2013 Tariff Rates for Agricultural Commodities

An Expert's View about Agriculture and Animal Husbandry in China

Posted on: 29 Dec 2012

The State Council Duty Committee (SCDC) released its 2013 tariff rate duties for certain commodities, with a January 1, 2013, effective date.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 12/19/2012 GAIN Report Number: 12082 China - Peoples Republic of Post: Beijing 2013 Tariff Rates for Agricultural Commodities Report Categories: FAIRS Subject Report Approved By: Michael Riedel Prepared By: OAA/Beijing and ATO/Shanghai Report Highlights: The State Council Duty Committee (SCDC) released its 2013 tariff rate duties for certain commodities, with a January 1, 2013, effective date. This report contains an unofficial translation of the SCDC announcement, including tables on import duties for tariff rate quotas, specific and compound duty rates, and tentative tariff rates. Included in these tariff rate reductions are several products that the United States currently exports to China. Executive Summary: Overall, the 2013 tentative tariff rate duties for imported agricultural commodities remain unchanged from the previous year. This year’s Plan includes a few important adjustments for agricultural commodities. Please visit this website for SCDC’s complete announcement: http://gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/201212/t20121217_716211.html Import tariffs for tariff rate quotas (TRQ) of agricultural commodities and specific and compound duties on agricultural commodities remain unchanged from 2012 (See table 2 below). Almonds: The import tariff rate duty for in-shell almonds (HS code 08021100) fell from 24 percent (Most Favored Nation rate) to 10 percent, and is now at the same level as shelled almonds. Lowering the tariff rate for in-shell almonds to that of shelled almonds has been under negotiation between the United States and China for several years. In 2011, China imported nearly 8,000 metric tons (MT) of shelled almonds and more than 2,000 MT of in-shell almonds. Infant milk powder: Import tariffs for special infant milk powder (partial hydrolysis formula of lacto-protein, deep hydrolysis formula of lacto-protein, and amino acid formula - HS code 2106909001) have been lowered from 10 percent to five percent. China’s Dairy Industry Association estimates that babies who need such products account for nearly 8 percent of total newborn babies in China. The Ministry of Health will use these products through its cooperative project at selected hospitals. These products are not produced domestically, so there is market potential for imported products. Alfalfa: The tariff on alfalfa (HS code: 12149000) has been lowered from 9 percent to 7 percent. It is expected to contribute to the price competitiveness for imports from the United States in 2013. The trade volume rose more than 80 percent in the first ten months in 2012 to $148 million. In recent years, some end users in China have been lobbying the government to reduce the tariff rate to 5 percent, which is the same as alfalfa pellet or meal. BEGIN OF UNOFFICIAL TRANSLATION Notification of the State Council Duty Committee on Duty Implementation in 2013 No.22 (2012) December 10, 2012 The General Administration on Customs, The 2013 Duty Implementation Plan has been reviewed and approved by the 10th session of the State Council Duty Committee. The Plan has been rectified by the State Council and will take effect as of January 1, 2013. State Council Duty Committee 2013 Duty Implementation Plan 1. Adjustment on import duties 2. Most Favored Nation Tariff a. Nine non-full tariff code IT products will continue to be managed and verified by the customs and the tariff rates remain unchanged. Due to tariff code adjustment, items have been expanded to 10 products (see Table 1). b. Tariff Rate Quota (TRQ) management will continue to apply to eight categories covering 47 items like wheat. Items and rates will remain unchanged. A sliding tax will be levied on certain amount of out-quota import cotton and formula parameters have been adjusted accordingly. A one percent TRQ rate will apply to three fertilizers including urea, compound fertilizer, and diammonium phosphate (see Table 2). c. Specific and compound duty will continue to apply to 47 commodities including photosensitive materials and the rates will remain unchanged. Ad Valorem tax will apply to five photosensitive materials (see Table 3). d. Other MFN will remain unchanged. 