Wednesday, 20 June, 2018

China to Cut Import Tariffs on Consumer Goods

China is going to cut import tariffs on a range of consumer items starting from July 1st 2018, according to the State Council meeting on May 30th, 2018.

The reduced tariff will apply to nearly 1,500 consumer goods such as cosmetics, apparel, home appliances and processed foods. For the import of apparel, footwear and headgear, kitchen supplies and fitness products, the average tariff rate will be cut from 15.9% to 7.1%. For household appliances such as washing machines and refrigerators, the import tax rate will be reduced from 20.5% to 8%. For processed foods such as aquaculture products, fishing products, and mineral water, the import tariff will fall from 15.2% to 6.9%. And for importing detergents, cosmetics such as skin and hair products and some medical health products, the tax rate will drop from 8.4% to 2.9%.

Chart 1:  Import Tariffs on Consumables to be Adjusted (Excerpt)

Category

Previous Import Tariff (%)

Adjusted Tariff (%)

Apparel, footwear and headgear, kitchen supplies and fitness products

15.9

7.1

Household appliances (washing machines, refrigerators, etc.)

20.5

8

Processed foods (aquaculture products, fishing products and mineral water)

15.2

6.9

Detergents, cosmetics (skin and hair products) and some medical health products

8.4

2.9

The tax cuts can be deemed as a follow-up to the the measures taken in December, when China reduced its import tariffs, from an average 17.3% to 7.7%, on 187 consumer goods including pharmaceuticals, food, health supplements and clothing. 

These reductions were introduced to encourage consumers to spend more at home rather than on trips overseas.

The tariff cuts will further open China's consumer market, and force its industries to upgrade and boost competitiveness. The decision will also benefit global brands that are looking to expand into China’s huge market.

Please click here for the complete list of tariff reductions. 

 

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