List of Tariff Numbers Subject to China's New Tax Imposed on Certain Apparel Exports Available
According to a Hong Kong Trade Development Council (HKTDC) notice, the Chinese Ministry of Commerce (MOFCOM) announced that on January 1, 2005, China would impose an export tax (also referred to as an export duty or tariff) on 148 clothing items. The HKTDC states that the 148 clothing items subject to the tax fall into six broad categories: outerwear, dresses, trousers, blouses, pajamas, and underwear and that the tax ranges from 20 fen to 50 fen (RMB) per item/kg. HKTDC notes that export of items covered by the new tax account for 75% of China's clothing exports.
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According to HKTDC, MOFCOM has stated that the export tax was established to encourage the production of higher value-added clothing items, improve the long-term competitiveness of China's clothing and textile industry, and promote a stable trading environment after quota elimination in 2005.
Tax is one of eight textile and apparel measures announced by MOFCOM. A second HKTDC notice reports that this export tax is one of eight measures put forward by MOFCOM in an effort to assuage fears in the U.S. and European Union (EU) by ensuring a smooth transition to a quota-free global trading environment. The HKTDC notice states that the other measures announced by MOFCOM are:
the release of textile export information in a more timely fashion;
offering timely information on investment, improving "risk warning," and preventing over-investment and redundant construction in the sector;
encouraging Chinese enterprises to invest abroad and providing them with policy support to achieve this objective;
expanding the role of intermediary organizations to encourage industrial self-discipline and coordinate exports;
promoting the adoption of the ISO9000 standard and the ISO14000 environmental protection standard;
adopting trade promotion measures to develop and strengthen domestic brands; and
enhancing bilateral and multilateral discussions and co-operation to safeguard the legitimate rights of Chinese companies.
List of HS numbers for Chinese apparel exports subject to tax. The following is a list of Chinese HS numbers for the clothing items covered by China's new export tax:
| 61021000 | 61022000 | 61023000 |
| 61032100 | 61032200 | 61032300 |
| 61034200 | 61034300 | 61034900 |
| 61042100 | 61042200 | 61042300 |
| 61043200 | 61043300 | 61043900 |
| 61044300 | 61044400 | 61044900 |
| 61045300 | 61045900 | 61046100 |
| 61046900 | 61051000 | 61052000 |
| 61062000 | 61069000 | 61071100 |
| 61072200 | 61079100 | 61079200 |
| 61082100 | 61082200 | 61083100 |
| 61089200 | 61091000 | 61099090 |
| 61101990 | 61102000 | 61103000 |
| 61121200 | 61121900 | 61122090 |
| 61142000 | 61143000 | 61179000 |
| 62021390 | 62021900 | 62029100 |
| 62029900 | 62031990 | 62032100 |
| 62032990 | 62034100 | 62034210 |
| 62034390 | 62034990 | 62041200 |
| 62042200 | 62042300 | 62042990 |
| 62043300 | 62043990 | 62044100 |
| 62044400 | 62044990 | 62045100 |
| 62045990 | 62046100 | 62046200 |
| 62052000 | 62053000 | 62059010 |
| 62062000 | 62063000 | 62064000 |
| 62071920 | 62072100 | 62072200 |
| 62081100 | 62081920 | 62082100 |
| 62089200 | 62103000 | 62104000 |
| 62112090 | 62113100 | 62113290 |
| 62114200 | 62114300 | 62179000 |
HKTDC notices (dated 12/31/04 and 12/29/04) available at http://www.tdctrade.com/alert/us0425a.htm and http://www.tdctrade.com/sme/newsflash/smeflash041229.htm,
MOFCOM list of HS numbers subject to new export tax (including Chinese HS code, description, unit, and tax rate) available at
http://www.tdctrade.com/sme/newsflash/export%20duty_eng.pdf.
BP Notes
According to a December 28, 2004 Wall Street Journal article, almost all categories of Chinese apparel subject to the tax will have duties of just 20 fen per item, with several persons quoted as stating that the tax (which Chinese companies can absorb and/or pass on to customers) is just a political or token measure, and will do little to slow exports. (See ITT's Online Archives or 01/10/05 news, 05011099 1 for BP summary of this article.) (See ITT's Online Archives or 12/28/04 news, 04122899 1 for BP summary of a December 27, 2004 Wall Street Journal article.)
See ITT's Online Archives or 03/07/05 news, 05030720, for BP summary on China's implementation of a new export license requirement for certain apparel as of March 1, 2005, which appears to affect a larger set of tariff numbers.