BEIJING (Reuters) – China will cut import tariffs on nearly 1,500 consumer products ranging from cosmetics to home appliances from July 1, in a bid to boost imports as part of efforts to open the economy.
FILE PHOTO: Red flags flutter outside the Great Hall of the People before the second plenary session of the Chinese People’s Political Consultative Conference (CPPCC) in Beijing, China March 8, 2018. REUTERS/Aly Song
The move would be in step with Beijing’s pledge to its trade partners – including the United States – that China will take steps to increase imports and offers a boon to global brands looking to deepen their presence in China.
The finance ministry published a detailed list of products affected and their new reduced tax rates on Thursday, following early announcements of the broader plan.
Starting next month, the average tariff rate on 1,449 products imported from most favored nations will be reduced to 6.9 percent from 15.7 percent, which is equivalent to a cut of about 60 percent, the finance ministry said in a statement on its website.
That followed an announcement from the State Council, or the country’s Cabinet, on Wednesday that China will cut import tariffs on consumer items including apparel, cosmetics, home appliances, and drugs.
The tariff cuts this time are more broad-ranging than previous reductions.
Import tariffs for apparel, footwear and headgear, kitchen supplies and fitness products will be more than halved to an average of 7.1 percent from 15.9 percent, with those on washing machines and refrigerators slashed to just 8 percent, from 20.5 percent.
Tariffs will also be cut on processed foods such as aquaculture and fishing products and mineral water, from 15.2 percent to 6.9 percent.
Cosmetics, such as skin and hair products, and some medical and health products, will also benefit from a tariff cut to 2.9 percent from 8.4 percent.
In particular, tariffs on drugs ranging from penicillin, cephalosporin to insulin will be slashed to zero from 6 percent before.
In the meantime, temporary tariff rates on 210 imported products from most favored nations will be scrapped as they are no longer favorable compared with new rates.
In December, China cut import taxes on almost 200 consumer products including food, health supplements, pharmaceuticals, garments and recreational goods to 7.7 percent on average from 17.3 percent, according to the finance ministry.
Reporting by Min Zhang and Stella Qiu in Beijing and Chyenyee Lee in Singapore; Editing by Clarence Fernandez and Kim Coghill
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