China Considering 5% Export Tax on Unwrought Aluminum Alloy

SHANGHAI, Aug.8 (CBI China) -- China is considering imposing a 5% export tax on unwrought aluminum alloy to reduce exports of related goods, and September is considered the earliest to implement the new policy. As the largest aluminum producer in the world, China's exports of aluminum alloy were 395,961 mt during 1H08, up 131% YoY. 

    CBI believes there are many uncertainties related to implementation of the 5% increase in export taxes. Originally, secondary aluminum alloy was the major export product of aluminum alloy ingot, but now primary aluminum alloy ingot is being exported. As the two products are generally homogenous in terms of quality, it  is difficult for Customs to tell the difference between the two. Implementation of 5% export taxes will dampen the booming development of China's secondary aluminum industry, which is on the opposite track of China's support for material recycling.  Second, the 5% export tax is smaller than the 15% export taxes on aluminum ingot, and will unlikely effectively reduce exports of aluminum alloy ingots.