The Reform Of The Tariff Reduction Of Luxury Goods Is Accelerating &Nbsp; Luxury Consumption Will Return To The Country

According to people familiar with the matter, the tariff adjustment rules have been reported to the State Council for approval by the Customs Department of the Ministry of finance, and corresponding measures are expected to be released before October.

The specific adjustment includes abolishing or substantially reducing the tariff of some "luxury" cosmetics, perfume, tobacco and alcohol, and levying the tax rate according to the classification and price and brand of the products, with an average tariff reduction of 15%.

Prior to this, the Ministry of commerce related personage pointed out to our reporter: "this is just a very principled thing, how to adjust the tariff specifically, how to define the high-grade commodity, is unknown."

The relevant sources said, "even if the rules are approved, whether to adjust tariffs, there is also a question of timing and scope."

So far, the "expansion import" strategy, which was doped with the interests of the relevant ministries and interests, finally found a breakthrough in the adjustment of luxury tariffs.

The World Luxury Association's June 9th report predicts that by 2012, China's luxury goods market will reach US $14 billion 600 million, surpassing Japan and reaching the peak of global luxury consumption.

At the same time, China's luxury market has the highest tax rate in the world, and Chinese consumption abroad is 4 times as large as that in the domestic market.

A set of data released by Yao Jian, spokesman of the Ministry of Commerce in March this year, showed watches, bags, and

According to the model study of luxury goods business in the European market by the World Luxury Association, it is found that if outbound shopping becomes habitual or trend in China, more Chinese will choose to go abroad for consumption, which will bring a heavy price to China's high-end domestic demand market.

Since last year, the Ministry of Commerce, the market operation Department, the foreign trade department and the fair trade bureau have conducted closed door discussions with the World Luxury Association and the well-known luxury goods enterprises, and made corresponding suggestions to the State Council.

The core of these proposals lies in the effective consumption of extravasation of luxury goods.

Research shows that China's luxury consumer groups and buying goods are quite different from western ones.

Chinese consumers are mainly young people. The employees of foreign companies and the "two generation" are most typical, most of them are 25~35 years old. They are fashion, jewelry, leather goods, cosmetics and perfume as the main consumption areas.

In Europe and the United States, housing, automobiles, yachts and luxury tourism are the most desirable luxury goods.

"Expanding import" strategy is a package solution.

As a matter of fact, the Ministry of Commerce began to conduct corresponding research as early as last year and included in the package of "expanding import strategy".

China's imports mainly include bulk resources, high-tech products and consumer goods.

After analyzing the possibility of expanding imports, we find that there is little room for changes in resource goods linked to demand, and the possibility of loosening of high-tech products in Europe and the United States is also small. The only medium that can have much room for adjustment is high-end consumer goods, that is, luxury goods.

According to the survey, the reasons for the spread of high-end consumer goods at home and abroad include the high cost of domestic circulation; the brand strategy of multinational companies leads to a high price in the Chinese market, and a higher comprehensive tax rate including tariffs.

Earlier, a person close to the decision-making level revealed to reporters that the relevant departments have been adjusting the import tax rate for several years, but the reasons why they have not yet been finalized include that the price reduction of related products may impact domestic competitive brands of similar industries, and may cause high-income earners to spend more money on luxury goods with less money and avoid higher tariffs.