Import tariff cuts announced
May 26, 2015 Category Foreign trade, Weekly
China will cut import tariffs by about 50% for some consumer goods in June to boost domestic consumption. Tariffs for imported skin-care products will be slashed from 5% to 2%, diapers from 7.5% to 2%, leather boots from 24% to 12%, and woolen suits from 17.5% to 10%, the Ministry of Finance said in a statement. Tariffs for fur clothing, cashmere jumpers and sneakers have also been halved to between 7% and 12%. The Chinese government decided in late April to cut import tariffs as the country seeks to boost domestic consumption as more wealthy Chinese tourists shop abroad. But Zhang Junwei, Researcher with the Development Research Center of the State Council, noted that cutting import tariffs alone could only have limited effect in bringing consumption home as the tariffs only make up a small part of the total price. Value added tax (VAT), consumption tax, distribution costs and the brand’s pricing strategy play a greater role in prices of imported goods, experts said. China has so far cut import tariffs for some infant food, medicine and camera lenses, the Shanghai Daily reports. The average tariff across all products in China is currently 9.8%. The average duty rate on the items included in the cuts is much higher than that figure, and considerably higher than the average in many other Asian countries.
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