Yesterday (24 november) there was good news that our country reduced import duties on some consumer goods, including seafood, cosmetics, powdered milk, diapers, etc., in the form of provisional tariffs. This measure has been in effect since 1 december 2017。
According to the customs department of the ministry of finance, the current reduction of tariffs on imports of consumer goods, covering various categories of consumer goods such as food, health care, medicines, solarized items, clothing and footwear caps, household equipment, cultural entertainment, and groceries, covers a total of 187 8-bit tax points, with the average rate reduced from 17. 3 per cent to 7. 7 per cent。
According to the tariff adjustment schedule published by the ministry of finance's network of officials, import duties on partial cosmetics such as lipstick, eye shadows and perfume were reduced from 10 per cent to 5 per cent; import duties on electric razor blades and electric toothbrush were reduced from 30 per cent to 10 per cent; import duties on coffee machines and smart toilet covers were reduced from 32 per cent to 10 per cent; import duties on mineral water were reduced from 20 per cent to 10 per cent; and customs duties on dental cleaning items such as toothpaste and toothlines were reduced from 10 per cent to 5 per cent。
The most notable of the tax cuts were some of the infant milk powder and diapers, not only because they were used by domestic consumers for fishing, but also because of the direct reduction of import tariffs to zero. Among them, our previous customs duty on the import of some hydrolytic formulations of lactating protein, depth hydrolytic formulations of lactating protein, amino acid formulations, and special infant and child milk powder without lactation formulas was reduced directly to zero tariffs and tax reductions were unexpected. In addition, import duties on diaper diapers were also reduced directly from 7. 5 per cent to zero, a move that would undoubtedly create considerable scope for future reductions in domestic sales prices for such commodities。
Pro-consumption returns
Xinhua reports that since 2015, we have reduced import duties on consumer goods three times in a row, in june 2015, january 2016 and january 2017, and that we have mainly selected consumer goods whose residents are more willing to purchase outside the country and whose tariff rates are higher. By november 2017, our country had applied a provisional tax rate of 50 per cent on average for 152 tariff lines for consumer goods, involving $10. 9 billion in annual imports for general trade。
Yang zhiyong, a researcher at the institute of financial and economic strategies of the institute of social sciences, said that the reduction of tariffs on imports of consumer goods, on the one hand, contributed to the expansion of efficient domestic supply and better meeting the consumption needs of the population, and, on the other hand, to the competition of imported products with domestic products, led to the transformation of the country's supply system and better adapted to changes in consumption demand。
At the same time, adjustment of import tariffs means that in the future consumers can buy imported products at lower prices domestically。
The direct effect of this policy is to help keep large outflows of consumption at home. According to world tourism organization data, tourism consumption outside china reached $261 billion in 2016, an increase of 12 per cent over the same period, and chinese tourists were the world's largest tourist consumer。
Disparities in domestic and foreign products are the main reason for the outflow of consumption. Experts pointed out that if one third or two thirds of our population were to return consumption abroad each year, consumption growth could be boosted by one percentage point. Increased tariffs on imports of consumer goods have helped to further expand domestic demand。
Tsao tsao, director of the china electronic commerce research centre, said that the adjustment of import tariffs would be of direct benefit to the cross-border electric power platform, would reduce the blind zone for the regulation of fishing taxes, and would promote more foreign products entering the country through formal channels, thus allowing consumption to remain in the country and taxes to remain in the country, and would also make quality and supply chain control of goods more secure。
It's good to import milk powder
It has been noted in each minor (micro-sign: nbdnews) that some consumer goods have significantly reduced import tariffs or will have a significant impact on industry。
Take the dairy industry, for example. As early as 2014, our infant and child milk market had surpassed hundreds of billion, while maintaining high growth and high market prospects。
However, in the wake of the melamine incident nine years ago, china’s huge infant milk market almost gave up on foreign brand names, and imported milk powder has met with the best development opportunities in all respects in the six years between 2009 and 2015. Not only do cross-border electricians and logistics provide easy access to imported milk powder for surrogate and sea fishing, many overseas milk powder brands are taking advantage of opportunities to enter the chinese market。
Data on widely distributed securities show that the share of foreign brand markets has continued to rise since 2008, reaching a peak of 57 per cent, and that the share of foreign markets has now remained around 50 per cent, as industry regulation has gradually strengthened and consumer confidence has gradually recovered. Large foreign brand advantages are evident, especially in front-line cities. Research data from the observatoire bank show that the proportion of first-line consumers willing to import and initially load infant and young child milk is as high as 73 per cent, so foreign brand sales are as high as 98 per cent in first-line cities (higher north) and 80 per cent in first- and second-line cities。
The reduction of the tariff on infant and child milk to zero will undoubtedly further facilitate the import of milk powder。
At the same time, there was also a benefit to the import of powdered milk, and policy was being fine-tuned as the “milk formula register” was being implemented。
The beijing youth newspaper reported that, according to the bulletin on the date of implementation of the registration of formulas for the import of infant and young child formulas issued by the general directorate of pediatrics and the general directorate of quality inspection, for milk powder, the previous ban on unregistered products not to be marketed in the chinese market after 1 january 2018 had been reduced to new milk powder produced only after a very limited period, and that previously produced milk could continue to be imported for sale. According to the usual three-year guaranteed period for canned infant milk powder, if no new complementary policies are introduced in the future, this period is theoretically meant to be longer than three years。
In response, it was argued that the formula registration system was certainly on the rise, but that it would be difficult in practice for hundreds of milk powders to be fully registered in the market for more than a year, especially since foreign brands might be more complicated to implement the policy, so the delay was mainly aimed at importing milk powder. “in many cities in the country, milk powder still occupies an important market position, if the formula affects the food rations of these babies!” he analysed the reasons for this “suspension.”。
On 3 august this year, we approved the registration of 89 formula formulas for infant and child formulas in 22 enterprises, and accordingly issued the first list of approved enterprises, 17 in-country and 5 offshore. According to figures disclosed by ma fouchang, deputy director of the special food register management division of the national directorate for the supervision of food and drugs, as at 14 november the country had adopted 598 formulations of 93 factories, including 486 formulations of 70 factories in the country and 112 formulations of 23 factories abroad。
However, this delay is clearly a small blow to china's own milk powder. Because, for many producers, “some brands cannot be registered as scheduled” are already expected to be a short-term market strategy for many of the country’s milk production in the early days of the new deal. But for the time being, the “goods” of the country's milk powder have been significantly weakened。
Annex: schedule of tax adjustments
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