The import tariffs of certain commodities will be changed from January 1st, 2021. This tariff adjustment is a major adjustment in recent years. It not only involves the adjustment of the tax rate, but also the adjustment of the tax items that have not been touched in the past few years. The total number of tax items will reach 8,580 after adjustment, increase 31 compared to 2020.
The tariff adjustment plan for 2021 clearly stated that zero tariffs will be imposed on some anti-cancer drugs and rare disease drug raw materials; the import tariffs of fuel cell circulation pumps, aluminum silicon carbide substrates, arsine and other products will be further reduced, from 5%-8% to 2%-4%.
From January 1, the tariff rate of the Asia-Pacific Trade Agreement will be implemented for Mongolia. The tariff rate for the coke that China imports more from Mongolia will also be lowered from the current 5% to 2.5% of the agreed tax rate, which will undoubtedly promote the diversification of China's energy imports.
1. Adjust the import tariff rate
(1) Most favored nation tax rate
(1.1) Effective January 1, 2021, 883 items of goods (excluding tariff quota goods) will be subject to temporary import tariff rates; from July 1, 2021, the temporary import tariff rates of 9 information technology products will be cancelled.
(1.2) The most-favored-nation tax rate for information technology products listed in the Schedule of the "Amendment to the Tariff Concession Schedule of the People's Republic of China Accession to the World Trade Organization" will be implemented from July 1, 2021 on the sixth step of tax reduction.
(2) Tariff quota rate
Continue to implement tariff quota management on eight categories of commodities including wheat, and the quota tax rate remains unchanged. Among them, the quota tax rate of urea, compound fertilizer, and ammonium hydrogen phosphate will continue to implement a temporary tax rate of 1%. Continue to implement sliding tariffs on a certain amount of additional imported cotton and make appropriate adjustments.
(3) Conventional tax rates and preferential tax rates.
(3.1) According to the trade agreements or tariff preferential arrangements signed between China and relevant countries or regions, in addition to the agreed tax rates that have been approved by the State Council before, starting from January 1st, 2021, China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, Australia, South Korea, Chile, Georgia, Pakistan’s bilateral trade agreements and the Asia-Pacific Trade Agreement’s treaty tariff rates have been further reduced. Among them, some imported goods originating in Mongolia will be subject to the Asia-Pacific Trade Agreement tariff rates from January 1, 2021. From July 1, 2021, in accordance with the provisions of the China-Switzerland bilateral trade agreement and the Asia-Pacific trade agreement, the relevant treaty tax rate will be further reduced.
(3.2) According to the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Mauritius, starting from January 1, 2021, the first-year tax rate of the agreement will be implemented on some commodities originating in Mauritius.
(3.3) When the most-favored-nation tax rate is lower than or equal to the agreed tax rate, the provisions of the agreement shall be implemented in accordance with the provisions of the relevant agreement; if the agreement has no provisions, the two shall apply from the lower.
(3.4) Continue to implement preferential tax rates for the least developed countries that have established diplomatic relations with China and completed the exchange of notes, and the scope of applicable commodities and tax rates remain unchanged.
2. Continue to implement the current export tariff rates
Starting from January 1, 2021, the export tariffs will continue to be imposed on 107 commodities such as ferrochrome. The export tax rate or temporary export tax rate will be applied, and the scope of the collection of goods and the tax rate will remain unchanged (Attached Table 4)
3. Adjust the tax rules, tax items and notes
In order to meet the needs of industrial development and trade management, some tax items and notes were adjusted (Attached Tables 5 and 6). After adjustment, the total number of tax items in 2021 will be 8,580
4. Relevant implementation time
The above plan, unless otherwise specified, will be implemented from January 1st, 2021.