Imported Cosmetics Tariffs Adjusted in Dec 2017

On November 22, 2017, the Tariff Commission of State Council released a Notice regarding the adjustment of import tariff to some consumer goods. The adjusted import tariffs will come into force on December 1, 2017.

Since 2015, the State Council has gradually reduced the import tariffs on some consumer goods, such as clothing, bags, shoes and boots, specialty food and drugs etc. The import tariff of the consumer goods has a further reduction based on the previous reduction, covering food, health food, medicines, daily necessities, clothing, shoes and hats, household appliances, cultural entertainment, and other types of consumer goods. There are totally 187 Tax ID with 8 digits involved. The average tax rate dropped from 17.3% to 7.7%. Please refer to the details of the tax rate adjustment for imported cosmetics and related personal care products via the below table

NO	Tax ID	Product name	MFN tax rate in 2017(%)	Temporary tariff rate from 1^st Dec（%)
61	33030000	Perfume and Toilet water	10	5
62	33041000	Lip care cosmetics	10	5
63	33042000	Eye care cosmetics	10	5
64	33043000	Manicure/pedicure care cosmetics	15	5
65	33049100	face powder(no matter to be compressed)	10	5
66	33049900	Other cosmetics or skincare products	6.5	2
67	33051000	Shampoo	6.5	2
68	33052000	Hair perm products	15	5
69	33053000	Hair styling agent	15	5
70	33059000	Other hair care products	10	5
71	33061010	Toothpaste	10	5
72	33061090	Other teeth cleaning products	10	5
73	33062000	Dental floss	10	5
74	33069000	Other teeth and oral cleansers	10	5
75	33071000	Shaving preparations	10	5
76	33072000	Human deodorant and antiperspirant	10	5
77	33073000	Fragrant bath salts and other bath preparations	10	5
78	3374100	Incense and other aroma products scented by burning	10	5
80	33079000	Depilation and Unspecified aromatic products and Cosmetics Toiletries	9	5
157	96032100	Toothbrush (including teeth plate brush)	25	8
158	96032900	Body makeup brush (shaving brush, comb, eyelash brush)	15	8
161	96033090	Cosmetic pen	25	8
179	96161000	Perfume and other cosmetic sprayer	18	8
180	96162000	Powder puff	18	8
186	96190020	Sanitary towel(pad) and tampon	10	5
187	96190090	Sanitary napkins made of any material or similar products as diapers	14	8

CIRS Comments

Imported cosmetics tax rate from the original 15%, 10%, 9%, 6.5% down to 5% and 2%
Other related personal care items dropped from 25%, 18%, 15%, 14% and 10% to 8% and 5%.
The drastic reduction in tax rates will greatly boost the growth of imported cosmetics and personal consumer products by 2018. At the same time, the domestic consumer goods market will face greater impact and challenge.

Resource

http://gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/201711/t20171123_2755506.html

http://gss.mof.gov.cn/zhengwuxinxi/zhengcejiedu/201711/t20171123_2755930.html

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