Upon consideration by the State Council Customs Tariff Commission and approval granted by the State Council, starting from 1 January 2012 import and export tariffs on certain items will undergo adjustment.
In a bid to deepen implementation of the scientific development concept; further strengthen and improve macro control; sharpen the focus, flexibility and predictability of tariff policy; and promote economic restructuring and change in economic development model, tariff rate quota management will continue to be applied in 2012 to the import of seven types of agricultural products such as wheat and three kinds of chemical fertilisers including urea, with a 1% provisional quota rate applying to the same three kinds of chemical fertilisers. Meanwhile, specific tax or compound tax will continue to apply to 52 products including chilled chicken.
A lower provisional import tax rate will apply to several commodities, at an average rate of 4.4%, which is over 50% lower than the MFN rate. These commodities mainly fall under five major categories:
- Energy and resource-type products: including coal, coke, processed oil, marble, granite, natural rubber, rare earth, copper, aluminium and nickel;
- Key equipment, parts and components needed in the development of new strategic industries such as high-end equipment manufacturing, new generation information technology and new energy car: including air jet looms, turbine shaft aero engines, high-voltage transmission cables, video components for mobile phone, high-definition cameras, and key moulds for stamping parts for small car bodies;
- Agricultural means of production: including high horse-power tractor, large combine harvester, dairy product processing machine, raw materials for pesticides, chemical fertilisers, animal feeds;
- Daily-use supplies promoting consumption and improving people’s livelihood: including chilled sea fish, special infant formula, baby food, skincare products, hair perm agents, tableware, kitchenware;
- Products related to public health: including vaccines, sero, artificial cochlear, X-ray films.
Moreover, in order to advance the development of socialist cultural industry and satisfy the spiritual and cultural needs of the general public, provisional import tariff will be levied in 2012 on digital movie projector, original works of various kinds of painting, and original sculptures.
To expand multilateral and bilateral economic and trade cooperation and promote better and faster regional economic integration, in 2012 China will, based on free trade agreements or tariff concession agreements signed with different countries and regions, continue to apply agreed tariff rates to certain import products originating from ASEAN countries, Chile, Pakistan, New Zealand, Peru, Costa Rica, Korea, India, Sri Lanka and Bangladesh, with the scope of products further expanded and tax rate further lowered.
Under the framework of CEPAs signed with Hong Kong and Macau, zero tariffs will apply to products originating from Hong Kong and Macau which are subject to preferential treatment under the rules of origin. Under the economic cooperation framework agreement signed with Taiwan, agreed tariff rates including zero tariff will apply to certain products originating from Taiwan. Meanwhile, preferential tariff rates will continue to apply to certain products from 40 least developed countries including Laos, Sudan and Yemen.
In order to promote sustainable economic development and advance resource-saving and eco-friendly social construction, China will continue to levy provisional export tariff on “energy-intensive, highly polluting and resource-based” products such as coal, crude oil, chemical fertilisers and ferrous alloys in 2012.
In 2012, China’s import and export tariff items will be amended according to the standard regulations of the World Customs Organisation. Meanwhile, in order to cope with economic, social, scientific and technological advancement, strengthen import and export management, and tackle international trade disputes, a number of tariff items such as flexible printed board, material piling and taking machine, blood vessel stent and wireless headset, have been added. After the latest round of adjustment, the total number of import and export tariff items in China will increase to 8,194 in 2012 from 7,977 in 2011.
