15 May 2019
China Announces Pilot Retaliatory Tariff Exemption Programme for Designated US Imports
A pilot programme offering exemptions from the additional tariffs that have been imposed on certain goods of US origin is to be introduced by the State Council Customs Tariff Commission. The move, announced on 13 May, will give mainland businesses (and relevant trade associations) the opportunity to make a case for why any of the tariff-hit commodities they import, produce or rely on should be granted an exemption.
It is believed that exemptions will only be granted in three particular scenarios:
- Instances where the commodities in question cannot be readily substituted
- Instances where the additional tariffs will have a severe negative economic impact on the applicant
- Instances where the additional tariffs will have a major negative structural impact on a particular industry or have serious social consequences
It is the intention of the Commission to ultimately publish an approved exemption list, which will designate exactly which commodities will be free of the additional tariffs imposed by China in response to the Section 301 tariffs imposed on goods of mainland origin by the US government. Businesses wishing to secure such an exemption should submit a duly-completed application via the website of the Centre for Tariff Policy Research in due course.
For further details (in Chinese), please access the following links: