UpdateChina unveils details on export rebates for chems products

27 March 2009 12:52  [Source: ICIS news]

(Adds information about the PVC export tax rebate in paragraph 5, PVC exports in paragraph 9 and table)

SHANGHAI (ICIS news)--China has unveiled details about export rebates for an extensive list of products, which it hopes will stimulate exports and help to achieve economic growth targets, according to an announcement from the Ministry of Finance late on Friday.

The ministry said the export rebates, which take effect from 1 April, will increase for 3,802 items, including textiles and garments, steel, nonferrous metals, petrochemicals, electronics and light industrial products.

Export rebates on methanol will be raised to 11% from 9%, the ministry said.

The ministry said export rebates for chemicals such as toluene, paraxylene, phenol and acetone will see a hike to 13%.

The export rebate on PVC will go from 5% to 13% effective. The government last adjusted the PVC tax rebate in September 2007, slashing the subsidy from 11% to 5% as part of its bid to reduce the country’s massive trade surplus.

The export rebate on textile and garment products to will be raised to 16% from 15%, the ministry said.

On 25 March, the State Council, China’s cabinet, said the government would be raising export rebates on a range of products.

China’s exports, a key factor in its GDP growth, saw a dip for the fourth consecutive month in February due to the global economic slowdown.

Monthly PVC exports dwindled towards the end of the year as sluggish demand and high production costs forced many Chinese PVC producers to either shut their plants completely or reduce operating rates.

Product	Export tax rebate (from 1 April)
toluene	13
phenol	13
paraxylene	13
n-butanol	13
soda ash	9
acetone	13
mixed xylene isomers	13
PTA	13
ACN	13
LLDPE	13
ABS	13
PVC	13
PA-6,6 chips/PA-6 chips	13
polycarbonate	13
polyformaldehyde	11
methanol	11
ethylene oxide	13
PP, various forms	13
other ethylene-polyethylene copolymers	11

Source: China's Ministry of Finance

Ng Hun Wei contributed to this article

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