Import tariffs on a series of commodities that involve the innovation and development of advanced manufacturing industries and protect people’s lives and health will fall. The State Council Customs Tariff Commission recently issued the latest announcement, starting from January 1, 2024, China will implement a provisional import tariff rate lower than the MFN tariff rate for 1010 commodities.
Provisional tariff rate is a tariff rate for some import and export goods within a certain period of time. Usually, it is lower than MFN tariff rate and has priority. It is a common way to adjust tariffs independently. It is reported that this adjustment was deliberated and adopted at the first plenary session of the Eighth the State Council Customs Tariff Commission and submitted to the State Council for approval, aiming at continuing to play the supporting role of import and export in the economy, better fulfilling the important function of tariffs in coordinating the domestic and international markets, and maintaining the stability and smoothness of China’s industrial chain supply chain.
"Overall, this tariff adjustment plan fully embodies the characteristics of striving for progress in stability, showing a series of highlights such as benefiting people’s livelihood, strengthening resilience and promoting upgrading." Gao Lingyun, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said.
First, accelerate the innovation and development of advanced manufacturing industries, and reduce import tariffs on domestic scarce resources, key equipment and parts such as lithium chloride, low arsenic fluorite and gas diffusion layer for fuel cells.
The second is to protect people’s lives and health, meet the consumption needs of residents with high-quality supply, implement zero tariffs on some anticancer drugs, medicines and raw materials for rare diseases, and reduce import tariffs on formula foods for special medical purposes. Chen Wei, chief physician of the Clinical Nutrition Department of Peking Union Medical College Hospital, said that formula food for special medical use refers to formula food specially processed and prepared to meet the special needs of people with food restriction, digestive and absorption disorders, metabolic disorders or specific disease states for nutrients or meals. "Reducing import tariffs on formula foods for special medical purposes will help reduce the phenomenon of’ sky-high nutritional products’ and many patients will benefit." Chen Wei said.
The third is to reduce import tariffs on sweet corn, coriander and burdock seeds. In addition, in order to promote the development of new materials industry and reduce the export tariff of high-purity aluminum. "Reducing import tariffs on key raw materials, agricultural seeds and other commodities will help strengthen the supply capacity of resources, enhance the resilience of the supply chain of the industrial chain, and accelerate industrial transformation and upgrading and high-quality development." Gao Lingyun said.
In addition, from January 1, 2024, according to the development of domestic industries and changes in supply and demand, import tariffs on some commodities such as ethylene, propylene and LCD glass substrates below generation 6 will be increased within the scope of China’s commitment to join the World Trade Organization.
In order to expand the global network of high-standard free trade zones, continue to promote high-level opening to the outside world, and promote the construction of an open world economy, in 2024, according to the free trade agreements and preferential trade arrangements signed between China and relevant countries or regions, some commodities under 20 agreements and originating in 30 countries or regions will be subject to agreed tax rates. The China-Nicaragua Free Trade Agreement came into effect on January 1, 2024 and implemented tax reduction.
In order to support and help the least developed countries to accelerate their development, preferential tax rates will continue to be applied to the least developed countries that have established diplomatic relations with China and completed the exchange of letters in 2024, and the preferential tax rates will be adjusted according to the United Nations list of least developed countries and China’s transitional arrangements.
In order to promote China’s superior products to better participate in the international market competition, in 2024, China’s subheads will be appropriately adjusted to add tax items such as decorative base paper and high-end steel products. After adjustment, the total number of tariff items is 8957.
"The adjustment of import and export tariffs on some commodities reflects China’s determination to expand opening up independently, share the booming China market with the world and promote high-level opening up. At the same time, it is conducive to supporting the construction of a modern industrial system, promoting the continuous enhancement of endogenous power, and better coordinating development and safety. " Tu Xinquan, dean of the World Trade Organization Research Institute in China, university of international business and economics, said. (Reporter Zeng Jinhua)
