China’s tariff adjustment plan for 2023 announced!

Source: admin Time: 2023-01-03

On December 29, 2022, the Tariff Bureau of the Ministry of Finance issued the "Announcement of the Tariff Committee of the State Council on the Tariff Adjustment Plan for 2023". According to the "Import and Export Tariff Regulations of the People's Republic of China" and relevant regulations, the import and export tariffs of some commodities will be adjusted from January 1, 2023.

The specific contents are as follows:

my country will adjust import and export tariffs on some commodities from January 1, 2023
In order to implement the spirit of the 20th National Congress of the Communist Party of China and the decisions and arrangements of the CPC Central Committee and the State Council, give full play to the role of tariffs as a link between domestic and international circulations, and help build a new development pattern and achieve high-quality development through high-level opening up, the State Council Tariff Commission issued an announcement with the approval of the State Council that import and export tariffs on some commodities will be adjusted in 2023.

In order to enhance the linkage effect of the two markets and two resources at home and abroad, my country will implement a temporary import tariff rate lower than the most-favored-nation tariff rate on 1,020 commodities from January 1, 2023. First, to protect people's health and reduce the economic burden on patients, some raw materials for anti-cancer drugs, raw materials for anti-new coronavirus drugs, and cancer analgesics will be subject to import tariffs.Implement zero tariffs，reduceDentures, raw materials for vascular stents, contrast agents and other medical suppliesImport Duties。

Second, we should follow the trend of consumption upgrading and meet the consumption needs of residents with high-quality supply.reduceHomogenized mixed foods for infants and young children, frozen blue cod, cashews and other foods, coffee machines, juicers, hair dryers and other small appliancesImport Duties。

The third is to strengthen resource supply capabilities, improve the resilience of the industrial chain and supply chain, and provide resources for potash fertilizers, unwrought cobalt, etc.Implement zero tariffs，reduceImport tariffs on some wood and paper products, boric acid, etc.

Fourth, promote the innovative development of advanced manufacturing and accelerate industrial transformation and upgrading.reduceLithium niobate, electronic ink screens, iridium oxide for fuel cells, roller bearings for wind turbines, etc.Import tariffs. 

Starting from January 1, 2023, based on the development of domestic industries and changes in supply and demand, and within the scope of my country's commitment to joining the World Trade Organization, import and export tariffs on some commodities will be increased. Among them, chestnuts, licorice and its products, large tires, sugarcane harvesters, etc.Cancel the temporary import tariff rate and restore the most-favored-nation tariff rate;In order to promote the transformation and upgrading of related industries and high-quality development, the export tariffs on aluminum and aluminum alloys will be increased.

Starting from July 1, 2023, my country will alsoThe eighth step of tariff reduction will be implemented for the most-favored-nation tariff rates of 62 information technology products. After the adjustment, my country's overall tariff level will be reduced from 7.4% to 7.3%. 

In order to expand the global high-standard free trade zone network, continue to promote high-level opening up, and promote the construction of an open world economy, according to the free trade agreements and preferential trade arrangements signed between my country and relevant countries or regions,In 2023, the agreement tariff rates will be applied to some goods originating from 29 countries or regions under 19 agreements.Among them, according to the relevant provisions of the Regional Comprehensive Economic Partnership Agreement (RCEP) and the entry into force of the agreement in Indonesia, from January 2, 2023,The RCEP agreement tariff rates will be applied to some goods originating from Indonesia. 

In 2023, we will continue to implement preferential tariffs for the least developed countries that have established diplomatic relations with China and completed the exchange of documents, to support and help the least developed countries accelerate their development.

In order to adapt to the needs of industrial development and scientific and technological progress, the domestic sub-items will be appropriately adjusted in 2023, and tax items such as white tea, vegetable seeds, surgical robots, and lidar will be added.After the adjustment, the total number of tariff items is 8,948.

The above-mentioned adjustment measures adhere to the people-centered approach, fully, accurately and comprehensively implement the new development concept, coordinate development and security, support the construction of a new development pattern, and focus on promoting high-quality development. They are conducive to enhancing the endogenous driving force and reliability of the domestic circulation, supporting the cross-cycle design and counter-cyclical adjustment of macroeconomic policies, and promoting the overall improvement of economic operation; they are conducive to strengthening resource supply guarantees, accelerating the upgrading and development of the industrial system, and meeting the people's yearning for a better life; they are conducive to promoting high-level opening up, forming new advantages in international cooperation and competition, and improving the quality and level of international circulation.

