Disguised as "in exile" overseas troubles are endless

Recently, multiple departments in Shanghai jointly issued the "Notice on the Recordation of the Transfer and Utilization of General Solid Wastes across Provinces", which clearly included the collection and transportation of kitchen waste grease (commonly known as "ditch oil") into the record-keeping pilot work, and will promote this in an all-round way.
Work to prevent illegal outflows and protect citizens’ food safety
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Industry insiders believe that the measures taken by Shanghai this time are once again an upgrade of strict supervision measures on waste oil, laying a foundation for the formation of closed-loop management, and setting a model for the first time in the country
.

Relevant data shows that China produces 2.
6 million tons of cooking oil from food waste every year
.

As we all know, waste oil is not a legitimate commodity, and cannot be freely traded and circulated.
There is no corresponding tariff number in the customs' import and export commodity codes
.

Customs statistics show that in 2019, China exported a total of 736,600 tons of industrial-grade blended oil, and in 2020, it exported about 1.
2 million tons, with an average export price of about 7,000 yuan/ton
.

As a high-quality raw material for biomass energy, waste oil is in short supply in China, why is there nearly half of it sold abroad in disguise?

　　According to the relevant regulations of the Ministry of Finance and the State Administration of Taxation, industrial-grade blended oil export companies can enjoy double tax benefits, namely 70% VAT refund upon collection and 13% export tax rebate
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　　The harm of this approach is multifaceted
.

　　First, companies that counterfeit industrial-grade blended oil for exporting waste oil are suspected of arranging national export tax rebates, damaging national interests; second, waste oil exporting companies enjoy export tax rebates, which actually reduces production costs for foreign biodiesel companies.
The competitiveness of China’s biodiesel companies has been weakened, making it difficult to sustain the technological leadership that the industry has just cultivated.
Third, it has caused a shortage of raw materials in China’s biodiesel industry.
The 3 million tons/year equipment cannot operate normally, and some companies even face the dilemma of suspension of production and unemployment of workers; fourth, from an international perspective, the export of waste oil is a method of waste transfer, which violates the Basel Convention.
The regulations prohibiting the transboundary movement of hazardous wastes pose concerns about international trade disputes
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　　In view of this, many people in the industry said that it is urgent to curb the export of counterfeit industrial-grade mixed oil from waste oil.
The specific solutions are as follows:

　　One is to suggest that the relevant departments of the Ministry of Commerce make a limited statement on the industrial-grade blended oil with the tax number 15180000, that is, HS15180000 industrial-grade blended oil does not contain non-edible animal and vegetable oils produced by catering, food processing units and households, mainly including acidified oil, fatty acid, palm acid oil, palm oil fatty acid, clay, oil and deodorized distillates and the like
.

　　Second, considering that the waste oil is mainly derived from the pilot demonstration city projects for the resource utilization and harmless treatment of kitchen waste, it is recommended that the National Development and Reform Commission give clear regulations for the relevant demonstration cities that the waste oil cannot be exported under the name HS15180000 industrial-grade mixed oil, and it is forbidden The local government conducts public bidding for waste oil
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　　If such policy adjustments can be made, it can eliminate the potential risks of future international trade disputes, curb tax fraud by some companies, safeguard national interests, and create a fair market environment for China’s biodiesel industry and promote Its healthy development contributes to the goal of "dual carbon", and it can also prevent waste oil from returning to the table from the source, ensuring food safety
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　　(Note: The research team for major issues in the biodiesel industry is composed of 16 biodiesel companies)