Zero Tariff Is Coming! 2019 Import Import And Export Printing Equipment Consumables Tariff Table Has A Major Adjustment.

In December 22nd, the Customs Tariff Commission of the State Council issued the "adjustment plan for import and export provisional tariff rates" in 2019 (Tax Committee [2018] 65), announcing that the import and export duties of some commodities should be adjusted from January 1, 2019 onwards.

Compared with 2018, the import tariff adjustment of printing equipment and equipment in 2019 is relatively large and complicated. This is mainly because the products are scattered in three forms, namely, "most favored nation tariff table of some information technology products", "provisional tariff schedule for imported commodities", and "tariff table of import tariff agreement for further reduction of tax".

Some product names of some forms may be duplicated and superimposed. In order to facilitate interpretation, the following will be divided into several parts to analyze the import tariff adjustment of the printing equipment and equipment.

Adjustment of printing related products tax rate in the most favored nation tariff table of some IT products

The tax code includes hundreds of products, including the printing industry, including printing, prepress, digital printing equipment, printing parts and auxiliary equipment, and the tariff of these products is down again.

1, tariffs on printing plate products will drop by 2.5 percentage points to achieve zero tariff.

Before June 30, 2019, "most of the most favored nation tariff rates for the printed version of the" Phototypesetting Film (any side exceeding 255mm), made of paper, cardboard and textile materials "and" PS Version (precoated photosensitive plate) "(any side over 255mm), made of any material other than paper, cardboard and textile," CTP "and" flexographic printing "were 2.5% (down from 5% to 2.5% in July 1, 2018). But after July 1, 2019, the MFN tax rate of these products will drop by 2.5 percentage points to achieve zero tariff.

2, the tariff of preprinting equipment products generally dropped by 2.3 or 1.8 percentage points to achieve zero tariff.

Before June 30, 2019, the most favored nation tariff rates of "prefabricated machines", "computer direct plate making equipment", "other plate making machines, appliances and equipment", "other casting machines, equipment and equipment" were all 2.3% (from 4.5% to 2.3% in July 1, 2018). But after July 1, 2019, the MFN tax rate of these products will drop by 2.3 percentage points to achieve zero tariff.

Before June 30, 2019, the most favored nation tariff rates of "prefabricated equipment, printing plates, films and other components", "casting, typesetting and plate making machine parts" were 1.8% (from 3.5% to 1.8% in July 1, 2018). But after July 1, 2019, the MFN tax rate of these products will drop by 1.8 percentage points to achieve zero tariff.

3, tariffs on digital printing equipment products generally dropped by more than 1 percentage points.

Before June 30, 2019, the most favored nation tariff rates of the "digital inkjet printer", "Internet connected electrostatic printer (laser printer)" and "other digital printing equipment connected to the Internet" were all 4% (from 5.3% to 4% in July 1, 2018), but after July 1, 2019, the tariff of these products will drop by 1.3 percentage points to 2.7%.

Before June 30, 2019, the most favoured nation tax rates of other independent inkjet presses, other independent electrostatic printing presses (laser presses), and other independent digital printing equipment were 5% (down from 6% to 5% in July 1, 2018), but after July 1, 2019, tariffs on these products will drop by 1 percentage points to 4%.

4, tariffs on printing equipment parts and auxiliaries are generally down by 1-2 percentage points.

In addition to the decline in import tariff rates of printing plate products, pre press equipment and digital printing products, some traditional and digital printing equipment accessories and auxiliary equipment have also been adjusted.

Before June 30, 2019, the MFN rates of "drum feeder", "other auxiliary machines for traditional printing machines" and "auxiliary machines for digital printing equipment" were 6% (down from 8% to 6% in July 1, 2018), but after July 1, 2019, tariffs on these products would drop by 2 percentage points to 4%.

Before June 30, 2019, the MFN rates of products such as "traditional printing machine parts and accessories", "thermal printhead" and "other parts of digital printing equipment" were 3% (down from 4% to 3% in July 1, 2018), but after July 1, 2019, tariffs on these products will drop by 1 percentage points to 2%.

In addition, some of the printing related products, such as ink, photographic plate making materials, printers, printing electronics, etc., have been adjusted to varying degrees in most favoured nation tax rates, showing a downward trend.

Adjustment of the rate of printing related products in the provisional tariff table of imported commodities

According to the newly released provisional tariff schedule for imports, some of the products related to printing have undergone a larger adjustment after January 1, 2019, mainly in the following aspects.

[note 1]: "ex" indicates that the commodity with provisional tax rate shall be within the range of the tax number, with the description of the specific commodity as the criterion.

[note 2]: if there is a "tax" in the middle of the tax rate, it will be used tax rates in the first half (January 1, 2019 to June 30th) and the second half (July 1, 2019 to December 31st) respectively.

1, the most favored nation tax rate and provisional tax rate have not changed.

The MFN and provisional rates of the following commodities have not changed.

