China Cancels Export VAT Rebates for Phosphorus Flame Retardants and DBNPA Starting April 1, 2026

Issued by China's Ministry of Finance and State Taxation Administration via Announcement No.2 of 2026, a landmark tax adjustment fully cancels export VAT rebates for phosphorus-based flame retardants and biocide DBNPA, effective April 1, 2026. Previously enjoying a standard 13% tax refund, both chemical categories now carry a 0% rebate rate, reshaping global sourcing costs for overseas importers.

The policy covers mainstream phosphorus flame retardants including phosphate ester flame retardants, TCPP, ammonium polyphosphate and other halogen-free phosphorus retardants, as well as 2,2-Dibromo-3-nitrilopropionamide (DBNPA), a widely used industrial biocide for water treatment, paper and coating systems. The government targets low-margin, resource-intensive chemical exports to push industrial upgrading and cut overcapacity in basic fine chemicals.

All export shipments are judged by customs declaration date. Manufacturers and global buyers face instant cost pressure. Many suppliers adjust real-time quotations to offset lost tax benefits, while long-term clients negotiate stable framework prices to absorb incremental expenses. Industry insiders expect continuous price volatility across phosphorus chemical supply chains through 2026.

If you import phosphorus flame retardants or DBNPA and want to know updated cost breakdowns, stable long-term pricing frameworks or supply adjustment solutions, leave your procurement volume and target market below or contact us directly for detailed negotiation plans.