China to Implement 2nd Stage of Duty Cuts on Goods and Services in January 2012

The Chinese mainland will implement the second phase of tariff cuts on goods and services listed in the early harvest program of the cross-Strait Economic Cooperation Framework Agreement in 2012, a mainland spokesman said on Dec. 28, 2011.

The second phase of tariff reductions, which starts from January 1, 2012, will see the largest decrease and includes most products among imports from Taiwan, Yang Yi, the spokesman for the State Council's Taiwan Affairs Office said.

He said tariffs on more than 94 percent of the goods and services listed in the ECFA will be cut to zero, including metallurgy, medical care, and auto parts as well as instruments and meters.

The tariff rate on another 30 items, whose rate is over 15 percent now, will be slashed to 5 percent, he added.

"Relevant departments in the mainland have made full preparations to ensure the smooth implementation of duty reductions," Yang said. "We have adjusted the import and export tariff and updated the work system."

He also said the mainland will enhance cross-Strait cooperation on environment protection and sandstorm management.

The office said exports worth US$3.45 billion from Taiwan to the mainland enjoyed a tariff cut of US$102 million in the first 11 months in 2011, the spokesman said.