Keywords: Export tax rebate cancellation, April 1 implementation, advance shipment, emerging market layout, policy adjustment, high-value transformation
Core Sentence: With the official cancellation of silicone export tax rebate on April 1, domestic enterprises rush to ship in the short term and accelerate the layout of emerging markets and high-value-added products to cope with policy changes.
According to the announcement jointly issued by the Ministry of Finance and the State Taxation Administration, the 13% VAT export rebate for primary polysiloxane and other silicone products will be officially cancelled on April 1, 2026. This is a major adjustment of China’s export tax rebate policy in 2026. In addition to silicone products, 249 products including photovoltaic products and batteries are also included in the list of export tax rebate cancellation, which will have a profound impact on the export-oriented silicone enterprises[superscript:5].
Affected by this, domestic silicone export enterprises have entered the final stage of rush shipment. According to the latest customs data released on March 31, China’s primary polysiloxane exports reached 107,800 tons in January–February 2026, a year-on-year increase of 31%, of which the export volume in March is expected to exceed 60,000 tons, setting a new high in recent months. The main reason for the surge in exports is that export-oriented enterprises accelerate the export of existing orders in advance to avoid the impact of tax rebate cancellation on profits. Market feedback shows that most export enterprises have arranged the delivery of orders signed before March to be completed before April 1, and some enterprises even work overtime to increase production and shipment volume. The major export destinations include South Korea, India, Turkey, the United States, and Vietnam, which collectively account for nearly 50% of the total export volume. However, industry insiders predict that due to the overdraft of short-term demand, export orders may decline in the second quarter.
While rushing to ship, domestic silicone enterprises are also actively adjusting their export strategies to cope with the impact of policy changes: on the one hand, they accelerate the layout in emerging markets such as Southeast Asia, the Middle East, and South America to reduce reliance on traditional markets such as Europe and the United States; on the other hand, they increase investment in R&D and accelerate the transformation to high-value-added products, reducing the impact of export tax rebate cancellation on profits. Large leading enterprises such as Hesheng Silicon Industry and Dongyue Silicon Materials have increased investment in overseas market development, establishing localized sales and service networks to enhance market share. Industry analysts point out that although the cancellation of the export tax rebate will bring short-term profit pressure to exporters of primary silicone products, it will also force enterprises to accelerate the transformation to high-quality development, which is conducive to the long-term healthy development of China’s silicone exports
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