Jan. 5 – China introduced a number of exports and imports duty changes from January 1 2017. The changes are said to be to encourage imports of advanced equipment, key spare parts, and essential energy and raw materials. For example, duty relief is now offered on integrated circuit test equipment, aircraft hydraulic actuators, parts for high-resolution digital cinema projectors, and thermal cracking furnaces.
Among other things, tariffs on specialty food such as tuna, arctic shrimp and cranberry as well as cultural products such as original sculpture will be reduced in order to give a wider choice to domestic consumers. The import tax on yew skin and foliage required for the production of anti-cancer drugs and acarbose hydrate for diabetes drugs will also be reduced as a response to the public’s concerns about medical and health care.
And so on, import tariffs of sodium acrylate polymers and semiconductor products with the flow function which are subject to the provisional tax rates will also be adjusted in order to protect domestic industries. Export tariffs of nitrogen fertilizer, phosphorus fertilizer and natural graphite will be scrapped and that of nitrogen-phosphorus-potassium compound fertilizer and steel billet will be reduced.
Important to note that China will continue to levy conventional tariffs on selected imported goods originating from 25 countries and territories in 2017 in order to expand bilateral and multilateral economic and trade co-operation and accelerate the implementation of the free trade area initiative. Tariffs will be further reduced under free trade agreements between China and South Korea, Australia, New Zealand, Peru, Costa Rica, Switzerland, Iceland and Pakistan. The scope of commodities and tariffs will stay unchanged under free trade agreements between China and Singapore, ASEAN and Chile, as well as the Asia-Pacific Trade Agreement. Meanwhile, the range of goods subject to zero tariffs under the Closer Economic Partnership Arrangement (CEPA) with Hong Kong and Macau will be further widened. The range of goods and tariff rates under the Economic Co-operation Framework Agreement (ECFA) with Taiwan will remain unchanged.
Considerably, China reduced the most-favored-nation tariffs for selected information technology products for the first time in September 2016. The new rates will continue to apply in the first half of 2017. Tax cut is scheduled for the second time on 1 July 2017. China will continue to implement tariff reductions on APEC environmental products imports through provisional tax rates and grant zero-tariff treatment to the least developed countries in 2017. For now, China will also adjust tariff items in 2017, increasing the total number to 8,547. The new tariff nomenclature will be more in line with the actual needs of international trade development, according to the Ministry of Finance (MOF). The adjustment was approved by the State Council after scrutinized by its Customs Tariff Commission.
For details of the announcement on tariff adjustment, download attachment:
1. Partial Most-favored-nation Tariff Form for Information Technology Products
2. MFN Provisional Tariff Schedule for Imported Commodities
3. Tariff Quotas Commodity Tariff Schedule
4. Tariff Schedule for Import Commodities Agreement
5. Special Rate Schedule for Imported Commodities
6. Export Rate Table
7. 2016-2017 Correspondence Form for Transferring Taxes (1)
7. 2016-2017 Correspondence Form for Transferring Taxes (2)
8. Import and Export Tariff Schedule Adjustment Table