According to the Ministry of Finance, the eighth plenary session of the Customs Tariff Commission of the State Council examined and approved the decision that China is to adjust the provisional tax rates of import tariff on 4 tax items since April 1st, 2012, and report to the State Council for approval.

It is understood that after the adjustment, the imports of 32 inches and above without backlight LCD display panels will no longer perform the original 3 % provisional tax rates , but to restore the 5% of the MFN import tariff rates .  

Besides, in order to encourage the import of key components, China will perform a provisional import tax rate of 10% on camera with eyepiece with diopter adjustment device and other eyepiece with diopter adjustment device to perform 10% of the provisional import tax rate, which is lower than the MFN rate of 15%; while imports cutting machine with crosscut knife’s provisional import tax rate will be adjusted to 3%, lower than the MFN rate of 8% .

During this adjustment, most attention has been paid to the increase in the LCD board tax. In recent years, China’s color TV industry has developed rapidly, but the production of the core components of LCD TVs – LCD board is heavily dependent on imports. As a result, the perpetual lack of screen shortage also restricts the development of color TV industry. Before, China has implemented a provisional tax rate of 3% on the imports of 32 inches and above without backlight LCD display panel in order to support the development of the domestic color TV and other electronic information industry and reduce the cost of imported liquid crystal display panel. However, industry insiders pointed out that China’s import tariff of 3% on the LCD panel was significantly lower than that of India, Brazil, Russia and other similar emerging market countries. As a number of LCD panel production lines opened to operation, the LCD panel market supply and demand conditions has been changed, hence the need for a modest rise in import tariffs, which will generate a positive impact on domestic LCD panel industry as well as the of color TV industry, and further enhance the domestic LCD panel products’ competitive edge in the international market.