On 16 May 2021, the People’s Republic of China (PRC)’s Customs Tariff Commission of the State Council (CTC) issued Circular [2021] No. 5 to extend the effective period for the second product exclusion list for the second batch of US products subject to Chinese retaliatory tariffs from 19 May 2021 to 25 December 2021. Click here to see the announcement.
The exclusion list covers 79 products in total, including certain industrial chemicals, textiles, metals, electric machineries, etc. The covered products were first exempted from retaliatory tariffs from 19 May 2020 to 18 May 2021 pursuant to Circular [2020] No. 4. This is the second of such extension the CTC has released this year, whereby extensions for another 65 items had been announced earlier in February 2021 (Click here to see the announcement). Products in the earlier list included US hardwood, lumber, and logs. Meanwhile, the Phase 1 Deal between both countries remains in effect, with further discussions expected to soon commence under the new Biden administration.
Author
Jason Wen
Mr. Wen’s practice focuses on PRC business and tax law related to foreign investment, disputes with tax authorities, PRC transfer pricing, mergers and acquisitions. He has over 18 years' experience in advising China tax and investment. Baker & McKenzie FenXun (FTZ) Joint Operation Office is a joint operation between Baker & McKenzie LLP, an Illinois limited liability partnership, and FenXun Partners, a Chinese law firm. The Joint Operation has been approved by the Shanghai Justice Bureau. In accordance with the common terminology used in professional service organisations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.
Author
Weng Keong Kok
Weng Keong is an associate with Baker McKenzie's Hong Kong office. His practice focuses on Singapore, Hong Kong, and China trade and customs matters. He provides advice on supply chain structures, rules of origin, customs valuation, indirect tax, FTAs, WTO rules, export controls, sanctions, and product regulatory compliance.
