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China to Reduce Import Tariff Levied on Skin Care Products to 2%

  •   26 May 2015
  •    Angelita Hu
  •  1670
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    Skin care productsThe Customs Tariff Commission of China’s State council announced that it is to reduce the import tariffs levied on mass consumer products including skin care products as of June 1st 2015 with an average decrease in tariffs of over 50%. The import tariff on skin care products will drop to values ranging from 2% to 5% representing an average reduction of 60%. This policy aims to increase imports in line with a broader shift in economic policy towards a more consumption based economy.

    In China, skin care products are currently subject to 30% consumption tax, 17% VAT and 5% import tariff. Compared to the high consumption tax, the adjustment of import tariffs will have little effect on the overall price of imported skin care products. However, cosmetic industry expert Feng Jianjun believes that the reduction is indicative of a broader change in government taxation policy and that consumption tax is likely to be adjusted soon.

    It is also worth noting that last year China’s Ministry of Finance said that they were considering dividing cosmetics into top grade cosmetics and general cosmetics and that the 30 % consumption tax would not be levied on general cosmetics.

     

    Reference:

    http://gss.mof.gov.cn/zhengwuxinxi/zhengcejiedu/201505/t20150525_1240119...

    http://dianzibao.xkb.com.cn/view/991393

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