Boost enterprise confidence adjustment of export tax rebate rate of pharmaceutical products

Source: China high tech Industry Guide - Wei Guoan 2015-02-03 recently, the Ministry of Finance issued the notice on adjusting the export tax rebate rate of some products to adjust the export tax rebate rate of some products, including a large number of pharmaceutical products According to the statistics of China Chamber of Commerce for the import and export of medical and health products, 67 customs codes are involved in the adjustment of medical products, including 55 codes for western medicine products, 4 codes for traditional Chinese medicine products and 8 codes for medical devices, which is the most important time in the history that the adjustment of export tax rebate rate involves medical products Meng Dongping, vice president of China Chamber of Commerce for import and export of medical and health care products, said that the increase of export tax rebate rate can moderately offset the negative impact of internal and external environment on the export of Chinese medical products, and to a certain extent improve the cost performance of Chinese medical products export The varieties of the tax rebate rate adjustment have the characteristics of high added value, international competitiveness and low energy consumption, which play a leading role in export orientation and boost the confidence of pharmaceutical enterprises in foreign trade It is an international general policy to improve the cost-effective export tax rebate of export products to reflect trade equity In 2007, when the state adjusted the structure of export products and reduced the export of products with low added value and high energy consumption, the bulk API, which accounts for a large proportion of exports, suffered the reduction of tax rebate rate However, this adjustment has obviously different guiding significance Most of the adjusted products are products with high added value, representing the level of Chinese manufacturing and international competitiveness In addition, most of the export tax rebate rates were greatly adjusted, and the tax rebate rates of the listed API products were increased from 9% to 13%; the tax rebate rates of the listed preparations, biochemical drugs, traditional Chinese medicine and medical devices were all increased from 15% to 17% In 2013, the total export value of the products involved in the adjustment was US $7.454 billion, benefiting 5424 enterprises; from January to November 2014, the total export value was US $9.426 billion, benefiting 6100 enterprises For the background and reasons of the adjustment of export tax rebate, Meng Dongping analyzed that, after maintaining the high-speed growth for many years, in recent years, the growth of China's pharmaceutical exports has gradually decreased from more than 20% to the current single digit Although we have maintained the momentum of growth, it is an indisputable fact that we have changed from high-speed growth to low-speed and stable growth There are three main reasons: first, the growth of demand in the international pharmaceutical market slowed down The debt crisis in Europe and the United States led to the sluggish growth of developed economies such as Europe and the United States, and then affected the growth of emerging economies to slow down, resulting in the growth of the international pharmaceutical market to be restrained Second, the cost of production factors such as environmental protection, labor, raw materials, energy and so on has increased significantly, and the competitive advantage of export price has gradually lost Third, the high export tax rebate rate of 19% of individual products of major competitors (such as India) and the sharp devaluation of the currency, the superposition effect of the continuous appreciation of RMB, have intensified the competitive pressure on the export of Chinese pharmaceutical products, and have formed unfair trade Therefore, it is an inevitable choice for China to increase the export tax rebate rate Increasing the export tax rebate rate can offset the negative impact of the internal and external environment on the export of Chinese pharmaceutical products, and to a certain extent improve the cost performance of Chinese pharmaceutical exports To enhance the export confidence of enterprises, the main drug substance exported by Shenzhen wolland Pharmaceutical Co., Ltd is adrenaline oxychloride (benzolin) After adjusting the tax rebate rate, the tax rebate rate increased from zero to 13% Li Kun, chairman of the company, said that more than ten years ago, benfulin had been integrated into the market by large German pharmaceutical companies At present, wolland is the only supplier of this product in China, accounting for about 25% of the international market, and the annual export volume at the most time could reach 20 tons However, in recent years, with the appreciation of RMB, the competitiveness of Chinese products has gradually declined In addition, the rapid development of Indian chemical and pharmaceutical enterprises and the depreciation of Indian Rupee make it very difficult for them to compete for the international market In 2012, due to the problem of export code classification, the export tax rebate rate of adrenaline oxychloride became zero, which brought huge export pressure to enterprises At the same time, Indian pharmaceutical enterprises have tax refund for purchasing basic raw materials of benflulin from China, while Chinese enterprises have zero tax refund for processing into finished products with higher technology content (chiral technology) and added value Due