Headline News: Import Tariffs On Clothing And Skincare Products Have Been Cut By Half Since June.

Recently, the Ministry of Customs of the Ministry of Finance said that the import tariff rate of consumer goods such as clothing, footwear, skin care products and diapers should be reduced from June 1, 2015 to an average of more than 50%.

The industry believes that lowering import tariffs, which is expected to narrow the huge gap between domestic and foreign commodities, and guide overseas consumption reflow, will also have a certain impact on overseas purchasing industry.

However, in order to really promote the upgrading of domestic consumption and introduce competition to the development of domestic industry, we need to reduce the VAT and consumption tax appropriately.

The average tariff reductions for 14 commodities were more than half.

In April 28th, the Executive Council of the State Council decided to improve

It will enrich domestic consumers' shopping choices and carry out pilot projects to reduce import tariffs on large consumer goods, which are in great demand for domestic consumers.

The import tariff adjustment is the implementation of the above meeting decision, a total of 14 kinds of goods import tariff rate sharply reduced.

Among them, the import tariffs on suits and fur clothing will be reduced from 14% to 23% to 7% to 10%. The import duties of boots and sports shoes will be reduced from 22% to 24%, and the import tariff of diapers will be reduced from 7.5% to 2%. The import duty of skin care products will be reduced from 5% to 2%.

Coupled with the low tariff products that have been introduced to promote consumption and improve people's livelihood in the past few years, China has lowered import tariffs on clothing, footwear, skin care products, baby food and supplies, kitchen utensils, tableware, spectacles and other consumer goods.

It is understood that the selection of pilot commodities mainly considers several factors: first, these commodities are daily consumer goods closely related to the daily life of the ordinary people; secondly, most of these commodities are domestic consumers who buy relatively high proportion of goods abroad, and have the potential for consumption; moreover, the tariffs of these commodities are relatively high in the total tax burden of commodities.

Expanding domestic consumption demand is an important measure for steady growth and structural adjustment.

Clothing, footwear, skin care products, diapers and other commodities have a large volume of overseas consumption and a strong consumer desire to purchase. Lowering tariffs is conducive to a reasonable increase in imports, promoting domestic consumption upgrading, meeting consumers' diversified and personalized consumption needs, and also playing a positive role in protecting employment, improving people's livelihood and promoting domestic industrial upgrading.

Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, told the economic reference daily that the adjustment of the tax cut was very large, exceeding the expectations of the previous market.

For example, the tax rate of skin care and diapers has been reduced to 2%, and clothing and footwear are also falling.

However, from the sample data, import tariff accounts for 0.4% to 6.5% of the retail price of skin care products, clothing, shoes and other commodities. Therefore, the effect of reducing tariffs on reducing the retail price of consumer goods may not be obvious.

Nevertheless, the industry believes that this will have a certain impact on overseas purchasing industry.

Wang Jian, director of the center for international business research at University of International Business and Economics, points out that lowering tariffs and other measures will help people in need to buy cheaper and cheaper overseas consumer goods more conveniently.

In the future, with the expansion of imports and lower prices, it will become a history for Chinese people to buy toilet lid and buy milk powder abroad.

Leading overseas consumption is expected to return

The "2015 China consumer market development report" recently released by the Ministry of Commerce pointed out that the prices of high-end consumer goods imported from China are much higher than those outside the country. The pparency of consumer prices makes consumers unwilling to pay high price differentials, which greatly affects domestic consumption desire.

The main reason for the huge price difference between domestic and foreign consumer goods is a relatively high tax rate.

The measures to reduce import tariffs are expected to narrow the huge gap between domestic and foreign markets and guide overseas consumption reflow.

Zhao Ping said that in general, after a substantial reduction in import tariffs, a decrease in costs would drive down the prices of related products and stimulate consumption growth.

However, she also said that the specific decline in prices of related products also depends on the brand's response, which is not necessarily equivalent to the decline in tariffs, because tariffs are after all the cost of imports.

"Although the scope of this tax reduction is very large, the category of tax reduction can be more powerful."

Zhao Ping believes that, relatively speaking, skin care products, bags, and milk powder are the most popular consumer goods category in China, with fast growth and high proportion. But this time, they did not include bags and milk powder in the pilot area.

She pointed out that skin care products and diapers belong to consumers just need products, clothing and shoes accounted for a relatively low proportion of imports, the growth rate is low.

Moreover, supervision may be more difficult and less obvious to consumption.

