The Chinese Ministry of Finance (the MOF) issued this week a “Notice on Tariff Adjustment Plan 2020” (the “Notice”) adjusting tariffs for certain products effective January 1, 2020.

According to the Notice, China will impose reduced temporary import tariffs, which are lower than the most-favored-nation (MFN) tariffs, on 859 products from all of its trade partners as part of an overall tariff adjustment program. The intent of the move is to “increase imports of products facing a relative domestic shortage, or foreign specialty goods for everyday consumption.” Products that will benefit include, without limitation, food, fruits, chemical, pharmaceutical, mineral, wood, machinery, electrical, optical, photographic and medical products. For example, currently the MFN rate for frozen pork is 12%; however, the applicable tariff rate will be reduced to 8% after the adjustment becomes effective. China will also apply zero import tariff on raw materials used for the production of anti-cancer medicines and new diabetes medicines to promote the production of new medicines.

In addition, as of July 1, 2020, China will reduce the MFN rates for 176 information technology products, such as mobile communication base stations, routers and equipment used for production of semiconductors and integrated circuits.

Please contact us if you would like to assess further the impact of the adjustment on your imports into China.

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Photo of Evan Chuck Evan Chuck

Evan Chuck is a partner in the firm’s Los Angeles office and is a member of the firm’s International Trade and Corporate Groups. He leads the firm’s Asia practice and is also a director of the firm’s China office in Shanghai.

Evan has…

Evan Chuck is a partner in the firm’s Los Angeles office and is a member of the firm’s International Trade and Corporate Groups. He leads the firm’s Asia practice and is also a director of the firm’s China office in Shanghai.

Evan has more than 25 years of international trade and cross-border transactional experience. He has been a strategic advisor to Fortune 500 companies in structuring market entry, global supply chain and e-commerce strategies across the Asia-Pacific region. He has in-depth experience in China with cross-border acquisitions/dispositions, government regulatory compliance, and investigations. He advises major multinational companies on navigating the potential conflicts between and among U.S., E.U., and newly emerging Chinese law, including the Anti-foreign Sanctions Law, the PRC “Blocking Statute”, the PRC Export Control Law, Unreliable Entity List, the PRC Cybersecurity Law, and the PRC Data Security Law. He has also been representing a select group of large, multinational Chinese companies with complex U.S. transactional, tax, and regulatory issues. Evan works closely with the firm’s government affairs group and consulting group, Crowell & Moring International, to align global geo-political policy and strategy with cross-border legal advice.