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Reform
of the Tariff System
The customs
duty is an important source for the financial revenue of the
central government.
In 1951,
China drew up and promulgated its first "Rules on Import
and Export Customs Tariff." Along with the development
of the economy, the state continuously revised the tariff
system.
In 1984,
the state thoroughly amended the "Rules on Import and
Export Customs Tariff."
In March
1985, the State Council issued the "Regulations of Import
and Export Tariff of the People's Republic of China"
and adopted a new "Regulations on Import and Export Tariff
of Customs of the People's Republic of China." Moreover,
it adopted the tariff classification catalogs of the Customs
Cooperation Council (CCC) and a customs pricing system that
was more compatible with international world customary trade
practice.
In 1987
and 1992, the State Council twice revised the "Regulations
of Import and Export Tariff of the People's Republic of China."
Since
1992, China has adopted the international commodity encoding
system, which made the tariff classification in China in harmony
with the international conventions.
In 1993,
the customs houses throughout country continued to carry out
reform regarding customs duties, shifting from the practice
of national import and export companies turning in taxes in
a lump sum to tax levy at the ports. A new taxed value evaluation
method was adopted. The method stressed the definition of
street value in agreement with the international convention.
At the same time, a set of price examination methods, which
not only suits China's reality but also guarantee state income,
was adopted.
From 1993
to 1997, China lowered its tariff rate on five occasions,
and the drop reached 48.6%.
It also
adjusted the tax reduction and exemption policies. According
to the goal marked by President Jiang Zemin at the Informal
APEC Leadership Meeting in Manila in November 1996, by year
2000 China's average level of import duties would be reduced
to about 15%.
By October
1997, actually China's average level of import duties had
already been reduced to 17% as part of its efforts to expand
export.
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