China introduces a three percent tax on brown coal imports

The Chinese government decided to introduce a 3 percent tax on coal imports with low heat-intensive ability. This innovation will mainly affect Indonesia - the largest supplier of brown coal (lignite), transported to the Celestial ferries. Today, Indonesian coaling enterprises account for 97 percent of the total volume of brown coal imported by China. The adoption of this tax can lead to a break in contracts between Chinese importers and large Indonesian coaling enterprises as Bumi Resources and Adaro Energy. Prior to this, the lignite imported into the territory of the PRC was not taxed with any duties. The new rules have already entered into force on August 30.

The Chinese Ministry of Finance, which initiated the introduction of this tax, explains its actions by the desire to increase the competitiveness and production of domestic manufacturers, the products of which, however, are an order of magnitude higher. However, the acceptance of the innovation may seriously prevent China's membership in the Free Trade of the PRC with the states of Southeast Asia (ASEAN). This means that an agreement on free trade with ASEAN member countries signed by Beijing is a guarantee of duty-free import of goods, including minerals. That is, unilaterally unilaterally, the adoption of such decisions will be considered not legitimate. It was this to the Ministry of Finance that local traders reminded. The Chinese authorities decided to make concessions - only not certified brown coal will be taxed. To date, Indonesian enterprises do not have relevant certificates and no one knows how much time you need to design. While the situation remains unresolved, Chinese importers are afraid to order new parties of ligne.

In addition to Indonesia, brown coal into China is imported by Australia, North Korea, Russia and Mongolia, they account for about 4 percent of the total import of imports.