• "Four color flat sheet offset press, the speed of printing on single sheet of paper is more than 17000 sheets per hour. The rate of double-sided printing of sheets is more than 13000 sheets per hour; the whole sheet of Zhang Huochao sheets is printed at a speed of 13000 sheets per hour."
• "More than 17000 sheets per hour for printed sheets with over five colors and over sheets of paper offset printing machines. The speed of the double-sided printing of the sheets is more than 13000 sheets per hour, and the single sheet printing speed of all Zhang Huochao sheets is equal to 13000 sheets per hour."
• "Aniline printing machine (flexographic press), line speed is greater than 350 m / min, width is greater than 800 mm".
• "Flexo printing or holographic or screen printing functional unit flexographic printing machine, line speed of more than 160 m / min, 250 mm less than width <800 mm"
• "Rotary screen printing machine for textile"
• "Flat screen printing machine for textile"

2. Most favored nation tax rates and provisional tax rates are adjusted.

In the 2019 version of the tariff schedule for the provisional tariff of imported products, some of the MFN tariffs will achieve zero tariff in the second half of 2019, such as "computer direct plate making machine parts". Some of the products are most favored nation tax rates, but the provisional tariff rate has not changed, such as "gravure printing machine, printing speed is more than 350 meters / minute", "offset printing machine remote control devices (including ink control devices, ink volume adjustment devices, ink bodies, etc.)", "electrostatic sensitive multi-function machine"; some products most favored nation tax rates and provisional tax rates have declined, such as "drum feeder automatic feeder, feeding line speed is more than 12 m / sec".

MFN tariff dropped to zero

In the 2018 version of the tax rate table, the MFN rates of CTM were 3.5% and 1.8% respectively, and the provisional tax rate was 1% in 2018. In the latest 2019 edition, the MFN rate of the product was 1.8% from January 1, 2019 to June 30th, 0 from July 1, 2019 to December 31st, and 1% from provisional to 1%. That is to say, after July 1, 2019, the tariff of "computer direct plate making machine parts" is zero.

The most favored nation tax rate has declined, but the provisional tax rate has not changed.

In the 2018 version of the tax rate table, "gravure press, printing speed is more than 350 m / min" MFN rate is 18%, provisional tax rate in 2018 is 9%; in the latest version 2019, the MFN rate of the product is 10%, the provisional tax rate is 9%.

In the 2018 version of the tax rate table, "the most remote duty rate of the offset printing machine remote control devices (including ink control devices, ink volume adjustment devices, ink bodies") is 4% (before July 1, 2018) and 3% (after July 1, 2018) respectively, and the provisional tax rate is 1% in 2018. In the latest version 2019, the MFN rate of the product is 3% from January 1, 2019 to June 30th, 2% from July 1, 2019 to June 30th, and the provisional tax rate is 1%.

In the 2018 version of the tax rate table, the MFN rate of the "electrostatic sensitive multifunction machine" was 6.7% (before July 1, 2018) and 5% (after July 1, 2018), and the provisional tax rate was 3% in 2018. In the latest version 2019, the MFN rate of the product was 5% from January 1, 2019 to June 30th, 3.3% from July 1, 2019 to June 30th and 3% by provisional tax rate.

Most favored nation tax rates and provisional tax rates declined.

In the 2018 version of the tax rate table, "the drum feeder automatic feeding machine, feeding line speed is more than 12 m / sec" MFN rate is 8% (before July 1, 2018) and 6% (after July 1, 2018), January 1, 2018 to June 30th provisional tax rate is 4%; in the latest version 2019, the MFN rate of the product is 6% from January 1, 2019 to June 30th, 4% to 4%, and the provisional tax rate is 4%.

Merger of categories makes MFN tariff drop.

In the 2019 edition of the provisional tariff schedule for imported commodities, some product names are incorporated into the list of most favored nation tariff rates of some information technology products, and no provisional tariff is applied. At the same time, the actual MFN tariff of these products has also declined, such as "concave computer direct plate making equipment", "traditional printing machine parts and accessories (except for remote control devices for offset printing machines)", "inkjet printer connected to network or automatic data processing equipment", "electrostatic printing equipment (laser printer) connected to network or automatic data processing equipment", "piezoelectric inkjet head", "other auxiliary machines for traditional printing machines" and so on.

In the 1 and 2019 version of the tax rate table, the "concave plate computer direct plate making equipment" is no longer listed separately as a "computer direct plate making equipment" and no longer applies provisional tax rates. After unification, the most favored nation tariff rate of the original "concave format computer plate making equipment" before July 1, 2019 is 2.3%, and zero tariff will be achieved after July 1, 2019.

2. In the 2019 edition of the tax rate table, the "traditional printing machine parts and accessories (except for the ink amount remote control device for offset press)" no longer single, unified as "the traditional printing machine parts and accessories", no longer applicable to the provisional tax rate. After unification, the most favored nation tariff rate of the original printing machine parts and accessories (except for remote control devices for offset printing machines) was reduced to 3% before July 1, 2019, and the most favored nation tariff rate dropped to 2% after July 1, 2019.

