On November 15, 2024, China’s Ministry of Finance announced significant adjustments to its export tax rebate policies, effective December 1, 2024. These changes involve reductions or cancellations of rebates for a wide range of products, including aluminum and copper.
Contact us today to learn more about how we can support your aluminum sourcing needs amidst these policy changes.
Key Highlights of the Policy Changes
1. Cancellation of Export Tax Rebates
Export tax rebates will be entirely canceled for the following- Aluminum materials
- Copper materials
- Chemically modified oils and fats derived from animals, plants, or microbes
2. Reduction in Export Tax Rebate Rates
For certain products, the export tax rebate rate will be reduced from 13% to 9%. These include- Refined oil products
- Photovoltaic products
- Batteries
- Certain non-metallic mineral products
3. Affected Product Lists
The Ministry of Finance has provided detailed product lists in two attachments- Attachment 1 List of Products for Which Export Tax Rebates Are Canceled
- Attachment 2 List of Products for Which Export Tax Rebates Are Reduced
Why Is China Making These Changes
The adjustments are part of a broader strategy aimed at- Optimizing export structures Shifting focus to higher-value and environmentally sustainable exports.
- Promoting industrial upgrades Supporting industries that align with China’s long-term economic goals.
- Reducing environmental impact Encouraging the conservation of energy-intensive and resource-heavy commodities.
What Does This Mean for Aluminum Buyers and Other Importers
Higher Costs
The cancellation of export tax rebates is likely to increase export prices, impacting procurement budgets for downstream buyers.Supply Chain Adjustments
Global buyers may need to reassess their supply chains, explore alternative suppliers, or renegotiate terms to mitigate cost increases.Opportunities in Sustainability
This policy may accelerate the shift toward more sustainable materials, such as recycled aluminum, which could offer cost and environmental advantages.Prepare for the Changes—What You Can Do
- Review Your Procurement Strategy Analyze how these changes will affect your costs and supply chain.
- Explore Alternative Suppliers Consider suppliers offering competitive pricing or focusing on sustainable materials.
- Stay Updated Follow industry updates to understand the broader implications of these policy adjustments.
Learn How We Can Help
As an industry leader in aluminum solutions, we offer- High-quality recycled aluminum products A cost-effective and sustainable alternative.
- Tailored supply chain solutions Helping you navigate these policy changes with minimal disruption.
- Expert insights and guidance Stay ahead with our market expertise.
Contact us today to learn more about how we can support your aluminum sourcing needs amidst these policy changes.
