Import tariff reduction "big gift package" is coming
Tariffs have dropped again!
The Customs Tariff Commission of the State Council recently issued a notice to implement a provisional import tariff rate lower than the most-favored-nation tariff rate for 883 commodities from January 1, 2021, to support the construction of a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles. .
Industry insiders pointed out that this adjustment will help reduce China’s import costs, better attract global resource elements, not only meet domestic demand, but also provide countries with broader market opportunities, better connect domestic and international markets, and help build new development pattern.
Why are tariffs adjusted year after year?
Tariff has the function of safeguarding national fiscal revenue, regulating social and economic activities, and protecting domestic economic interests in foreign economic and trade.
Since the reform and opening up, China has made full use of tariff levy, reduction, exemption, and rebate to promote national economic development.
It can be said that the changes in tariffs have witnessed the development of foreign trade.
Improving legislation and policy formulation-Starting from January 1, 1980, China resumed the independent customs collection of tariffs on foreign trade import and export goods.
In January 1985, the State Council deliberated and passed the "Regulations on Import and Export Tariffs of the People's Republic of China", and the customs began to calculate and levy tariffs in accordance with the "Customs Import and Export Tariffs of the People's Republic of China" determined by the tariff regulations; The Law is promulgated and implemented, based on the Customs Law and Tariff Regulations, and a series of supporting regulations have also been promulgated.
Actively participate in the formulation of international rules-in 1992, China joined the "International Convention on Harmonized Systems"; in June 2015, China took the lead in formulating the first World Customs Cross-border E-commerce Supervision and Service Guidance Document "World Customs Organization Cross-border E-commerce" "Standard Framework", China Customs' influence and voice in participating in the formulation of international economic and trade rules are constantly increasing.
Optimize the tariff system-In recent years, China has repeatedly reduced import tariffs on consumer goods such as clothing, luggage, footwear, specialty foods, and medicines.
Since May 1, 2018, China has reduced the import tariffs on all common drugs including anticancer drugs, alkaloid drugs with anticancer effects and actually imported Chinese patent medicines to zero by means of temporary tariff rates.
From November 1 of the same year, China reduced import tariffs for another 1,585 tax items, and the overall tariff level was reduced from 9.8% to 7.5%.
Starting from January 1, 2019, China has imposed a provisional import tariff rate on 706 items of goods, and implemented zero tariffs on important raw materials urgently needed to be imported for domestic production of drugs for cancer, rare diseases and other drugs, involving 63 varieties under 31 tax items.
Starting from January 1, 2020, China will implement temporary import tariff rates lower than the most-favored-nation tariff rate on 859 commodities, and continue to implement treaty tariff rates on some commodities originating in 23 countries or regions.
Entering 2021, China once again adjusted its import tariffs and sent out policy "gifts" that benefit people's livelihood and promote the economy.
According to a notice from the Customs Tariff Commission of the State Council, starting from January 1 this year, China has imposed temporary import tariff rates on 883 items that are lower than the most-favored-nation tariff rate.
"The most-favored-nation tax rate is the tariff rate that China applies to imported goods from most countries. The provisional tariff rate refers to the tariff rate applied to certain imported and exported goods within a certain period of time. The provisional tariff rate is generally lower than the most-favored-nation tariff rate and is a common independent adjustment tariff. Zhang Jianping, deputy director of the Academic Committee of the Academy of the Ministry of Commerce and director of the Regional Economic Research Center, explained, “At the end of the year, China will adjust the tariff rates of some imported goods mainly to adapt to economic and social development. Over the past 70 years, The development and changes of China's tariffs have witnessed the glorious history of China's foreign trade from small to large, from weak to strong. This adjustment fully reflects the basic idea of the country to meet the domestic ultra-large-scale market demand through imports. As China deeply participates in and promotes the economy With the process of globalization and the formation of a new pattern of more comprehensive and higher-level open economy, China’s door to the outside world is opening wider and wider."
Benefit people's livelihood, improve quality, and promote upgrading
Specifically, this new round of tariff adjustment reflects three aspects of thinking:
Reduce the financial burden of patients and improve people's quality of life.
The tariff adjustment plan clarified that zero tariffs will be imposed on the second batch of anti-cancer drugs and rare disease drug raw materials, food needed for special children, etc., to reduce import tariffs on artificial heart valves, hearing aids and other medical equipment, and reduce whey protein powder, Import tariffs on raw materials for infant milk powder such as lactoferrin have even dropped by 50%.
"This not only reflects the country's continued implementation of the people-oriented and people's livelihood concept, to meet the people's yearning for a better life, but also to meet the domestic market's demand for infant milk powder." Zhang Jianping said, "The continuous release of tariff policy dividends highlights 'Benefiting people's livelihood' orientation. Both consumers and patients can reduce expenditures and obtain tangible benefits."
To better meet domestic production needs and promote high-quality economic development.
In order to meet the needs of domestic production, the adjustment plan clearly further reduces the import tariffs on some equipment, parts and raw materials required by new infrastructure or high-tech industries such as fuel cell circulation pumps, aluminum silicon carbide substrates, arsine, etc., from 5%-8% To 2%-4%.
At the same time, from the perspective of high-quality economic development, the new round of tariff adjustments has also reduced import tariffs on some energy-saving and environmentally-friendly products.
For example, as an important component of automobile energy saving and emission reduction, the import tariff of exhaust gas recirculation valve has been reduced from 7% to 5%.