3. Tentative duty rates: Tentative duties will apply to 784 import commodities including fuel oil (see Table 4). 1. Conventional tax rates: Based on trade or tariff agreements signed between China and certain countries or regions, conventional tax rates will apply to certain countries or regions (see Table 5). a. Conventional tax rates under Asia-Pacific Trade Agreement will apply to 1,875 commodities originated from South Korea, India, Sri Lanka, Bangladesh, and Laos; b. Conventional tax rates under China-ASEAN Free Trade Agreement will apply to part of the import goods originated from Brunei, Indonesia, Malaysia, Singapore, Thailand, Philippines, Vietnam, Burma, Laos, and Cambodia; c. Conventional tax rates under China-Chile Free Trade Agreement will apply to 7,308 commodities originated from Chile and the part of the commodities will continue to be lowered; d. Conventional tax rates under China-Pakistan Free Trade Agreement will apply to 6,509 commodities originated from Pakistan; e. Conventional tax rates under China-New Zealand Free Trade Agreement will apply to 7,319 commodities originated from New Zealand; f. Conventional tax rates under China-Singapore Free Trade Agreement will apply to 2,961 commodities originated from Singapore; g. Conventional tax rates under China-Peru Free Trade Agreement will apply to 7,085 commodities originated from Pakistan; h. Conventional tax rates under China-Costa Rica Free Trade Agreement will apply to 7,281 commodities originated from Costa Rica; i. Zero tax will apply to 1,760 commodities originated from Hong Kong, which have formulated origin standards; j. Zero tax will apply to 1,271 commodities originated from Macau, which have formulated origin standards; k. Conventional tax rates under Economic Cooperation Framework Agreement’s Early Harvest Program on Trade in Goods will apply to 614 commodities originated from Taiwan region. 1. Preferential tax rates: According to the preferential trade or tariff agreements and bilateral exchange of notes signed between China and other countries or regions, as well as decisions made by the State Council, the preferential tax rates will apply to a total of 40 least developed countries identified by the United Nations including Ethiopia, Benin, Burundi, Eritrea, Djibouti, Congo, Guinea, Guinea Bissau, Comoros, Liberia, Madagascar, Madagascar, Mali, Malawi, Mauritania, Mozambique, Rwanda, Sierra Leone, Sudan, Tanzania, Togo, Uganda, Zambia, Lesotho, Chad, Central Africa, Afghanistan, Bangladesh, Nepal, East Timor, Yemen, Samoa, Vanuatu, Equatorial Guinea, Angola, Senegal, Niger, Somalia, Laos, Myanmar, and Cambodia. 1. Common tax rates: The common tax rates will remain unchanged. 1. Adjustments on export duties 2. Tariff rate under “export tariff” will remain unchanged. 3. Tentative duties will apply to some export commodities like railway and special export duties will be applicable to part of fertilizer products (see Table 7). 4. Adjustments on tariff codes Part of the tariff codes have been adjusted (see Table 8). After the adjustments, the 2013 tariff codes include a total of 8,238 commodities. Table 2: Import duties on TRQ commodities Serial Commodity HS code Common MFN rate TRQ rate TRQ rate for specific country (China- No. category rate (%) (%) (%) New Zealand Free Trade Area) 1 Wheat 10011100 180 65 1 10011900 180 65 1 10019100 180 65 1 10019900 180 65 1 11010000 130 65 6 11031100 130 65 9 11032010 180 65 10 2 Corn 10051000 180 20 1 10059000 180 65 1 11022000 130 40 9 11031300 130 65 9 11042300 180 65 10 3 Paddy rice and 10061011 180 65 1 milled