Tariff cuts great benefits for people

The overall level of China's tariffs has been declining in the three years of China's entry into the World Trade Organization (WTO). According to its commitments to the WTO, China will, since January 1, 2005 lower the tariffs for as many as one thousand kinds of imported products, whose prices will therefore go downward. More foreign products will give the consumers more alternatives and more benefits.

The overall level of China's tariffs was cut from the original 15 percent to 12 percent on January 1, 2002, and to 11 percent in 2003. In 2004 it fell again to 10.4 percent. China cut tariff for imported autos three times in three years. The auto market, long under the protection of high tariff barrier, opened gradually with order. China's auto industry has been able to provide consumers with over a hundred kinds of homemade cars and the prices of a great number of medium-and-low-level cars have been integrated into the international market. In the past three years, over five million new cars were newly purchased, about four 80 percent of which for private use.

From January 1 next year, China will remove the quota and license administration on autos, cut the auto tariff to 30 percent and that for parts to 13 percent. These moves will further pull down the auto prices, enabling more people to have their own cars.

China has continually reduced the tariff on agricultural produce. As import quotas were increased, there have been sharp downs of the prices of grain, fruit and meet etc. In 2001, the average tariff of imported fruits was 29.34 percent, which has dropped to 15.6 now. A variety of imported fruits such as mangosteen and Pitaya from Thailand were seen on the tables of common families.

According to China's WTO commitments, zero tariff will be implemented for digital cameras and the parts from January 1, 2005. Expert predicts no big price changes since most of the medium-level cameras of the brands such as Olympus, Sony and Nikon have realized localization. But it is likely that 10 to 20 percent of cost can be saved for RMB10, 000-yuan-level cameras for professionals thus consumers can save several thousand yuan.

In cosmetics markets, China will observe the commitments by carrying out the 10-percent final bound rate from January 1 next year. The prices of world famous brands such as L'oreal and Lanome will fall.

Moreover, as put in relevant agreements, China's mainland and Hong Kong Special Administrative Region will initiate the agreement on zero tariff for the second batch of 713 kinds of goods from Hong Kong next year. As 374 kinds were fulfilled in 2004, over one thousand kinds of zero-tariff Hong Kong products will enter the mainland market next year, many of which are food including see food such as eel and prawn, bread, biscuit, seasonings such as soy sauce, gourmet powder, tea leave, mineral water and tinned food. Previously, the tariffs for those food were between 10 to 30 percent. Zero tariff means people on China's mainland can have more "Hong Kong-made" food.

By People's Daily Online