SHANGHAI, Sep 11 (SMM) – China plans to raise value-added tax (VAT) rebates on exported aluminium products from September 15, according to a notice by the Ministry of Finance and State Administration of Taxation on September 5.
For the exports of bars and rods of aluminium alloys (HS code 76042910), VAT rebate rates will be 13%.
China’s export of the two categories of materials came in at around 200,000 mt in 2017, showed China Customs data. It is hoped that the rebate will encourage domestic companies to export more of such products.
In the US, aluminium extrusion, foil, and common alloy plates from China are all subject to anti-dumping and countervailing duties after the US Commerce Department determined that such Chinese products are sold below "fair value" in the US.
Meanwhile, China will raise rebates on exports of stranded wire, cables, plaited bands and the like, of aluminium, with steel core (HS code 76141000), as well as stranded wires, cables, ropes and similar articles, of aluminium other than with steel core and electrically insulated products (HS code 76149000). Rates will be raised to 16% from 13% currently.
However, as producers mostly processed such bars and rods into finished products and for domestic use, the higher rebates are less likely to fuel overseas consumption, SMM believes.
Only several domestic companies are able to produce such aluminium bars and rods, given high technical requirements in production. These companies include Chinalco Southwest Aluminium, China Zhongwang, and Chinalco Northeast Light Alloy, SMM learned.