China cuts import duties on consumer goods

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China will further reduce import tariffs on washing machines, cosmetics and some other consumer goods starting from July 1, the State Council, China's cabinet, said during a regular meeting on Wednesday.

This is China's third tariff cut in six months on selected imports, in an effort to improve consumer choice and encourage domestic consumption.

Import duties on washing machines and refrigerators would be cut from 20.5 percent to 8 percent, said the announcement.

Duties also will be cut on cosmetics, some drugs, shoes and some other goods.

The change would give foreign producers of high-end versions more access to the Chinese market.

In December, China cut import taxes on almost 200 consumer products including food, health supplements, pharmaceuticals, garments and recreational goods to 7.7 percent on average from 17.3 percent, according to the finance ministry.

Among the more dramatic cuts were tariffs on milk powder and diapers, where taxes were slashed to zero percent from 20 percent and 7.5 percent, respectively. Import duties on certain cosmetics were halved to 5 percent.

In March this year, Premier Li Keqiang said in his annual work report that China will expand imports and lower import duties on automobiles and some everyday consumer goods as part of China’s opening-up.

Earlier this month, Beijing said it would cut import tariffs on the majority of autos to 15 percent from 25 percent, effective from July 1. Duties on auto parts would be cut to 6 percent from mostly around 10 percent.

(With input from Reuters)