In November this year, at the 2nd International Trade Fair which held in China, President Xi Jinping announced that China will reduce import tariffs in order to have high-quality products and services from abroad. Furthermore, the reduction of tax is an important measure for China to continue to fulfill its commitment to open and divide dividends with countries around the world.
Recently, the Customs Committee of the Chinese Government has issued an import tariff notification and will have the effect of lowering tariffs on a number of different goods, such as:
On 1 January 2020, some consumer goods such as frozen avocados, frozen juices, and frozen pork tariffs have been reduced from 12% to 8%, mainly due to a severe pork disease spread in China, which has weakened the Chinese meat and poultry industry. In addition, there are over 150 tariffs on equipment, parts and raw materials such as wood and paper products;
On 1 July 2020, China will lower tariffs on technology products to meet the needs of the Chinese consumers and their domestic markets, in order to promote high-tech industry development and increase the efficiency of industry structure.
Additionally, health promotion is one of the most important issues for Chinese. As a result of that, the ingredients of some medicines which used to treat asthma and raw materials for the production of diabetes treatments, such as alkaloids, are tax-free. Both are chronic diseases and a large number of patients are in high demand. Therefore, China will reduce the tariffs on imported drugs and related to the materials from 5% and 6.5% to 0%, which will greatly reduce drug prices.
The tax reduction can be seen as a great opportunity for Lao Entrepreneurs in particularly a chance to meet a larger market and number of consumers. However, there will be more policies and rules which need to meet conditions for importing and negotiating trade to China. This condition may create several steps and difficulties to meet the other Chinese regulations such as regulations on quality imports and import quotas. The quotas are available only with only one of the Chinese Representative Company.
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