China Adjusts Import Tariff of Medical Devices

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 NumberProduct name (Medical Devices)2021
MFN
Tax Rate (%)2021
Provisional
Tax Rate (%) 90181100 ECG recorder0090181210B-type ultrasonic diagnostic apparatus2.61.890181291Color Ultrasound Diagnostic Apparatus1.91.390181299Other ultrasound scanning devices1.91.390181310Complete set of nuclear magnetic resonance imaging device2.41.690181390Other MRI imaging devices2.41.690181930Patient monitor0.7090181941Audiometer0.7090181949Other audiological diagnostic devices0.7090181990Other electrical diagnostic devices0.7090182000Ultraviolet and infrared devices0090185000Other instruments and appliances for ophthalmology0.70ex 90189020 Electric blood pressure measuring instruments and appliances0.7090189030Endoscope0.7090189040Kidney dialysis equipment (artificial kidney)0.7090189050Diathermy equipment0.7090189060Blood transfusion equipment0.70ex 90189070 Electric anesthesia equipment0.70ex 90189099 Electrosurgical or electronic medical instruments and appliances and their parts and accessories0.7090215000Pacemaker, excluding parts and accessories0.7090219011Intravascular stent 0.7090219019Other stent 0.7090219090Other orthopedic appliances not listed in tax list 90.210.7090221200X-ray tomography instrument21.390221300Other dental x-ray application equipment0090221400Other medical or veterinary X-ray application equipment0.7090221910Low-dose X-ray safety inspection equipment0.7090222100Medical α、β、γ ray equipment00ex 90189099 Medical detachable coil4190200000Other breathing apparatus and gas masks8490212900Tooth fixture42ex 90213900 Artificial heart valve4190214000Hearing aids, excluding parts and accessories41ex 90219090Cochlear implant device0.7#0Jan-Jun: 0ex 90229090Parts of the ray generator51ex 90229090Digital X-ray photography system flat panel detector53ex 90318090 _Audio life detector, audio and video life detector3#2Jan-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.