Entering 2023, tariffs usher in new adjustments——
From January 1st, 1020 commodities will be implemented with a provisional import tax rate lower than the most-favored nation tax rate; from January 2nd, the "Regional Comprehensive Economic Partnership Agreement" (RCEP) agreement tax rate will be implemented for some commodities originating in Indonesia; Starting from July 1, the eighth step of tax reduction will be implemented on the most-favored-nation tax rate for 62 information technology products...
In this tariff adjustment schedule, "decrease" has become a key word. Experts pointed out that in recent years, China has successively lowered import tariffs on related commodities and promoted the entry of global goods into the Chinese market. This not only meets the needs of domestic consumption upgrades and enterprise production, but also provides countries with broader market opportunities and shares the dividends of China's opening up.
The overall level of China's tariffs will be reduced to 7.3%
■ From January 1, 2023, China will implement a provisional import tax rate lower than the most-favored-nation tax rate for 1,020 commodities. This number has increased by 66 items compared with the previous year, maintaining growth for 4 consecutive years.
■ On January 2, RCEP came into force for Indonesia. So far, the world's largest free trade agreement has come into effect for 14 of its 15 signatories. Since January 2, China has implemented the agreed tax rate applicable to RCEP ASEAN member states in 2023 on some imported goods originating in Indonesia.
■ In 2023, China will reduce import tariffs on foods such as homogenized mixed food for infants and young children, frozen blue cod, cashew nuts, and small appliances such as coffee machines, juicers, and hair dryers. Among them, the tax rate reduction for homogenized mixed food, frozen blue cod and other commodities shall not be less than 50%.
■ Starting from July 1, 2023, China will also implement the eighth step of tax reduction on the MFN tax rate of 62 information technology products. After adjustment, China's overall tariff level will be reduced from 7.4% to 7.3%.
Further tax cuts in accordance with FTA and RCEP
At the beginning of the new year, RCEP has made new progress: it will come into force for Indonesia on January 2. So far, the world's largest free trade agreement has come into effect for 14 of its 15 signatories.
China is Indonesia's largest trading partner and Indonesia's largest export market. After RCEP came into force for Indonesia, China's new measures to reduce tariffs on goods are a highlight. The Customs Tariff Commission of the State Council recently released the tariff adjustment plan for 2023. According to the relevant regulations of RCEP and the entry into force of the agreement to Indonesia, starting from January 2, the agreement applicable to RCEP ASEAN member states in 2023 will be implemented for some imported goods originating in Indonesia. tax rate. Specifically, on the basis of the China-ASEAN Free Trade Agreement, China will reduce taxes on pineapple juice and canned food, coconut juice, pepper, diesel, paper products, some chemicals and auto parts produced in Indonesia. Immediate zero tariffs will be implemented on 67.9% of the products originating in Indonesia.
"The higher level of openness advocated and led by China is urgently needed by developing economies including Indonesia." Dai Ning, Indonesian Consul General in Shanghai, said that the China-hosted CIIE has enhanced the recognition and reputation of Indonesian brands in China In 2021, the bilateral trade volume between the two countries will increase by about 56%, of which Indonesian exports will increase by nearly 70%. The entry into force of RCEP for Indonesia will continue to promote the deepening of economic, trade and investment relations between Indonesia and China, and further strengthen existing cooperation.
Right now, RCEP has entered into its second year of effective implementation. For more than a year, China has implemented RCEP with high quality, fully implemented market opening commitments and agreement obligations, continued to promote tariff reduction and exemption, and promoted trade and investment liberalization and facilitation, injecting new impetus into the economic and trade development of the Asia-Pacific and the world.
While reducing tariffs for newly effective members this year, the Customs Tariff Commission of the State Council clearly stated that it will further reduce tariffs in accordance with the free trade agreements between China and New Zealand, South Korea, Australia, and Cambodia and RCEP.
"With the in-depth implementation of RCEP, New Zealand companies are faced with more favorable tariffs and more convenient trade measures. The improvement of the business environment has enabled the company's sales in China to grow rapidly, and it has also enabled Chinese consumers to quickly obtain high-quality products." New Zealand Enterprises Theland R&D General Manager Roy Van Denk said that China's huge market provides opportunities for international companies like Theland, and will also promote the recovery of the world economy. It is foreseeable that the inclusive development dividend of RCEP will make the Asia-Pacific region more prosperous.
Gu Qingyang, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, believes that tariff reductions have greatly reduced trade costs among member states, made trade activities more active, and strongly promoted economic growth. This is a tangible benefit brought by RCEP through trade channels . "China plays an important role in RCEP and is also the main export destination of other RCEP member countries. The stronger growth of China's economy in the future will provide RCEP with a broader space for development."
Reduced tariffs on several medical products and consumer goods
The new round of tariff adjustments involves not only the agreed tax rates, but also many new changes in the most-favored-nation tax rates and provisional tax rates. According to industry insiders, the most-favored-nation tax rate is the tax rate China applies to imported goods from most countries. The provisional tax rate refers to the tariff rate imposed on some imported and exported goods within a certain period of time. The provisional tax rate is generally lower than the most-favored-nation tax rate. It is a common way to adjust tariffs independently.
