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China will adjust import tariffs on some commodities from January 1 next year

Source: Ministry of Finance website Xinhua News Agency Time: 2019-12-23

In order to implement the spirit of the 19th CPC National Congress and the 2nd, 3rd, 4th Plenary Sessions of the 19th CPC Central Committee and the Central Economic Work Conference, and to promote the development of high-quality trade, the State Council ’s Tariff Commission has issued a notice recently, with approval from the State Council. Starting from the 1st, import tariffs on some commodities will be adjusted.

In order to actively expand imports, stimulate import potential and optimize the import structure, starting from January 1, 2020, China will implement tentative import tax rates for more than 850 commodities below the MFN tariff rate. Among them, in order to better meet the needs of people's lives, a moderate increase in imports of domestic consumer goods that are relatively scarce or have foreign characteristics, and new or reduced provisional tax rates on imports of frozen pork, frozen avocados, and non-frozen orange juice; to reduce the cost of medication Promote the production of new drugs, implement zero tariffs on alkaloids used to treat asthma, and raw materials for the production of new types of diabetes drugs; in order to expand the import of advanced technologies, equipment and parts, support the development of high-tech industries, add or reduce semiconductor testing Sorting tape machine, high-pressure turbine gap control valve, torque converter and aluminum valve core for automatic transmission, ferroniobium, multi-element integrated circuit memory, raw materials for large-scale film, dispersion for photoresist, culture medium and other products Tentative import tax rate; to encourage domestic demand for resource-based product imports, new or reduced import tax rates for some timber and paper products have been added or reduced.

In order to promote the coordinated development of trade and the environment, in accordance with the State Council ’s comprehensive prohibition on the import of solid wastes that are harmful to the environment and the masses strongly reflect the solidarity, it is in line with the adjustment of the import waste management catalogue. From January 1, 2020, tungsten waste is eliminated. Scrap materials and niobium waste and scrap materials are tentatively taxed on imports, and the most-favoured-nation tax rate will be resumed.

In order to promote the high-quality development of the “Belt and Road”, build a global network of high-standard free trade zones, and implement a mutually beneficial and win-win open strategy, according to the free trade agreements or preferential trade arrangements signed by China and relevant countries or regions, 2020 China will continue to implement the agreed tax rates on some commodities originating in 23 countries or regions. Among them, China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Australia, South Korea, Georgia, Chile, Pakistan and the Asia-Pacific Trade Agreement have further reduced taxes. In 2020, continue to implement preferential tax rates for the least developed countries that have established diplomatic relations with China and completed exchange procedures, and adjust the applicable countries for preferential tax rates in accordance with the United Nations list of least developed countries and China's transitional arrangements.

From July 1, 2020, China will also implement the fifth step of tax reduction on the 176 information technology products' most-favored nation tax rates, and at the same time, adjust the provisional tax rates on some of these information technology products accordingly.

The Office of the Customs Tariff Commission of the State Council stated that the above-mentioned adjustment measures are conducive to reducing import costs, promoting the orderly and free flow of international and domestic factors, and promoting the establishment of a new system of a higher level of open economy; Accelerate the construction of high-standard free trade zones; it is conducive to sharing development results with other countries and regions, and creating a new situation in international trade that is open to cooperation, inclusive and inclusive, and sharing a win-win situation.

Notice of the Customs Tariff Commission of the State Council on the adjustment plan for the tentative import tax rate in 2020

Inland Revenue Commission [2019] No. 50

General Administration of Customs:

In order to optimize the trade structure and promote high-quality economic development, according to the relevant provisions of the "Import and Export Tariff Regulations of the People's Republic of China", starting from January 1, 2020, the import tariffs of some commodities will be adjusted. The "Adjustment Plan for Tax Rates and Other Adjustments" is printed and sent to you. Please refer to the attachment for details.

Attachment: Adjustment plan for 2020 import tentative tax rate, etc.

State Council Tariff Commission

December 18, 2019


Adjustment plan for 2020 import tentative tax rate, etc.

I. Adjusting the Import Tariff Rate

(A) MFN tax rates.

1. With effect from January 1, 2020, provisional tax rates on imports of 859 commodities (excluding goods with tariff quotas) will be implemented. As of July 1, 2020, seven provisional tax rates on import of information technology products will be abolished.

2. Implementation of the fifth step of tax reduction on the most-favored-nation tax rate for information technology products listed in the Schedule to the Amendment to the Tariff Concession Schedule of the People's Republic of China Joining the World Trade Organization.

(2) Tariff quota rates.

Continued implementation of tariff quota management on 8 categories of commodities such as wheat, with the tax rate unchanged. Among them, the quota tax rate of three types of fertilizers, urea, compound fertilizer, and ammonium hydrogen phosphate, continues to implement the tentative tax rate of 1%. Continue to impose a sliding duty on a certain amount of cotton with additional imports.

(3) Agreement tax rates and preferential tax rates.

1.According to the trade agreements or tariff preference arrangements signed by China with relevant countries or regions, in addition to the agreement tax rates that have been approved by the State Council, from January 1, 2020, China and New Zealand, Peru, Costa Rica, Switzerland, Iceland , Singapore, Australia, South Korea, Chile, Georgia, Pakistan, bilateral trade agreements and Asia-Pacific trade agreements have further reduced tax rates. From July 1, 2020, in accordance with the provisions of China's bilateral trade agreement with Switzerland and the Asia-Pacific Trade Agreement, the relevant agreement tax rates will be further reduced.
When the MFN tax rate is lower than or equal to the agreed tax rate, if it is stipulated in the agreement, it shall be implemented in accordance with the relevant agreement; if there is no stipulation in the agreement, the two shall apply from the lowest.

2. Except for Equatorial Guinea, preferential tax rates will continue to be implemented for other least developed countries that have established diplomatic relations with China and completed exchange procedures. Since January 1, 2020, Equatorial Guinea has ceased to enjoy zero tariff preferential treatment.

Export Tariff Rate

Starting from January 1, 2020, export tariffs will continue to be levied on 107 items such as ferrochrome. The export tax rate or the tentative export tax rate will apply. The scope and tax rate of the products to be collected remain unchanged.

Relevant implementation time

The above schemes, unless otherwise specified, will be implemented from January 1, 2020.

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