Client Alerts & Newsletters

China Announces Tariff Adjustments for 2020

Dec.26.2019

The Chinese Ministry of Finance (the MOF) issued this week a "Notice on Tariff Adjustment Plan 2020" (the "Notice") adjusting tariffs for certain products effective January 1, 2020.

According to the Notice, China will impose reduced temporary import tariffs, which are lower than the most-favored-nation (MFN) tariffs, on 859 products from all of its trade partners as part of an overall tariff adjustment program. The intent of the move is to “increase imports of products facing a relative domestic shortage, or foreign specialty goods for everyday consumption.” Products that will benefit include, without limitation, food, fruits, chemical, pharmaceutical, mineral, wood, machinery, electrical, optical, photographic and medical products. For example, currently the MFN rate for frozen pork is 12%; however, the applicable tariff rate will be reduced to 8% after the adjustment becomes effective. China will also apply zero import tariff on raw materials used for the production of anti-cancer medicines and new diabetes medicines to promote the production of new medicines.

In addition, as of July 1, 2020, China will reduce the MFN rates for 176 information technology products, such as mobile communication base stations, routers and equipment used for production of semiconductors and integrated circuits.

Please contact us if you would like to assess further the impact of the adjustment on your imports into China.

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

Evan Y. Chuck
Partner – Los Angeles, Shanghai
Phone: +1 213.310.7999
Email: echuck@crowell.com

Crowell & Moring LLP is an international law firm with approximately 550 lawyers representing clients in litigation and arbitration, regulatory and policy, and transactional matters. The firm is internationally recognized for its representation of Fortune 500 companies in high-stakes litigation, as well as its ongoing commitment to pro bono service and diversity, equity and inclusion. The firm has offices in Brussels, Doha, London, Los Angeles, New York, Orange County, San Francisco, Shanghai, and Washington, D.C.

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