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China: “Most favored nation” customs duty rate reductions, for consumer goods

China: “Most favored nation” customs duty reductions

The government of China has formally announced a customs duty (tariff) reduction under which “most favored nation” (MFN) rates would be reduced for almost 1,500 “8-digits items,” effective 1 July 2018.

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The majority of the 1,449 items are daily consumer goods, and the average tariff rate would be reduced from 15.7% to 6.9%. Examples of items subject to the reduced rates include:

  • Clothing, shoes and hats, kitchenware, and sports and fitness supplies—to be subject to a reduced rate of customs duty of 7.1% (reduced from 15.9%)
  • Home appliances such as washing machines and refrigerators—to be subject to a reduced rate of customs duty of 8% (reduced from 20.5%)   

As the newly reduced MFN rates would be lower than most of the earlier published interim duty rates, another list outlines some 210 items of which interim duty rates would be repealed.   

The MFN rates would apply for all countries that are members of the World Trade Organization (WTO), including the United States. The rate reduction would be able for all import declarations made after 1 July 2018.   

 

For more information, contact a KPMG trade and customs professional in China:

Rachel Tao | +86 21 2212 3473 | rachel.tao@kpmg.com

 

Or contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich | +1 (312) 665-1022 | dzuvich@kpmg.com

Andrew Siciliano | +1 (631) 425-6057 | asiciliano@kpmg.com

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