China’s Ministry of Finance is to cancel export tax rebates

2024-12-01

China announced on 15th November that it will change export tax rebates for a range of products, effective from Dec. 1.
 

The announcement, jointly issued by the Ministry of Finance and the State Taxation Administration, said that export tax rebates for aluminum, copper and chemically modified animal, plant or microbial oils and fats will be canceled.


Meanwhile, the export tax rebate rate for some refined oil products, photovoltaic products, batteries and certain non-metallic mineral products will be reduced from 13 percent to 9 percent.

 

Influence

In the short term, the cancellation of the aluminum export tax rebate, to a certain extent, or an increase in the export cost of aluminum exporters, inhibits China's aluminum processing enterprises's export enthusiasm. In the medium and long term, China is an important global aluminum exporter, overseas aluminum in the supply and demand is a certain gap, and there is no corresponding overseas supply incremental situation, China's aluminum exports of phased reductions and the increase in the cost of exports can be pushed up the price of overseas aluminum, internal and external aluminum price spreads to expand, without taking into account the exchange rate, the domestic aluminum export profits rebound, or gradually repair the volume of China's aluminum exports.

 

Response Suggestion:

Lock in prices for current orders: Confirm prices and delivery times with suppliers as soon as possible to avoid price fluctuations caused by policy adjustments.

Explore alternative markets: Evaluate prices and delivery capabilities of other supplier countries.

Optimize inventory management: Prepare stock in advance according to policy changes to reduce short-term impact.

Negotiate long-term cooperation: establish a stable relationship with Chinese suppliers to share the cost of the policy.