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Taxes raised for resource products

(Chinadaily.com.cn)
Updated: 2007-05-15 14:35

China will impose tariffs on diammonium phosphate exports starting June 1 and raise the provisional export tax rate of phosphorus ore to 20 percent from 10 percent, indicating the government's adjustment in its foreign trade policy to reduce exports of products in the resource category and increase further-processed products exports.

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The provisional export tax rate of diammonium phosphate will be 20 percent from June 1 to September 30, and 10 percent from October 1 to December 31. The move is to control chemical fertilizer exports and meet the demand of the domestic market first, according to experts.

Phosphorus ore is a major raw material for diammonium phosphate, a chemical fertilizer. China began to levy an export duty of 10 percent on phosphorus ore in November 2006. Diammonium phosphate exports totaled 786,000 tons last year.

China has begun to levy export duties on commodities including chemical fertilizers, textiles and metals, and cut export rebates for some starting this year, and will involve more products except those from advanced manufacturing industry.

To reduce losses due to new export duties, experts say the exporting enterprises should adjust their exported products structure, exclude export rebates in profit estimates and improve research and development.


(For more biz stories, please visit Industry Updates)



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