China Tariff Reduction – Hidden Implications/ Considerations
The China Government has announced to significantly cut import tariffs for a large range of goods with effect from 1 December 2017 through the Interim Import Duty Rate (IDR) System. The IDR system generally provides importers with lower tariff rates than the Most-Favoured-Nation (MFN) duty rate (i.e. the WTO bound rates). Hence such goods are subject to lower import tariff rates than those under China’s WTO commitments. The intention is to encourage consumer spending and to further open up China’s markets. IDR rates are typically reviewed by the China Government every 6 months and revisions are made to reflect changes in the business environment and government policy.