According to the Ministry of Finance, starting from September 15, the VAT export tax rebate rate will be increased for products such as electromechanical and cultural products. The notice clearly clarifies that the export tax rebate rate for multi-component integrated circuits, non-electromagnetic interference filters, books, newspapers and other products will be increased to 16%, the export tax rebate rate of bamboo carvings, wood fans and other products increased to 13%, the export tax rebate rate of basalt fiber and its products, safety pins and other products increased to 9%, the implementation time is defined by the export date indicated on the customs declaration.
It is understood that the primary shape of epoxy resin (Customs Code 39073000) is also in the list of products that increase the export tax rebate rate. The export tax rebate rate increased from 5% to 9%, up by 4 percentage points.
In recent years, the development of China's epoxy resin industry has significantly accelerated. In 2012-2017, domestic production capacity has shown an increasing situation. According to Zhongyu Information Monitoring, the external dependence of domestic epoxy resin in 2012-2017 is maintained at around 20% on average. Incomplete statistics, as of 2017, domestic epoxy resin production capacity is nearly 2.3 million tons, and the output is near 1.22 million tons. Domestic epoxy resin products are mostly low-end and high-tech composite epoxy resin. Need to still rely on imports.
It is understood that in 2012-2017, the average domestic epoxy resin import volume is more than 230,000 tons/year, and the export volume is also at an average of nearly 70,000 tons/year. 7.15 million tons, an increase of 6% compared with 2016. The domestic epoxy resin export volume from January to March 2018 was 12,900 tons, of which Thailand, Japan and Vietnam exported the top three according to the statistics of the country of production and sales.
The main downstream consumption of domestic epoxy resin is concentrated in the fields of coatings, electronic products, composite materials, adhesives, etc. Solid epoxy resin is the main raw material for powder coatings, mainly used in anti-corrosion pipelines, surface coating of household appliances, etc. In automotive primer, container and ship spraying. Epoxy resin downstream serves the high-end market, followed by research and development of high-end products, and the production of high value-added products has gradually become the trend of the times.
There is still pressure on the depreciation of the RMB under the influence of Sino-US trade wars. However, due to restrictions on the external environment and the status quo of domestic industries, domestic factory exports have been limited. This increase in export tax rebates will benefit domestic epoxy resin enterprises, which will help improve corporate exports. Enthusiasm, which promotes the increase of corporate income, thereby improving the competitiveness of domestic enterprises in the international arena, and thus improving the changes in the epoxy resin industry and supply and demand pattern.