More products from Macao and Hong Kong will enter the Chinese mainland as of July 1 free of tariffs under the Closer Economic Partnership Agreement (CEPA).
Import taxes will be lifted for 27 types of products such as ground spices, honey, sparkling wine, diamonds, and unworked jewelry from Macao. Meanwhile, the origin criteria of 10 products covering different kinds of nuts, bakeries, coffee, and beverages are also revised, it was announced by the General Administration of Customs (GAC) of the PRC on June 12.
The new schedule also targets six types of products including turkey meatballs, Schweinshaxe (German roasted ham hock), and aircraft carpeting for additional origin criteria, and revises that of two types of products -- lubricating oil and liquid crystal mixtures from Hong Kong.
Sparkling wine [Photo courtesy Zhuhai Daily]
Every six months, GAC leads zero-tariff consultations under the CEPA Supplementary Agreement No 2 between related departments of Hong Kong and Macao and relevant national ministries and commissions.
Currently, 1,527 types of products from the Macao SAR are free from tariffs when traded to the Chinese mainland under CEPA, whereas the number from Hong Kong SAR has been increased to 1,894.
CEPA has been in effect for more than 13 years since it was implemented in 2004.
By the end of last May, Macao commodities benefitting from CEPA-free tariffs imported under the jurisdiction of Gongbei Customs had been valued at 310 million yuan ($54.2 million), accounting for 42.4 percent of the total in the Chinese mainland. This amounts to a savings of 20.8 million yuan ($3 million) in tariffs.
Hong Kong exported 12.7 billion yuan ($1.86 billion) in CEPA commodities through Gongbei, about 17.6 percent of its total exports to the mainland, reducing 680 million yuan ($100 million) due to tariff preferences.
(cityofzhuhai)
