Tariff on Textile Industry and Steel Industry Will Be Adjusted in the Coming Yea

As disclosed by the Ministry of Finance, tariff adjustment will be made in the coming year to relieve operational difficulty in such industries as textile, steel products and chemical fertilizer.
 

In light of import, lower provisional tax rates will be adopted in 2009, so as to properly reduce the import tariff on some productive raw materials that have a larger domestic demand. For example, the import of advanced technology, equipment and key components will be further expanded.
Also, in the coming year, lower provisional tax rates on the import of 670 kinds of commodities will be implemented, mainly including resources and energy-related products, such as coal, fuel oil and stone, advanced industrial and agricultural equipment, public health products and household products, etc.
 

Zhang Bin, Deputy Director of Tax Revenue Office, Finances and Trade Economy Bureau, China Academy of Social Sciences, pointed out that tariff reduction can also cut down the costs of imported raw materials, thus relieving the pressure of domestic manufacturers in this respect.
 

In light of export, the Ministry of Finance expressed that the policies of canceling the export tariff on some steel products and adjusting the seasonal export duties on chemical fertilizer like carbamide will be resumed; in the meanwhile, the special export tariff rate on some chemical fertilizer and its raw materials will be reduced.
 

Since the outbreak of the world financial crisis, the raw material industry in China has become one of the most vulnerable fields, especially steel, non-ferrous metal and petrochemical enterprises. It is reported that Jiangsu, as Top 1 export province of steel products nationwide, has encountered with dramatic decline in the export of steel products since September this year.
 

An Tifu, Professor of Finance Department, Renmin University of China, and Deputy Chairman of Chinese Taxation Institute, pointed out yesterday that tax reimbursement for export and tariff are two taxable items that can pose greatest impact on foreign trade, and there is still room for further adjustment. The current problems in the production industry could be solved via the cancellation of export tariff.
 

The relevant official of the Ministry of Finance answered the correspondents' questions yesterday afternoon and pointed out that the purpose of tariff adjustment in the coming year is to promote stable growth of the import & export trade and structural optimization, implement positive fiscal policies, give macroeconomic control of tariff into full play and promote a stable and rapid development of economy.
 

Due to the financial crisis, the recession in demand from the outside will gradually intensify the impact on China's foreign trade. According to the latest data released by the General Administration of Customs, the total import & export volumes in November is USD 189.89 billion, decreased by 9%, wherein the export volume drops by 2.2% and the import volume drops by 17.9%. This is the first negative growth of import & export in a single month since June, 2001 in the history of China's foreign trade.