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Beijing's tariff exclusions cushion trade war pain for certain sectors

〖2019-5-22〗

CHINA has offered a tariff exclusion process or a tariff exemption scheme for certain firms badly affected by the current Sino-US trade war, reports Hong Kong's South China Morning Post.

The process is similar to a scheme offered in the US and allows tariff-affected firms in China to apply for an exclusion.


The Chinese exclusions are a lifeline to key industries that Beijing wants to protect from the turmoil of the trade war, reported the SCMP.


Given that importers must pay the extra duties themselves, offering exemptions to those that cannot afford the tariffs makes economic sense, according to analysts.


"They want to be careful not to damage the economy or important economic players that lack viable substitutes for these products," said Baker McKenzie trade lawyer Jon Cowley in Hong Kong.


"It is a sensible policy, but happens to be one that is difficult to implement and requires a lot of work," said Mr Cowley.

 
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