Guidance Outlines China Tariff Exemptions for Certain Imports

China recently issued new guidance specifying that certain imported goods processed in the Yangpu Bonded Zone in Hainan are exempt from import tariffs when sold elsewhere in China, KPMG said Aug. 11. The guidance, issued by China’s General Administration of Customs last month, covers companies operating in certain “'encouraged industries' when over 30% of the value-add … is generated in Hainan.” Although value-added and consumption taxes will still need to be paid for the goods, KPMG said the policy will “reduce the tax burdens” of certain companies and is “intended to make their products more price competitive.”