CHINA / National
Tariffs to reduce energy consumption
By Wang Yu (China Daily)
Updated: 2006-10-31 06:28
Temporary tariffs on 110 export categories of products which are
energy-guzzling or resource-intensive have been hailed by experts as a
major step towards optimizing the national energy structure.
The regulation, which was issued over the weekend and takes effect on
November 1, will also help curb the country's soaring trade surplus, the
Ministry of Finance said.
Among the goods which will attract the temporary export tax are:
5 per cent on oil, coal, coke and crude oil.
10 per cent on non-ferrous metals, various types of minerals such as
apatite and rare earth minerals as well as iron alloy, raw iron, steel
billets and 27 other iron and steel products.
Wooden flooring, disposable chopsticks and 19 other goods will be taxed
at the same rate.
15 per cent on copper, nickel and other metallurgical products.
"It is a very positive move, which is designed to enhance energy
efficiency, optimize the national energy structure and rationalize
energy- and resource-intense sectors," Zhou Dadi, director of the Energy
Research Institute affiliated to the National Development and Reform
Commission, told China Daily.
Meanwhile, import taxes on 58 categories of commodities will be reduced.
Rates on 26 energy and resource products, such as oil, coal and alumina,
will be cut from 3-6 per cent to 0-3 per cent.
The policy is expected to rein in exports which rely heavily on energy
and resources, while encouraging their imports, Zhou said.
He expects to see results within this year.
"Rather than administrative and regulatory mandates, the authorities used
a market mechanism to restrain exports of certain commodities of
strategic importance and put a brake on the development of
energy-intensive industries," Zhou said.
Although some enterprises may suffer from higher export costs, the policy
will boost energy efficiency and keep manufacturers away from
energy-intensive sectors, Gong Jinshuang, a senior researcher with China
National Petroleum Corp, noted.
Some enterprises are already prepared.
"We will certainly witness our exports affected by the new policy. We
will adjust our business structure to cushion the negative effect," a
manager with Sinochem Guangzhou Import and Export Corp said on condition
of anonymity.
China's trade surplus hit a new high of US$109.85 billion in the first
three quarters of the year amid concern over disputes with its major
trade partners and over-exploitation of resources.
Last month, the government cancelled or lowered export tax rebates on
hundreds of products.
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