Customs clarifies milk tariff policy

BEIJING - The General Administration of Customs (GAC) on Friday said it had not adjusted the tariff-exemption policy on luggage belongings and personal mailed items entering China, saying media reports misunderstood the imposition of a 10-percent tax rate for milk powder imports.

A spokesman for the GAC said incoming passengers can still enjoy a tariff-exemption of personal articles worth less than 5,000 yuan ($794).

The GAC statement came after media reported that every 200 yuan of milk powder entering China will be levied 10 percent of tariff.

Chinese demand for foreign milk powder, mostly baby formula, is surging as domestic dairy industry has been rocked by food safety scandals in recent years.