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Aug. 3 – China’s Customs Tariff Commission of the State Council released a circular (shuiweihui [2011] No.12) on June 24, announcing adjustments to import duty rates on 33 kinds of products starting on July 1, 2011. Goods that are subject to a tariff cut according to the document include fuel oils and several types of raw materials to the country’s textile industry.
Based on Circular No.12 and according to a Ernst & Young summary, the import duty reduction will mainly go to the following items:
- Gasoline, diesel and fuel oils No. 5-7
- Certain woven fabrics of cotton and linen threads
- Certain tents and cushions
- Zinc and zinc alloy
- Photochromic lenses of glasses
- Certain respirators and gas masks
- Fresh or dried chestnuts and ginkgo nut
The circular has allowed tariff cuts of more than 50 percent on most mentioned items. It is hoped that the implementation of the new tariff rates on major fuel products will lead to a price adjustment in China’s retail gasoline market and reduce costs on fuel oil for airline companies. The lower tax burdens on fabrics and threads are also expected to better meet the domestic textile industry’s demand for cheaper raw materials.
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