Tariffs on Serbian wine are slashed by Serbia-China FTA
On 17 October 2023 China and Serbia signed the Free trade Agreement that took effect on 1 July. Tariffs on taxable goods will be eliminated on 90% by both countries.
A decrease by 20% annually will be shown by tariffs on Serbian wine, so, they will reach 0% in five years.
China’s Ministry of Commerce reports that the current import tariff on small-packaged wines and sparkling wines made from fresh grapes is 11.2%, compared to a typical 14% tariff rate for these products in China.
Nevertheless, a 13% value-added tax and a 10% consumption tax on wine is still imposed by China.
There are some 20,100ha of vineyards in Serbia today across 22 wine regions incorporating 77 wine districts.
White wine varieties, popular with Chinese consumers, occupy close to 60% of the country’s vineyards. Development of tastes and growth of consumer knowledge promise a white wine revolution in the country.
Xiao Pi, a Chinese wine influencer and e-commerce retailer based in Shanghai, noted that what white wines make up 40% of the wine sales on his e-commerce platform during a session at this year’s Vinexpo Asia trade show entitled ‘Roundtable with Industry Titans: Insights into the Future of China’s Wine Market’.
The rise of white wine in China was recorded after the launch of the platform in 2018. As many as 200 varieties are grown in Serbia, though more than two-thirds of plantings are accounted for the top 10.
According to China’s Ministry of Commerce, a reduction in tariffs was provided for over 60% of taxable goods goods.
As Chinese government news agency Xinhua reported, they will gradually reduce to zero the tariffs on over 95% of products, including electric generators from Serbia, electric motors, tires, beef and nuts.
Pingxiang Customs in south China’s Guangxi Zhuang Autonomous Region issued to Serbia the first certificate of origin for exports. This free trade agreement (FTA) between China and Serbia took effect on July 1st.
A company in Shangli county issued the certificate of origin for 384 boxes of fireworks granting a 2 percent tariff reduction when clearing customs in Serbia.
The deal signed in October 2023 guarantees an exemption from tariffs to approximately 90 percent of the products traded between China and Serbia and zero tariffs to over 60 percent of them immediately after the FTA goes into effect.
Main export products will be covered by the proportion of final zero-tariff items in import value that will reach roughly 95 percent for both sides.
NH Logistics SER has been offering IOR Importer of Record and EOR Exporter of Record services since 2001 and is a market leader in Serbia and Eurasia, supporting many clients with their import/export shipments.
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