On December 25, 2018, the state released the 2019 Import and Export Provisional Tax Rates Adjustment Plan, indicating that China would adjust tariffs on some import and export goods from January 1, 2019. According to the Plan, the import tariffs on some raw materials like NR and SR from some countries will continue to be lowered down and the import tariffs on some large-sized tires will fall sharply.
Table 1: Import tariff adjustment on raw rubber materials
|
New round of import tariff adjustment of rubber raw material |
||||||
|
Number |
Tariff code |
Abbreviation of commodity |
Tariff in force of MFN /% |
Conventional tariff/% |
Tentative Tariff for 2019 /% |
|
|
Asia-Pacific |
Korea |
|||||
|
1 |
40011000 |
Natural latex |
20 |
|
13.3 |
10% or 900 Yuan/t |
|
2 |
40012100 |
Natural rubber smoked sheet
|
20 |
17 |
|
20% or 1500Yuan/t |
|
3 |
40012200 |
TSNR |
20 |
|
13.3 |
20% or 1500Yuan/t |
|
4 |
40012900 |
Other natural rubber of primary shapes |
20 |
17 |
|
|
|
5 |
40013000 |
Balata gum, guta gum, silver gum chrysanthemum gum and other natural gum |
20 |
|
13.3 |
|
|
6 |
40021110 |
Carboxylated styrene-butadiene rubber latex |
7.5 |
|
5 |
|
|
7 |
40021190 |
Styrene butadiene rubber latex |
7.5 |
|
5 |
|
|
8 |
40021911 |
Styrene butadiene rubber without any process |
7.5 |
|
5 |
|
|
9 |
40021912 |
oil-extended styrene-butadiene rubber |
7.5 |
|
5 |
|
|
10 |
40022010 |
Primary shape butadiene rubber |
7.5 |
|
5 |
|
|
11 |
40022090 |
Butadiene rubber sheet and material |
7.5 |
7 |
5 |
|
From 2019, China will continue the import tariff policy that imposing 10% duties or 900 Yuan/ton on natural rubber latex, and 20% or 1,500 Yuan/ton on such raw materials as natural rubber smoked sheet and technically specified natural rubber; but as for imports of natural rubber smoked sheet and other natural rubber in primary forms from countries participating in the Asia-Pacific Trade Agreement, only 17% tariff will be collected. For Korea, the big producer of SR, the import tariffs on SBR and BR will be decreased to 5% from 7.5%.
Besides, the import tariffs on some large-sized tires are also declined. See Table 2 for details.
Table 2: Tire import tariffs adjustment
|
New round of import tariff adjustment of tire products |
||||
|
Number |
Tariff code |
Abbreviation of commodity |
Tariff in force of MFN /% |
Tentative Tariff for 2019 /% |
|
1 |
40112000 |
New pneumatic rubber tires for passenger and freight cars（Tires with a section width of 24 inches or more） |
10 |
8 |
|
2 |
40117010 |
Herringbone tread tires for agriculture and forestry （Tires with a section width of 24 inches or more） |
17 |
8 |
|
3 |
40118012 |
Herringbone tread tires for construction, mining or industrial vehicles with rim sizes greater than 61 cm（Tires with a section width of 24 inches or more） |
17 |
8 |
|
4 |
40118092 |
Other herringbone tread tires for construction, mining or industrial vehicles with rim sizes greater than 61cm（Tires with a section width of 24 inches or more） |
25 |
8 |
|
5 |
40119010 |
Other new pneumatic rubber tires with herringbone tread or similar tread（Tires with a section width of 30 inches or more） |
17 |
8 |
|
6 |
40119090 |
Other new pneumatic rubber tires（Tires with a section width of 30 inches or more） |
25 |
8 |
|
7 |
40121300 |
Retread tires for aircraft |
20 |
4 |
According to Table 2, we can see that for large-sized tires applied to passenger transport, freight transport and agriculture, the import tax rate is obviously lower compared with the most favoured nation tariff. The section width of general tires qualified for preferential tariff policy shall be 24 inches and more or 30 inches and more. And the maximum tariff preference is 17% this time.
Based on data released by China Rubber Web, China imported 36.756 million tons of aircraft retreads with the total volume of 298 Million Yuan in 2017. It is predicted that it will reduce 47.68 Million Yuan of import tariff every year.
