Cemented Carbide Tool Export Tax Rebate Standard Adjustment

Recently, with the approval of the State Council, the Ministry of Finance and the State Administration of Taxation issued the "Notice on Raising the Tax Rebate Rates for Certain Commodities" to appropriately increase the export tax rebates for some labor-intensive and high-tech and high-value-added commodities. China implements new export tax rebate standards, which involve only one kind of goods in the machine tool industry, namely CNC machine tools. The specific name is a metalworking machine tool and blade made of cemented carbide (for metal processing). The product code is 8208101000 and the tax rebate rate is increased to 11%.

According to industry sources, the tool industry has been encouraging the production of carbide cutting tools for many years, and the increase in export tax rebate rate indicates that the country’s support for this is based on expanding domestic demand, improving the export competitiveness of enterprises, and supporting enterprises in expanding exports. The policy measures are conducive to the steady and rapid development of the national economy.

The industry has been encouraging the production of carbide cutting tools for many years. The increase in export tax rebates shows that the state supports this. China's tool production is mainly based on two products, namely high-speed steel and carbide cutting tools. Because the production of high-speed steel cutting tools consumes a lot of resources, and the products are low in price and low in price, the industry does not encourage this. However, due to the needs of the domestic machinery manufacturing industry, as well as the domestic tool industry technology has not yet been transformed, most of the domestic tool companies still produce such tools, while exports are also large. Last year, China exported 800 million U.S. dollars of cutting tools, most of which were made of high-speed steel. The carbide cutting tools were only tens of millions of yuan. At the same time, the export structure of this product is also a factor that causes friction in international trade. Although the United States, Germany, and other developed countries have not yet responded clearly to the tools of our country, there have been boycotts in Spain and some countries in South America. Therefore, the tool branch repeatedly called for reducing the export of high-speed steel cutting tools, but the current state of the industry has not changed significantly. In response to the adjustment of the export tax rebate standard for carbide tools, Luo Baihui said that he hopes to encourage the production and export of such products.

The economic situation in the country has changed since the beginning of this year, and the status of the industry has also been reversed. Domestic tool companies will face more fierce competition. As domestic market share of high-speed and high-efficiency tools is only 10%, for domestic tool companies, their greater competition comes from foreign counterparts such as Sandvik, Kenneth, and Shantung.

These foreign companies not only established sales outlets in China, but also directly invested in the establishment of factories, and directed their products directly to domestic high-end users, which caused great pressure on domestic enterprises. This year, there has been a decline in vehicle output and the related product decline in the mold industry. It is estimated that this market will be transmitted to the tool industry in 2013.