In order to promote the expansion of import and consumption, better reflect the people-centered development concept, meet the people's needs for a better life, and incorporate major reform measures such as the reduction of the VAT rate, the State Council's Customs Tariff Commission decided by April 9th. From the adjustment of import goods import tax (commonly known as postal tax). The adjustment includes two aspects: First, the tax rate of tax items 1, 2 is reduced from the current 15%, 25% to 13%, 20%; the second is to amend the note of the tax item 1 "drug" to the national regulations Imported drugs (currently including anticancer drugs and rare disease drugs) that are subject to a 3% import value-added tax, are taxed at the rate of goods.

　　The postal tax is an import tax levied on the customs duties of imported goods, postal goods, import value-added tax and consumption tax. In order to maintain a fair competitive market environment, the tax rate for each type of postage tax should be roughly the same as the comprehensive tax rate for similar imported goods classified under the head of the tax.

　　Since the beginning of this year, the value-added tax rate for imported goods has been adjusted from 16% and 10% to 13% and 9% since April 1; the import of rare disease drugs has been reduced by 3% since March 1st. In order to make the VAT reform dividend directly benefit the broad masses of the people, the focus of this year is to reduce the tax rate for daily consumer goods, and the tax rate for goods classified as tax items 1 is reduced from 15% to 13%, a 13% drop. The tax rate for items classified under heading 2 decreased from 25% to 20%, a drop of 20%. At the same time, in order to ensure that patients can actually enjoy the tax reduction dividend, and consistent with the import drug value-added tax policy, expand the scope of drugs taxed at lower tax rates (goods tax rate).

State Council Tariff Commission Office

April 8, 2019