According to the joint Announcement  No.15 of the Ministry of Finance and State Taxation Administration, China increased export tax rebates on 1,464 products from March 20, 2020 (based on export date). Increased export tax rebates will help lower costs for China-based exporters, whom have been hit by US additional tariffs and may also cushion some impact from reduced trade in the wake of the COVID-19 outbreak.
1,084 tariff items would have the rebate raised to 13%, including:
- Fixed vegetable fats and oils and their fractions;
- Inorganic chemicals (such as: silicon dioxide, calcium chloride and commercial calcium hypochlorite);
- Petrochemical (such as: ethylene, propylene and ethylene glycol);
- Essential oils;
- Insecticides (subject to VAT 13%);
- Polymers in primary forms (such as: ethylene, propylene, styrene, vinyl chloride, vinyl acetate, acrylic);
- Synthetic rubber in primary forms;
- Plywood and wooden packings, windows and their frames, tableware and kitchenware;
- Toilet paper and facial tissues;
- Stone, plaster, cement and asbestos products;
- Pearls, precious/semiprecious stones, precious metals and imitation jewelry (subject to VAT 13%);
- Porcelain sanitary ware;
- Glass and glass fibers products;
- Steel, stainless steel, copper and nickel products;
- Tools and miscellaneous articles of base metal.
Another 380 tariff items entitled to a 9% export tax rebate, including:
- Livestock and poultry;
- Fresh or frozen meat;
- Flower and seed;
- Other foods products (egg, nuts, vegetables, fruits, coffee and tea);
- Insecticides (subject to VAT 9%);
- Pearls, precious/semiprecious stones (subject to VAT 9%).
Source: Ministry of Finance and State Taxation Administration, China
If you have any questions or concerns related to your products and the tax rebates, please reach out to your local BDP representative.