General Features of New Tariff System 2009

Approved by the state council, the revised Tarff System contains 7868 tariff items.

With the entry of WTO, China has made great efforts to fulfill the terms of obligation of tariff reduction. The general tariff level declined from 15.3% since the entry of WTO to now 9.8%, among which industry products tariff lever fall to 8.9%.

In order to reduce the negative effect caused by world-wide financial crisis, china takes measures to adjust import tariff rate properly and timely.

As for export, to create advantage conditions of exporting, 3486 tariff items increased export rebate rate and export tariff rate for goods of raw steel material, fertilizer, textiles are even cancelled and declined.

As for import, to encourage the importation of advanced technology, equipments, key parts , customs may implement certain preferential policies of reducing interim tariff rate and deducting VAT. Therefore, 670 kinds of imported goods will apply for a relatively lower interim tariff rate in 2009 which covers energy resources of coal, fuel oil, stone material; advance industrial and agricultural equipments, products used in public health and parts of home living products etc for the purpose of reducing the cost of importing raw materials for domestic manufactures. The total amount of tariff reduction and deduction may reach to 123 billion Yuan.

Meanwhile, VAT reform will take place in all areas and industries of the nation since 1st Jan. 2009. It allows enterprises to deduct the VAT for new purchasing equipment.