Breaking News: Tariff Rate of Imported Cosmetics Adjusted since July 1st, 2018

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At the end of 2017, the Customs Tariff Commission adjusted import tariffs on some consumer goods. From December 1st, 2017, the import tariff of some consumer goods will be reduced by means of provisional tax rate. On May 31st, 2018, the Customs Tariff Commission issued a notice on reducing the import tariff of consumer goods. The new tax policy will be implemented on July 1st, 2018. From then on, the MFN tariff rate of some consumer goods will be reduced, and the MFN provisional tariff rate of 210 import goods will be cancelled while applicable to other goods. The average tax rate fell from 15.7% to 6.9% regarding to 1,449 tax categories, representing an average reduction of 55.9%. Among them, the MFN provisional tax rate of most cosmetics and related personal care products are replaced by MFN tax rate. Below is the list of the tax rate adjustment for imported cosmetics and related personal care products in 2018 and 2017.

List 1: Tax rate adjustment for imported cosmetics and related personal care products in 2018 and 2017

No.

Tariff Code

Product name

2018 MFN Tariff Rate (%)

2017 Provisional Tax Rate (%)

1

33030000

Perfumes and Florida Water

3

5

2

33041000

Lip Cosmetics

5

5

3

33042000

Eye Cosmetics

5

5

4

33043000

Nail Cosmetics

5

5

5

33049100

Powder

5

5

6

33049900

Skin Care and Other Beauty Product

1

2

7

33051000

Shampoo

3

2

8

33052000

Hair perm product

3

5

9

33053000

Hair styling product

3

5

10

33059000

Other Hair Products

3

5

11

33061010

Toothpaste

3

5

12

33061090

Other teeth cleaning products

3

5

13

33062000

Dental floss

3

5

14

33069010

Mouthwash

3

5

15

33069090

Other dental cleanser

3

5

16

33071000

Shaving Preparation

3

5

17

33072000

Personal Deodorants & Antiperspirants

3

5

18

33073000

Shower Salt and other Shower Preparation

3

5

19

33079000

Depilation and unspecified aromatic products and cosmetics toiletries

3

5

20

96032100

Toothbrush

8

8

21

96032900

Body makeup brush (shaving brush, comb, eyelash brush)

6

8

22

96033090

Cosmetic pencils

6

8

23

96161000

Perfume and other cosmetics sprayer

6

8

24

96162000

Rouge and cosmetics powder puff and tap

6

8

25

96190020

Sanitary towel and tampon

4

5

26

96190090

Sanitary tower with any materials or similar product as diaper

6

8

CIRS Comments

  1. The Tax rates of most imported products except shampoo fall from 5% and 2% to 3% and 1%, respectively.
  2. Shampoo's tax rate increase from 2% to 3%.
  3. The tax rates on related personal care products fall from 8% and 5% to 6% and 4%, respectively.
  4. A sharp reduction in the tax rate will undoubtedly boost the consumption of imported cosmetics and consumer goods in 2019. In short term, a sharp reduction in the import tariff on consumer goods is going to create great impact on China's relevant consumer goods manufacturers. However, in long term, this is not only a consumer welfare of the people, but also will force domestic consumer goods manufacturers to be transformed and updated ASAP to improve product quality.

If you have any needs or questions, please contact us at service@cirs-reach.com.

Source: Notice on the Reduction of Tarrif Rate of Imported Cosmetics