Because the number of European and American version is not suitable for Chinese consumers, the demand for Trumpet clothing and shoes is relatively large, but the brand will not only be trumpet when distributing goods, but for dealers, the difference between inventory and demand is a difficult problem.

In addition, the tariff rate is reduced to domestic level.

Business development is also good.

Alibaba, Jingdong and other companies have begun cross-border e-commerce business to the economic reference Daily reporters, said that with the reduction of customs duties on some commodities, the prices of related imports will also decline, will attract more domestic consumers.

Ali data also shows that the domestic demand for imported goods is mainly concentrated in the northern Guangzhou, Shenzhen and other first tier cities, although the consumption demand of the 234 tier cities can account for three to 40%, but because fewer choices are under the line, consumers in the 234 tier cities choose to buy overseas products through cross-border e-commerce business on the line.

With the reduction of tariffs on some products, it will stimulate consumer demand in the 234 tier cities, thus promoting the overall development of domestic cross-border electricity supplier industry.

The view is that China, as a producer and exporter of clothing, shoes and hats, will reduce the import tariffs on clothing, shoes and hats and so on, which may have an impact on domestic related industries.

In this regard, experts believe that to make domestic related industries bigger and stronger, we can not rely on tariff protection, but need comprehensive management.

The total value of import and export garments and accessories in 2014 was 6 billion 160 million US dollars and 186 billion 280 million US dollars respectively, which is 30 times different.

The introduction of foreign competition through tariff reduction is conducive to further upgrading domestic industries.

Pull up the consumption tax of VAT.

Shanghai family

The head of the company told the economic reference daily that lowering the tariff rate would undoubtedly reduce the price of the related imported products and further increase the consumption demand.

But the price of imported products is not only tariffs, but also value-added tax and consumption tax.

Compared with tariffs, value-added tax and consumption tax are "big heads".

Therefore, whether the price of imported goods can decrease significantly depends on specific categories and prices.

The personage introduces, for example, the imported cosmetics with a duty paid price of 100 yuan. The tariff, value-added tax and consumption tax are 5 yuan, 25.5 yuan and 45 yuan, respectively, according to the previous 5% tax rate.

If the price increase in other circulation links is not considered, the final price of the cosmetics is 175.5 yuan.

According to the adjusted 2% tax rate, the tariff, value-added tax and consumption tax of the cosmetics are 2 yuan, 24.77 yuan and 43.71 respectively, and the price of the products has changed to 170.48 yuan.

That is to say, after adjusting the tariff rate of cosmetics, the price of the product is only 5 yuan.

However, the personage also said that the high-end men and women's suits, especially the foreign brands, were higher in their duty paid prices. After the adjustment of the tax rate, the prices would decrease considerably, and the future demand of such commodities would be greatly improved.

Feng Jianjun, an expert in the daily chemical industry, believes that domestic consumers now have a strong desire to purchase daily necessities such as skin care products, diapers and so on, and the reduction of the tariff will directly reflect the price concessions.

For cosmetics, 30% of the consumption tax is the real big head.

The reduction of the tariff means that the state attaches great importance to this aspect, and the consumption tax may be expected to have a window of adjustment in the future.

But at the same time, Feng Jianjun said that because of the cost pressure of store rental and marketing, the import tariffs will decrease, and some high-end brands may not substantially reduce prices.

Kose (China) has said before that the company will not take comprehensive measures to reduce prices, but in the case of maintaining brand image, it will choose some commodities to reduce prices.

Zhao Ping said that after the fall of the pilot tax policy, other related measures should also be introduced as soon as possible. The sooner it is released, the sooner consumers will react, and the better the effect of stimulating consumption escalation will also play a supporting role in the current steady growth.

Take the introduction of an entry duty free shop as an example, Zhao Ping said that the existing duty-free shops in China are still relatively simple.

The duty-free shops in the city are restricted to the outbound Hong Kong, Macao, Taiwan and foreign tourists, which restrict the role of duty-free shops in the city, and the duty free shops are also open at Beijing Shanghai airports.

A tax allowance of 8000 yuan, like Hainan Island, limits consumption.

The policy of allowing domestic tourists to purchase duty-free shops in the city has been implemented in most countries such as the United States, Korea and Japan, especially in South Korea. The duty free shops in the city are the largest part of their tax-free formats.

In the future, China's tax exemption policy should be open to the Chinese at the same time, promote tax exemption business in many ways, and develop duty-free shops in the main commercial cities with the majority of domestic outbound tourists, allowing the outbound Chinese people to shop in the city's duty-free shops.

World clothing shoes and hats nets concern policy changes, industry development!