to the factors such as exchange rate, raw materials, artificial rise, etc., the living space of enterprises has been squeezed, and the false injury of tax policy makes enterprises even worse In this way, the benzolin produced by Chinese enterprises may face the result of withdrawal from the international market At present, benforint mainly competes with India in the international market, Li Kun said In the case of zero tax rebate, wolland should stick to its market share and only pay for it After the export tax rebate is increased to 13%, wolland has the conditions to compete with India The money of export tax rebate can be used to extend to the upstream, establish the base of basic raw materials, strengthen the research and development, improve the income, and further reduce the product cost Meng Dongping said that in 2012, China's customs carried out a special governance action of "shield of the country" Due to the fuzzy classification of customs codes, some pharmaceutical export commodities were investigated and punished, and some export tax rebates were reduced to zero Part of the varieties of the export tax rebate adjustment is the correction of the previous customs error classification, which clearly defines the tax rebate rate of these varieties Li Kun said that the tax rebate policy supports export enterprises to expand market share, especially scientific and technological innovation enterprises, production of products with high added value and scientific and technological content, and elimination of products with high energy consumption and low added value, so as to adjust the structure of export products to develop towards the high-end value chain In addition to adrenaline oxychloride, coenzyme Q10, benflumetol, dunsyl p-hydroxyphenylglycine, levodopa, etc which entered the adjustment list are all featured high added value products In recent years, to encourage Chinese patent medicine to go abroad, China's export of Chinese patent medicine has been at a low level In 2013, the export of Chinese patent medicine reached US $270 million, a slight increase of 0.8% year-on-year Compared with the export of Chinese patent medicine of US $4.22 billion and the year-on-year growth of 25.1%, it is even worse The Chinese patent medicines involved in the adjustment include Pianzihuang, Baiyao and Qingliang oil, and the tax rebate rate has been increased from 15% to 17% However, the tax rebate rate of natural plant colouring materials increased from zero to 13% Pianzehuang is a proprietary Chinese patent medicine lozenge produced by Zhangzhou pianzehuang Pharmaceutical Co., Ltd its prescription and technology are state top secret level secrets, and it is a state-level Protected Traditional Chinese medicine variety Baiyao (Yunnan Baiyao) has a history of more than 100 years, and its prescription is also the top secret of the state Cool oil has the functions of cooling, refreshing, relieving itching and pain It is called "mysterious oriental", "Chinese magic medicine" and "Chinese divine oil" by African people, and it is a very popular Chinese patent medicine in the market Yu Zhibin, deputy director of the traditional Chinese Medicine Department of the China Medical Insurance chamber of Commerce, said that these varieties have obvious policy orientation, that is, to encourage the export of Chinese patent medicine products with Chinese characteristics, to encourage the export of Chinese patent medicine products, to reflect the competitive advantage of traditional Chinese Medicine As of November 2014, the export volume of the above-mentioned three kinds of Chinese patent medicines has declined, and increasing tax rebate can improve the downward trend of their export The only plant extract involved in the tax refund adjustment is natural plant coloring materials This kind of products originated from the blocked customs classification of pepper extract export in 2012, which affected the export of the whole industry The adjustment completely solved the problem of obstacles to the export of pigment plant extracts such as pepper extract and safeguarded the interests of the industry The sharp increase in the tax rate from zero to 13% reflects to a certain extent that the State encourages the export of agricultural products Pigment products belong to labor-intensive industry, involving many links such as planting and deep processing of agricultural products At the same time, the whole production process is green, environmental friendly and pollution-free, which belongs to the category actively encouraged by the state and conforms to the industrial policy of the 12th Five Year Plan for the development of food industry In addition, the tax rebate rate of the eight categories of medical devices involved in the adjustment has increased from 15% to 17% These eight coded products are all high value-added products in the medical devices, with the export volume ranging from hundreds of thousands of US dollars to hundreds of millions of US dollars, and the total export volume is nearly one billion US dollars Cai Tianzhi, deputy secretary-general of China Medical Insurance chamber of Commerce and director of Medical Devices Department, said that 99% of the benefits from the adjustment of tax refund for medical devices are from "three foreign funded" enterprises, which is a bright spot In the past, only domestic enterprises have benefited from China's tax rebate policy This time, China's policy has a more inclusive and international perspective, the competition environment is more fair, and the government treats all enterprises that pay taxes in China and can bring employment opportunities equally