IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 May 2018 | Removal date: open ended
Still in force

Internal taxation of imports

On April 27th, 2018, the Chinese Ministry of Finance announced that it would be reducing import VAT on certain medicines from the standard 17% to 3%.

In addition, the announcement also mentioned that domestic wholesalers, manufacturers and retailers of these medicines could use a simplified VAT calculation in order to collect 3% VAT, albeit with some restrictions:
Once adopted, the simplified calculation method must be used for 36 months before the general method can be adopted;
Calculations must be done separately for the pertinent medicines.

The medicines in question are all anti-cancer medications of some type.

Another announcement from around the same time also reduced import tariffs on such products to nothing. Please see related act for more information.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

341 Basic organic chemicals
2905 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
290539 Other
2922 Oxygenfunction aminocompounds.
292250 Aminoalcoholphenols, aminoacidphenols and other amino compounds with oxygen function
2930 Organosulphur compounds.
293090 Other
2932 Heterocyclic compounds with oxygen heteroatom(s) only.
293299 Other
2933 Heterocyclic compounds with nitrogen heteroatom(s) only.
293339 Other
293379 Other lactams
293399 Other
2934 Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds.
293410 Compounds containing an unfused thiazole ring (whether or not hydrogenated) in the structure
293499 Other
3507 Enzymes; prepared enzymes not elsewhere specified or included.
350790 Other
342 Basic inorganic chemicals n.e.c.
2843 Colloidal precious metals; inorganic or organic compounds of precious metals, whether or not chemically defined; amalgams of precious metals.
284390 Other compounds; amalgams
352 Pharmaceutical products
2924 Carboxyamidefunction compounds; amidefunction compounds of carbonic acid.
292429 Other
2933 Heterocyclic compounds with nitrogen heteroatom(s) only.
293359 Other
293369 Other
2937 Hormones, prostaglandins, thromboxanes and leukotrienes, natural or reproduced by synthesis; derivatives and structural analogues thereof, including chain modified polypeptides, used primarily as hormones.
293719 Other
293729 Other
2941 Antibiotics.
294190 Other
3004 Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packin
300410 Containing penicillins or derivatives thereof, with a penicillanic acid structure, or streptomycins or their derivatives
300420 Containing other antibiotics
300432 Containing corticosteroid hormones, their derivatives or structural analogues
300439 Other
300490 Other

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