2023 Tariff Adjustment Plan

1. Import tariff rate

1. Provisional import tax rates.

Provisional import tariffs will be imposed on 1,020 commodities (excluding commodities with tariff quotas); the provisional import tariffs on seven coal products will be implemented until March 31, 2023, and the most-favored-nation tariffs will be restored from April 1, 2023; the provisional import tariffs on one product covered by the Information Technology Agreement will be implemented until June 30, 2023, and the most-favored-nation tariff will be implemented from July 1, 2023, with a zero tariff rate (see Appendix 1).

(B) Most-Favoured-Nation Tariff Rate

1. From July 1, 2023, the most-favored-nation tariff rates for the expanded products of the Information Technology Agreement listed in the Appendix to the Amendment to the Tariff Concession Schedule of the People's Republic of China's Accession to the World Trade Organization will beImplementing the eighth step of tax cuts(See Appendix 2).

2. Adjust the most-favored-nation tariff calculation method for some frozen chicken products (see Appendix 3).

(III) Tariff quota rate.

The tariff quota management will continue to be implemented for eight categories of commodities, including wheat, with the tax rate unchanged. Among them, the quota tax rate for three fertilizers, urea, compound fertilizer and ammonium hydrogen phosphate, will continue to be implemented at a provisional rate of 1%. The sliding scale tax will continue to be implemented for a certain amount of cotton imported outside the quota (see Appendix 4).

(iv) Agreed tariff rates.

1. According to the free trade agreements and preferential trade arrangements signed and in force between my country and relevant countries or regions, the agreed tariff rates will be implemented on some imported goods originating from 29 countries or regions under 19 agreements:

First, in accordance with the free trade agreements between China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Pakistan, Mauritius, Cambodia and the Regional Comprehensive Economic Partnership (RCEP)Further tax cutsAccording to relevant regulations, the China-Switzerland Free Trade Agreement will expand the scope of some information technology agreements from July 1, 2023.Lowering the treaty tax rate。

Second, the free trade agreements between China and ASEAN, Chile, Singapore, Georgia, as well as the Closer Economic Partnership Arrangement (CEPA) between the mainland and Hong Kong and Macao and the Cross-Strait Economic Cooperation Framework Agreement (ECFA) have completed tariff reductions.Continue to implement the agreed tariff rates.

Third, the Asia-Pacific Trade Agreement will continue to be implemented. From July 1, 2023, some information technology agreements will be expanded to include products.Lowering the treaty tax rate(See Appendix 5).

2. In accordance with the relevant provisions of RCEP and the entry into force of the agreement for Indonesia, from January 2, 2023, the agreement tariff rates applicable to RCEP ASEAN member countries in 2023 will be implemented on some imported goods originating in Indonesia.

3. When the most-favored-nation tariff rate is lower than or equal to the agreement tariff rate, if the agreement has provisions, the relevant agreement provisions shall prevail; if the agreement has no provisions, the lower of the two shall apply.

(V) Preferential tax rates

We will continue to grant zero tariff treatment to the 44 least developed countries that have established diplomatic relations with China and completed the exchange of documents, implement preferential tariff rates, and the scope of applicable goods and tariff rates will remain unchanged.

2. Export tariff rate

Continue to impose export tariffs on 106 commodities including ferrochrome, and increase export tariffs on aluminum and some aluminum alloys (see Appendix 6)

3. Tariff Items

According to domestic needs, some tariff items and notes are adjusted (see Appendix 7). After the adjustment, the number of tariff items in 2023 will be 8,948.。

IV. Implementation time

The above plan shall be implemented from January 1, 2023, unless otherwise specified.

Appendix (with download link):

1. Provisional tariff table for imported goods

http://gss.mof.gov.cn/gzdt/zhengcefabu/202212/P020221229360730043289.pdf

2. Most-Favoured-Nation Tariff Rate Table for Some Information Technology Products

http://gss.mof.gov.cn/gzdt/zhengcefabu/202212/P020221229360730239738.pdf

3. Most-Favoured-Nation Tariff Adjustment Table for Some Frozen Chicken Products

http://gss.mof.gov.cn/gzdt/zhengcefabu/202212/P020221229360730401046.pdf

4. Tariff Quota Commodity Tax Items and Rates Table

http://gss.mof.gov.cn/gzdt/zhengcefabu/202212/P020221229360730612870.pdf

5. Free Trade Agreement and Preferential Trade Arrangement Implementation Rate Table

http://gss.mof.gov.cn/gzdt/zhengcefabu/202212/P020221229360730796944.pdf

6. Export Commodity Tax Rate Table

http://gss.mof.gov.cn/gzdt/zhengcefabu/202212/P020221229360731080830.pdf

7. Import and export tariff adjustment table

http://gss.mof.gov.cn/gzdt/zhengcefabu/202212/P020221229510483484668.pdf