Contract Tax Items

Contract tax items are clauses in a foreign trade contract that explicitly stipulate the responsibility for bearing various taxes and fees involved in the transaction between the buyer and seller. They typically include customs duties, value-added tax, consumption tax, anti-dumping duties, port charges, customs clearance fees, etc. Usage scenarios are mostly seen in the refinement of contracts under trade terms such as FOB, CIF, DDP, to avoid disputes arising from unclear tax liability. Precautions: The default tax division should be determined in conjunction with trade terms (e.g., Incoterms 2020), but contract tax items can be separately agreed upon; the tax types, tax rates, calculation basis, payer, and obligation to provide vouchers should be listed; attention should be paid to changes in the importing country's tax policies and special taxes such as anti-dumping and countervailing duties. Difference from other terms: Contract tax items are different from 'contract price clauses,' which focus on the amount of payment, while tax items focus on tax allocation; they are also different from 'tariff clauses,' which only address customs duties, whereas contract tax items have a broader scope. It is recommended to set up a separate tax clause in the contract and specify that 'if new taxes or fees arise due to policy adjustments, the parties shall bear them through negotiation or according to an agreed proportion.'