Research On Royalties Of Customs Duty Collection And Management Mechanism

Under the background of increasingly accelerating globalization process of knowledge economy, the inter-state transactions on technologies, patents, copyrights, rights to use the trademark, and other intangible assets are becoming increasingly common, as an important part of international trade. Such intangible assets, by means of royalty, are traded between seller and buyer via transfer and grant to use of assets ownership. The profound impact that the development of knowledge economy imposes on the international tax collecting and management based on traditional economic theory is also reflected on the customs duty collection and management. China’s customs duty collection and management system, which is based on physical goods as management object, has a tremendous risk in loss of royalty tax. Therefore, the study on royalty taxation collecting and management measures and directions for customs has become a task of top priority.Currently, the study on royalty mainly focuses on the fields of intangibles assets including e-commerce in China, mostly targeted to pertinent tax issues confronted with tax authorities, rarely regarding to the scope of royalty duty in relation to cargoes imported and exported. The main problems with royalty duty collection and management in China lie in legislative limitations versus internal complexity of royalty, simplified customs duty collecting and management measures versus diversified trade skills, conflicts on royalty taxation between customs and tax authorities, etc., which causes problems to the customs in royalty duty collection.Through an analysis on the historical background and reason of formation of customs duty on royalties, in combination with pertinent measures adopted by customs in major countries in the world, taking for example Suzhou Industrial Park Customs, this article deeply expounds and analyzes the difficulties and risks faced by our customs in the royalty duty collection, and puts forward the idea of establishing a royalty duty collection coordination mechanism, which has the vital practical significance to perfecting the systematic theoretical research and practice of royalty in China’s customs duty collection and management as well as filling up pertinent blanks.