Other nations are retaliatingcreating the risk of escalating tit-for-tat protectionism.
Chinese citizens may also trade abroad in a personal capacity. The average tariff for agricultural products was Import tariffs on certain daily consumer goods in great demand on the mainland would be lowered on a pilot basis, while the scope of products eligible for lower tariffs was widened.
From 1 Julyimport tariff rates began to be slashed on daily consumer goods involving 1, tariff lines. The term daily consumer goods covers eight categories of product - food; apparel, footwear and headwear; furniture and houseware; sundry grocery items; culture, sports and entertainment supplies, home electronics; daily chemical products; and medical and health products.
The average tariff rates of the goods involved will be reduced from The average import tariffs for apparel, footwear, headwear, kitchenware and fitness products will be reduced from For home appliances such as washing machines and refrigerators, the reduction is from For processed food, the rates will be cut from The average tariff rates for detergents, cosmetics such as skincare and haircare products, and some medicine and health products will fall from 8.
This is the fifth time China has lowered import tariffs for consumer goods in recent years. Anti-dumping and countervailing duties may be imposed on imported goods that are deemed to pose a threat to Chinese national industries. Imported agricultural products subject to tariff rate quotas include wheat, maize, rice, soybean oil, rapeseed oil, palm oil, sugar, cotton and wool.
Export processing enterprises that are backed by foreign investment are required to pay VAT on imported raw materials, parts and components. When their products are exported, the VAT they have paid is offset against the VAT payable on goods sold domestically.
Any excess will be returned as a rebate. Consumer goods subject to consumption tax in China include tobacco, alcoholic drinks, firecrackers and fireworks, high-end cosmetics, oil products, fine jewellery and precious stones, golf balls and equipment, high-end watches, yachts, disposable wooden chopsticks, hardwood floorboards, motorcycles, small motor cars, batteries and coatings.
Business tax is levied on the revenue generated from the provision of taxable services. FromChina began to replace business tax with VAT on a pilot basis. From 1 Maythe pilot had been extended to cover construction, real properties, financial services and consumer services, making VAT applicable across all goods and services sectors.
In Octoberthe State Council decided to scrap the business tax altogether. Quota and Licensing FromChina began removing quota and licensing requirements from the majority of imports, and only a limited number of products are now subject to import licensing control.
Under the Catalogue of Goods Subject to Import Licence Administration, only two categories of commodities - ozone depleting substances and key used mechanical and electronic products - amounting to a total of items under digit tariff codes, are now subject to import licensing control.
The Ministry of Commerce MOFCOMtogether with other related departments under the State Council, is responsible for formulating, amending and publishing a catalogue of mechanical and electronic imports which are subject to restriction or prohibition. In order to monitor imports, China implements a system of automatic import licensing for certain mechanical and electronic products which can be imported freely.
To import mechanical and electronic products subject to automatic import licensing, the importer should apply to MOFCOM or its authorised agencies for an Automatic Import Licence before completing customs formalities.
The items to be declared are largely the same as listed in the original customs and inspection declaration forms. Customs is the authority entrusted to interpret customs tariff regulations, determine tariff classifications and assess the dutiable values of goods entering the customs border.
The dutiable value of an imported good is its CIF value, which includes the normal transaction price of the good, plus the cost of packing, freight, insurance and commission.
Product standards All import and export goods listed in the Catalogue of Import and Export Commodities Subject to Inspection and Quarantine click for the catalogue updates issued by Customs authorities, or subject to inspection as laid down in other laws and regulations, must be inspected.
Safety licence and other regulatory requirements apply to imports of medicines, foodstuffs, animal and plant products, and mechanical and electronic products. Click for detailed information provided by the Certification and Accreditation Administration of China on quality standards.
China implemented a new system of compulsory product certification on 1 May The CCC mark is the certification mark for products which are allowed to be imported, sold or used in China. Catalogues of products requiring the CCC mark have been drawn up and published. The CCC catalogues cover the major product categories of electrical wires and cables, circuit switches and electric devices for protection or connection, low voltage electrical apparatus, small power motors, electric tools, welding machines, household appliances and appliances for similar uses, audio and video apparatus, information technology equipment, lighting equipment, motor vehicles and safety parts, motor vehicle tyres, safety glass, agricultural machinery, firefighting equipment, safety safeguard technology products, telecommunications terminal equipment and wireless LAN products.
Details can be found on the CNCA website. Apart from CCC certification, some products may have to meet other requirements as well - for example, telecoms and internet equipment need to meet Ministry of Industry and Information Technology standards, while motorcycle engines, refrigerators, air conditioner compressors, televisions and other electrical household appliances are required to have safety licences.
China has a complex system for governing the standards and hygienic conditions of food and agricultural products, wines and cosmetics imported into the mainland. The public health administration of the State Council has also established regulations governing the use of genetically modified GM food and food ingredients in food manufacturing to ensure good quality and safety.Apr 02, · I.
WTO Framework The World Trade Organization (WTO) is a multilateral institution whose very raison d’être is the prevention of protectionism in international economic relations. In the words of its Director-General, Pascal Lamy, the WTO serves as an “insurance policy” against protectionism.
The False Promise of Protectionism: Why Trump’s Trade Policy Could Backfire removed, resulting in the steady accumulation of trade barriers.
Nov 10, · Trade barriers are any of a number of government-placed restrictions on trade between nations. The most common ones are things like subsidies, tariffs, quotas, duties, and embargoes. The term free trade refers to the theoretical removal of all trade barriers, allowing for completely free and unfettered trade. The annual report on Trade and Investment Barriers, released today, shows that the European Commission has eliminated the highest number ever of trade barriers faced by EU companies doing business abroad. European exporters reported a major increase in protectionism in In the long term, trade protectionism weakens the industry. Without competition, companies within the industry have no need to innovate. Eventually, the domestic product will decline in quality and be more expensive than what foreign competitors produce.
In protectionist pressures, the World Bank reduced Japan to agree to reduce its automobile exports, forced . In the backdrop of it, a revival of trade protectionism will surely hamper the recovery process and further affecting already weak trade flow & world demand.
Forms of protectionism Protectionism is defined as any attempt to restrict the free flow of import into a country. Also, the aim is to the study of effect of recession on downturn in automobile industry due to changes in Trade Agreements between two countries regarding export and import policies of this industry.
‘The National Bureau of Economic Research formally defines a recession as three consecutive quarters of falling real gross domestic product (GDP).’ . The Effects of Protectionist Policies on International Trade Uploaded by Global Research and Development Services Globalisation, which is the most important feature of the new economic world order, reflects the elimination of all barriers to trade of goods and services among countries.
If Trump succeeds in using trade wars to bring down European and Chinese trade barriers, he may end up being one of the greatest free-trade presidents in history.
Claude Barfield of AEI doesn’t agree with his colleague that Trump is a closet free trader.