Three new policies including the Tariff Implementation Plan for 2012 starting January 1st 2012 will affect China's nonferrous metals industry. SMM analyzes these new policies as below.
Tariff Implementation Plan for 2012
Key word: 730, 4.4%, China
Summary: The Tariff Implementation Plan for 2012 adjusted import and export taxes for some products. China will implement low provisional import tax rates for over 730 categories of commodities of energy and resource products, key equipment and parts used in strategic emerging industries and agricultural means of production, with the average 4.4%, which is 50% below most-favored-nation tax rate. The new tax rate plan was started on January 1st 2012.
SMM Commentary:
Summary: The Customs Tariff Commission of the State Council has recently issued notice on the Tariff Implementation Plan for 2012. Compared with 2011 tariff regulations on copper related products, there are virtually no changes in the Import & Export Tariff Sheet for 2012, despite some small details listed under some of products.
Summary: Customs Tariff Commission of the State Council recently released 2012 Customs Tariff Plan, which will be implemented from January 1st, 2012. According to SMM sources, export tariff for manganese ore, manganese alloy, EMM and manganese downstream products will be unchanged from a year earlier.
Although the export tariff has not changed, manganese slag produced out from steel smelting process (Mn≥25%) is added into Imported Commodity Temporary Tariff Table.
Import Tax Rates Lower
SMM found that with the exception of detailing small tax items, provisional tax did not change for 2012. The MOF continues to encourage imports and deep-processing exports, whilst restrict elementary product exports.
But European debt crisis is expected to deteriorate in 1Q 2012, and impact exports from other resource countries, as well as China’s import and export trade. As such, the growth of imports is expected to rise steadily, while export growth will further slow.
Notice Regarding Eliminating Some administrative and institutional fees Charged at Small and Minisize Enterprises
Key word: small and minisize enterprise, fee exemption, China
Summary: according to the Notice Regarding Eliminating Some administrative and institutional fees Charged at Small and Minisize Enterprises, the small and minisize enterprises eligible for the Standards for Small and Medium-Sized Entities by the MIIT, NBS, NDRC and MOF will be exempt from administrative and institutional fees of management, registering and certifications. Those fees include registering fees, tax invoice costs, customs supervision charges, cost of certificate of origin and agricultural machinery supervision charges.
SMM Commentary: Exempted Charges Favor China's Non-Ferrous Downstream Industries
Summary: Chinese government has enacted many policies to support small and micro-sized enterprises recently, including tax cut and exempted charges for 22 items. It is believed that these policies will favor non-ferrous downstream industry enterprises.
Taxation of Vehicles and Ships of the People's Republic of China
Key word: taxation of vehicles and ships, energy conservation, China
Summary: many preferential tax regulations were added in the Taxation of Vehicles and Ships of the People's Republic of China. First, taxes for the vehicles or ships which are energy conservative or use new energy are cut by a half or eliminated, with the exemption quotas made by fiscal and tax management departments of the State Council and reported for approval by the State Council. Second, provinces, prefectures and municipalities are authorized to cut or eliminate taxes for vehicles and ships of motorcycles, three-wheeled automobiles and low speed cargo trucks used in the rural areas. Third, taxes for vehicles and ships in the regions having suffered from earthquake or flood are cut or eliminated within certain period. In addition, the regulation retained some preferential policies including local governments of provinces, prefectures and municipalities can reduce or eliminate taxes charged for public transportation vehicles and ships in fixed terms.
SMM Commentary: the Taxation of Vehicles and Ships of the People's Republic of China will boost consumption of new energy vehicles, and relative parts and battery producers will also benefit. Consumption of lead battery will be pushed up in a long term.