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China Lowers Applied MFN Tariff Rates and Revises Out of Quota TRQ Rates
26.01.2021 13:33 "Agro Perspectiva" (Kyiv) —
Following are selected highlights from a report issued by a U. S. Department of Agriculture attache in The Beijing (China — Peoples Republic of), at the end of each year, the SCTC sets tentative import and export tariff rates for select commodities to be applied during the following year. At the same time, SCTC also announces China’s tariff rate quotas (TRQ) for all products. On December 23, 2020, the Ministry of Finance published on its website a SCTC notice (dated December 21), releasing its 2021 tariff adjustment plan. The applied MFN import tariffs for certain dairy and wood products will be further lowered in 2021. The announcement also provides a new equation for calculating out-of-quota tariff rates for cotton. The remaining agricultural tariff rates remain unchanged from the previous announcement. The tentative tariff rates are applicable to all exporting countries. Notable Tariff Reductions and HS Code Changes in 2021: In 2021, certain dairy import tariffs such as anhydrous lactose (HS 17021100) will be tentatively lowered to 5 percent from the current 10 percent. Whey protein powder and lactoferrin, both under HS 35022000, have been added and will be tentatively lowered from 10 percent to 5 percent. Special dairybased infant formula food (HS 19011010) for premature /low birth weight babies and nutrition supplement for breast milk, will be set to 0 percent in 2021. However, the tentative tariffs for regular infant formula milk powders that share the same code HS 19011010 will remain unchanged at 5 percent. Many wood products such as fiberboard for which MFN tariffs have been tentatively lowered in the previous years will see their import tariffs further reduced in 2021. The SCTC has also adjusted HS codes for a few agricultural products. For example, the HS code for frozen capelin has been changed to HS 03035990 (previously, HS 03035900). Similarly, the HS codes for frozen Atlantic salmon and frozen Danube salmon have been changed to HS 03031310 and HS 03031320, respectively. However, the MFN rates for Atlantic salmon and Danube salmon remain unchanged. Lastly, the SCTC has redefined the product description (or product scope) for certain products such as that for special infant formula food under HS 21069090.
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