China announces more import and export duty cuts for 2019
21 January 2019
Effective from 1 January 2019, China slashed import tariffs on 706 categories of products across a wide range of commodity codes (including categories as diverse as seafood, chemicals, industrial machinery, and consumer electronics), the third such action announced by the Ministry of Finance in twelve months. At the same time, export duties for a number of product types are being reduced.
A further 298 product types relating to information technology will have their MFN (most-favoured nation) import tariffs cut again from 1 July 2019, with other benefiting from provisional reductions from that date.
Here are links to the original (Chinese) lists of the commodity codes affected:
- Products with import tariffs reduced on 1 January 2019
- Products with export duties reduced on 1 January 2019
- IT products with import duties to be reduced on 1 July 2019
All of these are designed to stimulate China’s economy in the face of slowing growth, including consumer spending. China faces considerable domestic pressures, not least its high level of debt, aging population and the need to cut some sectors (and regions) on unhealthy “zombie” SOEs while maintain social stability. Externally, “trade-war” with the USA now means that some Chinese exporters’ order books are looking less full than expected.
As a result, we would not be surprised to hear of further similar announcements from the Ministry of Finance in the coming year.
To find out if your imports or exports are affected by these changes, contact our China specialist.
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