IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Apr 2011 | Removal date: open ended
Still in force

Export tax

On 25 March 2011, the Chinese Ministry of Finance (MOF) and the Chinese State Administration of Taxation (SAT) jointly announce a circular to imposed an adjusted Rare Earth Tax from 1 April 2011.
 
In accordance with this Circular, the tax rate of mined light rare earths will become RMB 60 yuan ($9.1) per ton, while that of medium and heavy rare earths is RMB 30 yuan ($4.5) per ton. Before this Circular adopted, the taxes of rare earth minerals were levied under the category of ordinary non-ferrous metals ores, with tax rates between 0.5 and 3 yuan ($0.07 and $0.4) per ton cubic meter.
 
The increase in the adjusted rare earth tax will lead to heavier duties on rare earth producers, both Chinese and foreign, as well as for buyers. It is expected that rare earth prices on world markets may rise again. Should the application of this measure be asymmetric, in particular if local governments taxChinese firms operating in their jurisdiction less, then there is the potential for this measure to be discriminatory.
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

161 Chemical & fertilizer minerals
2530 Mineral substances not elsewhere specified or included.
253020 Kieserite, epsomite (natural magnesium sulphates)
253090 Other
163 Precious & semi-precious stones; natural abrasives; other minerals
2530 Mineral substances not elsewhere specified or included.
253010 Vermiculite, perlite and chlorites, unexpanded

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