rice 10061019 180 65 1 10061091 180 65 1 10061099 180 65 1 10062010 180 65 1 10062090 180 65 1 10063010 180 65 1 10063090 180 65 1 10064010 180 65 1 10064090 180 65 1 11029011 130 40 9 11029019 130 40 9 11031921 70 10 9 11031929 70 10 9 4 Sugar 17011200 125 50 15 17011300 125 50 15 17011400 125 50 15 17019100 125 50 15 17019910 125 50 15 17019920 125 50 15 17019990 125 50 15 5 Wool 51011100 50 38 1 0 51011900 50 38 1 0 51012100 50 38 1 0 51012900 50 38 1 0 51013000 50 38 1 0 51011010 50 38 1 0 6 Wool tops 51051000 50 38 3 0 51052100 50 38 3 0 51052900 50 38 3 0 7 Cotton 52010000 125 40 (Note 1 52030000 125 1) 1 40 8 Fertilizer 31021000 150 50 4 (Note 31052000 150 50 2) 31053000 150 50 4 (Note 3) 4 (Note 4) Note 1: A tentative sliding tax will apply to out-quota import cotton within certain amount. Specific formula is as follows: 1. When dutiable price of import cotton is greater than or equal to 14 RMB per kilo, the tentative duty rate will be 0.57 RMB per kilo; 2. When dutiable price of import cotton is less than 14 RMB per kilo, the tentative duty rate will be calculated based on the following formula: Ri=8.87/Pi+2.908%*Pi-1 (Ri≤40%) Of which, Ri refers to tentative duty rate and calculation result will be rounded to three digits after decimal point. Pi refers to dutiable price (unit: RMB/kilo). Notes 2, 3, 4: Tentative duty is one percent. Table 3: Specific and compound duty rates for imported agricultural commodities Serial No. HS code Commodity Common duty rate MFN rate 1 02071200 Fowl, not cut in pieces, frozen 5.6 RMB/kg 1.3 RMB/kg 2 02071411 Fowl cut, with bone (including breast, leg) 4.2 RMB/kg 0.6 RMB/kg 3 02071419 Other fowl cut (including breast, leg) 9.5 RMB/kg 0.7 RMB/kg 4 02071421 Mid-joint wing (not including wing tip) 8.1RMB /kg 0.8 RMB/kg 5 02071422 Chicken claw 3.2 RMB/kg 0.5 RMB/kg 6 02071429 Other offal (including wing tip, liver) 3.2 RMB/kg 0.5 RMB/kg 7 05040021 Cold, frozen gizzard 7.7 RMB/kg 1.3 RMB/kg 8 22030000 Beer made from malt 7.5 RMB/kg 0 Note: 1US$=6.2 RMB Table 4: Tentative duty rates on import commodities (limited to agricultural commodities) Serial EX HS Code Commodity MFN Proposed 2013 No. ¹ rate tentative duty (%) rate (%) 1 01061211 Whales, dolphins and porpoises; manatees and dugongs, 10 0 pure-bred breeding 2 ex 01064190 Trichogramma 10 0 3 ex 01064990 Predatory mite 10 0 4 03033110 Frozen Greenland halibut 10 5 5 03033200 Frozen plaice, excluding livers and roes 12 2 6 03035100 Frozen herrings, excluding livers and roes 10 2 7 03036300 Frozen cod, excluding livers and roes 10 2 8 04041000 Whey and modified whey 6 2 9 05051000 Feathers of a kind used for stuffing; down 10 5 10 05119111 Fertilized fish eggs 12 0 11 08021100 In shell almonds, fresh or dried 24 10 12 08024190 Other in shell chestnuts, fresh or dried 25 20 13 08024290 Other shelled chestnuts, fresh or dried 25 20 14 08025100 In shell Pistachios, fresh or dried 10 5 15 08025200 Shelled pistachios, fresh or dried 10 5 16 08029020 Gingko nuts, fresh or dried 25 20 17 12119036 Liquorice roots 6 0 18 12122190 Other seaweeds and algae fit for human consumption 15 2 19 12122900 Other seaweeds and algae 15 2 20 ex 12149000 Other Lucerne (alfalfa), excluding meal and pellets 9 7 21 13021200 Saps and extracts of liquorice 6 0 22 ex 13021990 Matrine, saps and extracts 20 3 23 15021000 Bovine animal tallow 8 4 24 15029000 Other bovine animal tallow 8 4 25 ex 15119020 Palm stearin (melting point 50°C-56°C) 8 2 26 15200000 Glycerol, crude; glycerol waters and glycerol lyes 20 6 27 18010000 Whole or broken cocoa beans, raw or roasted 8 2 28 19011000 Preparations for infant use, put up for retail sale 15 5 29 19019000 Malt extract; food preparations of flour, groats, meal, 10 5 starch or malt extract, not elsewhere specified or included 30 21031000 Soya sauce 28 15 31 ex 21069090 Special infant milk powder of partial hydrolysis formula of 20 5 lactoprotein, deep hydrolysis formula of lactoprotein, amino acid formula 32 22072000 Ethyl alcohol and other spirits, denatured of any strength 20 