Preferential Tariffs Cancelled for Most Tyre Imports to China

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Published on
January 4, 2023

China has announced that it will adjust import tariffs on certain commodities starting January 1, 2023. The only products that will still receive preferential tariffs in 2023 are retreaded tyres for aircraft, which will have a 4% provisional import duty, down from the normal 20% tariff.

In 2022, tyres with a section width of 24 inches and above and tyres with a section width of 30 inches and above could be levied a 17% import tariff, but this is not mentioned in China's 2023 "temporary tax rate table for imported commodities". Without preferential tariffs, these tyre products will now have to pay at least a 25% tariff upon entering China.

The decision to cancel preferential tariffs on these products is based on "domestic industry development and changes in supply and demand". It is the second time in recent years that China has reduced tariff support for imported tyres.

In 2020, seven types of tyre products received preferential treatment and only had to pay an 8% tariff upon import to China; this included truck and bus tyres with a section width of 30 inches and above and various OTR products. In 2021, preferential tax rates were implemented on retreaded tyres for aircraft and two of the highest import tariff rate products (25% import tariff) among the seven tyre products.

The changes to import tariffs reflect the development of China's tyre industry in recent years, as Chinese tyre companies have made significant breakthroughs in wide-section TBR and OTR products. However, China still seems to heavily rely on imports for aircraft tyres. The reduced tariffs on aircraft tyres may indicate a continued reliance on foreign suppliers for these products.

Overall, the adjustment to import tariffs is likely to have a significant impact on the tyre industry, with the cancellation of preferential tariffs on certain products potentially affecting the cost and availability of these tyres in China.

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