Dec 16, 2014 07:17 AM EST

China to lower import taxes for some goods from January

China will adjust its import and export taxes from Jan. 1 as part of a larger effort to re-order trade to foster economic growth, the Finance Ministry said on Tuesday.

To refine the mix of Chinese imports, China will levy provisional taxes at a rate even lower than that reserved for countries in the Most Favoured Nation category, a low-rate status given to particularly valued trading partners.

Taxes will be lowered on imports of optical fiber-equipped communication devices, advanced manufacturing equipment and electric car parts.

On the commodities front, the finance ministry said it would reduce import taxes on ethylene, ferro-nickel and coal products, while import tariffs for natural rubber will be raised.

Import tariffs for rubber are currently set at 20 percent of the value and capped at 1,200 yuan ($194) a tonne. Analysts said the ministry was expected to raise the cap to 1,600 yuan a tonne following recommendations by the local rubber association.

The ministry said it would maintain a coal export tax, while tariffs on out-of-quota cotton imports will remain unchanged.

No details were given about what the actual tax rates would be following the revision.

Many in the coal sector had hoped China, the world's top producer and consumer of coal, would agree to an industry proposal to cut coal export taxes to 3 percent from the current 10 percent as part of broader efforts to help local miners.

Get the Most Popular Jobs&Hire Stories in a Weekly Newsletter
© 2017 Reuters All rights reserved.

Join the Conversation

Real Time Analytics