According to the 2023 tariff adjustment plan, starting from January 1, China will implement a provisional import tax rate lower than the most-favored-nation tax rate for 1,020 commodities. This number has increased by 66 items compared with the previous year, maintaining growth for 4 consecutive years.
After combing through the catalog of this adjustment, the reporter found that there are many medical products, such as the implementation of zero tariffs on some anti-cancer drug raw materials, anti-new coronavirus drug raw materials, and cancer pain relief drugs, and the reduction of dentures, raw materials for vascular stents, contrast agents and other medical products. Supplies import duties.
According to Zhang Jianping, deputy director of the Academic Committee of the Research Institute of the Ministry of Commerce, in the tariff adjustments in recent years, medicine has always been the key area of tax reduction, including the implementation of zero tariffs on the first and second batches of anticancer drugs and rare disease drug raw materials. , Reduce import tariffs on medical products such as artificial heart valves, hearing aids, intracranial thrombectomy stents, artificial joints, etc. These measures will help to further protect people's health and reduce the economic burden of patients.
Daily consumer goods are another focus of this tariff adjustment. According to the published provisional tax rate table for imported goods, in 2023, the import tariffs on homogenized mixed food for infants and young children, frozen blue cod, cashew nuts and other foods, as well as small household appliances such as coffee machines, juicers and hair dryers will be reduced. Among them, the tax rate reduction for homogenized mixed food, frozen blue cod and other commodities shall not be less than 50%.
Zhang Jianping believes that at present, China's consumer demand continues to grow, the consumption structure is upgrading rapidly, and the demand for foreign characteristic and advantageous consumer products is heating up. This tax reduction is conducive to conforming to the trend of consumption upgrading and meeting the new consumption needs of residents with high-quality supply; at the same time, it is conducive to the competition between imported products and domestic products, guiding the transformation and upgrading of the supply system, keeping up with changes in consumer demand, and achieving higher levels of consumption. Supply and demand dynamic balance.
In addition to medical products and consumer goods, this adjustment also highlights two aspects: one is to implement zero tariffs on potash fertilizers and unwrought cobalt, and reduce import tariffs on some wood and paper products, boric acid and other commodities; import tariffs on ink screens, iridium oxide for fuel cells, and roller bearings for wind turbines. Experts said that reducing import tariffs on these commodities will not only help strengthen resource supply capabilities, but also promote innovation and development of advanced manufacturing industries and accelerate industrial transformation and upgrading.
The overall level of China's tariffs will be reduced to 7.3%
Frequent tax reduction measures have promoted the continuous reduction of China's overall tariff level. According to the announcement issued by the Customs Tariff Commission of the State Council, from July 1, 2023, China will also implement the eighth step of tax reduction on the MFN tax rate of 62 information technology products. After adjustment, China's overall tariff level will be reduced from 7.4% to 7.3%.
In December 2015, 24 WTO members, including China, the United States, Europe, Japan, and South Korea, reached an agreement on expanding the product scope of the "Information Technology Agreement." According to the principle of most-favored-nation treatment, the import tariffs on 201 items of information technology expanded products were gradually eliminated. These products mainly include information and communication products, semiconductors and their production equipment, audio-visual products, medical equipment, instruments and meters, etc. The annual global trade volume exceeds US$1 trillion. In 2016, China implemented tax reductions for the first time on products expanded to the scope of the "Information Technology Agreement", and has implemented seven-step tax reductions so far.
Industry insiders analyzed that the gradual tax reduction according to the agreement will help reduce the import cost of related components and equipment, better meet the production needs of enterprises, and promote the high-quality development of relevant domestic industries and economies. At the same time, it will also effectively promote global trade and economic development. High-tech development.
The overall level of tariffs is one of the important indicators of the openness of a country's trade in goods. Statistics show that over the past 20 years since joining the WTO, China has fully fulfilled its WTO commitments and continuously expanded its market opening. The overall tariff level has dropped from 15.3% to 7.4% in 2022, which is lower than the 9.8% WTO commitment.
"Since 2018, China has introduced a series of measures such as implementing zero tariffs on imported anti-cancer drugs and encouraging the import of innovative drugs. In the following years, Bayer Prescription Drugs has a number of innovative drugs approved for marketing in China." Chief Financial Officer of Bayer China Official Steve said, "We agree with and attach great importance to China's opening up to the outside world. We have seen a very favorable business environment in China, which makes us more confident in the future."
Givaudan, a Swiss flavor and fragrance company, is also one of the beneficiaries of China's tariff cuts. "The reduction of tariffs has brought significant benefits to the company and enhanced our confidence in development." Wu Chongqing, director of operations of Givaudan China, said that in 2022, China will reduce the import tax rate of peppermint oil and orange oil, and the import cost of the company's two main production raw materials will drop. , Saving tens of millions of yuan in taxes every year, "This not only alleviates the cost pressure brought about by rising raw material prices, but also enables the company to provide downstream customers and consumers with more cost-effective products, giving our Chinese factories more advantages .”
Zhang Jianping said that in recent years, China has taken the initiative to reduce the overall level of tariffs and introduced a series of new measures to reduce tariffs on its own, allowing the world to see that China's door is opening wider and wider, allowing China's development to better benefit the world, and promoting the sharing of Great market opportunity in China.
