China GAC Implements New Tariffs to Contain New Zealand Dairy Imports

In December 2017 and January 2018, China General Administration of Customs (GAC) released four announcements on special safeguard measures regarding 4 product categories imported from New Zealand. Imports of these categories already exceeded the trigger levels set by the New Zealand – China Free Trade Agreement. In response to this GAC has decided to return to import tariffs at Most Favored Nation rates.

Announcement number	China HS Codes	Product Categories	Trigger Level (tonnes)	Recorded Weight (tonnes)
70/2017	04012000, 04014000, 04015000	Unsweetened, not concentrated milk and cream (various fat contents).	2118	9278.786
1/2018	04061000, 04063000, 04069000	Unripe, uncured Fresh Cheese and curd including whey cheese and curd; Processed cheese (not powdered or grated); other cheese products.	5864	6283
2/2018	04051000, 04059000	Butter; Other fats and oils derived from milk.	15312	15362
3/2018	04021000, 04022100, 04022900, 04029100	Sweetened Powdered or solid Milk and cream; Unsweetened Powdered or solid Milk and cream; Concentrated unsweetened milk and cream.	154745	155929

As for transit agriculture products, companies should now follow GAC announcement n.91 of 2008 and submit a tax application agreement and other relevant documents before declaring the imports.

China is New Zealand’s second biggest trading partner and the aforementioned food categories play an important role in defining the commercial balance between the two countries. However, due to the recent extraordinary import volumes, China decided to review and amend its New Zealand tariff policies to protect its domestic industry.

External links

-General Administration of Customs Announcement No. 70 of 2017 (on the number of imported agricultural products from New Zealand in 2017 and the number of imported trigger levels in 2018) (Chinese)

-Notice of the General Administration of Customs No. 1 of 2018 (Notice Concerning the Implementation of Special Safeguards to Import Cheeses Originating in New Zealand by 2018) (Chinese)

-Notice of the General Administration of Customs No. 2 of 2018 (Notice Concerning the Implementation of Special Safeguards to Import Cheeses Originating in New Zealand by 2018) (Chinese)

-Notice of the General Administration of Customs No. 3 of 2018 (Notice Concerning the Implementation of Special Safeguards to Import Cheeses Originating in New Zealand by 2018) (Chinese)