On Dec. 21, 2020, China Ministry of Finance published the 2021 Tariff Adjustment Plan (hereafter referred to as “the Plan”). The Plan adjusts the provisional tariff rates and conventional tariff rates for some import products in order to respond to the Dual Circulation, a new development pattern raised by President Xi in May. The provisional tariff is the tariff rate applied to partial import products during a certain period, which is usually lower than the MFN (Most Favored Nation) tariff. MFN tariff applies to import products from WTO members, covering most countries exporting food to China.
According to the Plan, starting from January 1, 2021, China will apply the new import provisional tariff to 883 products. Specifically, zero tariffs will be imposed on the raw materials for the second batch of anticancer drugs and orphan drugs, as well as food for special sick children, etc. What’s more, the import tariffs on the heart valve prosthesis, hearing aids, and other medical devices, as well as whey protein powder and lactoferrin and other raw materials for infant formula, are also added in the provisional tariff list with a lowered tariff. The raw materials for anticancer drugs include Mitoxantrone Hydrochloride, Flutamide, Bicalutamide, Lenalidomide, and so on, while the raw materials for orphan drugs include D-penicillamine, Riluzole, Bosentan, etc.
If you need more information on the specific list of raw materials for drugs that subject to zero tariffs, please contact Baipharm for details.