Guidelines for declaration of imports of copper concentrate (i)
- price
Our country is the world's largest producer and consumer of copper, but because of its scarcity of copper resources, it is also the world's largest importer of copper, with its raw materials being as dependent as 70 per cent. Our import demand for copper resources will increase further with the development of the “one-way road”, the upgrading of the national grid and the further development of industries such as clean energy, new energy vehicles and new infrastructure. To that end, it would be helpful to have a brief introduction to the focus of the declaration on imported copper mines。
1. Pricing patterns for copper concentrates
Copper is a commodity in the london metals trading market and a heavy commodity in basic metals. In order to avoid the risk of volatile copper prices, through long-term trade practices, a pricing model has been developed between mines and smelters in which “a certain processing fee from mines to smelters” is a fundamental feature. In industry practice, copper concentrate prices are usually calculated by deducting processing fees from lme (london metal exchange) and lbma (london gold and silver market association) gold, silver prices multiplied by the corresponding grade multiplied by the corresponding price factor during the valuation period. The formula is as follows:
Dry-tonne price = (lme copper price x dry-tonne copper content x price factor + lbma silver price x dry-tonne content x price factor + lbma gold price x dry-tonne content x price factor) - processing fee - hazardous element overfixion fine
Processing fees are fees paid by mines or sellers to smelters or buyers for processing copper concentrates into refined copper - including crude (tc) and refining fees (rc). Processing fees are the core provisions of the negotiations for the procurement of copper concentrates, with long orders (usually one year) and short orders (quarterly). The china copper raw materials joint negotiating group (cspt), composed of several of the country's major smelters, is responsible for finalizing crude refining floor prices with overseas mines for the following year and quarter。
2. Tax exemptions for gold-accompanied mines
In accordance with the relevant provisions of the general customs administration circulars no. 29 of 2003 and no. 69 of 2009, gold-related mines imported into copper concentrates under tax no. 2. 630 million are exempt from value-added tax (vat) for part of the value of gold, which must be priced separately in the contract, and shall be declared in the same customs declaration at the time of import, in accordance with the same declaration as for part of the value of gold. In addition, the consignee of the imported goods is required to submit a written statement of the price to the customs service prior to declaring the import and to submit the following documents in order to benefit from the tax benefit:
1. A commercial certificate specifying the respective proportion or content of gold and other components contained in ores
2. A contract or invoice that specifies separately the value of the gold components contained in ore
3. Other relevant documentation required by customs。
Of particular note is the fact that transport and related costs and insurance premiums are included in the taxed price of the non-gold value component of commodity number 740200090。
Tips: copper mines in import contracts for which gold is not priced separately or where documentation provided by the recipient of the imported goods does not indicate the value of the gold accompanying mine, are not partially exempt from the value of gold through value-added tax (vat) preference and are subject to vat at the total price of imports. If the relevant documents are not available at the time of import, the required application may be made for the release of the security。
3. Formula pricing
Currently, our imports of copper concentrate are priced primarily by formula, and according to the general administration's proclamation no. 15 of 2015, taxpayers are required to file a filing application with the customs office of the place of import or the place where the enterprise is located prior to the import of the first cargo under the formula pricing contract and provide the following materials:
1. Contracts for the import of goods
2. Price criteria for price formulas for imported goods, price periods, settlement periods, discounts, factors affecting prices, as well as information on ports of import, batches and quantities
3. Other relevant material。
Tips: the results of formula pricing are shared across the national customs service and need not be duplicated. Once the filing has been completed, the declaration of import shall be made by filling in the formula pricing file number in the customs note box, in the form of: "performance pricing + file number +@", e. G. Formulae pricing 35a2000001@。
4. Secondary settlement
Taxpayers should provide the required materials for determining the price to customs within 10 working days of the formula pricing the settlement price for copper concentrate. Including:
Documents relating to mineral prices:
1. A statement of the settlement price
Final invoices
3. Quality certificate, weight certificate, water certificate
4. Lme, lbma index price tables, if any, must provide a month-by-month and a price confirmation form。
Ii. Documents relating to transport premiums:
Contract of carriage and freight invoices, insurance contracts and premium invoices (contracts limited to fob price terms)
2. Shipowners or their agents issue delivery manifests (contracts for cif transport by container are subject to review)
3. Handling readiness notifications (nor), loading time fact sheets (sof) etc. (contracts for cif transport by bulk carriers are subject to review)
4. Details of other transport-related costs and related documents, such as freight subsidy, low sulphur surcharge, trans-shipment surcharge, port selection surcharge, change of port of discharge surcharge, etc。
Other relevant cost documents, such as letters of credit, where payments are made, may include interest, bank billing costs, etc。
