Recently, the Institute for the
Control of Agrochemicals, Ministry of Agriculture (ICAMA) system updated the
ownership of HS code of 40% paraquat solution——the HS code has been brought
under the chapter 38 in Customs
tariff from the original chapter 29 since Aug.13, 2012, according to the
announcement of relative agricultural departments in China. The adjustment of
HS code means that the export rebate rate of 40% paraquat solution will be
lowered from 9% to 5%. And it will increase the VAT and reduce the profit of
paraquat exporters. Accordingly this adjustment may further stimulate paraquat's
export price, according to CCM’s September Issue of Herbicides
China News.
According to the definition of
the Customs tariff, the 40% paraquat solution is a kind of green liquid
containing paraquat technical, emetic, corrosion inhibitor and water. In the
Customs tariff, organic compounds is classified into the chapter 29 while
miscellaneous chemical products is classified into the chapter 38. Before the
HS code adjustment, the 40% paraquat solution was considered as a kind of
organic compounds and put under the chapter 29 with the HS code number of
2933399022.
In Aug. 2012, the FOB Shanghai
Explained by a sales manager in
Nanjing Redsun, a company with 24,000t/a of paraquat TK (the biggest capacity
in China), the price increase of 42% paraquat TK is attributed to the reduction
of export tax rebate and the recent demand increase from the market. In other
words, Nanjing Redsun increased the price of 42% paraquat TK to offset the
profit decrease resulted from the reduction of export rebate.
It's observed that Nanjing Redsun
didn't have much opinion on the adjustment but to raise the price of paraquat
in response just like other paraquat manufacturers.
Recently, the sales of paraquat
products in Hubei Sanonda has slipped a litttle. A sales manager of the company
explained that it is the price increase of paraquat that led to the sales drop.
It's reported by some media that
recently there was an argument between some paraquat enterprises and China
Customs that whether the HS code of 40% paraquat solution should be classified
into chapter 38 or chapter 29.
In early July, 2012, the Ministry
of Agriculture of China
issued new regulations on paraquat registration, in a move to follow the
official decision of restricting paraquat SL in China
China Customs considers that
because 40% paraquat solution is compounded with emetic, odor agents and
colorant, it should be declared under the chapter 38, where the miscellaneous
chemical products are classified into.
However, some paraquat
enterprises considered that declaring paraquat under the chapter 38 was unreasonable,
because the effect of paraquat solution doesn't changed, even though it is
added with protective ingredients.
Anyway, this argument has been
closed into a conclusion that the HS code of 40% paraquat solution products is
put under the chapter 38 from Aug.13, 2012. And the paraquat enterprises should
obey the government's decision about paraquat export.
Content of Herbicides China
Asset
exchange of Shandong Dacheng ends
Anhui
Huaxing meets performance recovery in H1 2012
Rosi
Chemical achieves the 2nd formal metamitron registration in China
Jiangsu
Yangnong invests new herbicide production lines in Ningxia
Fengshan
Group’s trifluralin expansion approaches the end
Number
of 2,4-D acid technical manufacturers increases in China
Quizalofop-P-ethyl
meets small manufacture in China
Stagnant
tribenuron-methyl market continues in China
Diflufenican
market remains small in China
Jiangsu
Lvlilai resumes herbicide business after the relocation
Anhui
Zhongshan enhances mesotrione manufacture
Xinyi
Zhongkai sees stable quinclorac supply
CAC
Nantong supplies fluorochloridone easily
Paraquat's
HS code adjustment may stimulate its export price
Yellow
phosphorus price rebounds in early Sept.
Herbicides
China News, a monthly
publication issued by CCM International on 15th of every month, provides you with the latest occurrences, exclusive
analysis on the market trend as well as professional reviews on competitiveness
of companies, products and relative industries in China
About
CCM
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is dedicated to market research in China
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