China will reduce tariffs again. The reporter was informed by the Office of the Tariff Commission of the State Council on Jan. 23 that from Jan. 1, 2021, China will implement temporary import tariff rates lower than the most-favored-nation (MFN) rate for 883 kinds of goods. Among them, some commodities such as raw materials of anti-cancer drugs will be subject to zero tariff. At the end of each year, China will adjust the tax rate of some imported goods according to the economic and social development. Insiders said the adjustment measures are conducive to reducing China's import costs, better attracting global resource elements, not only to meet domestic demand, but also to provide broader market opportunities for countries, better docking domestic and foreign markets, and help build a new development pattern.
According to the annex to the relevant notice, many of the commodities for which import tariffs have been reduced are commodities that are commonly used and in strong demand by the people. For example, to help babies grow, import tariffs on raw materials for infant milk powder such as whey protein powder and lactoferrin have been reduced; and to meet the needs of special children, zero tariffs have been applied to formulated food for special medical purposes such as partially hydrolyzed milk protein formula. Tu Xinquan, director of the China WTO Research Institute at the University of International Business and Economics, believes that whey protein powder and lactoferrin are essential raw materials for the production of infant milk powder. Reducing import tariffs on these raw materials is expected to lower the end price of milk powder, and consumers will be able to buy these milk powders for less money.
According to the notice, fuel cell circulating pumps, aluminum silicon carbide substrates, gallium arsenide and other new infrastructure or high-tech industries require some of the equipment, parts and raw materials import tariffs, on aviation engine fuel pumps, diesel exhaust filtration and purification devices, such as aeronautical equipment, import tariffs engine and exhaust gas recirculation valves will also be further Reduction. Insiders said that many advanced technology equipment, parts and raw materials are included in the scope of import tariff adjustment is conducive to promoting the development of electronics, electric power, aviation, automotive and other industries, to better meet the needs of domestic production, and to promote the high-quality development of the economy.
In addition to adjusting the temporary import tariff rate, China will also adjust some of the most-favored-nation tariff rate and agreement rate in 2021. According to the free trade agreements or preferential trade arrangements signed and put into effect between China and relevant countries or regions, in 2021, China will implement the agreed tax rates on some imported goods originating from Mauritius, Mongolia, Peru, New Zealand, South Korea and other relevant countries or regions from July 1. In 2021, China will implement the sixth step to reduce the most-favored-nation (MFN) tariff rates of 176 information technology products .