According to Shenzhen Customs, cotton textile fibers will enjoy zero tariffs in the trade between Shenzhen and Hong Kong and Macao. This policy will be implemented on 1st, July.
Experts from Customs expect a rise of exports of Shenzhen garments stimulated by this policy.
It is known that cotton textile fibers must meet following requirements before they enjoy zero tariffs. First, fibers must be made from crushed aggregates of cloth which are produced by mainland or Hong Kong enterprises through classifying, cutting up, taking apart, sorting and packing. Second, they must accord with ad valorem percentage criterion. At present, 30% tariff and 17% value-added tax will be imposed on cotton textile fibers. Even tariff for most favored nations is as high as 10%
