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The revised draft of tax system in Japan is intended to cancel the tariff of dysprosium iron alloy produced in China
Dec 20, 2017

The revised draft of the tariff area discussed by the Japanese government and the ruling party in the 2018 tax system revision will be exposed in December 9th. The main content is the dy Fe alloy as the raw material of automobile engine, and the basic tariff rate of the tariff will be set to zero. More than 9 of Japan's imported dysprosium ferroalloys are dependent on China's production, in order to avoid the increase in related procurement costs, leading to the loss of international competitiveness in the auto industry.


The Chinese dysprosium iron alloy is currently applied to the preferential tariff system of supporting the developing countries to reduce the tariff of the imported products and enjoy the duty-free treatment. However, China will "graduate" from the target of the system in 2019, and some varieties are excluded from the year 2018. Dysprosium iron alloy will be expropriated tariffs, the overall Japanese industry will increase the overall cost of about 250 million yen (about 14 million 580 thousand yuan) costs.


Because dysprosium ferroalloy is an indispensable raw material in the manufacturing of hybrid cars and electric vehicle engines, the draft decides to change the basic tax rate of 3.8% to zero duty in the 2018 tax system revision.


In addition, the basic tax rates of 5 varieties, such as zirconium chloride, which are necessary for the manufacture of lithium ion batteries, will be set to zero as well.


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