China to increase value-added tax (VAT) rebates on exported aluminium products: SMM updates

According to the report by Shanghai Metals Market, China plans to increase the value-added tax (VAT) rebates on exported aluminium products from September 15, 2018. The notice came from the Ministry of Finance and State Administration of Taxation on September 5.

The VAT rebate rates on the exports of aluminium alloys bars and rods (HS code 76042910) have been decided to be 13 per cent.

In 2017, China’s export of the two categories of materials had come in at around 200,000 tonnes, showed China Customs data. However, this increased rebate on aluminium products are hoped to encourage domestic companies to export more of such products and therefore, would expectedly buoy up the total export volume.

In the United States, 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.

On the other hand, as far as stranded wire, cables, plaited bands and other similar aluminium products with steel core (HS code 76141000) are concerned, China has decided to raise rebates on exports of these products. Stranded wires, cables, ropes and similar articles, of aluminium other than with steel core and electrically insulated products (HS code 76149000) are also included in the increased export rebate. Rebate rates have been decided to rise to 16 per cent from 13 per cent currently.

SMM believes these increased rebates may less likely to fuel overseas consumptions as producers mostly process such bars and rods into finished products and for domestic use.

Only a few 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.