China will end a tax provision on imports of copper scrap and concentrate and exports of refined cathode from January 1, 2006, a state planner said on Wednesday.
The move is to reduce exports of refined copper cathode, part of an effort to chop exports of energy-intensive products, a circular posted on the website of the National Development and Reform Commission said.
Beijing will also reduce rebates on exports of tungsten, zinc, tin and antimony to 5 percent from 8 percent from January 1 to discourage exports. It also will lower the rebate on magnesium to 5 percent. The provision, under which copper smelters import scrap and concentrate duty free as long as they export the finished product, will potentially chop China's demand for imported metal.
Energy-hungry China, the world's top copper consumer, imports about two-thirds of its copper concentrate and a third of its refined copper.
Existing permits for the provision held by copper smelters will be allowed to run their course.
Without the provision, smelters pay a 13 percent value-added tax on imports of copper concentrate, the main raw material used to produce refined copper.
In the first 10 months of 2005, China exported 80,914 tonnes of refined copper, down 31.9 percent from a year ago. It imported 3.3 million tonnes of concentrate and 4 million tonnes of scrap, up 40.8 percent and 28.2 percent respectively.
The country imported 1.1 million tonnes of refined copper in January-October of 2005, up 10.2 percent from a year ago.
It exported 108,174 tonnes of refined zinc in the same months, down 38.2 percent from a year ago. It exported 23,226 tonnes of refined tin and tin alloy, down 30.1 percent.
China exported 25,130 tonnes of antimony in January-October of 2005, up 34.1 percent from a year earlier.
It is the world's top exporter of antimony and tungsten.
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