Unbalanced status or improvement of export tax rebate rate of crude drugs and preparations

[market analysis of China Pharmaceutical network] China is a big country in pesticide production Nearly half of the pesticide production capacity is exported every year, and the export of pesticides accounts for a large amount of pesticide market sales On the other hand, due to the drawback gap between pesticide formulations, Chinese manufacturers mainly export pesticide technologies in the international market, which greatly restricts the value-added of technical formulations (picture source: Baidu picture) in the past two years, the proportion of export of raw drugs has been decreasing, and the proportion of export of preparations has been rising Raising the rate of export tax rebate of preparations plays an important role in improving the competitiveness of Chinese Pesticides in the international market According to relevant information, since April this year, in order to promote the rapid development of pesticide export business, relevant management departments are actively studying pesticide export policies The export tax rebate rate of more than 400 products has been raised to 17% The State encourages the export of products with higher added value From November 1, 2016, with the approval of the State Council, the export tax rebate rate of value-added tax of mechanical and electrical products, refined oil products and other products has been increased The export tax rebate rate of more than 400 kinds of products, such as cameras, cameras, internal combustion engines, gasoline, aviation kerosene and diesel oil, was raised to 17% It has to be said that the state has done a lot to encourage exports Bai Jingming, vice president of the China Academy of financial Sciences, said that adjusting the export tax rebate rate of some products will send two positive signals: first, we will strive to stabilize exports in order to effectively expand foreign demand; second, we will ensure that China's foreign trade enterprises and international enterprises are on the same starting line of fair competition and improve China's export competitiveness In fact, at the beginning of 2015, China adjusted the export tax rebate policy of pesticides, in which the export tax rebate of 481 original pesticide varieties was increased to 13%, while the export tax rebate rate of preparations was still 5% Export tax rebate can enhance the international competitiveness of export products, reduce the cost of export and encourage exports to drive domestic industry When developing countries adopt high tariff to protect domestic industries, they take it as a supporting measure In recent years, China's main export commodities have been upgraded to high-end products and exported The state has always encouraged the export of high-end products with high added value, which seems to be quite different in terms of pesticides If the export tax rebate rate of preparations is increased to 9% - 13%, according to 2015, the export amount of pesticide preparations in China is about 3 billion US dollars, and the current tax rebate rate of 5% is increased by 4-8 percentage points, the export tax rebate amount will be increased by 120-240 million US dollars Some industry insiders pointed out that the export tax rebate of pesticide preparations is not high compared with those of mechanical and electrical industries and refined oil industries, and it is easy to be ignored in the export tax rebate policy However, pesticide preparations are high value-added products in pesticides At the moment when the country strongly advocates the upgrading of export main commodities to high-end products, more policy incentives should be given "The export tax rebate rate of crude drugs can be increased to 13% Can the preparation even reach 9%?" The industry also said that if Chinese Pesticides want to have a greater influence in the global market, the preparation is a powerful weapon to arm teeth Is the export tax rebate rate of crude drugs and preparations unbalanced, or will the export of preparations be restricted? The long-term imbalance of export tax rebate between pesticide raw materials and preparations has become a major obstacle to enhance the competitiveness of pesticide enterprises in the international market In recent years, although China's export of pesticide preparations has shown a growth trend, the proportion of export amount of pesticide preparations has increased from 36% in 2011 to 42% in 2015, which can be seen from the two figures below However, in general, the export amount of raw drugs is still greater than the export amount of preparations, and still has not exceeded the peak of 50% The export volume of crude drugs and preparations (10000 tons) the export amount of crude drugs and preparations (US $100 million) in general, at present, China is still dominated by the export of crude drugs, and the export amount of crude drugs is still greater than the export amount of preparations According to statistics, in 2015, the export amount of pesticides in China reached 7.28 billion US dollars, of which the export amount of raw drugs accounted for about 60%, reaching 4.26 billion US dollars, while the export amount of preparations only accounted for about 40%, and the export of raw drugs still dominated For a period of time, enterprises have continuously reported to China Pesticide Industry Association about the problem of reverse tax rate of export tax rebate of pesticide raw drugs and preparations The association has organized relevant enterprises for many times to actively study and discuss the current situation of the export management of raw drugs and preparations, analyzed the import and Export Management Catalogue of chapter 29 and chapter 38 of the customs where the pesticides are located, and submitted the letter on suggestions to improve the export tax rebate of pesticide preparations to the relevant administrative departments for many times, which truthfully reflected the existing problems in the industry As we all know, pesticide preparation processing has little pollution to the environment, high technology content and higher added value than the original medicine However, the export tax rebate rate of original drugs is usually 9% (481 kinds of original drugs were adjusted to 13% in 2015), and the export tax rebate rate of preparations is only 5% The reversal of the export tax