SGS SA SOFTLINES | NO. 102/15 |
This round of tariff cuts is mainly focused on footwear and apparel. For instance, import taxes on suits and fur clothing have been reduced to 7%-10% from 14%-23% and short boots and sports footwear have been reduced to 12% from 22%-24%.
Foreign brands of footwear and apparel are becoming popular in China and imports continue to increase each year. In the meanwhile, as income levels in China rise, more consumers are travelling and purchasing various goods abroad. Data from the Chinese Commerce Department indicate that over one hundred million overseas visits were made by Chinese in 2014 and the total abroad expenditure reaches one trillion Yuan. Therefore, the reduced import tax may lead to a growth spurt of imported footwear and apparel purchased in China.
The lower tariff barrier of consumer goods will benefit the import market. For international brands, the China market is a potential market, with continually rapid growth, and room for exploration. In consideration of this policy, SGS can help facilitate international brands entering the China market by providing guidance on regulation interpretation and product compliance requirements.
For some goods with an initial low tariff, the new policy may not have a significant impact on the selling price reduction. In addition to the tariff, value- added tax and consumption tax also are important and the proportion of those two taxes is substantial. As local authorities keep deepening the reform in China, the reduction of consumption tax for consumer goods is promising and will have a considerable influence on imported consumer goods.
Table 1 The specific consumer goods items and the provisional import duties [1]Number | EX* | Tariff code | Goods name | Most-Favoured-Nation tariff rate in 2015 (%) | Provisional tariff from 1th June, 2015 (%) |
1 | ex | 33049900 | Skin care | 6.5 | 2 |
2 | 43031010 | Fur clothing | 23 | 10 | |
3 | 61101200 | Cashmere, knitted or crocheted pullovers, etc. | 14 | 7 | |
4 | 62011100 | Men's wool coats, capes and similar garment | 16 | 8 | |
5 | 62021100 | Women's wool coats, capes and similar garment | 16 | 8 | |
6 | 62031100 | Men's wool suits | 17.5 | 10 | |
7 | 62041100 | Women's wool suit | 17.5 | 10 | |
8 | 64029100 | Other rubber, plastic short boots (above the ankle) | 24 | 12 | |
9 | 64029910 | Other rubber and plastic shoes with rubber upper vamp | 24 | 12 | |
10 | 64041100 | Sports footwear with textile upper vamp | 24 | 12 | |
11 | 64051010 | Leather or regenerated leather shoes with rubber, plastic, leather and regenerated leather sloes | 24 | 12 | |
12 | 64051090 | Leather or regenerated leather shoes with other materials as sloes | 24 | 12 | |
13 | 64052000 | Other shoes with textile upper vamp | 22 | 12 | |
14 | ex | 96190010 | Disposable diaper | 7.5 | 2 |
* "ex" represents the product with implementation of provisional tax rate should be within the range of that tariff code, and the description of goods shall prevail.
SGS Global Softlines has extensive network of over 40 laboratories worldwide, with a strong team of committed professionals from multi-disciplinary background. Regardless if you are in need of chemical testing or services in the fields of inspection, certification, compliance assurance, outsourcing, training or auditing SGS is dedicated to satisfy your needs. Providing service to help your products to be fit for the market requirements of the future - whatever the legal frameworks might be.
For enquiries, please contact:
Louann Spirito
Director Technical Support, Softlines
t: +1 973 461 7919
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