China increase tax rebate support, pesticide preparations export prosperity

Due to the gap between the pesticide formulations, Chinese manufacturers mainly export pesticide technology in the international market. The problem is that Chinese industry has long been in the eyes of thorns, it will reduce the motivation of technical formula and slow down the development of positive. According to the sources, the government is working to study higher tax proposals for pesticide formulations, which will lead to a large number of exports, and in the international market, China has better competitiveness, new investment and technological innovation.

As early as November 2016, the Chinese government disclosed that it would increase the export tax rebate of more than 400 goods. The idea of ​​this step is that this is an improvement in the international market for Chinese exporters. However, pesticide formulations are not included and continue to make them lag behind the vendor’s preference for pesticide technology.

Traditionally, China is seen as a low-value pesticide exporting country. Increased value of pesticide formulations in the international market is rare. However, in the production of a huge increase in pesticide formulations of Chinese manufacturers will change the situation. A major reason for Chinese manufacturers to stick to pesticide technology is higher export tax rebates.

In fact, many foreign manufacturers are using pesticide technology to higher tax rebates to negotiate low prices, cheap products into the higher value of the formulation and sale to the Chinese market. This situation has been depressed by Chinese manufacturers, resulting in high tax rebates in recent years.

Now, in mid-April 2017, the China Crop Protection Industry Association has finally released these departments and departments are actively committed to increasing the export tax rebate for pesticide formulations.

For China’s pesticide industry, the higher development of export tax rebates may increase exports and strengthen the position in the international market. In addition, domestic manufacturers are increasingly active in handling their pesticide technology, hoping to make it a value-added formula to improve China’s industry. Manufacturers can expect higher profits and ensure a healthy and beneficial development. In addition, overseas companies may consider relocating the relocation of the factory to China to obtain tax rebate benefits.

According to the CCM study, the export tax rebate for pesticide technology increased last year in December 2014, from 9% to 13%. However, the formula continues to maintain the previous 5%.

Long-term export tax rebate pesticide and the imbalance between the original drug has become a boost pesticide enterprises, improve the international market competitiveness of a major obstacle.

More importantly, 2016 witnessed a difficult period for China’s pesticide exports, whose value and amount were reduced, according to market intelligence firm CCM. Compared with 2015, the country’s export value of 5.6 billion US dollars, down about 23%. Exports of 137,200 tons, a decrease of about 9%.

Since the beginning of 2015, China’s pesticide export and export value has been declining, which can be explained by factors such as the high inventory of traders in many countries, mainly due to the persistence of agricultural prices, higher dollar, and dramatic changes in weather

The total production of pesticides was 3.74 million tons by 2015, totaling 1.51 million tons (about 40% of total output), down 8.06% year on year, while exports fell by 16.87% to $ 728 million. At the same time, imports fell by 14.20% to 57,600 tonnes, down 8.90% from the $ 678 million import value.