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From December 1, China will only receive preferential tariffs from 3 countries Norway, New Zealand and Australia.
According to information from the General Administration of Customs of China, from December 1, 32 countries will stop applying preferential tariffs to this country. One economist predicts that labor-intensive businesses will be affected when the decision officially takes effect.Specifically, according to a notice on October 28 by the General Administration of Customs of China, starting from December 1, Chinese goods exported to "EU member countries, the United Kingdom, Canada, Turkey, Ukraine and Liechtenstein" will no longer be granted GSP (Generalized System of Preferences) certificates.
As its name suggests, GSP is a system of preferential tariffs of developed countries for exports from developing countries and regions by reducing or exempting taxes.
China's General Administration of Customs "welcomes" the move to suspend GSP issuance as "recognition from other developed economies that China is no longer in the group of low- and middle-income countries, and products Chinese products are competitive enough in the market, no longer need 'them' protection."
"We are 'graduating' from the GSP (General System of Preferences) program and moving towards becoming a 'mature' economy," the announcement states.
Thus, the notice of the General Administration of Customs of China indirectly confirmed that 32 countries (including 27 EU countries, the United Kingdom, Canada, Turkey, Ukraine and Liechtenstein) have canceled trade treatment for with China.
Notice of General Administration of Customs of China
According to Taiwan News, China started receiving GSP trade preferences since 1978, and a total of about 40 countries have or are granting China tax exemption certificates for certain exports. Previously, Switzerland, Japan, Russia, Kazakhstan and Belarus (members of the Eurasian Economic Union) stopped giving preferential tariff treatment to China.
Thus, from December 1, China will only receive preferential tariffs from 3 countries Norway, New Zealand and Australia.
Deputy Secretary General of the Chunghwa Economic and Financial Association (Taiwan), Tseng Chih-Chao, said that ending duty-free market access for China has little impact on exports overall, but Labor-intensive and low-margin businesses will bear the brunt – and this could lead to the relocation of manufacturing plants in China to other developing countries.
Previously, some Chinese news sites confused the GSP preferential tariff certificate with the WTO's most-favored nation (MFN) principle, causing some readers to worry that this move would bring China back to the previous era. when it joined the WTO 20 years ago.
Explaining this, Mr. Wu Guoxiong, a senior lawyer specializing in customs law, focusing on anti-smuggling, customs dispute resolution and import and export legal risk prevention said GSP and MFN are two different principles.
Accordingly, GSP is a unilateral preference and can be canceled unilaterally. Meanwhile, MFN is the principle of mutual preference, so the parties can violate the Convention if they unilaterally cancel the preference and this case can even lead to commercial disputes and trade retaliation. /.
32 nước bao gồm EU chấm dứt ưu đãi thuế quan dành cho Trung Quốc: Bắc Kinh phản ứng "lạ"
Kể từ ngày 1/12, Trung Quốc sẽ chỉ còn nhận được ưu đãi thuế quan từ 3 nước Na Uy, New Zealand và Úc.