rebate rate of original drugs and preparations has affected the enthusiasm of pesticide enterprises to extend to the downstream, which deviates from the policy of encouraging the development of pesticide industry It is imperative to increase the export tax rebate rate of pesticide preparations? At present, Southeast Asia, Latin America and Africa are the main destinations of China's pesticide exports among more than 180 countries, accounting for nearly 65% of China's total pesticide exports Influenced by the global economic downturn, China's pesticide export has experienced a double decline in quantity and amount in 2015, with a decrease of 8.1% and 16.9% respectively, after a continuous growth of 4 years In 2016, the double decline continued, with a significant decrease of 22.86% in export amount From the perspective of China's pesticide export product structure in 2011-2016, the proportion of raw drug exports decreased and that of preparations increased Although crude drugs have always occupied the main position of China's pesticide exports, the number of exports has decreased year by year in recent years The proportion of preparations in China's pesticide export share is rising, the export volume is growing rapidly, and the export amount is steadily increasing Pesticide preparations increased from 754800 tons and US $2.28 billion in 2011 to 879300 tons and US $2.406 billion in 2016, with an increase of about 10% and 6% respectively In terms of the export varieties of pesticides in China, herbicides still account for a large proportion in the export of pesticide technical products in 2016 The top ten export varieties are glyphosate, paraquat, imidacloprid, chlorothalonil, atrazine, chlorpyrifos, methamphetamine, enoxazone, carbendazim and acephate, accounting for 27.6% of the total In this environment, improving the export tax rebate rate of pesticide preparations will further promote the export growth process of pesticide preparations, help promote the overall healthy development of the industry, and help the pesticide industry through the winter In addition, the increase in the export volume of pesticide preparations can not only help to realize the transformation and development of the pesticide industry, enhance the sustainable development of the industry, but also promote the accelerated development of the technology of various pesticide related industries such as processing and packaging machinery and equipment manufacturing industry, packaging material production industry, auxiliary industry, logistics industry, etc There is a gap of 8% between the export tax rebate rate of crude drugs and preparations Many entrepreneurs say that it is incomprehensible! A number of entrepreneurs from the pesticide industry believe that in order for Chinese Pesticides to have a voice in the international end market, positive policies must be introduced to encourage the export of preparations Li Weiguo, chairman of Guangxi Tianyuan Biochemical Co., Ltd., said that the export tax rebate rate of raw drugs was increased while the export tax rebate rate of preparations was still 5%, which seriously affected the enthusiasm of pesticide manufacturers to extend to the industrial chain It is incomprehensible that the "scissors gap" of up to 8% between the original medicine and the export tax rebate of preparations is incomprehensible The export of the original medicine that should have been effectively controlled has been supported by policies, while the export of preparations that should have been encouraged has been treated unfairly, which is not conducive to guiding the healthy, innovative and sustainable development of China's pesticide industry At present, most domestic raw drug manufacturers play the role of "OEM" in the international pesticide trade chain, positioning in the manufacturing sector with low value Due to the increase of export tax rebate, the vicious competition is intensified, and the prices of glyphosate, paraquat and other bulk pesticides continue to decline, showing a historical low Only by increasing the export tax rebate of pesticide preparations, can we promote the export volume of pesticide preparations, promote the development of international terminal market of pesticide enterprises, and promote the healthy development of China's pesticide preparation industry Zou Yong, general manager of Hunan Nongda Haite agrochemical Co., Ltd., believes that as a deep-processing product of the original drug, pesticide preparation has less pollution in the production process, higher technical content and added value, and is a good weapon to seize the international end market The export of pesticide preparation should be supported by national policies It is suggested that the government should issue a positive policy on pesticide export, improve the rate of export tax rebate of pesticide preparations as soon as possible, encourage more pesticide preparation manufacturers to go abroad, play the leverage role of export tax rebate policy, pry the stumbling block of pesticide preparation export, and promote the healthy development of pesticide industry
Fan Kuncheng, deputy general manager of Zhejiang new agrochemical Co., Ltd., pointed out that under the current complex and severe international situation, the state should introduce positive policies and measures in encouraging the expansion of pesticide export, ensuring the stable growth of export, promoting the adjustment of product structure of enterprises, promoting the transformation and upgrading of enterprises, and increasing financial support for finance and taxation, so as to strengthen pesticide production enterprises Confidence in participating in international competition and opening up international market The financial department should increase the support to the export-oriented pesticide preparation enterprises, and make every effort to help the enterprises to coordinate and solve the financing difficulties and expensive problems; the foreign trade and customs departments should further simplify the approval procedures, speed up the inspection and release speed, and implement the green channel mechanism for the export of pesticide preparations Promote the export trade facilitation of pesticide preparations; the financial and tax departments should actively implement the policies, continuously expand the coverage of the policies, and speed up the arrival of export tax rebate.