Chinese import duty on Vanadium15 Sep 2021 14:53
Made the mistake of taking another sneaky peak at ADVFN today. What a cesspit of misleading posts.
Anyway one post of note caught my attention by someone called megaman, suggesting that the 13% import duty the Chinese impose on vanadium has to be taken off what BMN receive. However after a little research that is likely to be incorrect.
Import duties are commonly imposed as a protective measure to protect domestic industry by making imports more expensive. Clearly if the tax were to be taken off what BMN receive that would completely undermine the purpose of the tax as imported vanadium would end up being the same price as domestic produced vanadium. It is most likely that the importer pays the tax on top of the market price paid for vanadium.
Under normal circumstances this would make it more difficult to sell imported vanadium in China. However China consumes more vanadium than it produces and therefore has to import some vanadium to meet its needs, even though the import duty is likely to make that vanadium more expensive.
It is more than likely that the price paid net of import duty is indeed the quoted price for vanadium in China.
But don’t take my word for it. Here are some extracts from one of the websites explains import duties.
“Importers pay import tariffs. (And when people talking about tariffs they are usually talking about import tariffs; export tariffs are rare.)
If, for example, I was to import something that incurs a 10% tariff, I would need to pay HMRC 10% of its value in order to get it released into my possession. To reiterate: tariffs are taxes on importers, paid to the customs authority of the country imposing the tariff (EU member states then pass it to the EU after taking a cut to cover admin costs). Tariffs are a border-tax on the buyer, not the seller; they make it more expensive for the buyer to import a good into the country. “
“It is of course possible, through agreement between the importer and exporter, to arrange for the exporter to pay the tariff, which sometimes happens. (There is even an internationally recognised term for such an agreement: DDP – Delivery Duty Paid.) “
“For the most part, an increase in cost, such as one caused by the imposition of a new tariff, is passed onto the final buyer”
Sign In
Follow the stocks
