China Tax AlertIssue 16, May 2019Since April this year, escalation of the economic and trade conflict between China and the US adversely affected companies in both countries. On May 13th 2019, the Tariff Commission of the State Council (hereinafter referred to as "the Tariff Commission") issued “Circular Regarding the Trial Implementation of Product Exclusion Process for Retaliatory Tariffs on US Origin Products” (“Circular No. 2”), to announce that the application can start to be submitted from June 3rd 2019. Circular No. 2 outlines that products could be granted exclusion from paying retaliatory tariffs if they meet with certain criterion and retaliatory tariffs can be refunded for products that fulfil with certain conditions. Measures to apply for product exclusion Eligible applicantsChinese enterprises who import, process, or use the relevant imports of US orig
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