Tariff for High-end Consumer Goods to Increase Markedly

China revised its import and export tariffs starting 1 January. Subsequent to the revision, the overall level of import tariffs has decreased from 9.9% to 9.8%, of which the average tariff rate for agricultural products is 15.2%, and 8.95% for industrial goods.

However, to align with the adjustment of consumption tax on certain domestic commodities, the import tariff on certain commodities brought in by visitors or sent in by mail will be adjusted upward. These mainly include golf balls, golf equipment and high-end watches, with the import tariff rate rising from 10% to 30%; and cosmetics, up from 20% to 50%.

To further restrict the exportation of high energy consumption, high pollution, and resource-type commodities, China continues to levy export tariffs on energy- or resource-type commodities such as coal, crude oil and stone. Also, starting 1 January, export tariff has been introduced on products such as stainless steel ingot and its primary products, tungsten primary processed products, unwrought manganese, molybdenum, stibium and chromium which require high energy consumption to produce and create a great impact on the environment.

Provisional tariff rates are implemented on more than 300 kinds of commodities, including mainly resource- and energy-type commodities such as coal and stone, as well as important raw materials and key parts, components and equipment such as optical fibre coating and silver electrode paste. For the import of natural rubber, an alternative tariff will apply, which means that either an ad valorem duty of 20% or a specific duty of Rmb2,600 per tonne, whichever is lower, will be levied.

To keep up with its WTO commitment on tariff concession, China will further reduce import tariffs on 44 tax items including fresh strawberries. Meanwhile, tariff quota management will continue to apply to seven types of agricultural products such as wheat, corn, rice in the husk and rice, sugar, wool, wool top, and cotton; as well as three types of chemical fertilizer, namely urea, diammonium phosphate, and ternary compound fertilizer. The applicable quota tariff rate for the three chemical fertilizers will remain at 1%.