China offers waivers of extra tariffs on US PE, other chemicals

Author: Fanny Zhang

2020/02/18

SINGAPORE (ICIS)--China will be offering waivers of extra tariffs imposed on US polyethylene (PE), along with a host of other chemicals, subject to certain conditions and approval by its Ministry of Finance.

China’s State Council released on Tuesday the list of 696 types of US products, including chemicals, for possible exemption. (Please see list below)

For various types of US high density PE (HDPE) and linear low density PE (LLDPE), on which a 34% tariff rate applies, Chinese importers can apply for a waiver and instead pay the pre-trade war duty of 6.5% on the material.

Applications for approval can be submitted starting 2 March. The value of imports allowed to be exempted may be limited.

The tit-for-tat trade war between the US and China began on 6 July 2018, which saw prohibitive tariffs imposed on billions of US dollars worth of goods between the two economic giants.

A Phase One trade deal was struck between the two countries in mid-January this year, with the first rollback of extra tariffs under the agreement implemented on 14 February.

 key energy products
Serial # HS CODE Description
109 27090000 crude
110 27101911 Aviation kerosene
111 27101912 Kerosene for lamps
112 27101919 Other kerosene distillate products
113 27101922 5-7 fuel oil
114 27101923 Diesel
115 27101929 Other fuel oil
116 27101993 Lubricant base oil
117 27101994 Liquid paraffin and heavy liquid paraffin
118 27101999 Other heavy oil and heavy oil products
119
   27111100
liquefied natural gas
120 27111200 Liquefied propane
121 27111310 Liquefied butane infused cigarette lighter
122 27111390 Other liquefied butane
123 27131110 uncalcined petroleum coke with surfur content less than 3%
124 27131190 other uncalcined petroleum coke
key petrochemicals
128        29012100             Ethylene
129        29012920             Acetylene
130        29012990             Other unsaturated acyclic hydrocarbons
131        29024300             P-xylene
132        29025000             Styrene
133        29026000             Ethylbenzene
134        29053100             1,2-ethylene glycol
135        29053910             2,5-dimethylhexanediol
136        29053990             Other glycols
137        29261000             Acrylonitrile
138        29269090             Other nitrile compounds
139        29309010             Dimercaptoalanine (cystine)
140        29309020             Dithiocarbonate (or salt) [xanthate (or salt)]
141        29309090             Other organic sulfur compounds
142        29333990             Other structures with non-fused pyridine ring compounds (whether or not hydrogenated)
143        29349910             Sultone and sultone
144        29349930             Nucleic acids and their salts
145        29349990             Other heterocyclic compounds
146        29371210             Recombinant human insulin and its salts
147        29371290             Other insulin and its salts
148        29419010             Gentamicin and its salts and derivatives
149        29419058             Cefaclor and its salts
150        29419059             Other cephalosporins and their derivatives and their salts
151        29419060             Medicin and its derivatives, and their salts
152        29419090             Other antibiotics
153        32061110             Titanium dioxide
154        32061190             Pigments and products with titanium dioxide ≥80%
155        33021010             Mixed flavor and products for beverage production, according to alcohol concentration ≤0.5%
156        33021090             Other food or beverage industry mixed spices and products
157        33049900             Skincare and other beauty products
158        33079000             Hair removal agents and fragrance products not listed
159        34029000             Other surfactant products
174        39012000             Polyethylene with a specific gravity of ≥ 0.94
175        39013000             Primary shape ethylene-vinyl acetate copolymer
176        39014010             Ethylene-propylene copolymer (ethylene-propylene rubber)
177        39014020             Linear low density polyethylene
178        39021000             Polypropylene in primary shape
179        39029000             Other primary olefin polymers
180        39039000             Other styrene polymers in primary forms
181        39046900             Other fluoropolymers in primary forms
182        39129000             Other unlisted cellulose (including chemical derivatives) in primary
183        39151000             Waste and scrap of ethylene polymers
184        39159010             Polyethylene terephthalate plastic waste and scrap
185        39159090             Waste and scrap of other plastics
186        39174000             Plastic pipe accessories

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