Changes of Tariffs in 2008 and 2009

1. There are little changes on import duty on printing equipment and most-favored –nation rate, but the new Tariff adds two other tax items on 8443.9921 thermal print head and 8443.9929 others( parts of digital printing equipment) with the most-favored-nation rate of 6%. The interim duty rate on those two items is zero and the new added two tax items have significant meanings on the promoting of digital printing.

2. The new Tariff adds export duty rate in the part of import and export duty rate which suggests that China encourages export by the measures of raising, reducing or cancelling export rebate rate. The detail duty rate will be formulated by Ministry of Finance.

3. The new Tariff promulgates interim duty rate on import commodities including 16 tariffs which have close relationship with printing industry. The import duty on offset printing press ( with the printing speed at or over 16000 bisects an hour) has decreased from 10% to 7%.

4. The offset printing press( with the printing speed at or over 16000 bisects an hour) is listed in the item of interim duty rate which means the import duty will reduce by 3% in 2009 when importing the machine in the above.

5. The goods with most-favored-nation rate as well as interim duty rate shall be levied according to interim duty rate, while import goods with conventional tariff rate and special preferential duty rate as well as interim rate shall be levied for lower tariff properly. The export goods applicable to export duty rate also with interim duty rate shall be levied according to interim duty rate. The interim duty rate is only effective in the current year.

6. The deduction of VAT has been mentioned in the new Tariffs in 2009.