The key material for manufacturing LED epitaxial wafers, aluminum oxide substrate (commonly known as "sapphire substrate"), may be misunderstood because of the words with sapphire, and it has recently been imposed a 10% consumption tax.
Yesterday, the "First Financial Daily" learned from the China Optics and Optoelectronics Industry Association that the W-2-5100 was issued in accordance with the "General Administration of Customs Commodity Analysis and Analysis" No. 5 of 2011 and the Guangzhou Branch of June 29, 2011. - The 2011-0042 classification determines that the customs code of the aluminum oxide substrate used for the production of LED epitaxial wafers shall be changed from 381,800,000 approved by the Customs to type 7154901901 (Chapter 17), with a 10% consumption tax per kilogram and 1% of the tariff, and require LED chip companies to pay a one-year import tariff and consumption tax.
The reporter found on the website of the General Administration of Customs that the product number is 7104901901 and the name is: sapphire substrate, gemstone semi-precious stone processed from artificial corundum (thickness<0.5mm), the minimum tax rate is 1%, and the general tax rate is 14%. The VAT rate is 17% and the consumption tax rate is 10%.
"Surely the name has been misunderstood, otherwise how can an industrial raw material levied a consumption tax." An LED chip factory executives pointed out that the original import of sapphire substrates do not need to pay any tariffs, and now the local customs department also requires us to pay the consumption tax of the past year This means that companies have undoubtedly increased their spending by several million yuan, which is undoubtedly a big expense for LED chip companies that are in need of funds.
According to the materials obtained by the reporter, some officials, experts, and representatives from LED companies, including the financial department of the Ministry of Industry and Information Technology, the Electronic Information Department of the Ministry of Industry and Information Technology, the China Optics and Optoelectronics Industry Association, Hangzhou Shilan Mingxin, Shandong Inspur Huaguang and Wuhan Diyuan Optoelectronics, are At the end of August, an expert committee was formed to jointly recommend to the General Administration of Customs and the Ministry of Finance the reconsideration of the classification and taxation of sapphire substrates.
The name may have been misunderstood. "The National Consumption Tax Provisional Regulations stipulate that man-made gemstones must be subject to a 10% excise tax on the production of jewels. However, sapphire substrates are LED production materials and have nothing to do with jewelery and jade." The above-mentioned LED chip makers pointed out that sapphire substrates Levying a 10% excise tax on foreign sapphire manufacturers is also very confusing, because domestic companies producing sapphire substrates, such as Yunnan Blue Crystal, Chongqing Silian, HIT, Oreder, Jiaozuo Krestida, etc., have not been levied on consumption tax.
It is reported that at present domestic LED chip manufacturers in the high-end LED chip products, many are using relatively good quality foreign sapphire substrate. "Now that because of the 10% consumption tax problem, we are also negotiating with foreign sapphire substrate manufacturers to see if they can bear this cost together." The LED company executives said.
In the 5th issue of 2011, the "General Administration of Customs Goods Classification Analysis Report" pointed out that sapphire substrates, crystal pears, and crystal rods should be classified in Chapter 17 according to their chemical composition and structure. However, Shen Dezhong, director of the expert committee, pointed out in the expert opinion that the sapphire substrate is colorless and transparent, and is a single crystal structure, belonging to the hexagonal crystal system. Sapphire is blue, rich in iron and titanium impurities and belongs to the trigonal crystal system. Therefore, the aluminum oxide substrate is commonly referred to as a sapphire substrate, which is actually unscientific. In addition to being the director of the expert committee, Shen Dezhong is also an academician of the Chinese Academy of Engineering, a researcher of artificial crystals, and a professor at Tsinghua University.
According to the China Optics and Optoelectronics Industry Association, the domestic LED chip industry has just started and most of the sapphire substrates need to be imported. If a 10% consumption tax is levied, it will be detrimental to the development of the LED lighting core device as a national strategic emerging industry.
Lin Hai, director of the Department of Public Finance of Lingnan University’s School of Sun Yat-sen University, pointed out that the state’s levying a 10% consumption tax on sapphire substrates may be mainly because the main chemical components of sapphire substrates and sapphire are the same, possibly to prevent unscrupulous companies from using sapphire substrates. , evading excise tax on sapphire.
According to Zhang Xiaofei, dean of the China High Technology Industry Research Institute, this view is impossible because the imported sapphire substrate is a good original film that can only be used as raw material for LED epitaxial wafers, and cannot be used for other purposes.
Domestic enterprises benefited from the "Customs Department's approach, inadvertently may protect the domestic sapphire substrate manufacturers." Zhang Xiaofei said that the current sapphire substrate accounted for about 10% of the total cost of LED chips, the current sapphire substrate 80% of LED business procurement From abroad, but now the quality of domestic sapphire substrates is close to overseas products, basically can achieve alternatives.
More importantly, the current domestic production of sapphire substrates has shown signs of excess.
According to the data from the Institute of Advanced Industrial Science and Technology, the annual production capacity of LED sapphire substrates in China has reached 6.85 million pieces. There are 41 projects under construction and the investment amount is as high as 12.08 billion yuan. After the expansion is completed, the domestic LED sapphire substrate will be used for the year. Capacity will increase to 101 million. On the contrary, the global demand for LED sapphire substrates is less than 50 million this year, of which, domestic demand is still less than 10 million.
Crystal Optoelectronics and Tiantong Electric respectively invested approximately RMB 100 million in last year for the sapphire substrate project. A few days ago, Tung Chun Lasers also tried to raise funds through listing, and invested in the sapphire substrate project, but the initial application was not approved by the Securities and Futures Commission.
