Explanation China import-export tariffs 2024 new adjustments

Explanation China import-export tariffs 2024 new adjustmentsIn accordance with the "Import and Export Tariff Regulations of the People's Republic of China" and related regulations, the Tariff Commission of the State Council has announced the 2024 Tariff Adjustment Plan. Starting from January 1, 2024, the import and export tariffs on some commodities will be adjusted.

State Council Tariff Commission stated on December 20, 2023. See details here:

The 2024 Tariff Adjustment Plan

  1. Provisional tax rate table for imported goods 
  2. Tax Item and Tax Rate Table for Tariff Quota Commodities
  3. Export Commodity Tax Rate Table
  4. Import and Export Tariff Item Adjustment Table
  5. Implementation tax rate table for free trade agreements and preferential trade arrangements

Explanation China import-export tariffs 2024 new adjustmentsChina 2024 Tariff Adjustment Plan highlights

(1) Import tariff rates

---(1) Provisional import tax rate.

A provisional import tax rate will be implemented for 1,010 commodities, containing specified medical products, key equipment and parts, resources in short supply, and some agriculture products (excluding tariff quota commodities) (see Appendix 1).

---(2) Tariff quota rate.

Tariff quota management will continue to be implemented for eight categories of commodities including wheat, and the tax rates will remain unchanged. Among them, the quota tax rate for three types of chemical fertilizers: urea, compound fertilizer, and ammonium hydrogen phosphate will continue to implement a tentative tax rate of 1%. Continue to implement sliding tariffs on a certain amount of cotton imported outside the quota (see Appendix 2).

---(3) Agreed tax rate.

1. According to the free trade agreements and preferential trade arrangements that have been signed and entered into force between China  and relevant countries or regions, agreement tax rates will be implemented on some imported goods under 20 free trade agreements and originating in 30 countries or regions.

---(4) Preferential tax rates.

continue to grant zero-tariff treatment to the 43 least developed countries that have established diplomatic relations with China and completed the exchange of documents,  and implemented preferential tax rates. The scope and tax rate of applicable commodities will remain unchanged, and zero-tariff treatment will be halted to Vanuatu.

(2) Export tariff rates

Export tariffs will continue to be levied on 107 commodities including ferrochrome, and provisional export tariffs will be implemented on 68 of them (see Appendix 4).

(3) Tariff items

According to domestic needs, some tax items and annotations will be adjusted (see Appendix 5). After adjustment, the number of tax items in the 2024 tax code will total 8,957.

explanation-2024-china-import-export-tariffsWhy China adjusts import-export tariffs for 2024 ?

In order to implement China new development concept, accelerate Chinese market demand new pattern, and fully aligning with high-standard economic and trade rules, and promoting high-quality development of the advanced manufacturing industry in 2024, in accordance with the "Import and Export Tariff Regulations of the People's Republic of China" and related regulations.

The Tariff Commission of the State Council has announced the 2024 Tariff Adjustment Plan. Starting from January 1, 2024, the import and export tariffs on some commodities will be adjusted. Please see details. This 2024 Tariff Adjustment Plan mainly include import tariff relinquishments for core medical health goods, import tariff drop on materials resources in high demand and in shortage of domestic capacity of supply, important device and component portions, and some basic agriculture products, and also import tariff increase on certain commodities based on domestic demands, all is to assist high-quality development and to speed up construction of innovation patterns, completely bring into line with high-standard economic and trade rules, and supporting high-quality development of the advanced manufacturing industry in 2024 

What changesaffect your trade to China in 2024 ?

China to implement provisional import tariffs on 1,010 commodities, starting from January 1, 2024. It implies that China will impose provisional import tariff rates on 1,010 items, that lower than the MFN tariffs. These 1,010 commodities are in 3 categorized:

---1st group: zero tariffs - zero tariffs will be imposed on anti-cancer drugs and drugs for rare diseases, as well as on raw materials for producing these drugs;  zero tariffs also will be applied to inhaled ipratropium bromide solution, which is widely used in the clinical treatment of childhood asthma.

---2nd  group: lowered tariffs lowered tariffs will be executed on formula food for special medical purposes, it means that import tariffs will be lowered on these concerning people’s health items.  

--- 3rd group: reduced tariffsreduced tariffs will be applied to major equipment and components. Such as import duties will be reduced on apparatus and machinery parts, like gas diffusion layers for fuel cells and biogas-fueled generator sets equipped with ignition piston internal combustion engines. Equally, reduced tariffs will be applied on sweet corn, coriander, and burdock seeds, it means these agricultural products  import tariffs rate will also be reduced.

What commodities import duties increased for 2024?

The State Council has announced new adjustments to the China import-export tariffs for 2024, China to increase import duties on certain commodities, starting from January 1, 2024. China will raise import duties on some commodities to balance the Chinese market domestic demand and supply, as well as upgrade its main domestic industries, aligning with international high-standard economic and trade rules. In this regard, the adjustments within the scope of China’s accession to the World Trade Organization commitments, raise import tariffs on ethylene, propylene, and liquid crystal glass substrates below 6 generations.

About commodities import duties increased for 2024, not only China to increase import duties on certain commodities, but also China to add more tax items. The State Council has announced new adjustments to the China import-export tariffs for 2024. China to add more tax items, adding tax subitems appropriately such as decorative base paper and high-end steel products. After this adjustment, the total number of tariff items is 8,957, with which based upon the needs of China industrial development and scientific and technological progress.

How many countries enjoy China conventional tariff rates in 2024?

According to Tariff Commission of the State Council announced the 2024 Tariff Adjustment Plan. Starting from January 1, 2024, China to apply conventional tariff rates on products from 30 countries. Conventional tariff rates for 2024 will be applied to products from 30 countries in China, in order to promote the high-quality opening of markets, fully aligning with high-standard economic and trade rules, and promoting high-quality development of the advanced manufacturing industry in 2024, 

In accordance China’s 20 free trade agreements, China will apply conventional tariff rates on selected goods originating in 30 countries and regions for 2024 under China’s 20 free trade agreements (FTA), including the RCEP.

Among them, the China-Nicaragua FTZ will implement the first tax reduction in 2024. After the final tax reduction is completed in the future, more than 95 percent of the tax items of both sides will be subject to zero tariffs.