Why new customs duties won't affect the luxury goods industry
New regulations over import duty have stirred controversy over their impact on the price of luxury goods, but consumers have not realised their real impact
The General Administration of Customs released new regulations levying higher import duties for imported luxury goods (中华人民共和国进境物品归类表) on March 26 that came into effect on April 15.
The average tax rate remains unchanged, but the dutiable value of goods like cosmetics and handbags has greatly increased.
The regulations have caused much controversy in China as consumers believe this will cause domestic prices to rise, as reported in China's Global Times. According to the World Luxury Association's Report released this year, China is the world's largest consumer of luxury goods.
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