Tax rebate on exported aluminium products likely to rise

Published: Oct 9, 2018 14:58
The move likely to cover export of aluminium products with VAT rebate rates currently at 13% and 15%

SHANGHAI, Oct 9 (SMM) – China’s value-added tax (VAT) rebates on some exports will be raised on November 1 to support foreign trade, according to a message delivered at a State Council executive meeting chaired by Premier Li Keqiang on Monday October 8. SMM believes that this will boost the aluminium industry.

The tax rebate will be raised to 16% for exports that current receive a rebate of 15% or 13%, according to the meeting. The rebate will be raised to 10% for exports that currently receive a 9% rebate, though the rebate will be raised to 13% for some. For exports currently receiving a 5% rebate, the rate will be raised to 6%, with some to 10%. 

These will affect the export of aluminium products with VAT rebate rates currently at 13% and 15%, SMM believes. 

Products with a current rebate of 13% include aluminium bars, rods, and profiles (HS code 7604), aluminium plates, sheets, and strip, of a thickness exceeding 0.2mm (HS code 7606), aluminium tubes and pipes (HS code 7608), as well as aluminium structures and parts of structures (HS code 7610, 7611, 7612, 7613, 7615, and 7616). For now, exports with a rebate of 15% include aluminium foil (HS code 7607). In addition, stranded wires, cables, ropes and similar articles of aluminium (HS code 7614) already receive a full rebate of 16%, SMM learned. 

In 2017, China Customs data showed that the country exported 826,000 mt of aluminium extrusion, 2.08 million mt of aluminium plates, sheets, and strip, 1.16 million mt of aluminium foil, 136,000 mt of aluminium tubes and pipe, as well as 879,000 mt of aluminium structures.

As a trade war with the US escalates, it is hoped that the rebate will encourage domestic companies to export more of such products. Details on the rebate increase are likely to be released in official documents soon. 

The higher rebates will "help reduce costs for the real economy, help it cope with the complex international situation and maintain stable foreign trade growth", according to the meeting. It was also pointed out that the move conforms to regulations of the World Trade Organization (WTO).

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.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Rio Tinto Ends Takeover Talks with Glencore Again
2 hours ago
Rio Tinto Ends Takeover Talks with Glencore Again
Read More
Rio Tinto Ends Takeover Talks with Glencore Again
Rio Tinto Ends Takeover Talks with Glencore Again
On February 5th, Rio Tinto said it is no longer in takeover talks with Glencore after the parties failed to agree on terms that would deliver value to Rio shareholders, marking the third time such discussions have fallen apart (following failed approaches in 2014 and 2024). Glencore said the proposed structure— including Rio retaining the Chairman and CEO roles and a pro forma ownership split—significantly undervalued Glencore’s relative contribution, and therefore was not in Glencore shareholders’ interests. Following the announcement, Glencore shares fell as much as 10.8% while Rio’s London-listed shares were down around 2.6%. Reuters noted the setback echoes other stalled mega-deals in the mining sector, such as BHP’s failed bid for Anglo American.
2 hours ago
Chinese New Year Causes Drop in Aluminum Demand and Operating Rates
4 hours ago
Chinese New Year Causes Drop in Aluminum Demand and Operating Rates
Read More
Chinese New Year Causes Drop in Aluminum Demand and Operating Rates
Chinese New Year Causes Drop in Aluminum Demand and Operating Rates
[SMM Aluminum News Flash] According to SMM data on February 5, as the Chinese New Year holiday approached, downstream processing enterprises began taking holidays successively. Coupled with high aluminum prices suppressing demand, the operating rate of aluminum semis declined and demand weakened. The proportion of liquid aluminum dropped 8.6 percentage points WoW this week.
4 hours ago
Alumina Traded at $310/mt FOB East Australia, $313/mt FOB West Australia on Feb 4, 2026
4 hours ago
Alumina Traded at $310/mt FOB East Australia, $313/mt FOB West Australia on Feb 4, 2026
Read More
Alumina Traded at $310/mt FOB East Australia, $313/mt FOB West Australia on Feb 4, 2026
Alumina Traded at $310/mt FOB East Australia, $313/mt FOB West Australia on Feb 4, 2026
Overseas alumina transaction: On February 4, 2026, 30,000 mt of alumina was transacted overseas at a transaction price of $310/mt FOB East Australia, or $313/mt FOB West Australia, with April shipment and origin at seller's option; the previous transaction occurred on February 3 at a transaction price of $310/mt FOB West Australia, with March shipment.
4 hours ago
Tax rebate on exported aluminium products likely to rise - Shanghai Metals Market (SMM)