Tariffs have been continuously lowered, and the opening dividend has been released faster

Entering 2023, tariffs will usher in new adjustments——
From January 1, the provisional import tariff rate lower than the MFN tariff rate will be applied to 1020 commodities; From January 2, the agreed tax rate of the Regional Comprehensive Economic Partnership Agreement (RCEP) will be applied to some commodities originating in Indonesia; From July 1, the eighth step of tax reduction will be implemented for 62 information technology products at the most-favored-nation tax rate
In this tariff adjustment schedule, "reduction" becomes the key word. Experts pointed out that in recent years, China has successively reduced the import tariffs of related commodities, boosting the entry of global good goods into the Chinese market, not only meeting the domestic consumption upgrading and enterprise production needs, but also providing countries with broader market opportunities to share the dividends of China's opening up.
China's total tariff level will fall to 7.3%
■ From January 1, 2023, China will apply a provisional import tariff rate lower than the MFN tariff rate on 1020 commodities. This number increased by 66 items compared with the previous year, and maintained growth for four consecutive years.
■ On January 2, RCEP officially entered into force for Indonesia. So far, the world's largest free trade agreement has entered into force for 14 of its 15 signatories. Since January 2, China has implemented the treaty tax rate applicable to the ASEAN member countries of RCEP in 2023 for some imported goods originating in Indonesia.
■ In 2023, China will reduce the import tariffs on homogenized mixed foods, frozen blue cod, cashew nuts and other foods for infants and young children, as well as small household appliances such as coffee machines, juicers and hair dryers. Among them, the tax rate of homogenized mixed food, frozen blue cod and other commodities decreased by no less than 50%.
■ From July 1, 2023, China will also implement the eighth step of tax reduction on the most favored nation tax rate of 62 information technology products. After adjustment, China's total tariff level will drop from 7.4% to 7.3%.
Further tax reduction in accordance with the FTA and RCEP
At the beginning of the new year, RCEP has made new progress: it officially entered into force for Indonesia on January 2. So far, the world's largest free trade agreement has entered into force for 14 of its 15 signatories.
China is Indonesia's largest trading partner and Indonesia's largest export market. After the RCEP came into force for Indonesia, China's new measures of commodity tariff reduction and exemption are a major attraction. The Tariff and Tariff Commission of the State Council recently issued the 2023 tariff adjustment plan. According to the relevant provisions of RCEP and the entry into force of the agreement for Indonesia, from January 2, the agreement tariff rate applicable to the ASEAN member countries of RCEP in 2023 will be applied to some imported goods originating in Indonesia. Specifically, China will, on the basis of the China-ASEAN Free Trade Agreement, reduce taxes on pineapple juice and cans, coconut juice, pepper, diesel, paper products, some chemicals and auto parts produced in Indonesia, and implement immediate zero tariffs on 67.9% of the products originating in Indonesia from January 2.
"The higher level of openness advocated and led by China is urgently needed by developing economies, including Indonesia." Dai Ning, the Consul General of Indonesia in Shanghai, said that the International Trade Fair held by China has enhanced the recognition and reputation of Indonesian brands in China. In 2021, the bilateral trade volume between the two countries will increase by about 56%, of which the export volume of Indonesia will increase by nearly 70%. RCEP, which takes effect in Indonesia, will continue to promote the deepening of economic, trade and investment relations between Indonesia and China, and further strengthen the existing cooperation.
At present, RCEP has entered its second year of effective implementation. Over the past year, China has implemented RCEP with high quality, fully implemented market opening commitments and agreement obligations, continued to promote tariff reduction and facilitation of trade and investment liberalization, and injected new impetus into the development of Asia-Pacific and global economy and trade.
At the same time of tariff reduction and exemption for new members in force this year, the Tariff Commission of the State Council clearly proposed that further tariff reductions would be made in accordance with the free trade agreements and RCEP between China and New Zealand, South Korea, Australia and Cambodia.
"With the further implementation of RCEP, New Zealand enterprises are faced with more preferential tariffs and more convenient trade measures. The improvement of the business environment has led to the rapid growth of the company's sales in China, and also enabled Chinese consumers to quickly obtain high-quality products." Roy Vandenke, general manager of research and development of New Zealand enterprise Newland, said that China's huge market provides opportunities for international enterprises such as Newland, and will also promote the recovery of the world economy. It can be predicted that the inclusive development dividend of RCEP will make the development of the Asia-Pacific region more prosperous.
Gu Qingyang, associate professor of the Lee Kuan Yew School of Public Policy at the National University of Singapore, believes that tariff reduction has significantly reduced the cost of trade between member countries, made trade activities more active, and effectively promoted economic growth, which is the real advantage of RCEP through trade channels. "China plays an important role in RCEP and is also the main export destination of other RCEP member countries. The stronger growth of China's economy will provide RCEP with broader development space in the future."
Reduce tariffs on multiple medical products and consumer goods
The new round of tariff adjustment involves not only treaty tariff rates, but also MFN tariff rates and provisional tariff rates. Industry insiders said that the MFN tax rate is the tax rate applicable to most imported goods in China. The provisional tariff rate refers to the tariff rate applied to some imported and exported goods within a certain period of time. The provisional tariff rate is generally lower than the most-favoured-nation tariff rate, which is a common way to adjust tariffs independently.
