china law
Lehmanlaw

How does the manufacturer calculate the price of imported drugs in China?

The pricing of imported drugs also must follow certain guidelines.

(1) Port and Wholesale Prices

  • After-tax port-balanced price = cost, insurance, and freight x (1+ customs duty rate) x (1+ value-added tax rate) x (1+administration fee [export agent fee] + miscellaneous expenses.
  • After-tax wholesale price = after-tax port-balanced price x(1+purchase and sale differential rate)

(2) Retail Price

  • Retail price = after-tax wholesale price x (1+wholesale and retail differential rate)