02 September 2013

The Ministry of Finance said that since August 30 this year, the preferential import tariff rates for lignite and passenger aircraft was cancelled, which was approved by the State Council.

The Ministry of Finance announced that the provisional zero import tariff for lignite is to be abolished and the implementation of 3% most favoured nation is to be resumed.  Meanwhile, the provisional import tax rate of 1% to passenger aircraft with deadweight between 25 and 45 tons is abolished and the 5% MFN rates is to be resumed.  The 4% import VAT for aircraft with deadweight above 25 tons has been adjusted to 5%.

This year, China's domestic coal market has been slowing by double impact of lowered demand and overcapacity.  Coal prices continued to fall while imports for coal continued to rise, which worsens the domestic coal market.  Previously, there were many local coal enterprises which urged the relevant government departments to take measures to limit coal imports.