China Cancels 13% VAT Export Rebate for Primary Silicone Mate
Keywords: silicone export VAT rebate cancellation, HS code 39100000, silicone raw material export cost, high-end silicone finished goods, silicone industry upgrading
Key Sentence: The removal of export tax rebates for primary silicone materials forces manufacturers to shift focus from low-margin raw material exports to high-value custom silicone finished products.
Effective April 1, 2026, China canceled the 13% VAT export rebate for all primary-form silicones under HS code 39100000, including silicone oil, silicone gum, unvulcanized silicone compound and silicone resin. The policy directly raises export costs of bulk silicone raw materials by 5%-13%, squeezing profit space of factories relying on low-price raw material exports. Many silicone manufacturers adjust product layout, increasing R&D and production of electronic potting silicone, medical LSR, silicone mold rubber and automotive silicone parts. Customs data from Jan-Feb 2026 reflects the structural change: silicone raw material export volume only rose 2.3% year-on-year, while finished silicone product export value surged 11.7%.
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