The Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued a notice on May 14, saying that starting from June 12, some refined oil will be regarded as naphtha or fuel oil to collect consumption tax on imports.

The Announcement mainly covers three kinds of refined oil. First, imported products classified in tariff code 27075000, and less than 95% by volume of aromatic hydrocarbons distilled below 200 ℃, mainly including "mixed aromatic hydrocarbons". Second, the import products classified into the tariff number 27079990, 27101299, regarded as naphtha at 1.52 yuan/liter of unit tax levied on the import link consumption tax, mainly including "light recycling oil". Third, the imported products of mineral oil distilled under the tariff code 27150000, by which volume is greater than 5%, mainly include "diluted asphalt".

Mixed aromatics, light recycling oils and diluted bitumen usually contain more aromatics or bitumen and are not used as fuel oil.In recent years, a small number of enterprises have imported and processed a large amount of fuel oil that does not meet national standards, which has been channeled into illegal business channels, endangering the fairness of the refined oil market, posing great social security risks and causing environmental pollution.

The relevant person in charge of the Ministry of Finance said that in order to solve the above problems, the domestic products have been included in the scope of consumption tax. The announcement by the three departments to levy import consumption tax on some refined oil will help to regulate market order and promote fair competition. The announcement only involves the tax collection, refund (exemption) policy of consumption tax, and does not involve other trade management policies. Enterprises purchasing and using the above-mentioned products to produce ethylene and aromatic chemical products shall be subject to the current consumption tax refund (exemption) policy for fuel oil or naphtha, which will not increase the tax burden of the compliant production and operation enterprises.

Analysts believe that the policy of increase in consumption tax has the largest direct impact on asphalt. According to the current transaction price of diluted bitumen, the import cost of diluted bitumen will increase by 1200~1300 yuan/ton after the tax, and the cost advantage compared with imported crude oil will no longer exist. Therefore, it is expected that its import volume will decline significantly after the middle of June.