China Updates Tariff Schedule and Duty Rates

China has released its annual tariff update, including changes to duty rates and the country’s harmonized tariff schedule, which were effective as of Jan. 1. Highlights of this update, the first since the launch of China’s new tariff law on Dec. 1, 2024, include the following.

– More than 930 items – primarily from the chemical, equipment, pharmaceutical, and consumer goods sectors – may enjoy temporary duty rates lower than the most-favored-nation rates.

– New tariff items are created for electric vehicles and some agricultural and chemical goods.

– Preferential duty rates are lowered for China’s free trade agreement partners, such as New Zealand, Peru, Australia, South Korea, and Switzerland.

China has also extended through Feb. 28 the exclusion of 124 items from additional tariffs on imports from the U.S. Beijing is likely to consider the trade policies of incoming U.S. President Donald Trump before deciding on any further extensions.

Companies doing business in China should assess the duty impact of these changes and take action accordingly. For assistance with such efforts, please contact Xiaofeng Xu via email.