The Impact Of The Tariff On Recycled PET Is Limited
The office of the tariff tariff commission of the state council has decided to raise the tariff rate on some of the 60 billion us dollars of goods on the list that have been subject to the tariff increase from 0:00 on June 1, 2019 to 25%, 20% or 10% respectively. We will continue to impose 5 per cent tariffs on items for which 5 per cent tariffs were previously imposed. Other polyethylene terephthalate chips (39076910) are included in the list of goods subject to the 10% tariff imposed on the United States. 39076910 has been in use since 2017 and contains polyester chips and recycled pet chips.
Since 2018, particles have become the main import form, and the import dependence of recycled pet has decreased from about 30% to less than 5%. However, domestic bottle tablets in short supply, imported particles have a price advantage, market attention has been maintained.
From January to March 2019, the imports of other polyethylene terephthalate chips totaled 119,900 tons, up 136.68% year on year. Southeast Asia accounted for six of the top 10 sources of imports, compared with five in 2018 and four in 2017. In terms of quantity and proportion, southeast Asia shows an obvious increasing trend. The United States ranks the ninth in terms of import quantity. In the first quarter, it imported 4,365 tons, accounting for 3.63%.
Us imports accounted for 11.73 per cent in 2018 and 20.30 per cent in 2017, with a clear downward trend. This is consistent with the time point of our waste prohibition policy. In 2017, polyester chip products are the main products under this tax. After the waste prohibition, the quantity of returned materials increases. In the case of import from southeast Asia, the tariff imposed on the us has little effect on the import of recycled pet slices.
In addition, other polyester boards, sheets, membranes, foils, and slivers (39206900) are in the list of goods subject to a 10% tariff on the United States, and uncombed polyester synthetic staple (55032000) are in the list of goods subject to a 25% tariff on the United States. The downstream packaging belt of recycled pet and recycled chemical fiber are also included in the scope of tax increase, and it is these two kinds of products with low import prices that continuously impact the domestic market. In 2018, 5,588 tons of other polyester boards, sheets, membranes, foils and strips were imported, accounting for 21.9% of the total in the United States. The import base of packing belt is small, and the impact on the domestic market is mainly low manual belt. In 2018, China's total imports of uncombed polyester staple fiber totaled 188,900 tons, among which the United States accounted for about 5%, which was relatively limited. Therefore, tax increase is good for the downstream of recycled pet in theory, but due to the base and quantity, it has little practical impact.
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