mn GB

Customs Duties and Taxes

CUSTOMS DUTIES

The term “Customs duty” means an amount of tax levied on, collected from or paid for goods entering or leaving the Customs territory, based on the Customs tariff (MFN Tariff Rate 2017) . The tariff rate for non WTO member countries shall be twice more than the MFN tariff rate. The Customs duties shall be of the following types:

-          Ad valorem;

-          Specific;

-          Combination of the two above;

-          Any of the first two above which entails higher amount of duty.

The most of imported goods are subject to 5% ad valorem Customs duty while some others are subject to seasonal duties. Certain goods for export are subject to specific Customs duties. Any person (physical or legal) engaged in foreign trade is liable to paying Customs duties as well as some other taxes and fees upon importation or exportation of goods.

VALUE ADDED TAX

According the Value Added Tax (VAT) Law, the VAT is levied and collected by or paid to the Customs offices. The VAT rate on imported goods is 10 percent of the tax base value since 1 January 2007. The VAT base value is a value determined in accordance with the Law on the Customs Tariffs and Customs Duties (the Customs Value) plus additions of Customs duty, excise duty and other tax amounts. For goods sold for export from Mongolia and declared to the Customs, the zero amount should be added. The amounts payable thus vary depending on the Customs value and quantity of goods, kinds or types of duties and taxes as well as tariffs (the duty and tax rates).

The following is a formula used for calculation of the VAT:

VAT= (CV+CD+ED+OT) x R3


VAT-Value Added Tax Amount Payable; 
CV - Customs Value; 
CD - Customs Duty; 
ED - Excise Duty; 
OT - other taxes; 
R3 - VAT Rate.

Excise Duty /Effective since 1 January 2012/

The Ranges of Goods Subject to the Excise Duty

The Tax Base Units of Measure

The Base Units of Measure

Excise Duty Amount

/in MNT/

1.

All kinds of vodka, cordial, liquor, and other alcoholic beverages

Up to 25 degrees of alcoholic strength

1 liter

2900

Between 25 and 40 degrees of alcoholic strength

5800

More than 40 degrees of alcoholic strength

13050

2

All kinds of cognac, whiskey, rum, and gin

Up to 25 degrees of alcoholic strength

1 litre

7250

Between 25 and 40 degrees of alcoholic strength

14500

More than 40 degrees of alcoholic strength

17400

3

All kinds of wine

Up to 35 degrees of alcoholic strength

1 litre

725

More than 35 degrees of alcoholic strength

6525

4.

All kinds of beer

1 litre

290

5.

Cigarettes and Similar Items

100 pieces

3480

6.

Pipe and Bulk Tobaccos and Similar Items (such as Rolling Tobacco, etc.)

1 kg

2610

 

The Excise Duties Imposed on Imported Cars:

Vehicle Engine (Cylinder) Capacity

/in cubic centimeters/

Excise Duty Amount /in MNT/

Years since the manufactured date

0-3 years

4-6 years

7-9 years

10 years and over

1.

1500 or under

750 000

1 600 000

3 350 000

10 000 000

2.

1501-2500

2 300 000

3 200 000

5 000 000

11 700 000

3.

2501-3500

3 050 000

4 000 000

6 700 000

13 350 000

4.

3501-4500

6 850 750

8 000 000

10 850 000

17 500 000

5.

4501 and over

14 210 000

27 200 000

39 150 000

65 975 000

* Effective since 1 July 2017, the excise duty amount for hybrid cars, vehicles running on LPG and electric cars will be equivalent to 50% of the excise duty amount specified on Article 6.3 of the Law on Excise Duty.

 

Excise Duty Rate on Petroleum and Fuel

Names of Border Ports

Amount of Excise Duty /in MNT/

Petroleum

/octanes determined through test/

Diesel Fuel

Up to 90

90 or more

Tsagaannuur, Yarant, Borshoo, Artssuuri, Tes, Burgastai, Gashuunsukhait, Shiveekhuren, Bayankhoshuu, Bichigt, Khavirga

0

0

0

Khankh, Ulikhan Maikhan

0

0

0

Sukhbaatar, Zamiin-Uud, Altanbulag

0

210 000

280 000

Ereentsav

0

80 000

150 000

 

Tax on Petroleum and Fuel

Petroleum and Fuel to levy tax

Unit of Measurement

Tax Amount /in MNT/

Petroleum of up to 90 octanes

ton

20 350

Petroleum of more than 90 octanes

ton

25 700

Winter and summer diesel fuel

ton

2 140

 

Goods Requiring Export Duty

HS Code

Description of Goods

Unit of Measurement

Amount of Duty /in MNT/

44.01

Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, brisquettes, pellets or similar forms.

m3

150 000

44.03

Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared.

m3

150 000

44.07

Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm.

m3

150 000

44.06

Railway or tramway sleepers (cross-ties) of wood.

m3

150 000

44.09

Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed.

m3

150 000

 

Specific Export Tax

HS Code

Description of goods

Unit of Measurement

Amount of Duty /in MNT/

4103.9

Skins of goats

piece

1 500

Skins of goats' kids

piece

1 500

4301.1

Raw furskins of Mongolian goats or kids

piece

1 500