The Customs Tariff Commission of the State Council has issued the Tariff Adjustment Program for 2025, since January 1, 2025, China has adjusted the tariff rates and tariff items of some commodities, and added some new subheading annotated expressions, with the total number of tariff items reaching 8,960, and this policy change has a positive impact on the import and export trade, industrial development as well as international cooperation, as detailed below:

 1. Tariff Rate Adjustment

In order to support scientific and technological innovation, safeguard people's livelihood and promote green and low-carbon development, China has implemented a temporary import tariff rate lower than the most-favored-nation (MFN) tariff rate for 935 items of commodities. Specifically, the import tariffs of three categories of products have been reduced: the first category is high-tech products, such as cyclic olefin polymers, ethylene-vinyl alcohol copolymers, and automatic transmissions for special-purpose vehicles. The second category is products to protect people's livelihood, such as sodium zirconium cyclosilicate, viral vectors for CAR-T tumor therapy, and nickel-titanium alloy wire for surgical implantation. The last category is green and low-carbon products, such as ethane and some recycled copper and aluminum raw materials. Meanwhile, based on the development needs of domestic industries and changes in market supply and demand, China has moderately raised the import duty rates on specific commodities, such as molasses and sugar-containing pre-mixed powders, vinyl chloride, and battery separators, within the framework of fulfillment of its commitments under its accession to the WTO.

2. MFN Trade Policy

China applies agreed tariff rates to some imported commodities originating from 34 countries or regions under 24 free trade agreements and preferential trade arrangements. In particular, the China-Maldives Free Trade Agreement has been effective since January 1, 2025 and has implemented tariff reductions, and in the future, after the completion of the final tariff reductions, close to 96% of the tariff items of the two sides will realize zero tariffs. Moreover, China will continue to grant zero-tariff treatment to 100% of the products of the 43 least developed countries that have established diplomatic relations with China, so as to realize mutual benefits and win-win situation.

3. Tariffs account added

It has added new subject notes for pure electric passenger cars, dried seaweed, carbon enhancers and other items, optimized the subject notes for coconut juice, white wine, wood-based activated carbon, and other items, and promoted the scientific and standardized system of tax rules.

Against the backdrop of globalization, China is promoting the linkage of domestic and overseas markets, supporting scientific and technological innovation, improving people's livelihoods, promoting green development and opening up to the outside world through the adjustment of tariff rates and tariff items, which will not only help to optimize the trade structure, but also inject new impetus into the high-quality development of China's economy.

At PHC Advisory, we can offer you full support on matters regarding doing business in China, or any other issues your business may face. If you would like to know more about policies relevant to your business in Italy or Asia, please contact us at info@phcadvisory.com.  

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