1. Policy review

The China-specific mineral export system established in 1994 has caused certain problems to the global producers, traders and consumers.

Since April 1, 1994, in order to better control the export of minerals and the development of domestic resources, it is more to deal with European anti-dumping tax measures. The Chinese government has started exporting 13 kinds of minerals such as magnesia and magnesia. Restrictions are by no means a fool's day joke.

In addition to a total quota on the total export volume, the government also requires potential exporters to export export licenses. If the export is successful, a certain export fee (in RMB per ton) will be charged.

More critical is the limited number of licenses, operating at half the total export volume every two years.

2. Interim analysis

The export policy formulated by the Chinese government, in our view, is essentially a concept of “mineral tax”, which subtly allows exporters and traders to take on more responsibilities, thus implementing export and traders and exporters. A certain degree of control.

In the following years, more negative taxes came one after another, such as the elimination of VAT refunds, increased resource taxes and export taxes.

The results have been imaginable, and have not been effectively improved in a few years. The confusion and irregularities in the system have caused the mineral trade industry to be uneasy, so they are used to waiting for the latest policy adjustments at the end of each year. The introduction of.

When the export policy was first introduced, it was recognized by people because it could prevent the western mineral market from being dumped. However, the implementation of the export licensing system did bring a series of problems to the export trade:

1) Prices are skyrocketing and become unpredictable.

2) Some Chinese companies that fail to obtain export licenses cannot export.

3) Companies that fail to obtain an export license in the first round may raise the price of the product in order to obtain an export license in the second round.

4) The confusion between exporters, enterprises with export licenses and enterprises without export licenses will appear “underground transactions”.

5) Traders cannot guarantee the price and delivery volume for the customer.

6) At the end of the semi-annual cycle, licenses that are about to expire will be “sold” to avoid penalties for unfinished export quotas.

7) The smuggling of magnesia has gradually increased.

The author reviews the impact of China's magnesia export policy in 1994, but it is undeniable that it also saw the debate between the mineral management department (China Minmetals Chemicals Import and Export Chamber of Commerce) on the policy and the possibility of cancellation (especially near several years).

In 2016, the export quota for magnesia was 1.7 million tons (editor's corrigendum, actually 1.26 million tons), and the export license price was 140-330 yuan per metric ton (20-48 US dollars per metric ton). The export tax for light burnt magnesia is 5%, and that of burnt magnesia and fused magnesia is 10%.

3. Peak circuit

Things turned around at the end of last year. The United States and the European Union submitted separate applications to the WTO on China's export tariffs on several minerals and metals, including magnesium.

This kind of WTO has put pressure on the Chinese government to ask for trade rectification. This is not the first time that the previous actions have caused some products to have canceled export taxes: such as bauxite, fluorite and silicon carbide in 2009. And the rare earths of 2015.

Another influencing factor is that since August 31, 2016, the government has approved seven new free trade zones to cope with the current slowdown in economic growth.

These areas obviously include Liaoning, plus Chongqing, Zhejiang, Hubei, Henan, Sichuan, and Shaanxi, which has brought the total number of bonded areas in China to 11.

On October 30, 2016, the Ministry of Commerce first confirmed the removal of export quotas for magnesia (including talc and graphite). Its No. 60 document: The list of total export quotas for industrial and mining products was officially released on the official website in 2017. Since 1994, magnesia and The talc is not on the list for the first time, and the phosphate soil, silver, etc. are still on the list.

However, the relevant management departments and export departments of the magnesium industry did not immediately give an official response, which caused nearly two months of speculation and concern in the industry.

Until the end of December 2016, the official official of the Ministry of Commerce announced that it would “tax adjustment” some of its exports, which came into effect on January 1, 2017, including magnesia, tin, tin, indium, graphite and talc.

After 23 years of market rectification, this decision seems to be a bit sudden.

However, there are still some confusing places in the Chinese export market. Although there is no cost to export magnesia, it still needs to apply for an export license, which is still a problem.

Some experts are also worried about the potential "resource protection tax" threat, and the government will use the method of collecting resource protection tax to make up for the tax reduction caused by the cancellation of the magnesia export tax.