China to cancel aluminum import tax and impose 15 pct aluminum rodexport tax on Aug. 1

The Chinese government intends to cancel the current 5 percent primary aluminum import tax and levy a 15 percent tax on aluminum rod and bar exports from Aug. 1, according to a Ministry of Finance announcement released today. According to the MOF statement, the policy is aimed at further curbing the export of energy-intensive, highly polluting and resource-wasting products, and encouraging energy conservation and raw material imports. The government will cancel the import tax on primary aluminum (tax code 76011090) from its current 5 percent level, and levy a 15 percent export tax on aluminum rod and bar (tax code ex76041000) as of Aug. 1 this year. The move follows a previous government policy canceling value-added tax (VAT) rebates for the export of a series of semi-finished aluminum products, including aluminum rod, bar, profile and aluminum alloy rod, bar, profile (tax codes 7604 and 7605), which came into effect on July 1 of this year. However, other semi-finished aluminum products have so far been exempt from the new Aug.1 policy. Moreover, exports of aluminum foil and strip, as well as aluminum alloy strip, both in tax code 7606, still enjoy VAT rebates of 11 percent.