Business

China Cuts Commodity Import Duty While Leaving Quotas Unchanged

As of 1 January this year, the tariffs and quotas applicable to the import of certain commodities to China have been adjusted. This is in accordance with the 2020 Provisional Adjustment Plan for Import Tariffs as drawn up by the Customs Tariff Commission of the State Council and in compliance with the relevant provisions of the Regulations on Import and Export Duties. Among the key elements of the Adjustment Plan are the following: Most-Favoured Nation (MFN) Tariff Rates Some 859 commodities (excluding tariff-quota products) are now subject to provisional tariff rates, below the previously-specified MFN levels. In addition, seven of the provisional import duty rates that currently apply to information technology products are to be abolished as of 1 July this year. On the same date, the MFN tariffs relating to the information technology products listed in the Appendix of the Amendment to the Schedule of Tariff Concessions for the Accession of the People’s Republic of China to the World Trade Organisation will enter the fifth tariff reduction phase. Tariff Quotas Eight commodity categories (including wheat) will remain subject to the tariff quota management system, while the applicable tariff rates will not be subject to any revision.