For many tire manufacturers, the news that the import of natural rubber tax standards in 2010 will be lowered is welcome.
According to a news release issued by the Ministry of Finance on December 15, “The selection tax on natural rubber (hereinafter referred to as 'Tianjiao') will continue to be implemented in 2010, and the amount of taxation will be appropriately lowered.â€
Since January 1, 2007, China has imposed a selective tax on imports of natural rubber, that is, tariffs are applied at a low rate in the 20% ad valorem tax and the specific tax of 2,600 yuan/ton.
According to the current price of natural rubber, many natural rubber import methods may adopt "quantitative assessment." Therefore, the industry believes that the import of natural rubber next year will benefit from the new policy of the Ministry of Finance.
Tire companies have been looking forward to lowering the import tariff on natural rubber. China is the world’s largest tire producer, and the demand for natural rubber is naturally high, and the proportion of purchase price to production cost is also high. As for Fengshen Tire Co., Ltd., which produces large tires, its raw material cost accounts for 80% to 90% of the production cost, while raw material costs account for 40% of natural rubber and synthetic rubber only accounts for 10% of raw material cost. proportion.
On September 11th, after the US Obama administration announced a tariff of 25% to 35% on Chinese tires exported to the United States, Chinese associations and tire manufacturers recommended that the government should appropriately reduce the import tariffs on natural rubber in order to reduce production costs.
Cing Dingkun, a researcher at China Investment Securities, said that more than 60% of domestic natural rubber raw materials come from overseas. “Yunnan and Hainan have limited production capacity for natural rubber.â€
If we can reduce the natural rubber tariff, the current situation is even more urgent, because the price of natural rubber is skyrocketing, the company's burden is heavier.
The price trend of international natural rubber from the beginning of last year to the end of this year was "the first rise and then fall." China Chemical Network's data shows that in early December last year, Indonesia's SIR20 model of natural rubber quoted at only $ 1,120 / ton, July 7 (half a year ago) the price of the product is only $ 1,530 / ton, December 7 actually rose to its quote A ton of 2840 to 2850 US dollars, the same natural rubber products, now year-on-year, ring half a year ago, up by 154%, 86%.
Mou Dingkun told CBN reporters that the reason for the continuous rise in natural rubber prices is that although the special security case has a certain influence, the country is, after all, a big country of tire production, and the demand is still very strong; Very low, prices are bound to rise. “This is different from last year’s situation. At that time, due to the economic crisis, overseas car demand was very poor, tire sales were not booming, and the price of natural rubber was unreasonable. But this year, the auto industry, especially the Chinese automobile industry, is slowly recovering. The demand for raw materials such as natural rubber has also increased."
The Shanghai Securities News reported that the price of rubber imports on the day reached US$1,700/ton, so imported natural rubber may be levied as a specific tax rather than as a 20% ad valorem tax. Therefore, according to the current import price of more than 2,000 US dollars / ton, combined with the new policy of the Ministry of Finance, many imported natural rubber in China may reduce the tax amount next year.