China’s PE Import and Export Tariffs Interpretation

Import tariff

China polyethylene tariffs for most countries adopt the most-favoured-nation treatment, with tariff of 6.5%. Very few countries are subject to an ordinary 45% tariff. Some of the bilateral and multilateral agreements involve tax cuts and tax exemptions. FTA (free trade agreement ) signed with ASEAN (Association of Southeast Asian Nations) and South Korea plays an important role in China’s polyethylene imports.

In the FTA (signed with ASEAN), China was required to lower the tariffs of LLDPE products from the member countries of ASEAN since July 2005 and take tariff cut twice on July 1, 2007 and July 1, 2009 respectively. On January 1, 2010, tariff was cut to zero finally. For the new member countries of ASEAN, China was required to cut the tariffs from July 2005 and take tariff cut on every January 1 from 2006 to 2009. No tariff cut was in 2010. From 2011, China should cut every two years, and lowered the tariff to zero in 2015. FTA required China that the tariffs of 93% of HDPE and LDPE products from member countries of ASEAN should be down to zero by 2010. Other sensitive products were also required to lower the tariffs, but not reduce to zero.

In the future, China will gradually lower the tariffs of all kinds of polyethylene products from South Korea and Southeast Asia. The possibility of zero tariff is also exist.

Export tariff

For the export tariff, two countries should be focused. First is Pakistan. Pakistan adopts zero tariff policy for the polyethylene products from China because of the serious shortage of domestic production capacity. Second is South Korea. Along with the development of China and South Korea free trade agreement, the tariff is not required if China’s polyethylene products have certificates of origin conformity with the provisions of the agreement. In the export market, China’s polyethylene products have no advantage in price and quality. Even if there are preferential tariff policies for China’s polyethylene products, the competitiveness of that in Southeast Asia is relatively weak in the future.