HomeProduct Complimentary download China lowers tariffs on corn deep-processing imports in 2021

China lowers tariffs on corn deep-processing imports in 2021

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Publish time: 9th February, 2021      Source: CCM
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    Summary: This year, China will adjust the MFN/conventional/provisional tariffs on part imports, including imported corn deep-processing products.   

  

    On 23 Dec., 2020, the Customs Tariff Commission of the State Council issued a Notice of Adjustment Schemes on Import Tariff Rates in 2021, announcing that from 1 Jan., 2021, the most favored nation (MFN) tariffs, conventional tariffs, and provisional tariffs of some import goods would be adjusted. This is eye-catching, as it is reported to be a big adjustment in recent years, not only for tariff rates but also for tax items.      

  

    Provisional tariffs   

  

    On 1 Jan., the provisional tariff rates were dropped for 883 import commodities (excluding goods under tariff quota), including 2 corn deep-processing products:   

  
        
  •       Lysine ester and lysine salt (HS Code: 29224190): 6% for MFN tariffs vs. 5% for provisional tariffs – the same with 2020     
    •     
  •       Threonine (HS Code: 29225090): 6.50% for MFN tariffs vs. 5% for provisional tariffs – the same with 2020     
    •   
  Table Provisional tariffs for imported corn deep-processing products
  
                                                                                                                                                                                                                 
            
              HS Code             
          		             Name of Commodity                        2021 MFN Tariff Rate, %                        2021 Provisional Tariff Rate, %           
            29224190                        Lysine ester and lysine salt                         6                        5           
            29225090                        Threonine                        6.50                        5           
  
Source: Customs Tariff Commission of the State Council & CCM

  

    Conventional tariffs   

  

    Since 1 Jan., conventional tariffs under bilateral trade agreements and the Asia-Pacific Trade Agreement (APTA) between China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, Australia, South Korea, Chile, Georgia, and Pakistan have been further lowered, with some imports from Mongolia applicable to the conventional tariffs under the APTA. Meanwhile, China has begun to impose its 1st round of conventional tariffs on part commodities originated from Mauritius.   

  

    Most corn deep-processing imports have witnessed further decreased conventional tariffs, such as:   

  
        
  •       Corn starch (HS Code: 11081200):     
    •     
  •       Imported from Switzerland: 4% vs. 6% in 2020     
    •     
  •       Imported from South Korea: 10.60% vs. 12% in 2020     
    •     
  •       Lysine (HS Code: 29224110):     
    •     
  •       Imported from South Korea: 2.60% vs. 3% in 2020     
    •     
  •       Sodium glutamate (HS Code: 29224220):     
    •     
  •       Imported from Pakistan: 4% vs. 4.50% in 2020     
    •     
  •       Imported from South Korea: 3% vs. 4% in 2020     
    •     
  •       Other corn deep-processing goods (such as citric acid and sorbitol): dropping significantly     
    •     

          This tariff decline enables corn deep-processing imports to enter the Chinese market at a lower tariff. However, the import volume of such goods to the country is moderate, based on its abundant product ranges and sufficient supply. Moreover, the abovementioned countries are not key import origins for China, so this tariff adjustment will unlikely put a great impact on the local corn deep-processing industry.       

      
  Table Further lower conventional tariffs for imported corn deep-processing products
  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
            
              HS Code             
          		             Name of Commodity                        MFN Tariff Rate, %                        Conventional Tariff, %           
            Asia Pacific                        Chile                        Pakistan                        New Zealand                        Peru                        Costa Rica                        Switzerland                        Iceland                        Australia                        South Korea                        Georgia                        Maritius           
            11081200                        Corn starch                        20                                                 0                                                 0                        0                        0                        4                        0                        0                        10.60                                                 0           
            29181400                        Citric acid                        6.50                                                 0                        4                        0                        0                        0                        0                        0                        0                        1.90                        0                        0           
            17023000                        Glucose and glucose syrup (fructose<20%)                        30                                                 0                        0                        0                        0                        0                                                                          0                                                                          24           
            17024000                        Glucose and glucose syrup (20%≤fructose<50%, excluding inverted sugar)                        30                                                 0                                                 0                        0                        0                                                                          0                                                                          24           
            17026000                        Fructose and fructose syrup (fructose>50%, excluding inverted sugar)                        30                                                 0                                                 0                        0                        0                                                 0                        0                                                                          24           
            29054300                        Mannitol                        8                                                 0                        3                        0                        0                        0                        0                        0                        0                        0                        0                        0           
            29054910                        Xylitol                         5.50                                                 0                        0                        0                        0                        0                        0                        0                        0                        0                        0                        0           
            29054400                        Sorbitol                        8                                                 0                        11.20                        0                        0                        0                        2.80                        0                        0                        4.20                        0                        0           
            29321200                        Furfural                        6                                                 0                        5                        0                        0                        0                        0                        0                        0                        0                        0                        0           
            29321300                        Furfuryl alcohol and tetrahydrofurfuryl alcohol                        6                                                 0                        5                        0                        0                        0                        0                        0                        0                        0                        0                        0           
            29224110                        Lysine                        5                                                 0                        0                        0                        0                        0                        0                        0                        0                        2.60                        0                        0           
            29224190                        Lysine ester and lysine salt                        6                                                 0                        5                        0                        0                        0                        0                        0                        0                        0                        0                        0           
            29224210                        Glutamic acid                        5                        3.30                        0                        4                        0                        0                        0                        0                        0                        0                        3                        0                        0           
            29224220                        Sodium glutamate                        5                                                 0                        4                        0                        0                        0                        0                        0                        0                        3                        0                        0           
            29061320                        Inositol                        5.50                                                 0                        0                        0                        0                        0                        0                        0                        0                        0                        0                        0           
  
Source: Customs Tariff Commission of the State Council & CCM

  

    Tariff quota   

  

    The notice also highlights that in 2021, corn imports to China will continue to be subject to tariff-rate quota (TRQ), with other corn (HS Code: 10059000) having the same rates with 2020 (1% for TRQ, 65% for MFN tariffs, and 180% for general rates). 
  

  

    
   

  

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