"Right now the price of DyO is US$165/Kg exc VAT..."...

"Right now the price of DyO is US$165/Kg exc VAT..."

"Value-added Tax for imported goods

All goods imported into China are subject to the nation’s value-added tax (VAT) of either 13 percent or 17 percent. The 13 percent tax is available for certain goods that fall mainly within the categories of agricultural and utility items, while the 17 percent tax applies to other goods subject to the VAT tax.

The input VAT (Sales x VAT rate), which is the VAT amount paid when purchasing products or taxable services, can often be used for deduction against output VAT, which is the VAT amount charged to the buyer by the seller of a good or taxable service."

Now, you don't need to be Einstein, just a normal person with a minimum of education, to understand that if you are going to use the VAT paid on imports as a deduction against output VAT than you, the importer, are effectively not paying any tax on imports as the onus is passed to the end user.

Besides that, certain imports are either exempted or subject to a 0 VAT tax rate.

For this reason the quoting by you of US$165/Kg exc VAT..., which implies that the exporter has to pay VAT tax, is a crass mistake based upon ignorance about how the VAT system is suppose to work.