Smuggling 275 Million Patek Philippe Watches Will Pay 1.65 Million Taxes

Today, the Chinese General Administration of Customs officially released a message. On July 2, Huanggang Customs, a subsidiary of Shenzhen Customs, seized an entry case with a Patek Philippe watch by a passenger at the entry site of Futian Port, with a case value of RMB 2.75 million. This watch is a Ref. 5078G from Patek Philippe’s super-complex timepiece series, with a minute repeater function. In the afternoon of the same day, a passenger entered through Futian Port. When the customs officer checked the X-ray machine inspection image, he found that there was an empty watch box in his suitcase, and he was then subjected to customs inspection. Upon inspection, the empty watch box was a Patek Philippe watch box. At the same time, customs officers found that the watch worn by the passenger was a Patek Philippe watch. After questioning, the man acknowledged that the watch he was wearing was the watch corresponding to the watch box in the luggage, which was worth 2.75 million yuan. He tried to escape customs inspection and tax evasion by carrying the watch and the box separately. At present, the case has been referred to the customs anti-smuggling department for processing. On April 7, 2016, the Ministry of Finance and other 11 departments officially announced the ‘List of Cross-border E-commerce Retail Import Products’ on the 7th. From April 8, 2016, China will officially implement the cross-border e-commerce retail import tax policy and adjust the post tax policy simultaneously. Prior to the implementation of the new policy, the postal tax was set at four rates, namely 10%, 20%, 30%, and 50%. The original general Haitao quartz watches (electronic watches), mechanical watches, other watches are at a tax rate of 20%; high-end watches (approved price of 10,000 yuan and above) tax rate is 30%. Since April 7, 2016, Haitao quartz watches (electronic watches), mechanical watches (less than 10,000), the tax rate for other watches rose to 30%. The tax rate for high-end watches (certified prices are 10,000 yuan and above) reaches 60%. In other words, if a watchmate bought a watch with a price of 100,000 yuan overseas, he would have to pay 60,000 postal tax when he returned home. When levied by the customs, the price is determined to be the retail price of the main market in the most recent time for the same item and the same source, not the price you get after discussing the discount with the sales. Unless the actual purchase price is an item that is twice or more than the duty-paid price listed in the ‘Tax-paid price list’ or one-half or less of the tax-paid price listed in the ‘Tax-paid price list’, the owner of the entry goods shall provide sales to the customs The party shall issue a shopping invoice or receipt for a real transaction in accordance with the law, and shall bear relevant responsibilities. Three years ago, we published an article to remind everyone. As a result, a cousin ventured through the customs shortly, and 275,500 Vacheron Constantin was seized by the customs. Finally, he paid a tax of 165,500. The seizure of Patek Philippe worth 2.75 million yuan by Shenzhen Customs this time means that the victim has to pay a postal tax of 1.65 million yuan and will face administrative penalty or criminal liability. —END —