Preferential tax rate
Refers to a preferential tariff rate lower than the ordinary tariff rate imposed on imported goods from a specific beneficiary country. Preferential tariffs are generally reciprocal. Through international trade or tariff agreements, the parties to the agreement will give preferential tariff treatment to each other; but there are also unilateral ones where the beneficiary country is given one-way preferential tariff treatment to the beneficiary country, and reverse preference is not required. Such as preferential tariffs under the Generalized System of Preferences; WTO implements multilateral universal most-favoured-nation preferential tariffs, and any contracting party grants it to all contracting parties.
There are currently two types of preferential tariffs:
1. GSP preferential rate: It is a preferential tax rate provided by developed countries to developing countries. It is reduced or exempted on the basis of the most-favored-nation tax rate. Therefore, it is the lowest tax rate and is a one-way, non-reciprocal tax rate. Including European Union, Japan, Canada, Norway, Switzerland, Australia and other countries.
2. Free trade zone preferential rate: it is a regional trade arrangement that appears in the form of preferential trade arrangements and free trade zones. A "preferential system" tax rate that is more favorable than the most-favored-nation tax rate implemented in these regions is the World Trade Organization One of the exceptions to the principle of most-favoured-nation treatment. Including ASEAN countries, Asia Pacific Agreement countries, Pakistan, Chile, Peru, New Zealand and other countries. , Non-reciprocal tax rate. Including European Union, Japan, Canada, Norway, Switzerland, Australia and other countries.
