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Pesticide manufacturer

Experts call for pesticide export policy to tilt toward preparation

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[Introduction · China Pesticide and Fertilizer Network] The Fourth Session of the Ninth Pesticide Industry Association of China learned that the export tax rebate of the original drugs and preparations has affected the enthusiasm of pesticide companies to extend to the high-end industrial chain, and foreign companies have achieved relatively low After the price of the original drug, it was reprocessed into a formula and sold back to China, competing with Chinese preparation companies. As a result, on the one hand, the competition in the domestic market was intensified, and on the other hand, the profit margin of domestic preparation companies was squeezed.
At the Fourth Session of the Ninth China National Pesticides Industry Association held in Yunnan on May 29, it was learned that the export tax rebate of the original drugs and preparations affected the enthusiasm of pesticide companies to extend to the high-end industrial chain. Experts suggested that the future policy direction It is inclined to export preparations with small environmental impact and high added value.
At the beginning of this year, China adjusted the tax rebate policy for pesticide exports. Among them, the export tax rebate for 481 pesticides was increased to 13%, while the export tax rebate rate for preparations was still 5%.
According to the statistics provided by the General Administration of Customs, China imported 28,000 tons of pesticides in the first quarter of this year, an increase of 4.6% year-on-year; the import value was 250 million US dollars, down 11.9% year-on-year. In the first quarter, a total of 331,000 tons of pesticides were exported, an increase of 4.1% year-on-year; the export value was US$1.03 billion, down 6.4% year-on-year. The total import and export trade volume in the first quarter was US$1.27 billion, down 3.3% year-on-year; the trade surplus was US$780 million, down 11% year-on-year.
The president of China Pesticide Industry Association Sun Shubao said that the pesticide raw drug is the primary product of pesticide production, the production process will cause certain environmental pollution, and the preparation of the preparation is relatively simple, with little impact on the environment, and the added value is much higher than the original drug, but the original The export tax rebate rate of medicines is usually 9%, and the export tax rebate rate of preparations is only 5%. The excellent export tax rebate of the original medicines and preparations affects the enthusiasm of the production enterprises to extend to the high-end industrial chain, and deviates from the policy of encouraging the development of pesticide enterprises. Surprisingly, however, on December 31 last year, the Ministry of Finance issued the "Notice on Adjusting the Export Tax Rebate Rate for Some Products", which increased the export tax rebate rate of 481 pesticides from 9% to 13%, which can be moderately offset. The negative impact of internal and external environment on China's pesticide exports has increased the cost performance of China's export products to a certain extent, but at the same time it has widened the tax rebate gap between the original drugs and preparations.
The export of pesticides in China has grown rapidly in recent years, but in general, the export of raw drugs still plays a leading role. In 2013, the domestic pesticide export value was US$8.52 billion, of which the original drug export amount accounted for 60%, while the preparation was 40%. The situation in 2014 is also roughly the same. A large number of original drug exports have made domestic enterprises mainly play the role of “suppliers” in the international pesticide trade chain, and are positioned in the manufacturing sector with the lowest value, providing high-quality and low-cost raw materials for the development of foreign enterprises.
In addition, 13% of the original drug export tax rebate makes overseas buyers use this as an excuse to lower the price, resulting in the lower prices of the original drugs purchased by foreign companies than the domestic enterprises. After the foreign companies obtain the relatively low-priced original drugs, Processing into a formula back to China, and competition with Chinese pharmaceutical companies, the result is on the one hand to increase competition in the domestic market, on the other hand squeezed the profit margins of domestic preparation companies.