The Customs Tariff Commission of the State Council has recently released the Announcement on Imposing Additional Tariffs on USD50 Billion Worth of Imported Commodities Originated from US (the "Announcement").
The Announcement decides to subject 659 types of imported commodities, worth of USD50 billion, originated from US to an extra 25% tariffs; the additionally imposed tariffs will be put into operation from July 6, 2018 on 545 kinds of imports worth of USD34 billion, including agricultural products, automobiles and aquatic products, and the time when these extra tariffs will apply to chemical products, medical devices, energy products and other goods will be announced later separately. According to the Announcement, the aforesaid US-sourced imports will be subject to additional tariffs levied at the 25-percent rate, based on the current applicable tariff rates and the existing taxation mode, and existing policies for bonded goods and tax reliefs remain unchanged; however, additional tariffs imposed this time cannot be exempted or reduced. Moreover, the Announcement provides formulas to calculate import tariffs, after the imposition of the extra tariffs. For example, customs tariffs = tariffs payable under the existing applicable tariff rate + the duty paid price × the extra tariff rate.