China has further reduced its average tariff level to 9.8% as of 2007, consisting of 15.2% of the average tariff for agricultural products and 8.95% of tariff tax for industrial products,” announced China Customs Tariff Commission of the State Council.

In contrast with tariff regulation 2006, 1600 eight digit tariff numbers have been changed in the Regulations and Customs Import and Export Tariff of the People's Republic of China 2007, accounting for 20% of the total eight digit tariff numbers, mainly including mechanic and electric products, chemicals, textile, wooden products, base metal and alloy. China has made the greatest changes in its tariff regulation this time within the last ten years. The number of tariff items in tariff regulation 2007 has rose to 7646 from 7605 in tariff regulation 2006.

Additionally, the Customs tariff Commission declares that China will lower the import taxes for 44 items of products such as fresh strawberry. And as was revealed by the officials of the Ministry of Finance, Chinese government would conduct tariff quota administration over 7 agricultural products, including wheat, corn, rice, sugar, wool, felt strip and cotton and carry out an in-quota interim duty of 1% on 3 kinds of fertilizers, including carbamide, diammonium hydrogen phosphate (DAP) and ternary compound fertilizer. Moreover, new calculating approach in sliding scale duty will be set and carried out on the import cotton that exceeds tariff quota.

The sliding scale duty is a kind of tariff that sets different tax rates over the products of different prices. The higher the price is, the product will enjoy a lower customs duty.

Besides, the existing unit tax and multiple tax system will continue to function on the 55 items of products, such as freezing chicken and beer. Unit tax is to collect tariffs according to the weight and quantity of the products, while multiple tax system requires the importers or exporters to pay both unit tax and ad-valorem tax.

Meanwhile, China will adopt temporary import tax on 300-plus products, such as coals, stone materials, energy products, optical fiber coatings, silver paste as well as some key components and equipment. And as for the import of caoutchouc, China will operate selective tax, which includes 20% of ad-valorem tax and 2,600RMB/ton of unit tax (332.46 USD/ton).

The adjustment in tariff next year is to promote changing of economic growth pattern and the trade structure, so as to encourage Chinese enterprises to advance technologies by themselves, and in this way to save resources and protect environment.

In addition, Chinese government will levy more export tax on those energy-devouring products, such as coals, crude oil and stone materials, and from January 1, 2007 on, export tax will be imposed on the products, such as stainless steel, which cost much energy and produce pollution as well.

In 2007, in accordance with the trade agreements with ASEAN, Chile, and Pakistan, China will levy taxes on some products from these areas, much lower than the Most-Favored-Nation Rate of Duty. And some products from Cambodia, Burma, Laos, Bengal, Yemen, Afghanistan and some African countries will be only charged of preferential tax. Furthermore, all the products from Hong Kong and Macao will be treated with Zero Customs Duty, which could also be enjoyed by 15 fresh fruits from Taiwan.

To meet the adjustment of excise on mainland China, from next year on, the articles that foreign tourists carry into China will have to pay a certain import tax. For instance, the golf-related items and high-grade watches should fulfill a tax of 30% instead of 20%, and tax rate for cosmetics will be raised from 20% to 50%.