The policy is now live: 249 products are at 0%, and 22 battery items have already been cut to 6%
Updated on April 7, 2026: Announcement No. 2 of 2026 from the Ministry of Finance and State Taxation Administration took effect on April 1, 2026. On March 3, 2026, the State Taxation Administration also released the 2026A export rebate-rate database. Companies should not rely on product names alone. The correct filing outcome depends on the export date shown on the customs declaration, the exact HS code, and the 2026A rebate-rate database.
1. Key Policy Points at a Glance
This adjustment involves two timelines and two treatment methods. Exporters must clearly distinguish between them:
| Adjustment Type | Products | Effective Date | Change |
|---|---|---|---|
| Full cancellation | 249 items | April 1, 2026 | Rebate rate drops to 0% |
| Phased reduction (batteries) | 22 items | Apr 1, 2026: cut to 6% Jan 1, 2027: cancelled |
9% → 6% → 0% |
"After April 1, 2026, the biggest operational risk is no longer whether the rule has taken effect, but whether the HS code, customs export date, and rebate-rate database have all been matched correctly."
2. The 249 Products Losing Rebates — Category Breakdown
The 249 cancelled items span an exceptionally wide range. The summary below helps identify exposure quickly, but actual eligibility must still be checked against the annexes to the official announcement and the 2026A export rebate-rate database by HS code.
2.1 Chemicals & Organic Compounds (~90 items)
The largest category in this round. Includes bulk chemicals such as methanol (29051100), ethylene glycol (29053100), 1,4-butanediol (2905399002), and trichloroethylene (29032200), along with numerous organophosphorus compounds, phosphate ester derivatives, and pesticide intermediates.
Notably, several lithium battery cathode precursors are included: lithium hexafluorophosphate (28269020), lithium manganate (28416910), lithium cobalt oxide (2841900010), lithium nickel cobalt manganese oxide (28429030), lithium nickel cobalt aluminum oxide (28429060), and their hydroxide intermediates. These are critical raw materials for power and energy storage batteries, and the rebate cancellation will directly raise export costs across the entire lithium battery supply chain.
2.2 Plastics & Polymers (~7 items)
Covers PVC (39041090, 39042100, 39042200), polyether (39072990), and polysiloxane (silicone) (39100000) in primary forms. PVC is one of China's highest-volume chemical exports; losing rebates will significantly impact price competitiveness in Southeast Asian and African markets.
2.3 Stone & Slate Products (~13 items)
Includes processed marble, travertine, granite, and limestone products and stone carvings (68022120–68030090) — traditional Chinese export strengths. Decorative stone, memorial headstones, and building slabs all lose their rebates.
2.4 Abrasives & Grinding Products (~12 items)
Covers grinding wheels, millstones, sandpaper, and abrasive cloth (68041000–68053000). These are low-value-added but steady-volume exports; the cancellation hits small and medium abrasive manufacturers hardest.
2.5 Building Materials & Insulation (~30 items)
Spans a wide range: mineral/rock wool (68061090), gypsum boards (68091100–68099000), cement bricks and precast components (68101100–68109990), asbestos and non-asbestos fiber-cement panels (68114010–68118990), and carbon fiber fabrics and prepregs (68151200–68151390).
The removal of rebates on carbon fiber products and aluminum silicate fiber — high-end building materials — deserves particular attention from companies exporting to European and American construction markets.
2.6 Ceramics (~36 items)
One of the most broadly impacted categories. Includes:
- Building ceramics: ceramic tiles, floor tiles, mosaics (69072110–69074090) — China is the world's largest ceramic tile exporter; the rebate cancellation will significantly affect major production hubs such as Foshan, Chaozhou, and Zibo
- Sanitary ceramics: porcelain/ceramic basins, bathtubs, toilets (69101000, 69109000)
- Tableware: bone china, porcelain kitchenware, ceramic tableware (69111011–69120090)
- Decorative & industrial ceramics: figurines, ornamental items, and other ceramic articles (69131000–69149000)
- Technical ceramics: refractory ceramics, laboratory ceramics (69039000–69091900)
2.7 Glass & Glass Products (~50 items)
Covers virtually the entire glass value chain from raw materials to finished goods:
- Raw materials & semi-finished: cullet, glass blocks, unworked glass tubes (70010010–70023900)
- Flat glass: LCD/OLED substrate glass (7003190001, 7005290002)
- Safety glass: toughened and laminated safety glass (70071110–70072900)
- Insulating glass: hollow/vacuum insulating units (70080010–70080090)
- Mirrors: vehicle rearview and other framed/unframed mirrors (70091000–70099200)
- Glass containers: ampoules, bottles, jars, stoppers (70101000–70109090)
- Glassware: stemware, tableware, lead crystal (70131000–70139900)
- Optical & laboratory glass: lens blanks, lab glassware (70140010–70179000)
- Glass fiber: mats and other glass fiber products (70198010, 70199099)
- Other: conductive glass, vacuum flask inners (70200011–70200091)
2.8 Solar Cells (2 items)
Both unassembled photovoltaic cells (85414200) and assembled solar modules (85414300) are on the list. Given the massive scale of China's solar exports, this cancellation will have a direct and far-reaching impact on the photovoltaic industry's export margins.
