Tariffs Halved on Milk Powder to Taiwan
Friday, 13/6/08
Against a backdrop of rising consumer prices, milk powder tariffs into Taiwan were halved earlier this month on a temporary basis. The decision has resulted in a fifty percent tariff cut on five key milk powder product lines for a six month period, from 16 May to 15 November 2008.
The items included in the reduction cover both consumer products such as infant milk powder and bulk milk powder items used by the food industry in Taiwan. Taken together, the five tariff lines account for more than 95% of New Zealand’s milk powder exports to Taiwan. New Zealand companies currently supply more than 40% (by both volume and value) of total milk powder imports into Taiwan, making New Zealand the leading supplier of milk powder products to Taiwan.
The tariff lines and new tariff rates are:
04021090 Skim Milk Powder reduced to 5% tariff;
04022190 Whole Milk Powder reduced to 5% tariff;
19011000 Infant Milk Powder reduced to 2.5% tariff;
19019021 Prepared Milk Powder reduced to 6% tariff;
19019022 Other Milk Powder reduced to 6% tariff.
This is not the first such unilateral tariff reduction into the Taiwan market, with tariffs on eight other bulk commodities, including wheat, corn and soybeans, halved last year and then further reduced to zero, on a temporary one-year basis, in March this year.
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