Source: Carton Micro Vision

From November 1 this year, the State Council decided to reduce the import tariff rate of 1585 items of industrial products such as industrial goods, and the MFN import tariff rate of corrugated and cardboard paper dropped from 7.5% to 6%, which will help reduce importer costs and ease the economy. pressure.

From November 1st, the import tariff rate of corrugated and cardboard paper fell to 6%.

On September 26, the State Council executive meeting decided to reduce the import tariff rate of 1585 items of industrial products such as tax items from November 1 this year, and reduce the average tax rate of mechanical machinery, instrumentation and other mechanical and electrical equipment with a large demand in the domestic market by 12.2%. To 8.8%, the average tax rate for textiles, building materials and other commodities fell from 11.5% to 8.4%, and the average tax rate for some resource products and primary processed products such as paper products fell from 6.6% to 5.4%, and the tax rate for similar or similar commodities was reduced. . Among them, the MFN import tariff rate for corrugated and cardboard paper dropped from 7.5% to 6%.

Corrugated and container paper MFN import tax rate summary

As shown in the above table, the MFN import duty rate for corrugated paper with tariff codes 48051100, 48051200, 48051900, 48081000 and the tariff code 4805052 and 48052500 has decreased from 7.5% to 6% since November 1. Since 2017, with the improvement of the corrugated and cardboard paper industry, domestic paper prices have risen sharply, thus attracting some investors to join the import of raw paper. Special imported corrugated paper has flooded into the country with its low price advantage. The lower import tax rate has eased the cost pressure of import traders.

After 2017, the import of corrugated paper has increased significantly

In 2014-2016, the import volume of corrugated paper is basically less than 100,000 tons. Since 2017, with the increase of domestic paper prices, the import volume of corrugated paper has shown a sharp growth trend. The import volume of corrugated paper from January to October 2018 reached 1,056,100 tons. Significantly up 214.50%. In May 2018, the average price of domestic corrugated paper reached 4,936/ton. Imported corrugated paper greatly boosted the enthusiasm of traders for importing with low prices. Since May, the import volume has continued to exceed 100,000 tons.

In 2014, the import volume of containerboard paper showed a gradual growth trend. In 2015, the import volume dropped slightly by 20,000 tons compared with that in 2014. The import volume of China's containerboard paper in January-October 2018 was about 1,736,600 tons, with 2017. Compared with the same period of the year, it increased by 62.03%. Imports of containerboard paper were relatively stable in 2014-2016, and have been fluctuating between 800,000 and 1 million tons. Since 2017, the number of imported cardboard has exceeded one million tons, which is due to the sharp increase in domestic market.

The carton factory is happy, the paper factory is crying.

At present, the structural contradictions on the supply side of China are more prominent. With the continuous increase in the import volume of corrugated and cardboard papers in the past two years, the appropriate reduction of import tariffs on some of the domestically needed paper products can attract more foreign investment and help increase Effective domestic supply will help the industry to upgrade, and at the same time help enterprises allocate resources on a global scale, reduce production costs, and help reduce the pressure on the domestic environment.

Leading paper companies led by Xiaolong have invested in overseas raw materials market to solve external problems. For example, in the past few months, they have processed and imported thousands of tons of recycled pulp (OCC, pulp raw materials with improved purification rate after waste paper processing). To supplement, and hope to further increase the amount of OCC to reach 1 million tons per year from the second half of 2019. In addition, the 250,000-ton capacity of Fairmont recycled pulp acquired by Xiaolong just in August can be supplied to the company in November if it can complete the acquisition process as scheduled at the end of October.

At the same time, for the domestic carton factory, the cost of imported paper is even lower, which helps to control the production cost, which can be said to be a big plus.

However, lowering tariffs may bring certain pressures and challenges to small and medium-sized paper enterprises with the domestic market as the main battlefield. This requires relevant enterprises to actively respond, accelerate transformation and upgrading, improve quality and efficiency, meet challenges with innovation and development, and continuously improve themselves. Competitiveness.

Editor in charge: Cao

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