imports with a customs value ≤ NT$2,000 are exempt from tax (limited to 6 times per six months; tobacco, alcohol, and controlled goods are excluded). Calculator: HowBridge shipping and tax calculator.
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How are customs duties (import duties) calculated when importing from Mainland China to Taiwan? How is commodity tax calculated? How is business tax calculated? How can you declare goods legally and save on taxes? #TaiwanDirectShipping #HowBridge
This video is worth watching because it presents the three taxes as a single calculation process: the customs value is the starting point, followed by customs duty, commodity tax, and business tax, each added in sequence. Many incorrect tax estimates are caused not by using the wrong rate, but by using the wrong tax base—business tax is not simply 5% of the purchase price; it is 5% of the “purchase price + customs duty + commodity tax.”
The video’s final point about “legal tax savings through proper declaration” is equally important. All three taxes are required by law. Legitimate savings never come from underreporting; they come from using the correct tariff classification (which may already carry a lower rate), the appropriate importer status (allowing business tax credits), and applicable preferential treatment (such as ECFA).
Taiwan Customs assesses taxes in the following fixed sequence (under the Customs Act, Commodity Tax Act, and Article 20 of the Value-added and Non-value-added Business Tax Act):
NT$2,000 Duty-Free Threshold (Express Shipments and Postal Parcels)：Imported express shipments and postal parcels with a customs value of NT$2,000 or less are exempt from customs duty and business tax (under the public notice authorized by Article 49, Paragraph 2 of the Customs Act). However, the exemption is limited to 6 times per six months for the same recipient, and does not apply to tobacco, alcohol, or agricultural products subject to tariff quotas. Once the threshold is exceeded, tax applies to the full amount—not just the portion above the threshold.
Commodity tax is a layer that many importers overlook when estimating taxes. Common taxable goods and their current rates are shown below (based on the Commodity Tax Act; actual assessments are subject to determination by Taiwan Customs):
| Product | Commodity Tax Rate | Notes |
|---|---|---|
| Heating and cooling air conditioners | 20% | 15% for central-system units; this is the tax most commonly overlooked when estimating the cost of importing air conditioners |
| Refrigerators, color televisions, and video recorders | 13% | Electrical appliances |
| Dehumidifiers and electric ovens | 15% | Dehumidifiers used in factories are exempt |
| Audio systems, record players, and audio recorders | 10% | Electrical appliances |
| Beverages | 8%～15% | 8% for diluted natural fruit and vegetable juices; 15% for other beverages |
| Rubber tires | 10%～15% | 10% for buses and trucks; 15% for other vehicles |
| Flat glass | 10% | |
| Passenger cars | 25%～30% | 25% for engines of 2000cc or less; 30% for engines exceeding 2000cc |
Good News: Most Consolidated-Shipping Goods Are Not Subject to Commodity Tax：Apparel, shoes, bags, toys, household goods, smartphones, tablets, computers, and most 3C accessories are not listed as commodity-taxable goods, so you only need to calculate customs duty and business tax. If you are unsure, enter a product description in the HowBridge calculator; its AI will automatically assign a tariff classification and include any applicable commodity tax in the estimate.
These two examples illustrate the difference commodity tax can make (the rates shown are commonly applicable examples; actual rates depend on the final tariff classification):
| Item | Air conditioner (customs value NT$20,000) | Jacket (customs value NT$3,000) |
|---|---|---|
| Customs duty | Assumed rate 5%＝1,000 | Rate 12%＝360 |
| Commodity tax | (20,000＋1,000)×20%＝4,200 | Not applicable |
| Business tax 5% | (20,000＋1,000＋4,200)×5%＝1,260 | (3,000＋360)×5%＝168 |
| Trade Promotion Service Fee 0.04% | 8 | Waived because it is less than NT$100 |
| Total duties and taxes | Approximately NT$6,468 | Approximately NT$528 |
Why Are the Taxes on an Air Conditioner So High?：The 20% commodity tax is applied to the “purchase price + customs duty,” and business tax is then applied on top of the commodity tax—each layer compounds the next. Always include commodity tax in your cost estimate before importing large appliances; otherwise, you may discover upon arrival that the taxes cost more than the freight.
The answer to the video title’s question, “How can you declare goods legally and save on taxes?” is not to underreport the value. Instead:
① Use the Correct Tariff Classification：Similar products made from different materials or with different specifications may have duty rates that vary by several percentage points (for example, footwear rates range from 5%～7.5% depending on the upper material). Correct classification means applying the lower rate that legally applies to the product.
② Use the Appropriate Importer Status：Goods purchased for business use should be declared under a company or registered business. The 5% business tax collected by Taiwan Customs may be claimed as an input tax credit after obtaining the creditable copy of the tax payment certificate (see: How to Declare Company Imports and Claim Input Tax Credits).
③ Use Applicable Preferential Treatment：Goods included on the ECFA Early Harvest List may qualify for preferential duty rates, often 0%, when accompanied by a certificate of origin. Most information technology products already carry a 0% customs duty rate.
✗ Avoid This Trap: Underreporting or Splitting Shipments：Taiwan Customs maintains a pricing database and may reassess the customs value of underreported goods. Under Article 37 of the Customs Anti-smuggling Act, false declarations may result in a fine of up to 5 times the amount of tax evaded, and the goods may also be confiscated. Risking an entire shipment to save a few hundred dollars in taxes is never worthwhile.
Customs value is based on the CIF concept: the price of the goods + international freight + insurance. In practice, the customs value of express or consolidated-shipping imports is determined by Taiwan Customs under the Customs Act. Simply provide the transaction value and freight information truthfully when declaring the goods, and Taiwan Customs will calculate the amount in accordance with applicable regulations.
The threshold is based on the “customs value,” meaning the CIF value including freight and insurance. Therefore, goods priced at NT$1,900 with NT$200 in freight may exceed NT$2,000 and become taxable in full—the tax applies to the full amount, not just the excess 100.
The limit applies to the same taxpayer (recipient). Each person may use the exemption no more than 6 times during each six-month period (1/1～6/30 and 7/1～12/31). Once the limit is exceeded, subsequent shipments are taxable even if each shipment is valued below NT$2,000. Frequent importers should consider filing formal declarations through a company or registered business.
No. Commodity tax applies only to goods listed in the Commodity Tax Act, including electrical appliances, vehicles, beverages, tires, flat glass, oil and gas products, and cement. Apparel, footwear, bags, general 3C products, and household goods are not subject to commodity tax, so only customs duty and business tax need to be calculated.
Yes. Enter the product description and value in HowBridge’s shipping and tax calculator, and its AI will automatically assign a tariff classification and calculate customs duty, commodity tax, and business tax. You can also enter the rates manually in the import duty and tax calculator for a detailed calculation. Both tools are free and require no login.
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This article is based on publicly available laws and regulations, including the Customs Act, Commodity Tax Act, Value-added and Non-value-added Business Tax Act, and Foreign Trade Act. The rates shown reflect common current circumstances and are provided for general reference only. Actual tariff classifications, customs values, duties, and taxes are subject to determination by the Customs Administration, Ministry of Finance. You may also consult a licensed customs broker.
Prefer Not to Calculate It Yourself? Leave It to Our Tools and Professionals The HowBridge calculator automatically assigns the tariff classification and calculates freight, customs duty, commodity tax, and business tax in one step. Formal customs declarations are reviewed by a team with professional customs-brokerage experience, ensuring you claim every legal saving while paying all required taxes clearly and correctly. Register for Free・Get Your Consolidation Warehouse Address