in theCosmeticsIn the industry, importing small accurate declaration prices are crucial, not only related to the compliance operations of the enterprise, but also directly affect the cost control and market strategy. As a popular promotion tool in the market, cosmetics small declaration process is complex and detailed, requiring enterprises to understand the relevant regulations and policies in depth to ensure that each link is accurate.

What is “small makeup”?

Small Cosmetics, also referred to as trial or non-selling products, refers to small specification packaging cosmetics for free trial to consumers, free gift at the time of sale of the original product, sold together, sold separately or for product testing and development. Usually, these small specifications are smaller, such as 10ml / bag, 5g / bag, 0.7g / bag, etc., and the outer packaging is often marked trial costume or non-selling goods.

For example, when a cosmetic company imports original cosmetics from overseas factories, it will also import the corresponding small samples for special box promotion or free gift to consumers. The import agreement clearly stipulates that these small samples cannot be used for sale, and must be marked as NOT FOR SALE at the time of customs reporting.

The usual “small makeup” pricing method

The price of small makeup is varied, and there are several common ones:

1. The seller provides free.The seller does not charge a fee and is provided to the buyer free of charge.
2. Lower than cost priceThe seller offers at prices that are lower than the normal profit or even lower than the cost.
3. Commercial Pricing PracticeBoth parties shall determine the transaction price in accordance with general commercial practices.

The final tax price of small cosmetics is determined

When declaring the import price of small cosmetics, the enterprise must ensure that the following charges have been included in the taxable price:

1. External packaging costs
2. External design expenses
3. Cost of licensing
4. Other expenses related to imports

For example, where the fee for the use of the franchise is to be paid separately, it should be filled out yes in the column payment of the fee for the use of the franchise in the customs notice in accordance with the General Office of Customs on issues relating to the tax declaration procedures for the use of the franchise (Journal No. 58 of the General Office of Customs 2019), and the amount paid in the column spending in accordance with the provisions.

Customs assessment

When the following occurs, the customs will assess the small cosmetics in the following cases:

1. Small offers for free.The seller provides free of charge, the audit has determined no transaction price.
2. Lower than cost.The seller provides less than the cost, and the existence of special relationships affects the transaction price or the price is affected by uncertainties.

V. Companies in cooperation with customs valuation materials

Companies must provide the following materials in order to comply with customs estimates:

1. Transactions related documentsContracts, invoices, letters and other certificates.
2. Internal transaction price documentsQuantitative data and proof materials such as product costs, sales costs, management costs.
3. Original and small differential dataIncludes “unity volume cost”, “packaging cost”, “packaging design cost” and ordinary profit.

Enterprises should communicate fully with customs authorities and provide objective quantitative data for customs reference.

A warm suggestion.

If an enterprise finds that the leakage report should be included in the tax price, the relevant expenses may be actively disclosed and corrected in a timely manner in accordance with the General Administration of Customs Notice on the relevant matters concerning the handling of active disclosure of violations (Journal No. 127 of the General Administration of Customs, 2023) in order to avoid subsequent penalties.

With the above information, we hope that companies will be able to accurately declare the import price of small cosmetics to ensure that the import process is compliant and smooth. We are committed to providing you with comprehensive import consultancy and services to help you effectively complete the declaration and import process. If you have any problems in the declaration process, welcome to contact the professional team of the company, we will be willing to provide you with the best support and solutions.