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    The Import Tariff Reduction Of Luxury Goods Is Uncertain

    2011/6/23 17:03:00 56

    Import Tariffs On Luxury Goods

    The Ministry of Commerce has publicly stated that China will further reduce import tariffs last week in response to the widespread public criticism of "excessive tariffs on high-end consumer goods".

    However, the latest news shows that the consensus does not seem to have been reached.


    Media reports yesterday that officials from the Ministry of Finance said that they had not heard that the import tariff of high-end consumer goods should be adjusted.

    Reporters contacted the Ministry of Finance and the Ministry of Commerce respectively yesterday.


    The Ministry of Commerce said, "reduce it".


    On June 15th, Yao Jian, spokesman of the Ministry of Commerce, said at a press conference that it would further reduce.

    Import duties

    It includes tariffs on medium and high grade goods.

    He said, "tariff reduction is the general trend, and there is a consensus among various departments."


    Earlier, Chen Deming, Minister of Commerce, also said that some overseas markets had no customs duties and the distribution system of high-end consumer goods in the mainland and other reasons, resulting in "luxury goods abroad and cheap domestic prices".

    He also tends to further consider and promote tariff reduction.


    Subsequently, media reports reported that the tariffs on luxury goods will soon be lowered, and cosmetics, tobacco and alcohol products will go ahead, with a reduction of 2%-15%.


    The Ministry of Finance said, "not heard."


    In response to this news, yesterday, Caixin reported that officials of the relevant departments of the Ministry of Finance explicitly denied this.


    Officials also said they had not heard that the import tariff of high-end consumer goods should be adjusted.


    It is understood that according to the current import and export tariff, imported perfume should pay 10% of customs duty and 17% of the imported perfume.

    Imported goods

    VAT and 30% of the import goods consumption tax; some of the wine import tariffs up to 65%, another need to pay 17% of the value added tax on imports and 10% of the import goods consumption tax.


    In addition, according to the relevant data of the Ministry of finance, the value added tax and consumption tax of imported goods amounted to nearly 1 trillion and 50 billion yuan last year, and the tariff rate was about 202700000000 yuan, and the two share accounted for 29.5% of the central fiscal revenue.


    Relevant


    Tariff adjustment must be approved by the State Council.


    The adjustment of import tariffs is not decided by a certain ministries.


    It is understood that the adjustment of China's import and export tariff policy shall be considered and approved by the plenary session of the Customs Tariff Commission of the State Council and submitted to the State Council for approval before it can be implemented.


    According to the current institutional setup, the director of the Customs Tariff Commission of the State Council is concurrently appointed by the Minister of finance, and the staff are from the Ministry of finance.

    Development and Reform Commission

    11 ministries and commissions such as the Ministry of Commerce.

    The office of the Customs Tariff Commission of the State Council is set up by the Customs Department of the Ministry of finance.


    Regarding the media's perception of whether or not to lower import tariffs, the two departments of the Ministry of Finance and the Ministry of Commerce do not agree. Zhang Xiaoji, a researcher at the Ministry of Foreign Economic Research of the State Council Development Research Center, thinks that different departments represent their interests.

    The import link tax is the main source of revenue. If we lower the tariff rate, we will reduce the revenue. This is an important reason for the Ministry of finance to reduce tariffs.


    The Ministry of commerce is mainly responsible for business consumption and circulation.

    Many domestic enterprises import large quantities of raw materials and equipment from abroad. If the import tariff is reduced, the cost of some domestic enterprises can be reduced. At the same time, the pfer of consumers' consumption abroad can help to expand the domestic consumer market. In this sense, the Ministry of Commerce hopes to lower import tariffs.


    Yang Zhiyong, a researcher at the Institute of Finance and trade of the Chinese Academy of Social Sciences, said it is necessary to reduce import duties, but the Ministry of Commerce may not have the right to implement such a practice.

    From an administrative point of view, the Ministry of finance is undoubtedly more authoritative on tariff issues.

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