Skip to Menu Skip to Search Contact Us Skip to Content

SAFEGUARDS | Softlines NO. 102/15

SafeGuardS lady buying clothes

The China government has recently announced that the import duties on consumer goods including apparel, footwear, skin care products and disposable diapers will be cut on average, by more than half50%. The tax cut will start on, 1st June, 2015. This action is aimed at boosting domestic demand, stimulating domestic industrial upgrading and meeting the diversified consumer demand, as the GDP growing rate slows down.

This round of tariff cuts is mainly focused on footwear and apparel. For instance, import taxes on suits and fur clothing have been reduced to 7%-10% from 14%-23% and short boots and sports footwear have been reduced to 12% from 22%-24%.

Foreign brands of footwear and apparel are becoming popular in China and imports continue to increase each year. In the meanwhile, as income levels in China rise, more consumers are travelling and purchasing various goods abroad. Data from the Chinese Commerce Department indicate that over one hundred million overseas visits were made by Chinese in 2014 and the total abroad expenditure reaches one trillion Yuan. Therefore, the reduced import tax may lead to a growth spurt of imported footwear and apparel purchased in China.

The lower tariff barrier of consumer goods will benefit the import market. For international brands, the China market is a potential market, with continually rapid growth, and room for exploration. In consideration of this policy, SGS can help facilitate international brands entering the China market by providing guidance on regulation interpretation and product compliance requirements.

For some goods with an initial low tariff, the new policy may not have a significant impact on the selling price reduction. In addition to the tariff, value- added tax and consumption tax also are important and the proportion of those two taxes is substantial. As local authorities keep deepening the reform in China, the reduction of consumption tax for consumer goods is promising and will have a considerable influence on imported consumer goods.

Table 1 The specific consumer goods items and the provisional import duties [1]

Number

EX*

Tariff code

Goods name

Most-Favoured-Nation tariff rate in 2015 (%)

Provisional tariff from 1th June, 2015 (%)

1

ex

33049900

Skin care

6.5

2

2

43031010

Fur clothing

23

10

3

61101200

Cashmere, knitted or crocheted pullovers, etc.

14

7

4

62011100

Men's wool coats, capes and similar garment

16

8

5

62021100

Women's wool coats, capes and similar garment

16

8

6

62031100

Men’s wool suits

17.5

10

7

62041100

Women’s wool suit

17.5

10

8

64029100

Other rubber, plastic short boots (above the ankle)

24

12

9

64029910

Other rubber and plastic shoes with rubber upper vamp

24

12

10

64041100

Sports footwear with textile upper vamp

24

12

11

64051010

Leather or regenerated leather shoes with rubber, plastic, leather and regenerated leather sloes

24

12

12

64051090

Leather or regenerated leather shoes with other materials as sloes

24

12

13

64052000

Other shoes with textile upper vamp

22

12

14

ex

96190010

Disposable diaper

7.5

2

* “ex” represents the product with implementation of provisional tax rate should be within the range of that tariff code, and the description of goods shall prevail.

SGS Global Softlines has extensive network of over 40 laboratories worldwide, with a strong team of committed professionals from multi-disciplinary background. Regardless if you are in need of chemical testing or services in the fields of inspection, certification, compliance assurance, outsourcing, training or auditing SGS is dedicated to satisfy your needs. Providing service to help your products to be fit for the market requirements of the future – whatever the legal frameworks might be.

For enquiries, please contact:

Louann Spirito
Director Technical Support, Softlines
t: +1 973 461 7919

© SGS Group Management SA – 2015– All rights reserved - SGS is a registered trademark of SGS Group Management SA. This is a publication of SGS, except for 3rd parties’ contents submitted or licensed for use by SGS. SGS neither endorses nor disapproves said 3rd parties contents. This publication is intended to provide technical information and shall not be considered an exhaustive treatment of any subject treated. It is strictly educational and does not replace any legal requirements or applicable regulations. It is not intended to constitute consulting or professional advice. The information contained herein is provided “as is” and SGS does not warrant that it will be error-free or will meet any particular criteria of performance or quality. Do not quote or refer any information herein without SGS’s prior written consent.