China Removes 13% Export Tax Rebate for Silicones (HS 39100000)
China’s Ministry of Finance and State Taxation Administration have jointly issued the Announcement on Adjusting Export Tax Rebate Policies for Photovoltaic and Related Products: export VAT rebates for photovoltaic products and selected chemical materials are cancelled starting April 1, 2026.
The product list includes HS Code 39100000 — polysiloxanes in primary forms. Exports of basic silicone polymers no longer qualify for the 13% VAT rebate previously applied, raising export costs for silicone manufacturers and traders and pressuring pricing structures across the global supply chain.
What HS 39100000 covers
Polysiloxanes in primary forms are the core raw materials behind:
- Silicone elastomers and rubbers
- Silicone fluids and oils
- Sealants and adhesives
- Coatings and release agents
- Photovoltaic encapsulation materials
- Electronic and automotive silicone components
With the rebate removed, exporters effectively absorb the full VAT cost — translating into higher FOB prices or reduced margins depending on contract structure.
What buyers should expect
Silfluo advises clients to anticipate an immediate increase in the export cost base, most pronounced in standard-grade polysiloxanes, where price sensitivity is high and differentiation limited.
Notably, advanced specialty materials are excluded from the new policy restrictions, as they are distinct from polysiloxanes in primary forms — a reason technical buyers are accelerating the shift toward higher-value chemistries, polysilazanes among them.
About this update
This analysis is based on the official joint announcement on export VAT rebate adjustments for photovoltaic and related products, effective April 1, 2026, applying to all listed HS codes including 39100000. For how the policy affects a specific quotation, contact our sales engineers.