MOFCOM Talks on China's Tariff Exemption for Products Imported from African LDCs

As from July 1, 2010, in accordance with relevant exchange of notes jointly signed by China and 26 African least developed countries (LDC) including Ethiopia, Liberia, Congo (Kinshasa), and Mozambique, 60% of the products imported from the foregoing countries will start enjoying tariff exemption in China.

The tariff exemption on products exported to China from the African LDCs is an important measure of China in earnestly implementing the commitment of Forum on China-Africa Cooperation (FOCAC), helping with the development of African countries, and further expanding the friendly cooperation relationship based on equality, mutual benefits and win-win progress, said a principal with the Department of Western Asian and African Affairs under the Ministry of Commerce of P. R. China (MOFCOM).

At present, among the 30 African LDCs having diplomatic relations with China, the exchange of notes for 4 countries including the Republic of Angola, the Republic of Senegal, the Republic of Niger, and the Federal Republic of Somalia are still in progress, planned to put into implementation at the beginning of 2011.

As per the principal, since 2005, China has applied tariff exemption treatment to some commodities imported from the African LDCs. In 2006, after the Beijing Summit of the FOCAC, China expanded the range of commodities enjoying such treatment to 478 tax items. The implementation of the policy has brought remarkable results, promoting the exportation of lots of African commodities to China. To further open up the market towards African commodities and strengthening their export competitiveness, within the next 3 years after 2010, the Chinese Government will gradually offer tariff exemption treatment to 95% of the products from all the African LDCs having diplomatic relations with China.

This year, China first starts applying tariff exemption to 60% of such products, expanding the tax items of commodities enjoying the treatment to 4,700 from previous 478. This is a decision based on China's own economic strength, a unilateral and voluntary preferential policy, which is consistent with WTO rules.

Annex: Summary of Countries Enjoying Part of Tariff Exemption Treatment
Burundi, Tanzania, Guinea-Bissau, Ethiopia, Comoros, Rwanda, Guinea, Benin, Mauritania, Eritrea, Uganda, Togo, Malawi, Lesotho, Sudan, Mozambique, Mali, Djibouti, Central Africa, Sierra Leone, Liberia, Chad, Madagascar, Zambia, Congo (Kinshasa), and Equatorial Guinea.