China will adjust import and export tariffs on some commodities from next year.

A series of imported medical products and consumer goods are expected to reduce prices.
China will adjust import and export tariffs on some commodities from next year.

From next year, imported artificial joints, cod, baby clothes, dishwashers and other medical products and consumer goods are expected to be reduced in price. On December 15th, with the approval of the State Council, the State Council Customs Tariff Commission issued a notice to adjust the import and export tariffs of some commodities in 2022.

The tariff adjustment in 2022 mainly involves the adjustment of provisional tax rate, most-favored-nation tax rate and agreed tax rate, as well as the revision of tariff and the adjustment of tax items. In addition, China will continue to implement preferential tax rates for the least developed countries.

From January 1, 2022, China will impose a provisional import tax rate lower than the most-favored-nation tax rate on 954 commodities. In the adjustment of the provisional import tax rate, a series of highlights attract people’s attention. In order to reduce the economic burden of patients, zero tariff was imposed on radium chloride injection, a new anticancer drug, and the import tariff on some medical products such as intracranial embolectomy stents and artificial joints was reduced. At the same time, in order to conform to the trend of consumption upgrading, create a strong atmosphere of Beijing Winter Olympics, and reduce import tariffs on some consumer goods, including high-quality aquatic products such as salmon and cod, baby clothes, dishwashers, ski equipment, etc.

"Reducing tariffs on medical products is conducive to improving people’s health." Guang Xu Jian, a professor at Renmin University of China, said that the reduction of import tariffs on consumer goods such as cod, baby clothes and dishwashers is conducive to enriching the domestic consumer market and improving the consumption level of residents.

In order to improve environmental quality and promote green and low-carbon development, import tariffs will be reduced for gasoline engine particulate traps, electronic throttle valves for automobiles and peat that can be used for soil remediation. At the same time, it will help the manufacturing industry to optimize and upgrade, reduce import tariffs on key parts such as high purity graphite accessories, high-voltage cables for high-speed trains, membrane electrode assemblies and bipolar plates for fuel cells, and reduce import tariffs on raw materials needed by food processing, daily chemical and leather manufacturing industries such as cocoa beans, plant essential oils and animal skins. In addition, the import tariffs on resource products such as pyrite and pure potassium chloride, which are in short supply in China, will be reduced.

From July 1, 2022, China will also implement the seventh step of reducing the MFN tariff rate of products expanded by the Information Technology Agreement, involving 62 products. After the adjustment, China’s overall tariff level continued to maintain 7.4%.

In order to continuously promote high-level opening up, according to the free trade agreements and preferential trade arrangements signed between China and relevant countries or regions, some commodities originating in 29 countries or regions will be subject to agreed tax rates next year. Among them, China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Pakistan, Georgia, Mauritius and other bilateral free trade agreements and Asia-Pacific trade agreements will further reduce taxes; The Regional Comprehensive Economic Partnership Agreement (RCEP) and the China-Cambodia Free Trade Agreement will come into effect on January 1st next year, and tax reduction will be implemented.

"RCEP, as the largest free trade zone in the world, will play an important role in promoting the domestic and international double cycle in China. At the same time, the implementation of tariff concessions among members will help promote the growth of intra-regional trade and investment, enhance the level of regional economic integration in East Asia, consolidate and promote the integration of regional industrial chains, supply chains and value chains, and boost the confidence of members in post-epidemic economic growth. " Cui Fan, a professor at university of international business and economics, said. (Reporter Zeng Jinhua)