News Analysis： Promoting High-quality Development with Tariff Adjustment —— Analysis of China’s new tariff regulations in 2022

Xinhua News Agency, Beijing, December 15th Topic: News Analysis: Promoting High-quality Development with Tariff Adjustment —— Analysis of China’s new tariff regulations in 2022

Xinhua News Agency reporter Shen Cheng, Liu Hongxia

At the end of each year, China will adjust the tariff rate of some imported goods according to the economic and social development. With the approval of the State Council, the State Council Customs Tariff Commission issued a notice on 15th, clarifying the tariff adjustment plan for 2022.

Experts and industry insiders interviewed by Xinhua News Agency said that this adjustment has reduced tariffs on some medical products, consumer goods, key components and other imported goods, which will further meet the needs of people’s lives, enterprise production and social development, help maintain the security and stability of the domestic industrial chain supply chain, support scientific and technological innovation and industrial transformation and upgrading, expand high-level opening up and promote high-quality development.

Focus on people’s livelihood concerns and adjust the provisional tax rates for some medical products and consumer goods.

From January 1, 2022, China will impose a provisional import tax rate lower than the most-favored-nation tax rate on 954 commodities.

The reporter checked the schedule of the notice and found that many of the imported goods that adjusted the provisional tax rate were medical products related to people’s livelihood, such as new anticancer drug radium chloride injection, intracranial embolectomy stent, artificial joint and so on.

Wang Jun, director of the Department of Neurointervention, Department of Neurology, PLA General Hospital, paid special attention to the product of intracranial embolectomy stent. "Intracranial embolectomy stent is a kind of instrument to take out the formed cerebral thrombosis. After reducing the import tariff this time, it will reduce the cost of the instrument and reduce the treatment cost for patients."

Since 2018, China has successively cancelled the tariffs on the first and second batches of anticancer drugs, raw materials for rare diseases and some alkaloids used to treat asthma, reducing the import tariffs on artificial heart valves, hearing AIDS and other medical equipment. "Looking back at the tentative tax rate adjustment in recent years, the goal of reducing the economic burden of patients and improving people’s health and well-being is clear." Xu Guangjian, a professor at the School of Public Administration of Renmin University of China, said.

The notice clearly stated that in 2022, import tariffs on some consumer goods will be reduced, including high-quality aquatic products such as salmon and cod, baby clothes, dishwashers, ski equipment, etc. It will also impose zero tariffs on works of art such as oil paintings over 100 years old.

"Reducing import tariffs on these products closely related to people’s lives can better meet people’s consumption upgrading needs and better meet people’s yearning for a better life." Guo Yongxin, secretary general of China National Light Industry Federation, said.

Promote transformation and upgrading, and adjust the provisional tax rates for some environmental products and key components.

Promoting green and low-carbon development is a highlight of this tariff adjustment. According to the notice, in 2022, import tariffs will be reduced for gasoline engine particulate traps, electronic throttle valves for automobiles, and peat that can be used for soil remediation.

Huang Yonghe, a senior expert at China Automotive Technology and Research Center, said that gasoline engine particulate traps, electronic throttle valves and other products are important parts to promote energy saving and emission reduction of automobiles. After reducing tariffs, it will help support the green and low-carbon development of the automobile industry.

A number of tariff adjustments help optimize and upgrade the manufacturing industry. For example, in 2022, the import tariffs on key parts such as high purity graphite accessories, high-voltage cables for high-speed trains, membrane electrode assemblies and bipolar plates for fuel cells will be reduced, and the import tariffs on raw materials needed by food processing, daily chemical and leather manufacturing industries such as cocoa beans, plant essential oils and animal skins will be reduced.

In addition, from July 1, 2022, China will also implement the seventh step of reducing the MFN tariff rate of 62 information technology products, and its average tax rate will be reduced from 3.4% to 1.7%.

According to industry insiders, these measures are based on domestic development needs, which is conducive to maintaining the security and stability of the domestic industrial chain supply chain, supporting scientific and technological innovation and industrial transformation and upgrading, and promoting green and low-carbon development.

Promote high-level opening to the outside world and adjust the relevant agreed tax rates.

In order to continuously promote high-level opening up, according to the free trade agreements and preferential trade arrangements signed between China and relevant countries or regions, some commodities originating in 29 countries or regions will be subject to agreed tax rates in 2022.

Among them, China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Pakistan, Georgia, Mauritius and other bilateral free trade agreements and Asia-Pacific trade agreements will further reduce taxes; Regional Comprehensive Economic Partnership Agreement (RCEP) and China-Cambodia Free Trade Agreement came into effect on January 1, 2022, and tax reduction was implemented.

It is worth noting that the China-Cambodia FTA is the first FTA between China and the least developed countries. "China and Cambodia have given each other 97.5% and 90% of the tax items for zero-tariff products in goods trade, which is the highest level in all FTA negotiations between the two sides so far and will help enhance the well-being of enterprises and people of the two countries." The relevant person in charge of the Customs Department of the Ministry of Finance said.

In terms of regional comprehensive economic partnership agreement, China will reach a tariff concession arrangement with Japan for the first time. "In the first year of tax reduction, according to the tariff items in 2022, China and Japan will immediately implement zero tariffs on tax items originating in the other side of 24.9% and 55.5% respectively. For related companies, more market opportunities will soon be available. " Cui Fan, a professor at university of international business and economics, said.

In addition, the reporter learned that the State Council Customs Tariff Commission issued an announcement on the same day, expanding the range of products exported to China by the least developed countries that have established diplomatic relations with China, giving the least developed countries 98% of the tax items with zero tariff treatment, and agricultural products such as peanut oil and chemicals such as polyethylene will be included in the scope of zero tariff treatment.

"This will further promote China’s imports from relevant African countries, promote the construction of a high-level community of destiny between China and Africa, further share market opportunities with the least developed countries, and practice mutual benefit and win-win." The relevant person in charge of the Customs Department of the Ministry of Finance said.