3, in the 2019 version of the tariff table, the "inkjet printer that can be connected to the network or automatic data processing equipment" and "electrophotographic printing equipment (laser printer) that can be connected to the network or automatic data processing equipment" are no longer listed separately, and can be incorporated into the "network connected inkjet printer" and "network connected electrostatic photographic printing equipment (laser printer)" and the provisional tariff rate is no longer applicable. After unification, the most favored nation tariff rate of the original "inkjet printer connected to the network or automatic data processing equipment" and the original "electrostatic printing printing equipment (which can be connected to the network or automatic data processing equipment") before July 1, 2019 were 4%, and the most favored nation tariff rate was 2.7% after July 1, 2019.

4, in the 2019 version of the tariff table, the "piezoelectric inkjet head" is no longer listed singled out into the other parts of the digital printing equipment, and no provisional tariff is applied. After incorporation, the MFN rate of the original "piezoelectric inkjet head" before July 1, 2019 was 3%, and the most favored nation tariff rate after July 1, 2019 was 2%.

5. In the 2019 version of the tax rate table, "other auxiliary machines for traditional printing machines" no longer apply provisional tax rates. The most favored nation tariff rate of other traditional printing machines was 6% before July 1, 2019, and the most favored nation tariff rate was 4% after July 1, 2019.

To sum up, we can see that the merger of the categories makes the above products no longer applicable to provisional tariffs, but the most favoured nation tariff falls in a large area.

Added: tariff rate agreement on imports of further reduced taxes

In addition, the document also pointed out that, in accordance with the trade or tariff preference agreement signed by China and the countries or regions concerned, the agreement tariff rate of China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Georgia and the Asia-Pacific Trade Agreement countries has been further reduced since January 1, 2019, in addition to the previously approved tax reduction plan of the agreement tax rate approved by the State Council. According to the agreement on trade in goods between the mainland and Hongkong and Macao on closer economic partnership arrangement, since the date of implementation of the agreement, zero tariff is fully implemented on products originating in Hongkong and Macao except for products with special commitments made by the mainland in the relevant international agreements.

From the table of tariff rates for imports of further reduced taxes, we have sorted out products involving printing plates, pre press equipment, digital printing equipment, printing parts and accessories, etc. (see table below). It is worth noting that there are many printed products and ink products in the table that are not sorted out. The following table is for your reference only.

To sum up, the import tariff adjustment of printing equipment and equipment in 2019 is still relatively large.

1, for printing plate products, pre press equipment products, since July 1, 2019, zero tariff has been introduced.

2, for the products of digital printing equipment, printing equipment spare parts and ancillary equipment, many products are no longer applicable to provisional tax rates, and since July 1, 2019, most favored nation tariffs have decreased significantly.

3, for the traditional printing equipment products, such as some flat sheet offset presses, flexographic presses, gravure presses and screen printing machines, the provisional tariff rate is still being implemented. Except for the adjustment of individual products, the MFN rate has hardly changed and the provisional tax rate has not changed.

The implementation of zero tariff on printing plate products and prepress equipment is the most influential adjustment to the printing industry. It can be seen that both the film, PS, CTP version, or CTP equipment and parts are all reduced to zero tariff. This shows that the market demand for such products in China is large and has been relatively mature. Even if it is reduced to zero tariff, it will not have a greater impact on the market competitiveness of domestic manufacturing enterprises.

Digital printing equipment products are relatively immature in China, and rely heavily on imports. The decline of most favoured nation tariffs will also help our country import advanced digital printing equipment abroad and improve the level of digital printing in China.

Printing equipment spare parts and auxiliary equipment, in addition to supporting some products of digital printing equipment, such as "auxiliary equipment for digital printing equipment", "thermal printing head", "other parts of digital printing equipment", etc., also includes "offset printing machine remote control device (including ink control device, ink volume adjustment device, ink body and other components)" and "traditional printing machine parts and accessories" and other traditional printing equipment spare parts and auxiliary equipment, which is conducive to further improving the digitalization and automation level of our traditional printing equipment.

For traditional printing equipment, except for the "gravure printing machine, printing speed of more than 350 m / min", the most favored nation tariff and other provisional tariff rates of other products have not changed in 2019. In order to actively expand imports, reduce the institutional cost of import links, and help supply side structural reform, in 2019, China adopted a provisional tariff rate for more than 700 commodities. Generally speaking, products that are applicable to provisional tax rates are often products with high technology and market demand. The provisional tax rate of these products is lower than the most favored nation tax rate and is given priority. This indicates that China continues to encourage the introduction of advanced international traditional printing equipment to a certain extent.

In 2019, the adjustment of tariff rate was lowered to implement the directive spirit of President Xi Jinping in the keynote speech of the opening ceremony of the first China International Import fair, to promote the high quality development of the economy and the steady growth of import and export trade, and finally to make adjustments according to the relevant regulations of the People's Republic of China import and export tariff regulations. When the Sino US trade war is still pending, China's active adjustment of tariffs reflects the role of a great power, and the adjustment of tariff for imported printing equipment and equipment is also conducive to promoting the sustained and healthy development of China's printing industry.