15 33 22090000 Vinegar and substitutes for vinegar obtained from acetic 20 15 acid 34 23099090 Other preparations of a kind used in animal feeding 6.5 4 35 ex 24039100 Reconstituted tobacco 57 40 36 31031010 Triple superphosphates 4 1 37 31031090 Other superphosphates 4 1 38 31039000 Other mineral or chemical fertilizer, phosphatic 4 1 39 31042090 Other potassium chloride 3 1 40 31043000 Potassium sulphate 3 1 41 31049010 Camallite, sylvite and other crude natural potassium salts 3 1 42 31049090 Other mineral or chemical fertilizers, potassic 3 1 43 31051000 Goods of this Chapter in tablets or similar forms or in 4 1 packages of a gross weight not exceeding 10 kg 44 31054000 Ammonium dihydrogenorthophosphate and mixtures 4 1 thereof with diammonium hydrogenorthophosphate 45 31055100 Fertilizers containing nitrates and phosphates 4 1 46 31055900 Other mineral or chemical fertilizers containing the two 4 1 fertilizing elements phosphorus and potassium 47 31056000 Mineral or chemical fertilizers containing the two fertilizing 4 1 elements phosphorus and potassium 48 31059000 Other fertilizers 4 1 49 ex 35030010 Gelatin 12 5 50 35051000 Dextrins and other modified starches 12 6 51 38231200 Oleic acid 16 8 52 ex 38231900 Plant acid oil 16 5 53 41041111 Wet-blue bovine hides and skins, full grains, unsplit or grain 7 3 splits 54 41041911 Other wet-blue bovine hides and skins 6 3 55 41041920 Other wet hides and skins of equine animals 7 5 56 41044100 Bovine hides and skins in dry state (crust), full grains, 5 3 unsplit or grain splits 57 41051010 Wet-blue skins of sheep or lambs 14 10 58 ex 41062100 Wet-blue skins of goats 14 10 59 41063110 Wet-blue skins of swine 14 10 60 41071210 Whole hides and skins of bovine animals, grain splits 8 6 61 44089012 Veneer sheets of temperate non-coniferous wood 3 1 62 ex 44089019 Veneer sheets for furniture 3 1 63 ex 44089029 Sheets for plywood of wood, peeled 3 1 64 45011000 Natural cork, raw or simply prepared 6 1 65 48022010 Photo paper base 7.5 5 66 48064000 Glassine and other glazed transparent or translucent 7.5 5 papers 67 48070000 Composite paper and paperboard, not surfacecoated or 7.5 5 impregnated, whether or not internally reinforced, in rolls or sheets 68 48115110 Paper coated on both sides with plastics for color 7.5 1 photography, weighing more than 150 g/m² 69 ex 49070090 Certificate of right of special permission (including software 7.5 0 upgrade license, software user license) 70 ex 49119910 Papers printed with programs for automatic data 7.5 0 processing equipment 71 52101100 Unbleached cotton plain weave, mixed with manmade 12 6 fibers, weight ≤ 200g/m² 72 52101910 Unbleached cotton weave of 3-thread or 4-thread twill, 12 6 mixed with manmade fibers, weight ≤ 200g/m² 73 52101990 Other unbleached cotton weave, mixed with manmade 12 6 fibers, weight ≤ 200g/m² 74 52111100 Unbleached cotton weave, mixed with manmade fibers, 12 6 weight > 200g/m² 75 52111200 Unbleached cotton weave of 3-thread or 4-thread twill, 12 6 mixed with manmade fibers, weight > 200g/m² 76 52111900 Other unbleached cotton weave, mixed with manmade 12 6 fibers, weight > 200g/m² 77 52121100 Other unbleached cotton cloth, mixed, weighing not more 12 6 than 200g/m² 78 52122100 Other unbleached cotton cloth, mixed, weighing more than 12 6 200g/m² 79 53012100 Flax, broken or scutched 6 1 80 53013000 Flax tow and waste 6 1 81 53062000 Flax yarn, multiple (folded) or cabled 10 5 82 ex 55041029 Wooden viscose fiber with high wet modulus (wetness 5 2 strength ≥ 2.0 cn/dtex, dryness strength ≥ 3.0 cn/dtex, dry elongation >14%, wet stretch > 18%, denier 0.89-2.67 dtex) 83 ex 56011300 Textile fibers spinned by two or more organic polymer, 10 5 cross-section is structure of skin-core or parallel or island, of a length not exceeding 5mm Note: EX¹ indicates that commodities applicable to tentative duties are based on “commodity names” but others are based on HS codes. END OF UNOFFICIAL TRANSLATION
Posted: 29 December 2012

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