China no longer imposes export tariffs on 81 textile goods

BEIJING, Monday (Xinhua, Reuters) China announced Monday it would no longer impose export tariffs on 81 categories of textile products, beginning June 1, 2005. A previous decision to quintuple the export tariffs on 74 textile categories, on which export tariffs were imposed from Jan. 1 this year, was revoked, according to sources from the Customs Tariff Commission of the State Council, China's cabinet.

The export tariff on flax yarn will also be abolished, the Commission said. On May 20 China had made a decision to revoke export tariffs on two categories of textile products. Monday's decision was announced in the wake of European Union's decision to impose quotas on imports of Chinese textiles, as well as United States' decision to re-impose restrictions on seven kinds of Chinese textile and clothing imports recently.

In a statement on its Web site, (www.mof.gov.cn) China's finance ministry said tariffs that had been in effect on 78 items since Jan. 1 would be scrapped on Wednesday, and planned taxes on three of the lines listed on May 20 would be revoked.

"The State Council's tax committee decided to further adjust textile export tariffs from June 1," the statement said.

"This includes the abolition of a planned export tax on linen yarn. In total, 81 items will see export tariffs cancelled from June 1."

China had given due warning of its planned action. "If countries take action to limit textile product exports from China, we will exclude those products from the export tariffs," Commerce Ministry spokesman Chong Quan said on May 21.