Domestic supply and demand of natural rubber and the impact of WTO accession

- Nov 15, 2018-

China's domestic natural rubber has been in a situation of short supply. Therefore, before the natural rubber imports are not fully released, the domestic natural rubber supply has a certain impact on China's natural rubber prices.

However, when China joined the WTO, how the government fulfilled the WTO commitments and adjusted import and export policies became an important factor affecting China's natural rubber imports and even natural rubber price fluctuations. China implements “two certificates” for the import of natural rubber. The specific content is: imported natural rubber including processing parts (zero tariff, zero quota is not allowed on October 1, 1999), double limit (restriction) Flows and uses, 5% tariffs in 1997 and 1998, 10% in 1999) and general trade (25% before 2000). The processing part and the double limit are called tax reduction and exemption. The customs track the natural rubber imported in these two ways, and monitor its flow and use. Only the general trade part can enter the circulation market and can participate in the futures market. Delivery. From January 1, 2000, the state officially established the “in-quota tax rate” for imported natural rubber. Such tax rates are fully tax-paid. Since 2002, the tariff within the quota is 20%, the tariff rate for the additional MFN is 25%, and the general tariff rate for the license is 40%. Since 2004, the state has cancelled the management of natural rubber quotas. As China gradually realizes its WTO commitments, the state may have some adjustments to the above provisions.

Another factor that cannot be ignored is the impact of smuggling natural rubber. In recent years, Vietnam’s export of natural rubber to China is on the rise, and the number of exports to China announced by Vietnam is quite different from the number of imports from Vietnam announced by China’s customs. The reason is that some natural rubber enters through smuggling. China's market, this will undoubtedly have a certain impact on the market price of China's natural rubber.