In August 2013, the State Council's Customs Tariff Commission announced changes to the import tariff rates for lignite and other goods, effective from August 30. The temporary zero-tariff policy for lignite was abolished, and the standard 3% Most-Favored-Nation (MFN) tariff was reinstated. This decision marked a shift in China’s approach to coal imports, which had previously enjoyed zero tariffs since 2008.
Lignite, being the lowest quality coal, was included in the zero-tariff category for many years. However, experts suggest that the tariff increase reflects broader environmental goals, aiming to reduce emissions and promote cleaner energy sources. Despite this change, the impact on coal supply and demand is expected to be minimal, as domestic coal production remains strong and prices have been declining.
According to Liu Zhipeng, manager of the R&D department at the Qinhuangdao Seaborne Coal Trading Market, the cost increase due to the 3% tax would add just a few yuan per ton. However, he noted that the competitive edge of imported lignite has weakened, especially when compared to domestic high-quality coal. Domestic producers are increasingly favoring their own coal, which is both more efficient and cost-effective.
The long transport cycle—over 10 days for Australian coal—adds uncertainty for importers, who must factor in price fluctuations during transit. In 2012, China’s main coal imports came from Indonesia and Australia, with Indonesia alone accounting for over 118 million tons, or 41% of total imports. In the first seven months of the following year, China imported 187 million tons of coal, with 35.97 million tons being lignite, mostly from Indonesia.
Given that most of China’s lignite imports come from Indonesia, and the ASEAN-China Free Trade Agreement allows for zero tariffs, the new MFN rate is unlikely to significantly affect trade with Indonesia. Experts also emphasize that China’s coal import strategy remains unchanged, as lignite represents only a small portion of overall consumption, particularly in developed regions.
With stricter emission standards and efforts to improve air quality, increasing import barriers for low-quality coal like lignite makes sense. As Xing Lei from the China Coal Research Center at the Central University of Finance and Economics explained, it is not practical for a major coal producer like China to continue importing large quantities of low-grade coal.
Additionally, some importers have used the simpler procedures for lignite to bypass regulations when importing other coal types, leading to potential revenue losses. With the new tariff in place, such practices are expected to decrease.
For power generation companies, using high-quality coal improves efficiency and extends equipment lifespan. When coal prices rise, they may turn to lignite for blending to cut costs. However, with domestic coal prices falling, power plants are now more inclined to purchase premium coal, aligning with both economic and environmental priorities.
Check Valve
The check valve is used in the piping system, its main function is to prevent the backflow of the medium, prevent the pump and its driving motor from reversing, as well as the release of the medium in the container.
Check valves can also be used to feed pipes where the pressure may rise to exceed the pressure of the main system. Check valve according to the different material, can be applied to a variety of media pipeline.
The check valve is installed on the pipeline, which becomes one of the fluid components of the complete pipeline. The opening and closing process of the valve disc is affected by the transient flow state of the system in which it is located. In turn, the closing characteristics of the disc have an effect on the fluid flow state.
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