The Petrochemical Association proposes to abolish differential tariffs for fertiliser season to ease oversupply in the domestic market

Recently, the petrochemical association proposed to increase the export tax rebate rate for chemical products (inorganics, coatings, etc.) in response to the increasingly severe overcapacity in the petrochemical industry, reduce the production costs of enterprises, and enhance the competitiveness of the international market. At the same time, it is proposed to cancel the differential tariffs of fertiliser exports during peak seasons and implement zero tariffs.
The association stated that China is currently in a critical period of the rebound of the industrial economy. We must unswervingly implement the guidelines and policies that the Central Committee has already established, ensure growth and structural adjustment as the current priority, improve the quality of economic growth, and change the mode of development. Put in a prominent position, increase structural adjustment efforts, and consolidate the momentum of stabilization and recovery of the industrial economy.
Strengthen industry management, make overall planning, and control the disorderly expansion of production capacity. At present, there are widespread investment growth speeds in the industrial sector. Overcapacity problems tend to expand from low-end products to high-end industries. The risk of disorderly market competition is increasing. If the guidance is not good, it will easily lead to a new round of repeated construction. Not only will it directly affect the production and operation of industrial enterprises, but it may also affect the recovery of industrial production. Some industry associations suggest that it is necessary to strengthen industry management, make overall planning, optimize investment structure, and prevent new redundant construction. We must strengthen supervision, control the disorderly and rapid development of excess production capacity, and prevent disorderly market competition. Speed ​​up the elimination of backward production capacity, especially through the implementation of environmental protection and credit measures to eliminate backward production capacity. The Non-ferrous Industry Association suggested that we should increase the control of non-ferrous metal smelting capacity expansion and accelerate the elimination of backward production capacity; strictly implement the national industrial policy, no longer build or expand electrolytic aluminum, alumina projects; eliminate backward production capacity of lead and zinc smelting according to the regulations, establish and improve Backward production capacity exit mechanism.
Continue to increase support for the export of industrial products. The Iron and Steel Association recommends increasing the export tax rebate rate for high value-added products. The Machinery Industry Association suggested further support for bearing exports, and the export tax rebate rate should be restored to 17%. The petrochemical association proposes to increase the export tax rebate rate for chemical products (inorganics, coatings, etc.), reduce the production costs of enterprises, and increase the competitiveness of the international market. At the same time, in view of the fact that domestic chemical fertilizer products have been seriously oversupplied, it is proposed to eliminate the differential tariffs of fertiliser exports during the busy season and implement zero tariffs.
Pay more attention to industrial safety. The Iron and Steel Industry Association recommends that the country rectify and regulate the order of imported iron ore trade, comprehensively promote the agency system for imported iron ore, implement uniform prices for imported iron ore in the domestic market, and prevent the speculation of imported iron ore from the domestic market. At the same time, support the development of domestic iron ore enterprises, reduce the taxation of mining companies, and increase domestic ore production.

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