Lowered Import Tariff Rates      

The Ministry of Finance of China has recently published the tariff scheme for 2008 and import tariff rates are further reduced. The tentative import tariff rate for fuel oil in 2008 is 3% and the import tariff rate for gasoline, diesel, kerosene and naphtha is reduced from 2%-6% to 1%. There is still no import tariff for crude oil. The import tariff rate for LPG (liquefied propane/liquefied butane) remains 5%. The 3% import tariff rate for alumina is eliminated.
    According to analysts, the readjustment for tariffs is put on the reduction of import tariff rates for resource-intensive products with domestic supply shortage. For example, the import tariff rates for gasoline and diesel have a considerable reduction, showing that the government encourages the imports of these products. Due to the brisk demand for oil products, China has been cutting down import tariff rates for oil products in recent years to encourage oil products imports. The latest downward readjustment action to the import tariff rates for gasoline, aviation kerosene and diesel was made on November 1st, 2006 and the tariff rates were reduced from 5% to 2%.
   By contrast to the downturn of import tariff rates, export tariff rates for energy consuming products such as steel products and coke greatly increase. The export tariff rates for steel billet increase from 15% to 25% and the export tariff rates for partial steel products go up from 5% to 15%. The export tariff rates for coke and semi-coke further rise from 15% to 25%. The export tariff rates for coal tar are up from 10% to 15%. The export tariff rates for coking coal remain 5%.
    Experts point out that the upward readjustment to export tariff rates for some products such as steel products indicates that China will control the exports of energy consuming products and put more attention on saving energy and reducing pollution. Starting from June 1st, 2007 the export tariff rates for coke and semi-coke have increased from 5% to 15% and the export tariff rate for coal tar has increased from 5% to 10%.
   China implements tentative import tariff rates for more than 600 commodities in 2008.
    The tentative import tariff rates for urea are 30% from January 1st to March 31st, 35% from April 1st to September 30th and 25% from October 1st to December 31st. The tentative import tariff rates for diammonium hydrogen phosphate, ammonium dihydrogen phosphate and their mixture are 20% from January 1st to March 31st, 30% from April 1st to September 30th and 20% from October 1st to December 31st. A tentative export tariff rate of 5% is imposed on sulfuric acid and fuming sulfuric acid.
   As urea and phosphate fertilizers have oversupply in the domestic market, the readjustment to their tariff rates can greatly promote the sound development of the chemical fertilizer sector and protect farmers' interests. Fertilizer insiders expressed.
    Besides, the Ministry of Commerce and the General Customs Administration of China have published the second lot products directory for the prohibition of processing trade. Quite a few chemicals, plastics and plastic products are included.