China Rubber Association warns against overall losses in the industry

On July 1, the country will lower the tax rebate rate for some commodities. The export tax rebates for carbon black and some rubber shoes in the rubber industry have been cancelled; the export tax rebate rates for tires and other rubber products and rubber auxiliaries have been reduced to 5%. The China Rubber Industry Association reminds the majority of companies that they should maximize their ability to resist risks and reduce losses.

After the announcement of the adjustment method for the export tax rebate rate, the response from the rubber industry was very strong and companies have expressed great pressure. According to the calculation of the total export delivery value of member companies of China Rubber Industry Association in 2006, after adjusting the export tax rebate rate, the industry’s profit will be reduced by at least 3 billion yuan.

It is understood that China has become a major exporter of rubber products in the world in recent years. The export value of the rubber industry accounts for about 35% to 40% of the industry's total output value. The total export tax rebate accounts for 60% to 70% of the total industry profits. Among them, the tire export volume accounts for more than 40% of the total output. Due to high raw material prices, the average profit rate of the industry in 2006 was only about 2%. According to the company's report, the previous foreign exchange earning of 100 million U.S. dollars can be tax-refunded from 45 million to 50 million yuan. After the export tax rebate rate is lowered by 8 percentage points, it is difficult to guarantee no loss. The tire industry is the most affected. Some companies stated that once losses occur, companies will be unable to carry out technological transformation. The development and production of green tires, safety tires, and low-profile high-speed tires that are marketable at home and abroad will also be directly affected; if exports are reduced, they will intensify the domestic market. competition.

To this end, China Rubber Association reminds the majority of companies to strengthen their ability to absorb and adjust export tax rebate rates, increase the production of marketable and high value-added products, reduce the production and export of unprofitable products and surplus products, and actively change exports. The way of growth, while efforts to do a good job of energy saving, rational arrangements for business operations, reduce operating costs, to minimize the degree of loss.

The content of the export tax rebate adjustment: Carbon black, endangered animal fur rubber/plastic bottom and surface ski boots, and endangered animal fur and other sports footwear (rubber, plastic base and surface) export tax rebate was cancelled. Synthetic rubber, natural rubber blends, reclaimed rubber, rubber scraps and scraps, and powders/granules, composite rubber, and other raw materials; rubber products such as tires, hoses, transmission belts, and conveyor belts; rubber accelerators and composite plasticizers , rubber antioxidants, other rubber and other antioxidants and other stabilizers and other rubber chemicals, export tax rebate rate from the original 13% to 5%.

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