Tariffs On Imported Bags And Clothing Will Be Lowered Next Year, And Retail Prices May Not Be Reduced

Yesterday, the Ministry of Finance announced that China will partially adjust import and export tariffs from January 1, 2016. In 2016, the scope of tax reduction on consumer goods will be moderately expanded, and the bags with relatively high import tariff rate and high elasticity of import demand will be reduced by temporary tax rate clothing Import tariffs on scarves, blankets, vacuum cups, sunglasses, etc.

What is the intensity of this tariff reduction? The Ministry of Finance has not yet disclosed. However, insiders speculate that the reduction is expected to exceed 50%.

"In June this year, the state also lowered the tariffs on imported goods such as shoes and boots, skin care products and diapers. For example, the import tariff on diapers was reduced from 7.5% to 2%, and the import tariff on skin care products was reduced from 5% to 2%. On average, the decline was basically more than 50%." Mr. Liu, a trade enterprise head, predicted that this adjustment should not be less than the last time.

With this tax cut included, China has reduced luggage, clothing Shoes and boots , skin care products, baby food and supplies, kitchen utensils, tableware, glasses, scarves, blankets and other daily consumer goods.

However, compared with exports, Ningbo's imports of these consumer goods are not large. According to the statistics of major import and export commodities released by Ningbo Customs, the main import commodities in Ningbo are resource commodities such as crude oil and mechanical and electrical products, while daily consumer goods such as clothing and shoes are the main export commodities.

For citizens, the most important concern is whether the final price of goods will fall with the reduction of tariffs.

"The terminal selling price of imported goods should consider not only the cost of goods, but also international logistics costs, import taxes, domestic sales costs and profits. Among them, import taxes are only a small part, while import taxes can be subdivided into tariff, value-added tax and consumption tax, of which tariff is the smallest part." Mr. Liu analyzed, for example, a set of skincare products with a customs declaration price of 1000 yuan, after tax reduction, only 30 yuan less tax was paid, brand Commerce may not reflect the tariff reduction on the terminal price.