Japan formalized the outline of the 2018 annual tax system revision last December, which aims to promote the development of Japanese enterprises and increase personal income.According to reports, as early as September 2017, Japan’s ministry of finance began discussing exempting tariffs from three categories of raw materials such as automobiles worldwide starting from 2018, including “dysprosium iron alloy” and “aluminum hydroxide”.
More than 90% of the dysprosium iron alloys imported from Japan come from China and are mainly used in permanent magnet materials (automotive industry).Aluminum hydroxide comes from China, Australia, Indonesia, Vietnam and other major bauxite processing exporters, and is used exclusively in the production of the chemical alumina.Unlike China, which mainly USES industrial grade alumina, Japan does not produce metallurgical grade alumina, but it has achieved scale, serialization, high-tech, environmental protection and cost rationalization in chemical alumina production.Besides meeting the demand of domestic downstream industries, the products after deep processing are all used for export, and the proportion is increasing year by year.
More than 85% of the production of the Japanese chemical alumina is produced by sumitomo chemical industry co., showa electric co., and Nippon light metals co.Their products from ultra-fine, high purity, spherical direction of the force, the application field is also expanding, the most common such as flame retardant, ceramic refractory and wear-resistant materials, environmental protection water treatment, high-end polishing and catalytic materials, diaphragm insulation materials.
Back in 2014, Japan reached a free trade agreement with Australia that would exempt Australia’s dominant minerals, such as aluminum hydroxide and titanium dioxide, from tariffs for at least a decade.Japan’s decision on a tax exemption for dysprosium iron alloy is not surprising. It is good for access to rare earth resources and good for the auto industry.On the one hand, the global exemption of aluminum hydroxide is beneficial to the bauxite processing industry including China, on the other hand, it also indicates that the demand of chemical alumina is strong, while the status of Chinese chemical alumina has not posed enough threat to Japanese products.
Post time: Jul-02-2019