Guangzhou China Mar. 3, 2011– It is reported that a tariff cut policy for some imported products is mooted by China's State Administration of Taxation (SAT) recently, as many consumers buy cosmetic and formula abroad, either directly online or via expatriate friends, etc, which caused tax loss. Chinese government plans to prevent the tax loss and attract consumers to buy products in China by cutting the import tariff. Chinese government has released nothing about this reports until now, and some insiders revealed that whether the policy would be launched or not depends on the impact on tax collection having a great impact on domestic dairy industry. By contrast, Chinese government has launched a new regulation in July 2010 to raise the duty on such purchases after September 1, 2010. (Please refer Dairy Products China News Vol.3 August Issue, p9). However, it seems that such policy doesn't work very well.
More formula powder is expected to be imported to China if tariff cut policy is launched, which will intense the fierce competition in China and have a negative impact on domestic infant formula industry, as some experts expressed. On the other hand, it can also offer domestic consumers more options.
Source: CCM International