The Ministry of Finance will soon announce the removal the export tariff for secondary aluminum alloy, the First Finance Daily reported Tuesday.

The announcement is pending on the State Council approval, which will abolish the five-percent export tariff beginning July 1, Ruan Haifeng, a senior official of the China Non-Ferrous Metal Processing Industry Association, was quoted as saying.

Describing the decision as "a blessing" for the second aluminum alloy industry, Ruan said domestic companies have stagnated after China abolished the export tax rebate for secondary aluminum alloy and simultaneously raised the export tariff earlier this year.

With more than 2,000 companies engaged in the production of secondary aluminum alloy, the sector generated a combined export revenue of four billion yuan (about 483.68 million yuan) last year.

"As the export profits continue to shrink this year, some companies have even stopped selling their products abroad," Ruan said.

The association proposed the reconsideration of the tariff issue to the State Development and Reform Commission, the Ministry of Finance and the General Administration of Customs.

"Given that the energy cost of secondary aluminum alloy is only five percent of electrolytic aluminum, we hoped the government would give more concern of the fledging industry," Ruan said.

Source: Xinhua