On 9 January 2026, China's Ministry of Finance and the State Taxation Administration jointly announced Announcement 2026 No. 2, making sweeping changes to VAT export rebates for 271 product lines. The reform is the largest single adjustment to China's export tax rebate schedule in five years and is structured in two tiers: full cancellation of the 13% rebate on 109 lines, and partial reduction of the rebate on 162 lines. The new schedule is effective from 1 April 2026.
Affected categories (illustrative, not exhaustive). Photovoltaic cells, modules, and wafer-related products (full cancellation); selected aluminium extrusions and aluminium foil products (rebate cut from 13% to 9%, then to 0% from 1 April 2027 in some sub-categories); selected stainless steel wire, fasteners, and pipe products (rebate cut from 13% to 9%); certain lithium battery products (rebate cut from 9% to 6%, with a planned further reduction in 2027); selected wood products and furniture; and selected plastic products.
Quantitative impact on FOB pricing. A full 13% rebate cancellation effectively adds 13% to the ex-works price required to maintain the same net margin (assuming the export price is held constant). A 13% → 6% rebate cut adds roughly 6.2% to the required ex-works price. Most Chinese exporters have already repriced Q2–Q4 2026 quotations to reflect the new schedule, with some absorbing part of the impact to remain competitive in long-term contracts.
| Product category | Old rebate (until 31 Mar 2026) | New rebate (from 1 Apr 2026) | Implied FOB increase |
|---|---|---|---|
| Photovoltaic modules (HS 8541) | 13% | 0% | +13% |
| Aluminium extrusions (selected) | 13% | 9% | +3.5% |
| Lithium batteries (selected) | 9% | 6% | +3.3% |
| Stainless steel fasteners | 13% | 9% | +3.5% |
| Most other consumer goods | 13% | 13% (unchanged) | 0% |
Action items for buyers. (1) For multi-year contracts signed before 1 April 2026, request written confirmation of how the supplier is treating the rebate change (pass-through, absorption, or hybrid). (2) For new contracts, request a current quote card with the rebate-adjusted pricing. (3) For SKUs in affected categories, evaluate alternative sources (Vietnam, Indonesia, Mexico) for the same quality grade. (4) For 2027 planning, expect a further round of rebate cuts, particularly on batteries and photovoltaic — incorporate a 3–6% annual price escalation buffer into your sourcing budget.
What we are doing at WanLong. We have re-priced our Q3 2026 quotations to reflect the new rebate schedule. For multi-year contracts signed before 1 April 2026, we are honouring original pricing on shipments through end of 2026 for our most strategic buyers. For new contracts, please request a current quote card with the latest rebate-adjusted pricing.
Source: China MoF/STA Announcement 2026 No. 2 (9 January 2026); State Taxation Administration Announcement; China Customs HS database
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