In addition, a lower temporary import tax rate for aviation equipment such as fuel pumps for aircraft engines is implemented to promote international cooperation in the aviation field; the temporary import tax rate for commodities such as wood and paper products, non-alloy nickel, and unwrought niobium is reduced to encourage Import of resource products, and moderately reduce the sliding tax on cotton; from July 1, 2021, the sixth step of tax reduction will be implemented on the most-favored-nation tax rate of 176 information technology products.
"Reducing the import tariffs of these commodities can effectively reduce the import costs of high-tech equipment and parts, domestic scarce resource products, and some high-quality raw materials required for domestic industrial upgrading, and will help accelerate the modernization, digitalization and intelligentization of domestic industries. To promote domestic industrial upgrading.” said Zhao Ping, vice president of the China Council for the Promotion of International Trade Research Institute.
Emphasize equal emphasis on economic development and environmental protection.
The adjustment plan pointed out that in order to implement the "Solid Waste Pollution Prevention and Control Law", from January 1, 2021, the temporary import tax rate for solid waste such as metal scrap and scrap will be correspondingly cancelled, and the most-favored-nation tax rate will be restored.
"With the development of the domestic economy, building ecological civilization, prioritizing environmental protection, and safeguarding public health has become a social consensus. In the past few years, China has banned the import of all kinds of electronic waste, and this is also due to this consideration." Zhang Jianping said, " This reflects the development concept of emphasizing the construction of ecological civilization in the pursuit of high-quality development and the "double cycle", raising the standards of environmental protection and reducing energy consumption."
"In general, this tariff adjustment will have a positive support effect on domestic consumption, and residents' sense of gain and happiness will also be effectively improved. It will not only meet domestic demand, but also enhance China's industrial technology development level, and promote the formation of a grand and smooth Domestic economic cycle." Zhang Jianping said, "At the same time, it is conducive to building a global high-standard free trade zone network, better connecting the domestic and international markets, promoting the common development of the Chinese economy and the world economy, and promoting win-win cooperation."
Expand "friend circle" and share development dividends
In addition to focusing on meeting domestic demand, adjusting import tariffs and continuing to release signals to speed up opening up, it also reflects China's determination to expand its "friend circle" and promote shared and win-win results.
In order to promote the high-quality development of the “Belt and Road” and achieve high-quality introduction and high-level globalization, in accordance with the free trade agreements or preferential trade arrangements signed and effective between China and relevant countries or regions, China will Some imported goods in relevant countries or regions implement agreed tariff rates.
Among them, the China-Mauritius Free Trade Agreement will come into effect on January 1, 2021 and implement tax reductions.
The person in charge of the World Trade Department of the Ministry of Commerce stated that the agreement has achieved comprehensive, high-level, and reciprocal benefits. It has contributed to building a closer China-Africa community with a shared future and filled the gaps in China's existing free trade zone network in Africa.
After the agreement comes into effect, in the field of goods trade, the proportion of product tax items for which China and Mauritania finally achieve zero tariffs will reach 96.3% and 94.2% respectively.
In the field of service trade, the two parties have promised to open more than 100 sub-sectors.
In the investment field, China has upgraded the original investment protection agreement with African countries for the first time.
Yang Baorong, deputy director of the Institute of West Asia and Africa of the Chinese Academy of Social Sciences, said that the Agreement not only provides a stronger institutional guarantee for the deepening of economic and trade relations between the two countries, but also gives new connotations to the China-Africa comprehensive strategic partnership and enhances China-Africa economic and trade cooperation. To new heights.
In addition, further tax cuts are the Free Trade Agreement between China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, Pakistan, Chile, Australia, South Korea, Georgia and the Asia-Pacific Trade Agreement.
Some imported goods originating in Mongolia will be subject to the Asia-Pacific Trade Agreement tariff rate from January 1, 2021.
In 2021, the preferential tax rate will continue to be applied to 43 least developed countries that have established diplomatic relations with China and completed the exchange of letters. The scope of the preferential tax rate and the tax rate will remain unchanged.
Liu Xiangdong, a researcher at the Economic Research Department of the China Center for International Economic Exchanges, said that Bangladesh, China, India, Laos, South Korea, Mongolia, and Sri Lanka, which are members of the Asia-Pacific Trade Agreement, are the main emerging markets that can be tapped along the “Belt and Road”.
In the face of the raging global epidemic and the rise of trade protectionism, continuing to adhere to the foreign policy tone of free trade will not only help maintain an open world economy and jointly respond to external shocks, but will also further strengthen value chain cooperation and promote the development of Asia-Pacific production networks. High-level development.
"China proposes to promote the construction of the'Belt and Road' with high quality, build a network of free trade zones that radiate the'Belt and Road' to the world, and implement treaty tax rates for these'Belt and Road' partners, countries or regions on imported goods, reflecting China's willingness to harmonize These partners share China’s large market and high growth.” Zhang Jianping said, “At the same time, this is also conducive to China and the'Belt and Road' partners to form complementary advantages, cooperate and interact, and help form'bringing in' and'going out'. A coordinated development of opening up and a new pattern of international economic and trade cooperation."
This adjustment is the first step in opening up in 2021, and a series of policy dividends with greater intensity and wider coverage will be released soon: the "Catalogue of Industries Encouraging Foreign Investment 2020" will be implemented from January 27, 2021 ; In 2021, China will continue to implement treaty tax rates on relevant countries or regions.
"It is foreseeable that this year China will further expand its opening up, especially to increase its opening up to modern service industries such as finance and high-end manufacturing, continue to optimize the domestic business environment, and build a new high-level opening up." Liu Xiangdong said.
(Reporter Kong Dechen)
"People's Daily Overseas Edition" (version 06 on January 12, 2021)