A Reduction Of Tax On The Most Favored Nation Tariff Of The 176 Products Will Be Implemented In July Next Year.

Since January 1, 2020, China has adjusted import tariffs on some commodities. In order to implement the spirit of the nineteen and second nineteen, second, third, Fourth Plenary Session and central economic work conference of the party, and promote the development of high quality trade, the State Council's customs tariff committee recently issued a notice to adjust the import tariff of some commodities since January 1, 2020.

In order to actively expand imports, stimulate import potential and optimize import structure, China will impose a provisional tariff rate of less than the most favored nation tax rate for more than 850 commodities since January 1, 2020. In order to reduce the cost of drugs, promote the production of new drugs, implement zero tariffs on raw materials for alkaloids and new drugs for the treatment of diabetes, in order to reduce the cost of drugs and promote the development of new drugs, to increase the import of advanced technology, equipment and parts, and support the development of new and high technology industries, we should add or reduce the provisional tariff rates for the import of semiconductor testing and sorting machines, high pressure turbine clearance control valves, torque converters and aluminum spool valves, Nb iron, multi-component integrated circuit memory, large axis film raw materials, dispersions and media for photoresist, etc. to encourage domestic demand for the import of resource products, we should add or lower the provisional tax rate for the import of some timber and paper products. In order to better meet the needs of people's lives, we should appropriately increase imports of domestic consumables which are relatively scarce in China or with foreign characteristics, add or reduce the freeze.

In order to promote the coordinated development of trade and environment, according to the State Council's comprehensive prohibition of importing the spirit of solid waste which is harmful to the environment and strongly reflecting the masses, it is in line with the adjustment time of import waste management catalogue. Since January 1, 2020, the provisional tariff rate for the import of 2 kinds of commodities, tungsten scrap and Nb scrap, has been abolished, and the MFN rate has been resumed.

In order to promote the construction of the "one belt and one way" high quality development, build a global high standard free trade area network and implement a mutually beneficial and open strategy, according to our FTA or preferential trade arrangements signed with the countries or regions concerned, China will continue to implement the agreement tax rate on some commodities originating in 23 countries or regions in 2020. Among them, China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Australia, South Korea, Georgia, Chile, Pakistan FTA and the Asia Pacific Trade Agreement have further reduced taxes. In 2020, we continued to implement preferential tax rates for the least developed countries that have established diplomatic relations with China and complete the exchange of documents, and adjusted the preferential tariff rate according to the list of the least developed countries of the United Nations and the transitional period in China.

Starting from July 1, 2020, China will also implement a fifth step tax reduction on the most favored nation rate of 176 information technology products, and at the same time link up with this, and adjust the provisional tariff rate of some of the information technology products.

The office of the Customs Tariff Commission of the State Council said that the above adjustment measures will help reduce import costs, promote orderly and free flow of international and domestic elements, promote the construction of a new higher level open economy system, enhance the level of opening to the outside world, expand new space for trade development, accelerate the construction of high standard free trade zones, and share development achievements with other countries and regions, and create a new situation of international trade that is open, cooperative, inclusive and win-win.