Offcial of the Ministry of Finance Answers Questions Raised by Reporters Concern

Q: Which countries will China implement conventional tariff rate on? And what about the detailed information?

A: It's of significant importance to boost the role of tariff played on promoting multilateral and bilateral trade cooperations, and to explore international market to maintain the stable development of foreign trade. According to series of Free Trade Agreement and Tariff Preferential Agreement that China signed with other countries and regions in 2010, China will implement conventional tariff, which is more preferential than most-favored-nation tariff rate, on commodities originated from some countries, and implement special preferential tariff rate on commodities from some least-developed countries, for the purpose of boosting trade cooperation with relevant countries and regions, realizing mutual benefit and further development.

In 2010, China implements its conventional tariff on more products with much preferential rates than in 2009.

First, to implement conventional tariff under Asia-pacific Trade Agreement on commodities from South Korea, India, Sri Lanka, Bangladesh and Laos, including 1767 tariff items with the average tariff rate of 8.9 percent, an average preferential scope of 23.3 percent contrasted with most-favored-nation tariff rate.

Second, to implement China-Chile Free Trade Conventional Tariff on commodities originated from Chile, including 7,029 tariff items with the average tariff rate of 1.3 percent and an average preferential scope of 87.7 percent.

Third, to implement China-Pakistan Free Trade Conventional Tariff on commodities from Pakistan, including 6,240 tariff items with the average tariff rate of 5.3 percent and an average preferential scope of 43 percent.

Fourth, to implement China-New Zealand Free Trade Conventional Tariff on commodities from New Zealand, including 7,040 tariff items with the average tariff rate of 4.0 percent and an average preferential scope of 61.6 percent.

Fifth, to implement China-Singapore Free Trade Conventional Tariff on commodities from Singapore, including 2,753 tariff items, with the tariff rate of zero and an average preferential scope of 100 percent. Especially, from 2010, China-ASEAN Free Trade Zone will lower the tariff on the fourth batch normal commodities and over 90 percent commodities under zero-tariff in both entities, and China and ASEAN will fully realize free commodity trade.

After lowering the tariff, the number of ASEAN commodities under conventional tariff that China implements amount to 6,800, with the general average tariff rate of 0.1 percent and an average preferential scope of 99 percent. In addition, in conformity with relevant agreements, those aforementioned countries will also implement conventional tariff on Chinese commodities. In 2010, under the framework of tightening the trade relationship of Chinese Mainland with Hong Kong and Macao, China will continue to implement zero-tariff on 1,587 and 1,209 commodities respectively from Hong Kong and Macao and under the preferential criterion of place of origin.

In addition, China will continue to implement special tariff rate on commodities from 41 less-developed countries including Laos, Ethiopia, etc. in 2010. Thus, most of the commodities realize zero tariff, and the scope of tariff items cover most of commodities that China imports from those aforementioned countries.