Export Data News
- China increases export duties on rare metals
Date: 31-May-2007 Sources: (People's Daily)
China will raise export taxes on rare metal products including tungsten, rare earth, and molybdenum in an effort to protect these strategic resources by curbing excessive and disordered extraction at home, People's Daily Overseas Edition reported on May 29.
The Customs Tariff Commission of the State Council has decided to levy as of June 1 a 15 percent export tax on tungsten, rare earth, and molybdenum, a 10 percent tax on rare earth metals, dysprosium oxide, and terbium sesquioxide, and rates for molybdenum oxide, ammonium molybdate and sodium molybdate will range from 5 percent to 15 percent.
The new measure contrasts China's tax rebate policy on rare metal exportations in the 1980s and 1990s.
Rare earth, tungsten, molybdenum, indium and several dozens of other rare metals are important nonrenewable resources widely used in industries of national defense, aerospace, information, and manufacturing among others. China possesses the world's largest reserve of many kinds of rare metals.
This is the fourth time that the government has revised tungsten's tariffs since last year. China presently supplies more than 70 percent of the world's annual tungsten consumption, which resulted in a decline of the Chinese proportion in global tungsten reserve.
In 2005, China cancelled the tax rebate policy on rare earth products, and in November of 2006 China began to collect a 10 percent export tariff on rare-earth oxide, but export volumes still increased rapidly. China contributes at least 80 percent of the world's annual consumption of rare-earth resources. Compared to 1990, China's rare-earth exports have undergone a nine-fold increase.
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