According to the new Tariff Regulations, China's import tariff rates include the most-favored-nation (MFN) rate, the agreement rate, the preferential rate and the general rate.
(1)Most-Favored-Nation (MFN) Rate
The MFN rate applies to imported goods originating in the member countries or regions of the World Trade Organization that apply the MFN clause in the same way as China***; or imported goods originating in the countries or regions that have bilateral trade agreements with China with which China has mutually granted the MFN clause; as well as imported goods originating in the territory of the People's Republic of China*** and the State of China.
(2) Agreement rate
Agreement rate applies to imported goods originating in the relevant contracting parties to regional trade agreements with China that contain tariff preference provisions. The agreement tax rate.
(3) Preferential Rates
Preferential rates apply to imported goods originating from countries or regions with which China has signed special preferential tariff agreements.
Before 2013, China applied the Bangkok Agreement preferential rates to imports of 18 tariff lines originating from Bangladesh.
(4) Ordinary Rate
Ordinary rate applies to imported goods originating from countries or regions other than those mentioned above; or imported goods from countries or regions of unknown origin.
2. Provisional Duty Rates
According to the new Customs Tariff Regulations, provisional duty rates can be applied to specific import and export goods. The goods, tax rate and period for which the temporary tax rate is to be applied shall be decided by the Customs Tariff Commission of the State Council and announced by the General Administration of Customs.
The temporary duty rate of goods can be divided into two categories: one without technical specifications, the Customs in the collection of taxes only need to audit the name and tax number is correct, can be implemented; the other category is accompanied by technical specifications, the Customs in the collection of taxes, in addition to auditing the name and number of the tax, but also need to be imported to the technical specifications of the goods to be professionally recognized before they can be applied. For example, in 2002, China implemented the open provisional tax rate for 209 kinds of imported goods and 23 kinds of exported goods, and the deadline of December 31, 2002 was set for the implementation. Goods with open provisional duty rates can be directly examined and taxed at the customs office where they are imported."
3. Quota Rates
The tariff quota system is an international practice, which is a method of applying low tariffs on imports within a certain amount and high tariffs on imports exceeding the specified amount. Japan's primary and secondary tariffs are based on different quantities of tariff quota system that imposes different rates of duty. The quota is a quantitative restrictive measure, and cannot be imported after exceeding the quota quantity. And tariff quotas have the flexibility, for the necessary number of low tariffs; for more than a certain number of imports is to implement high tariffs, although the tariffs are high, but still allow imports, reflecting the regulatory role of tariff leverage. This approach has been adopted by many countries and has not been restricted by GATT or the subsequent World Trade Organization. Tariff quotas were also retained as a tariff instrument in the Asia-Pacific Economic Cooperation discussions. Such measures allow for aggregate control and are more open and transparent.
According to the new Tariff Regulations, tariff quota management can be implemented for specific imported and exported goods. The goods, tax rate and duration of the implementation of tariff quota management are decided by the Tariff Commission of the State Council and announced by the General Administration of Customs. For example, in 2002, China implemented import tariff quota tax rates for ten agricultural products, including wheat, corn, soybean oil and wool, and three types of fertilizers, including urea.
4. Information Technology Product Tariff Rates (hereinafter referred to as ITA rates)
After the establishment of the WTO, another Information Technology Agreement (ITA) aimed at further lowering the tariff levels of developing countries was reached among the WTO member countries led by the United States. Its main content is to account for more than 80% of the share of the world's electronic information technology products of this type of product tariffs, before the year 2000 to zero. China successfully joined the WTO at the end of last year, so it must also assume the obligation to reduce tariffs on imports of information technology products.
In 2002, China's most-favored-nation tariff rate on imports of 251 tax items to implement the WTO information technology products agreement rate, of which 221 kinds of zero-rate, there are 15 tax items only in the production of information technology products imported under the conditions of the ITA rate can be applied.
To this end, any unit declaring the import of the above 15 tax items and requesting the application of the ITA tax rate needs to be certified by the Ministry of Information Industry and confirmed by the Customs before applying the ITA tax rate.
5. Special Tariffs
According to the new Customs Tariff Regulations, special tariffs include retaliatory tariffs, anti-dumping duties, countervailing duties, safeguard tariffs and other special tariffs. If any country or region imposes discriminatory tariffs or gives discriminatory treatment to its imports of goods originating in the People's Republic of China*** and the State of China, the Customs Service may impose special tariffs on the imports originating in that country or region. Imposition of special tariffs on goods, applicable countries, tax rates, duration and collection methods, decided by the Customs Tariff Commission of the State Council, the General Administration of Customs is responsible for the implementation.