Interim Import Duty Rate System in China, special alert
01/05/13
The average most-favoured-nation (MFN) customs duty rate in 2014 is approximately 9.5% and a very similar rate will likely continue to be applied in 2015. The Interim Import Duty Rate (IDR) System aims to further lower the MFN duty rate so as to encourage importation of certain products from overseas, such as:
- Advanced technological equipment and key components and parts
- Energy products, resource saving and environment-friendly products
- Daily necessities and medical products
- Products related to farm produce
The interim duty rate is reviewed and adjusted every year by the Customs Tariff Commission of State Council (CTCSC). The CTCSC is a coordination department which is managed by the Ministry of Finance (MoF). The members of the CTCSC include various relevant ministries such as MOFCOM, GAC, NDRC and SAT.
New IDR are decided and established case-by-case, but may be as low as 0% or 1%, and are typically effective for several years, therefore providing customs duty savings for an extended period of time.
PwC WMS can help you understand how your business may be able to use the the Interim Import Duty Rate System to reduce your customs duty costs and improve competitiveness for 2015. Download your copy of the attached alert to find out more about the application process