2.9 E-cigarettes & Nicotine Products (2 items)
Non-combustion nicotine inhalation products (2404120000) and other e-cigarettes/personal vaporizers (8543400090) lose their rebates, continuing the regulatory tightening trend on the e-cigarette sector.
3. 22 Battery Products: Phased Rebate Elimination
Unlike the 249 items above, battery products follow a gradual phase-out with a built-in buffer period:
- Phase 1 (from April 1, 2026): rebate rate cut from 9% to 6%
- Phase 2 (from January 1, 2027): rebate rate drops to zero — fully cancelled
The 22 battery items include:
- Primary batteries: alkaline manganese (button, cylindrical), silver oxide, lithium primary cells, zinc-air, fuel cells, and their parts (HS 8506 series)
- Rechargeable batteries: nickel-metal hydride (85075000), lithium-ion batteries (85076000), vanadium redox flow batteries (85078030), other accumulators (85078090), and parts (85079090)
Lithium-ion batteries (85076000) stand out as one of the world's highest-volume single export items. China commands over 60% of the global market for power and energy storage batteries. The phased reduction from 9% to zero will have major cost implications for battery exporters, EV manufacturers (whose vehicles contain battery packs), and energy storage system exporters alike.
4. Filing Rules After April 2026
Based on Announcement No. 2 of 2026 and the 2026A export rebate-rate database, exporters should focus on four practical filing rules:
- The customs export date controls the rate: the official rule uses the export date shown on the customs declaration, so borderline shipments around March 31 and April 1 need extra review
- HS code controls, not product naming: similar product descriptions can map to different codes and different rebate treatment; every item should be checked against the annexes and the 2026A database
- Battery products follow a two-step timetable: the 6% rebate rate applies from April 1 to December 31, 2026, and drops to 0% on January 1, 2027
- Consumption tax treatment did not change: for products on the list that are also subject to consumption tax, the export consumption tax refund/exemption policy remains in place
5. Impact Analysis for Exporters
Losing the rebate means exporters must absorb the VAT that was previously refunded. Key impacts include:
- Direct cost increase: For products previously enjoying a 13% rebate, every CNY 1 million in export value now costs roughly CNY 130,000 more. Thin-margin categories like ceramic tiles, PVC, and glass containers face the greatest squeeze
- Pricing overhaul required: Companies with existing long-term contracts that did not build in rebate-fluctuation buffers may see short-term losses
- Supply chain restructuring may accelerate: Lower-value-added products may lose export competitiveness, potentially driving production shifts to Southeast Asia or the Middle East. Higher-value players will need to offset costs through technology upgrades or brand premiums
- Margin and cash-flow pressure is now immediate: for affected cargo exported on or after April 1, 2026, companies can no longer recover VAT at the old rate, so margins, payment terms, and working-capital assumptions must be recalculated now
6. Practical Recommendations for Exporters
The policy is already in force. Exporters should act on the following items immediately:
- Review post-April 1 shipments first: Cross-check every active contract's HS codes against the cancellation and battery lists, especially cargo that has shipped after April 1 but has not yet completed rebate filing
- Recalculate export pricing: For deliveries on or after April 1, 2026, re-quote FOB/CIF prices based on either 0% rebate or 6% for the relevant battery items and communicate adjustments with buyers early
- Plan for the battery phase-out: Battery exporters need a two-phase costing model — 6% rebate from April to December 2026, then zero from 2027
- Recheck declaration dates and filing documents: For shipments around the March-April cutover, confirm that the customs export date, HS code, contract pricing, and rebate filing logic are all consistent
- Optimize product mix long-term: Consider shifting toward higher-value products, expanding domestic sales channels, or exploring overseas production to offset rising export costs
7. How Mighty International Can Help
With 26 years of international logistics expertise, Qingdao Mighty International offers:
- Ocean, air, and rail booking support to re-sequence shipments under the new rebate rates
- One-stop customs declaration and inspection, ensuring compliant rebate filing
- Specialized packing and transport solutions for chemicals, solar modules, ceramics, glass, and other sensitive cargo
- Freight rate comparisons and optimal routing across major global trade lanes
The policy is already in force. The priority now is rate verification, repricing, and accurate customs filing. For booking, customs, or rebate-filing support, please contact Mighty International.