"The progress of the complaint has not been particularly smooth and there is no result at present."
Yesterday, the "First Financial Daily" learned from the China Optics and Optoelectronics Industry Association that the W-2-5100 was issued in accordance with the "General Administration of Customs Commodity Analysis and Analysis" No. 5 of 2011 and the Guangzhou Branch of June 29, 2011. - The 2011-0042 classification determines that the customs code of the aluminum oxide substrate used for the production of LED epitaxial wafers shall be changed from 381,800,000 approved by the Customs to type 7154901901 (Chapter 17), with a 10% consumption tax per kilogram and 1% of the tariff, and require LED chip companies to pay a one-year import tariff and consumption tax.
The reporter found on the website of the General Administration of Customs that the product number is 7104901901 and the name is: sapphire substrate, gemstone semi-precious stone processed from artificial corundum (thickness<0.5mm), the minimum tax rate is 1%, and the general tax rate is 14%. The VAT rate is 17% and the consumption tax rate is 10%.
"Surely the name has been misunderstood, otherwise how can an industrial raw material levied a consumption tax." An LED chip factory executives pointed out that the original import of sapphire substrates do not need to pay any tariffs, and now the local customs department also requires us to pay the consumption tax of the past year This means that companies have undoubtedly increased their spending by several million yuan, which is undoubtedly a big expense for LED chip companies that are in need of funds.
According to the materials obtained by the reporter, some officials, experts, and representatives from LED companies, including the financial department of the Ministry of Industry and Information Technology, the Electronic Information Department of the Ministry of Industry and Information Technology, the China Optics and Optoelectronics Industry Association, Hangzhou Shilan Mingxin, Shandong Inspur Huaguang and Wuhan Diyuan Optoelectronics, are At the end of August, an expert committee was formed to jointly recommend to the General Administration of Customs and the Ministry of Finance the reconsideration of the classification and taxation of sapphire substrates.
The name may have been misunderstood. "The National Consumption Tax Provisional Regulations stipulate that man-made gemstones must be subject to a 10% excise tax on the production of jewels. However, sapphire substrates are LED production materials and have nothing to do with jewelery and jade." The above-mentioned LED chip makers pointed out that sapphire substrates Levying a 10% excise tax on foreign sapphire manufacturers is also very confusing, because domestic companies producing sapphire substrates, such as Yunnan Blue Crystal, Chongqing Silian, HIT, Oreder, Jiaozuo Krestida, etc., have not been levied on consumption tax.
It is reported that at present domestic LED chip manufacturers in the high-end LED chip products, many are using relatively good quality foreign sapphire substrate. "Now that because of the 10% consumption tax problem, we are also negotiating with foreign sapphire substrate manufacturers to see if they can bear this cost together." The LED company executives said.
In the 5th issue of 2011, the "General Administration of Customs Goods Classification Analysis Report" pointed out that sapphire substrates, crystal pears, and crystal rods should be classified in Chapter 17 according to their chemical composition and structure. However, Shen Dezhong, director of the expert committee, pointed out in the expert opinion that the sapphire substrate is colorless and transparent, and is a single crystal structure, belonging to the hexagonal crystal system. Sapphire is blue, rich in iron and titanium impurities and belongs to the trigonal crystal system. Therefore, the aluminum oxide substrate is commonly referred to as a sapphire substrate, which is actually unscientific. In addition to being the director of the expert committee, Shen Dezhong is also an academician of the Chinese Academy of Engineering, a researcher of artificial crystals, and a professor at Tsinghua University.
According to the China Optics and Optoelectronics Industry Association, the domestic LED chip industry has just started and most of the sapphire substrates need to be imported. If a 10% consumption tax is levied, it will be detrimental to the development of the LED lighting core device as a national strategic emerging industry.
Lin Hai, director of the Department of Public Finance of Lingnan University’s School of Sun Yat-sen University, pointed out that the state’s levying a 10% consumption tax on sapphire substrates may be mainly because the main chemical components of sapphire substrates and sapphire are the same, possibly to prevent unscrupulous companies from using sapphire substrates. , evading excise tax on sapphire.
According to Zhang Xiaofei, dean of the China High Technology Industry Research Institute, this view is impossible because the imported sapphire substrate is a good original film that can only be used as raw material for LED epitaxial wafers, and cannot be used for other purposes.
Domestic enterprises benefited from the "Customs Department's approach, inadvertently may protect the domestic sapphire substrate manufacturers." Zhang Xiaofei said that the current sapphire substrate accounted for about 10% of the total cost of LED chips, the current sapphire substrate 80% of LED business procurement From abroad, but now the quality of domestic sapphire substrates is close to overseas products, basically can achieve alternatives.
More importantly, the current domestic production of sapphire substrates has shown signs of excess.
According to the data from the Institute of Advanced Industrial Science and Technology, the annual production capacity of LED sapphire substrates in China has reached 6.85 million pieces. There are 41 projects under construction and the investment amount is as high as 12.08 billion yuan. After the expansion is completed, the domestic LED sapphire substrate will be used for the year. Capacity will increase to 101 million. On the contrary, the global demand for LED sapphire substrates is less than 50 million this year, of which, domestic demand is still less than 10 million.
Crystal Optoelectronics and Tiantong Electric respectively invested approximately RMB 100 million in last year for the sapphire substrate project. A few days ago, Tung Chun Lasers also tried to raise funds through listing, and invested in the sapphire substrate project, but the initial application was not approved by the Securities and Futures Commission.
"The progress of the complaint has not been particularly smooth and there is no result at present."
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