Imports of cotton under quotas are subject to 1% customs duty rate. Imports without quotas are subject to 5~40% sliding duties. When imported cotton?s price is above RMB11.397/kg (tax included), tax is paid at a rate of RMB0.57/kg. When imported cotton?s price is below RMB11.397/kg, the duty rate is calculated by the formula of ?Ri=8.686/Pi +2.526%?Pi ?1?, in which Ri represents the duty rate and Pi represents the price comprising customs duty. The unit of this formula is RMB/kg. If the calculated result by the formula is above 40%, Ri is regarded as 40%.
The new formula is easier to handle and more convenient to use compared with last year?s formula. When cotton price is above RMB11.397/kg, the duty rate is reduced. When cotton price is below it but above RMB7.2/kg, the duty rate goes up 1%. A slightly higher rate helps protect domestic cotton production. The current cotton import tax is below 5%, conducive to textile production.
|
