April 23, the Chinese Ministry of Finance issued “Customs Tariff Commission of the State Council on the adjustment of export tariffs on notice”, the implementation of the adjustment of aluminium billet with effect from May 1, 2015. The adjustment involves 94 kinds of export products, involving the elimination of tariffs of more than 80 products. Among them, three of heading aluminum provisional tariffs on exports of goods were down:
(1) HS Code 76012000 under “alkali metal content (Na + K + Ca)
(2)HS Code 76,041,010 under tariff heading “Non-alloy aluminum bars, rods,” before the temporary export tariffs from 15% to 0%;
Al “section perimeter of less than 210 mm; and
(3) of heading ‘section perimeter than or equal to 210 mm of aluminum alloy bars, rods,” 76,042,910 under temporary export tariffs from 15 percent to 0 percent before the bar “temporary export tariffs from 5% to 0% before.
Aluminum exports has been the focus of market attention, the tariff adjustment policies once introduced, the market responded enthusiastically, but where there have been some false positives, especially some foreign media and consulting agencies believe that these export tariffs mean that the Chinese government will release aluminum alloy exports, and expected future round aluminum ingot (the “rod”) exports will increase substantially. So the tariff adjustment which move it exactly mean? I believe that there must be a clear understanding of the following aspects.
First, the tax policy adjustment is a large-range adjustment, to abolish tariffs on more than 80 products, not just for aluminum. Phasing out tariffs on commodity exports, is one of China’s accession to WTO commitments, it is the tariff adjustment in the background.
Secondly, the cancellation of part of the aluminum tariffs, the only export tariffs canceled 76,012,000 under section aluminum, the “alkali metal content (Na + K + Ca)
That is, the cancellation of export tariffs on refined aluminum or high-purity aluminum of high value-added, but before, China’s aluminum content of 99.95% or more of unwrought non-alloy aluminum (ie, aluminum and high-sperm in aluminum) has zero export tariffs, the only extended to a range of refined aluminum or high-purity aluminum, so the export of common aluminum alloys and will not have an impact.
In addition, “the aluminum bars, rods,” not “rod”, according to the Customs Tariff description of goods, aluminum bars, rods means “rolling, extrusion, drawing or forging solid products, non-rolled”; also includes “casting or (except simple trimming or descaling) after sintering processed “by the Customs Tariff and expert advice, here called” re-processed “refers to the pressure processing, not including turning, drilling and other machining. That is, the bars, rods must be processed through pressure aluminum products and aluminum round ingot (rod) is essentially different. Another point to note is that the aluminum bars, rods export tariffs to zero though, it is still the only two aluminum export tax rebate to zero, one species (the other is aluminum wire). Even if the primary aluminum market disguised export impulse, aluminum bars, rods are not an optimal choice.
Therefore, the Chinese government restrictions on exports of primary aluminum mind has not changed, the tariff adjustment will not open the channel for the rod and other commodity exports.