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Industry News | Time: Mar 18 2020 3:35PM
China: Export rebate rates adjustment for some chemicals
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China will increase export tax rebates on almost 1,500 products from March 20, the finance ministry said on Tuesday, as the government looks to ease the pressure on companies hit hard by the coronavirus outbreak. The Ministry of Finance said 1,084 products, would have the rebate raised to 13%, while another 380 products will see the rebate rise to 9%. It did not specify the previous rebate rates.

The adjustment won't have direct impact on benzene. However, the adjustment on downstream derivatives may boost product exports, which is expected to support benzene demand. The rebate of styrene monomer and ethylbenzene would be raised from 10% to 13%.

The rebate of ABS, PS and EPS would be raised from 9% to 13%. Impact on ABS and PS is limited due to low exports. In 2019, China exported 262kt of EPS. The move may boost EPS export market.

BDO and PTMEG export tax rebates will be increased from 10% to 13% on March 20, 2020, which is significantly bullish for export.

The export tax rebate rate for other terephthalic acid (QTA, tariff code 29173619) will be adjusted from 10% to 13%. In 2019, QTA import volume of China totaled 82,000 tons. The export tax rebate rate for purified terephthalic acid (PTA, tariff code 29173611) is maintained at 13%.

The export tax rebate rate for Caprolatam (tariff code 29337100) will be adjusted from 10% to 13%, which will clear obstacles for the export of CPL. The global CPL market pattern will change, especially the markets around Chinese mainland such as Japan, South Korea, Southeast Asia and Taiwan, China.

The export tax rebate of ethylene-propylene copolymers will be increased to 13% from the previous 10%. According to customs statistics, in 2019, China exported 56.2kt of co-polymer PP,while P apparent demand was assessed 27.44 million tons. And China imported 1.5502 million tons of co-polymer PP in 2019. It seems that co-polymer PP still needs to rely on large imports at present. Therefore, the impact on co-polymer PP market is limited.

HS Code Product Adjusted Before the adjustment
29012100 Ethylene 13% 10%
29025000 Styrene 13% 10%
29024100 OX 13% 10%
29094100 DEG 13% 10%
29173619 QTA 13% 10%
29053100 MEG 13% 10%
29012200 Propylene 13% 10%
39023010 Ethylene-propylene copolymers 13% 10%
29053990 Other diols 13% 10%
39072010 PTMEG 13% 10%
29337100 Caprolactam 13% 10%
29026000 Ethylbenzene 13% 10%
29142200 Cyclohexanone and methylcyclohexanone 13% 10%
29214110 Aniline 13% 10%
29337100 Caprolactam 13% 10%
39033090 ABS 13% 9%
39031990 PS 13% 9%
39031100 EPS 13% 9%

China import tariff, duty, tax rates of chemicals and fibers in 2020

[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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