Elimination of Export Tax may Promote Benign Development of Rare Earth Industry

Permanent Magnet Manufacturer China Rare Earth Magnet Limited

From May 1st, 2015, export tariff of rare earth which has been implemented for a long time will be officially canceled. To China, the biggest export country of rare earth, elimination of export tax makes perfect sense. What effect will the abolition of custom taxes bring to domestic rare earth industry, in addition to expansion of exportation of rare earth and defense of China’s global market of rare earth?

For a long time, disordered and vicious competition of China rare earth manufacturers becomes more and more fierce, which results in enormous waste of resource and destruction to ecology environment in our country as well as low price and lost of price power of China. Interviewed by Chinese Internet of China Daily, analysts from rare earth permanent magnet industry indicate that the elimination of rare earth export tariff will promote benign developmental circulation in the whole industry.

Xu Haibing, an analyst from Zhuochuang Information, says that rare earth price will hopefully revert back to a reasonable section in the future with the cancel of rare earth export tariff, integration of rare earth industry, governance on illegal mining and selling and issue of resource tax.

Zhang Wei, also an analyst from Zhuochuang Information, says, “For the long run, considering strategic level, government will launch more and more police to regulate and supervise rare earth industry. The Six Group of Rare Earth is the best example.”

Media report that China is gradually exploring abolition of rare earth export tariff. In the same time, rare earth industry begins large reforms. At the beginning of 2014, recombination of rare earth group led by Ministry of Industry and Information was approved, which meant that China rare earth industry would form a structure of “5+1”.

Zhang Wei adds that after eliminating tax tariff, Government will turn regulatory effort to China permanent magnet manufacturers . It is widely expected in the industry that new rare earth policy will be accelerated in the first half year, as the export tariff is canceled.

“Resource tax will take place of custom tax after the elimination. Government tends to turn specific taxation to value taxation. Government’s control on rare earth price is much more reasonable and targeted. It brings enormous benefit to rare earth industry in the long run.” Zhangwei says.

“Considering many factors, China cancels rare earth export tariff and quota and adjusts policies. Also, China transforms rare earth products into market oriented products.” Analysts indicate, “Driven by industrial integration and reasonable supervise, rare earth industry will hopefully start benign developmental circulation.”

China Rare Earth Magnet Limited
Tags: Permanent Magnet, Rare Earth Magnet, Magnet China