China will levy customs duties with higher rates on Luxury items including high-grade watches, cosmetics, golfs and clubs brought by travelers or mailed to China from Jan. 1, 2007.

According to a latest announcement by the Ministry of Finance, the duty rate on golfs, clubs and expensive watches will rise to 30 percent from current 10 percent, while that on cosmetics will jump from 20 percent to 50 percent.

The move accords with the country's levy of consumption tax on luxury goods, such as luxury watches, golfs and clubs, yachts, wooden floor panels since April 1, 2006.

When travelers pass through customs and take articles valued at5,000 yuan (639 U.S.dollars) or higher, whether for commercial use or not, they have to pay taxes, according to the regulation released by the Chinese Customs in 2005.

As the Chinese become increasingly affluent, they travel abroad more frequently. Last year, Chinese tourists made 31 million trips abroad.

Editor: Donald