Sixteen items are included in the first list of tariff exclusions

After more than two months of examination and study, the first list of excluded goods levied on the United States and Canada was officially released on September 11. According to the announcement issued by the Tariff and Tax Commission of the State Council, the first list of exclusions covers 16 items of goods under the tax. In addition to imported commodities such as alfalfa, the main components of anti-cancer drugs such as gefitinib, cytarabine hydrochloride and exetinib hydrochloride are also listed.

CCTV published a sharp international commentary, pointing out that this is the first time that China has published a list of tariff exclusion since the United States initiated and continuously escalated economic and trade frictions. The purpose is to minimize the impact of economic and trade frictions on enterprises in China, reflecting China's consistent calmness and rationality in dealing with economic and trade frictions, as well as its high degree of responsibility to enterprises and the people.

"The introduction of the exclusion list reflects the precise countervailing of the tariff imposed on the United States and Canada, which minimizes the cost of countervailing and maximizes the effect. At the same time, the thirteenth round of high-level consultation between China and the United States is imminent, and this tariff exclusion has also released a positive attitude. Bai Ming, deputy director of the International Market Research Institute of the Academy of Commerce of the Ministry of Commerce, told Beijing Business Daily in an interview.

The commodities listed in the first exclusion list mainly include shrimp seedlings, alfalfa, demoulding agent, lubricating oil, medical linear accelerator and so on, covering many fields such as agriculture, medical treatment, chemical industry and so on. According to the above-mentioned international sharp review, these "commodities related to the quality of life of the people, the transformation and upgrading of enterprises and the needs of industrial development have been included in the first exclusion list, which shows that the Chinese government is responsible to the people and enterprises in China".

According to the "Trial Measures for the Exclusion of Tariff Commodities imposed on the United States and Canada", the applicant should explain three reasons when applying for the exclusion of tariffs: difficulties in finding alternative sources of commodities; serious economic damage caused by the imposition of tariffs on the applicant; and significant negative structure caused by the imposition of tariffs on related industries. Sexual impact or serious social consequences.

Taking the alfalfa listed in this list as an example, the United States has long been the largest source of Alfalfa imports in China. The product has been subject to a 25% tariff since July 6 last year. Customs data show that in the first half of this year, China imported 398.6 million tons of Alfalfa from the United States, a decrease of 43.52% compared with the same period last year, but in proportion, it accounted for 80.38% of the total alfalfa imports. Industry experts estimate that the comprehensive cost of raw milk in China will increase by 10% - 15% since the increase of import tariffs on Alfalfa in the United States.

Since China initiated the tariff exclusion procedure, on May 15, the China Dairy Association sent a letter to its member units stating that it intends to apply to the Tariff and Tax Commission of the State Council for the inclusion of alfalfa, Whey and other commodities imported from the United States in the "exclusion of tariff commodities imposed on the United States and Canada". At present, the MFN tariff rate of Alfalfa grain and alfalfa grass imports in China is 9%, and the tentative tariff rate of alfalfa grass imports is 7%. The final tariff of Alfalfa grain and alfalfa grass imports from the United States is 36.25% and 33.75% respectively after the 25% tariff is levied on the professional dairy website Holstein. If alfalfa grass is excluded from the scope of tariff increase, it will save a lot of money for dairy farmers in China. It is worth noting that the main components of many anticancer drugs are also included in the exclusion list. In fact, in order not to affect the use of drugs in domestic patients, and not to increase the burden of patients, when formulating countermeasures against the United States, the relevant departments have excluded all medicines for the treatment and prevention of diseases. However, in the first list of tariff increases, the main anticancer drugs are dicitabine, fluorourea glycoside, Cyclophosphamide, gefitinib, capecitabine, retecase, fludarabine phosphate, tegafur, cytarabine hydrochloride, Gemcitabine Hydrochloride, ectinib hydrochloride and isocyclophosphamide. Ingredients. For example, cytarabine hydrochloride is the primary drug for the treatment of non-acute lymphocytic leukemia, and gefitinib and exetinib hydrochloride are also star anticancer drugs. In this exclusion list, the above-mentioned goods are exempted from tariff increases, and the tariff taxes already levied will be refunded.

"Through the first list of excluded commodities, we can see that the national level fully takes into account the people's livelihood, such as alfalfa listed in List 1 and many drug lists. At the same time, the first list also conveys the tendency of excluding 10 tax items. Previously, the tax items published were relatively broad, and a tax item often covered many 10 items of goods. The list is particularly clear in the notes. ex indicates that excluding commodities is under the corresponding tax items listed in the tax code number, whichever is the name of the commodity. This provides a reference for the follow-up declaration of enterprises. Liu Xinze, senior partner of Beijing Dehe Heng Law Firm and director of trade relief business, pointed out.

The announcement shows that the list covers some goods excluded from the batch for the first time. From September 17, 2019 to September 16, 2020, the tariff imposed by China for anti-US 301 measures will not be levied. In the two lists, the 12 categories of goods listed in List 1 shall be refunded with the added customs duties, and the relevant importing enterprises shall apply to the Customs for processing within six months from the date of publication of the exclusion list. For the four categories of commodities listed in List 2, the tax levied shall not be refunded.

Liu Xinze pointed out to Beijing Business Daily that when it comes to tax refund, the customs will dock with the relevant enterprises on specific matters. According to the situation of tax declaration and customs clearance, the enterprises are required to submit information, and the enterprises can enjoy the tax refund preferential treatment after completing the submission according to the requirements.