By the end of 2020, the Customs Tariff Committee of the State Council announced the adjustment of the tariff rate to commence from January 1, 2021, onwards. 883 commodities in China were announced to be under the Most-favoured-nation (MFN) Rate of Duty whilst the import tariff rate on medical equipment such as artificial heart valve and hearing aid reduced from 4% to 1%. Furthermore, a zero tariff is applied to the second batch of anti-cancer drug raw materials and foods required by special children.
The adjustment plan also specifies that the MFN Rate of Duty will be reduced for 176 IT products from July 1, 2021, onwards. The overall average tax rate of products listed in the Information Technology Agreement will be reduced from 0.9% to 0.4% covering nuclear magnetic resonance imaging equipment, cardiac pacemaker, and medical X-ray equipment. The tentative tax rate of nine imported IT products will also be cancelled.
According to the tariff adjustment plan, the tax comparison of medical devices is as follows:
| Tax Number | Product name (Medical Devices) | 2021 MFN Tax Rate (%) | 2021 Provisional Tax Rate (%) | |
| 90181100 | ECG recorder | 0 | 0 | |
| 90181210 | B-type ultrasonic diagnostic apparatus | 2.6 | 1.8 | |
| 90181291 | Color Ultrasound Diagnostic Apparatus | 1.9 | 1.3 | |
| 90181299 | Other ultrasound scanning devices | 1.9 | 1.3 | |
| 90181310 | Complete set of nuclear magnetic resonance imaging device | 2.4 | 1.6 | |
| 90181390 | Other MRI imaging devices | 2.4 | 1.6 | |
| 90181930 | Patient monitor | 0.7 | 0 | |
| 90181941 | Audiometer | 0.7 | 0 | |
| 90181949 | Other audiological diagnostic devices | 0.7 | 0 | |
| 90181990 | Other electrical diagnostic devices | 0.7 | 0 | |
| 90182000 | Ultraviolet and infrared devices | 0 | 0 | |
| 90185000 | Other instruments and appliances for ophthalmology | 0.7 | 0 | |
| ex 90189020 | Electric blood pressure measuring instruments and appliances | 0.7 | 0 | |
| 90189030 | Endoscope | 0.7 | 0 | |
| 90189040 | Kidney dialysis equipment (artificial kidney) | 0.7 | 0 | |
| 90189050 | Diathermy equipment | 0.7 | 0 | |
| 90189060 | Blood transfusion equipment | 0.7 | 0 | |
| ex 90189070 | Electric anesthesia equipment | 0.7 | 0 | |
| ex 90189099 | Electrosurgical or electronic medical instruments and appliances and their parts and accessories | 0.7 | 0 | |
| 90215000 | Pacemaker, excluding parts and accessories | 0.7 | 0 | |
| 90219011 | Intravascular stent | 0.7 | 0 | |
| 90219019 | Other stent | 0.7 | 0 | |
| 90219090 | Other orthopedic appliances not listed in tax list 90.21 | 0.7 | 0 | |
| 90221200 | X-ray tomography instrument | 2 | 1.3 | |
| 90221300 | Other dental x-ray application equipment | 0 | 0 | |
| 90221400 | Other medical or veterinary X-ray application equipment | 0.7 | 0 | |
| 90221910 | Low-dose X-ray safety inspection equipment | 0.7 | 0 | |
| 90222100 | Medical α、β、γ ray equipment | 0 | 0 | |
| ex 90189099 | Medical detachable coil | 4 | 1 | |
| 90200000 | Other breathing apparatus and gas masks | 8 | 4 | |
| 90212900 | Tooth fixture | 4 | 2 | |
| ex 90213900 | Artificial heart valve | 4 | 1 | |
| 90214000 | Hearing aids, excluding parts and accessories | 4 | 1 | |
| ex 90219090 | Cochlear implant device | 0.7#0 | Jan-Jun: 0 | |
| ex 90229090 | Parts of the ray generator | 5 | 1 | |
| ex 90229090 | Digital X-ray photography system flat panel detector | 5 | 3 | |
| ex 90318090 | _ | Audio life detector, audio and video life detector | 3#2 | Jan-Jun: 2 |
*Note：”Ex” means that the goods subject to the provisional tax rate should fall within the scope of the tax code, subject to the specific description of the product. Before and after “#” are the applicable tax rates for the first half of the year (January 1 to June 30, 2021) and the second half of the year (July 1 to December 31, 2021).
By Colleen Xu. Contact Cisema if you would like to learn more.