According to the tariff adjustment plan in 2023, China will implement a provisional import tariff rate lower than the MFN tariff rate on 1020 goods from January 1. This number increased by 66 items compared with the previous year, and maintained growth for four consecutive years.
After sorting out the adjusted catalogue, the reporter found that there were many medical products, such as the implementation of zero tariff on some anti-cancer drug raw materials, anti novel coronavirus drug raw materials, cancer pain relief drugs, and the reduction of import tariffs on medical products such as dentures, vascular stent raw materials, contrast agents, etc.
Zhang Jianping, deputy director of the Academic Committee of the Research Institute of the Ministry of Commerce, analyzed that in the tariff adjustment in recent years, medicine has been the key area of tax reduction, including the implementation of zero tariffs on the first and second batches of anti-cancer drugs and raw materials of rare diseases, and the reduction of import tariffs on medical products such as artificial heart valves, hearing aids, intracranial embolic stents, artificial joints, etc. These measures help to further protect people's health, Reduce the financial burden of patients.
Daily consumer goods are another focus of this tariff adjustment. According to the published provisional tariff rate table of imported goods, the import tariff of homogenized mixed food for infants and young children, frozen blue cod, cashew nuts and other foods, as well as small household appliances such as coffee machines, juicers, hair dryers and so on will be reduced in 2023. Among them, the tax rate of homogenized mixed food, frozen blue cod and other commodities decreased by no less than 50%.
Zhang Jianping believes that at present, China's consumption demand continues to grow, the consumption structure accelerates to upgrade, and the demand for foreign characteristic and competitive consumer goods heats up. This tax reduction is conducive to complying with the trend of consumption upgrading and meeting the new demand of residents with high-quality supply; At the same time, it is beneficial for imported products to compete with domestic products, guide the transformation and upgrading of the supply system, keep pace with changes in consumer demand, and achieve dynamic balance between supply and demand at a higher level.
In addition to medical products and consumer goods, this adjustment also highlights two aspects: first, zero tariff will be imposed on potash fertilizer, unwrought cobalt, etc., and the import tariff of some wood and paper products, boric acid and other commodities will be reduced; The second is to reduce import tariffs on lithium niobate, electronic ink screen, iridium oxide for fuel cells, roller bearings for wind turbines and other commodities. Experts said that lowering the import tariffs of these commodities would not only help strengthen the resource supply capacity, but also promote the innovative development of advanced manufacturing industry and accelerate the industrial transformation and upgrading.
China's total tariff level will fall to 7.3%
Frequent tax reduction measures have promoted the continuous reduction of China's overall tariff level. According to the announcement issued by the Tariff Commission of the State Council, from July 1, 2023, China will also implement the eighth step of tax reduction on the MFN tax rate of 62 information technology products. After adjustment, China's total tariff level will drop from 7.4% to 7.3%.
In December 2015, 24 WTO members, including China, the United States, Europe, Japan and South Korea, reached an agreement on expanding the scope of products of the Information Technology Agreement, and gradually eliminated the import tariffs of 201 information technology expanded products in accordance with the principle of most-favoured-nation treatment. These products mainly include information and communication products, semiconductors and their production equipment, audio-visual products, medical devices, instruments and meters, and the annual global trade volume exceeds 1 trillion dollars. In 2016, China implemented the tax reduction for the first time on the products covered by the Information Technology Agreement, and has implemented the seven-step tax reduction so far.
According to the analysis of industry insiders, the gradual reduction of taxes in accordance with the agreement will help reduce the import costs of relevant components and equipment, better meet the production needs of enterprises, promote the high-quality development of relevant domestic industries and economy, and also effectively promote the development of global trade and high-tech.
The total level of tariffs is one of the important indicators of the openness of a country in the field of goods trade. The data shows that over the past 20 years after China's accession to the World Trade Organization, China has fully fulfilled its WTO commitments and continuously expanded its market opening. The total tariff level has dropped from 15.3% to 7.4% in 2022, lower than the 9.8% commitment to enter the WTO.
"Since 2018, China has introduced a series of measures such as implementing zero tariffs on imported anti-cancer drugs and encouraging the import of innovative drugs. In the next few years, many innovative drugs of Bayer prescription drugs have been approved for the market in China." Steve, chief financial officer of Bayer China, said, "We very much recognize and attach importance to China's opening up. We have seen a very favorable business environment in China, which makes us more confident in the future."
Chihuaton, a Swiss essence and spice company, is also one of the beneficiaries of China's tariff reduction. "The reduction of tariffs has brought significant benefits to enterprises and strengthened our confidence in development," said Wu Chongqing, the operation director of Chihuarton China. In 2022, China reduced the import tax rates of peppermint oil and orange oil, and the import costs of the company's two main production raw materials decreased, saving tens of millions of yuan in taxes annually, "This not only alleviates the cost pressure caused by the rising price of raw materials, but also enables the company to bring more cost-effective products to downstream customers and consumers, making our Chinese factories more advantageous."
Zhang Jianping said that in recent years, China has taken the initiative to reduce the overall level of tariffs and introduced a series of new measures to reduce tariffs on its own, which has shown the world that the door of China's opening is opening wider and wider, and also made China's development better benefit the world, and promoted all countries to share the opportunities of China's big market.