What are the highlights of China's tariff adjustment in 2024?

At the end of each year, China will adjust the tariff rates of some imported and exported commodities according to the economic and social development.

With the approval of the State Council, the Customs Tariff Commission of the State Council issued an announcement on the 21st, clarifying China's tariff adjustment plan for 2024. The adjustment has reduced the import tariffs on some medicines, raw materials, parts and components, and adjusted and optimized the agreed tax rates and domestic tariff items, which will help further expand reform and opening up and promote trade exchanges.

1. Zero tariff will be implemented on some drugs and raw materials

According to the announcement, from January 1, 2024, China will implement provisional import tariffs lower than the most-favored-nation tariff rate for 1,010 goods.

Looking at the schedule of the tariff announcement, it can be found that China will implement zero tariffs on some drugs and raw materials for the treatment of cancer and rare diseases, and reduce import tariffs on formula foods for special medical purposes.

Specifically, the drugs and raw materials that will be subject to zero tariffs next year include anti-cancer drugs for the treatment of liver malignant tumors and rare disease drug raw materials for the treatment of idiopathic pulmonary hypertension. In addition, zero tariffs will be imposed on ipratropium bromide solution for inhalation, which is widely used in clinical practice for the treatment of asthma diseases in children.

2. a number of tariff adjustments to promote the innovation and development of the manufacturing industry

According to the announcement, in 2024, China will also reduce import tariffs on some raw materials, intermediate goods and parts, and accelerate the innovation and development of advanced manufacturing.

Among other things, import duties on key equipment and components such as gas diffusion layers for fuel cells and generator sets with ignited piston internal combustion engines fueled by biogas will be reduced. Import tariffs on resource commodities such as lithium chloride and cobalt carbonate will also be reduced next year.

Lithium chloride, cobalt carbonate, crude nickel hydroxide and other commodities are key raw materials for the new energy vehicle industry, and reducing tariffs will help enterprises reduce production costs and promote the development of the new energy vehicle industry.

3. Implement the agreed tax rate for 30 countries or regions

The announcement clarifies that according to the free trade agreements and preferential trade arrangements signed between China and relevant countries or regions, some goods from 30 countries or regions will be subject to the agreed tax rates in 2024. Among them, the China-Nicaragua Free Trade Agreement will implement the first tariff reduction in 2024. In the future, after the final tariff reduction is completed, more than 95% of the tariff items on both sides will achieve zero tariff.

"It can be said that China's 'circle of friends' in foreign trade is getting bigger and bigger, which further demonstrates China's determination to promote the construction of a high-standard free trade zone network and promote high-level opening up." Gao Lingyun, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said.