China to Cut Tariff to 12 % by End of 2002

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Last updated at: (Beijing Time) Wednesday, December 12, 2001

China to Cut Tariff to 12 % by End of 2002

China is going to cut the average tariff level of imported goods from the current 15.3 percent to 12 percent by the end of 2002, the reduction starting from the beginning of next year is fully in conformity with the commitment China has made for its accession to the World Trade Organization (WTO) . It demonstrated that the Chinese government is responsible and honors its commitments.

China to Cut Tariff to 12 % by End of 2002

5,300 Items to Be Cut

The Chinese government has decided to lower the tariff rates of 5,300 items in 2002, accounting for 73 percent of the total items of tariffs.

According to the Tariff Policy Commission of the State Council, the average tariff rate of industrial products will be lowered to 11.6 percent. The average tariff rate of agricultural products excluding aquatic products will be lowered to 15.8 percent. The average tariff rate of aquatic products will be lowered to 14.3 percent.

Among imported industrial products, the average tariff rate of crude oil and refined oil will be lowered to 6.1 percent, that of timber, paper and paper products will come down to 8.9 percent, textile and garments to 17.6 percent, chemical products to 7.9 percent, transport vehicles to 17.4 percent, machinery to 9.6 percent and electronic products to 10.7 percent.

There will be a reduction of more than 25 percent in the average tariff rates of aquatic products, oil, timber, paper, paper products, chemical products, transport vehicles, machinery and electronic products.

Starting from 2002, the country will adopt quotas for the importation of ten categories of agricultural products such as wheat, bean oil and sugar and three kinds of fertilizers such as caramide.

Categories to Be Readjusted

An official from the Tariff Policy Commission of the State Council said China will readjust the tariff list into four major categories next year, including the most favored nation (MFN) tariff rates, the agreed tariff rates, the preferential tariff rates and normal tariff rates.

Bangkok Agreement Rates to Be Introduced

Starting on January 1, 2002, he said, China will introduce the Bangkok Agreement rates, which are more preferential than the MFN tariff rates, for more than 700 products originating from the Republic of Korea, Sri Lanka and Bangladesh, all Bangkok Agreement members.

The official said in the next few years, China will continue to cut the tariff rates step by step according to its duty under the WTO.

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