Research On The Legal System Of Environmental Tariffs

Coordinated development of environment and trade has been the important subject of world economic integration, in which how to make full use of the tax is not only the key and difficult point, but also the mission and reform direction of Chinese Tariff System. As the experimental plot of China’s economic system reform and administrative system reform, Shanghai Free Trade Zone plays an important role. In addition to the traditional field such as financial and investment, the tax reform is also the highlight of the system innovation in Shanghai Free Trade Zone. Besides,the tariff system is also very important for Shanghai Free Trade Zone which once was custom special supervision district.With the development of global economic integration and trade liberalization, the contradiction between international trade and environment becomes more and more apparent. The United Nations Conference on Environment and Development in 1992 had led the discussion of environmental problems to climax. The Eleventh Five-Year Plan clearly point out that a resource-saving and environment-friendly society should be set up, but the reality of environmental protection situation is not optimistic.Although tariff plays an important role when adjusting the industrial and international trade, it did not work well. The idea of environmental protection has not been put into the tariff system by the government so that tariff can’t prevent foreign pollution products or the overuse of resources and energy. Moreover, thedeveloped countries make our country become the “pollution haven” by using the low standards of China’s environmental protection system. Therefore, how to solve environmental problem with tariff has become imminent.As the “experimental plot” of our system reform, Shanghai Free Trade Zone not only takes the task of innovation in economic and institution, but also shouldering the responsibility of upgrading and transformation in the concept and the value. The present tariff system in Shanghai Free Trade Zone closes to the international level.Besides, the Shanghai Free Trade Zone presents it self as not the lowland of tax preference policies, we should no longer put emphasis on the tax breaks, but find the function on deeper level--environmental protection. Maybe the most appropriate way to achieve this mission is imposing environmental tariffs.The main reasons why we should pre-test environmental tariffs in Shanghai Free Trade Zone are following. First, China has been deeply impacted that the developed countries use environmental tariffs as a trade barrier to limit international trade in developing countries. Second, although China is the largest trading country in the world, the foreign trade structure of it is still not reasonable. Accounting for a large proportion, the high pollution, high consumption and low value-added products make serious injury to the domestic environment and resources. Third, it is not ripe to put it into nationwide practice because of the complexity of environmental tariffs,the incomplete of environment tax system in our country, and the rules of international trade. Furthermore, it offers a platform for environmental tariffs by the rules “pilot test”, “experience can be replicated and promote” of Shanghai Free Trade Zone. It is the optimal selection to pre-test it in Shanghai Free Trade Zone.In addition, it provides a theoretical basis for the environmental tariffs by Porter Hypothesis, Tariff and External correction, Tax Transferring and the Ultimate Tax Bearing and Sustainable Development Theory. Porter Hypothesis proved that the enterprises could be stimulated to improve technology, the production efficiency and the competitiveness by environmental tariffs. It solves the contradiction between tax and competitiveness. External correction is an important function of the tariff, and also one of the reasons that the reasonable existence of tariff in traditional tradetheory. Tax Transferring and the Ultimate Tax Bearing indicates that the tax burden will shift to whom ultimately. It is the theoretical premise of the construction of environmental tariffs in Shanghai Free Trade Zone. And the Sustainable Development Theory ensures the taxation of environmental tariffs from the ethical dimensions.It is not easy to pre-test environmental tariffs in Shanghai Free Trade Zone,because the research of environmental tariffs in China is not mature. So the foreign experience of the environmental tariffs system becomes an important template. The environmental tariffs were carried out early in America and Europe. We could get inspiration after finishing comparative study on the relevant data for these countries.Combining our concrete national conditions, they will provide experience and materials for China’s environment tariff construction.Based on a series of comparison of theoretical research and foreign experience, it is necessary to do a preliminary construction when carrying out the environmental tariffs in Shanghai Free Trade Zone. The designs of environmental tariffs should not only focus on the three basic elements as tax rate, tax base and taxpayer, but also pay attention to the construction of administration procedures. Besides, in consideration of the special purpose of raising funds for environmental protection, we must take into account the collection and use of tax.It provides not only a new direction for the reform of the tariff, but also effective data and experience for nationwide construction of environmental tariff in the future by carrying out environmental tariffs in Shanghai Free Trade Zone. What’s more, it is conformed to the world trade and the global trend of environmental protection.