China has reduced import VAT on sunflower and rapeseed oil.
China has reduced import VAT from 13% to 9% on 16 agricultural products, including sunflower and rapeseed oil, effective February 2, according to the General Administration of Customs of China. The move aims to lower raw material costs and support domestic edible oil processors, while US goods remain under additional trade duties.
China has reduced the import value-added tax rate for 16 types of agricultural products, including refined and unrefined sunflower oil, as well as refined rapeseed oil. The decision was introduced by the General Administration of Customs of China (GACC) and is aimed at reducing the cost of imported raw materials and processing.
According to a report from the U.S. Department of Agriculture, new rules took effect on February 2: the VAT rate for most specified goods was reduced from 13% to 9%. This move is expected to support the domestic edible oil market and processing industry.
Specifically, a new tariff line was created for refined sunflower oil, providing for a reduced tax rate during customs clearance. Previously, this product was classified in a different category, which carried a higher tax rate.
The list of goods covered by the new VAT regime also includes rice bran oil, fennel oil, walnut oil, pepper oil, apricot oil, grape seed oil, and peony oil, as well as vegetable-based cooking fats and microbial oils. The decision covers a broad range of products related to the production of edible fats and vegetable oils.
At the same time, as the Foreign Agricultural Service (FAS) notes, agricultural products from the United States continue to be subject to additional duties as part of trade disputes, despite the reduction in import VAT. This means that the tax changes will primarily impact the structure of imports from other supplier countries.
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Source : Ukr Agro Consult
