Not long ago, 13.67 tons of orange oil imported by a Shanghai Flavors and Fragrances Co., Ltd. passed through customs at Shanghai Pudong Port. This is the 15th batch of orange oil imported by the company this year. According to the proposal of reducing the import tariff rate of peppermint oil and orange oil from 20% to 10% proposed and adopted by Shanghai Customs, Givaudan enjoys more than 80,000 yuan in this customs declaration.
Peppermint oil is an essential oil obtained from peppermint after steam distillation. It is widely used in daily chemical products such as toothpaste, mouthwash, toilet water and other products. It has antiseptic and anti-inflammatory effects. Because the product can give full play to its advantages of high purity and good quality, the fragrance prepared from this is deeply loved by people. Peppermint oil is a scarce resource, rich in Europe, America and India, and its quality, processing technology and output are irreplaceable. At present, the peppermint oil used in the domestic flavor and fragrance industry is basically imported. The scarcity and application of peppermint oil are more extensive than other peppermint oils, and it has played a great role in the production of disinfection and sterilization protective equipment during the global anti-epidemic period.
Orange oil is an essential oil extracted from natural oranges and concentrated several times. The classification of orange oil includes sweet orange oil, terpene sweet orange peel oil, (edible) sweet orange oil, neroli essential oil and lime oil, etc. Orange oil can be used for flavoring in daily chemical products, and can also be used as food additives. Orange oil is a common fragrance raw material, and the essence prepared from it is also well recognized by people. With the improvement of residents' consumption level, it is difficult for domestic orange oil to meet the purity requirements of flavor production in terms of processing technology and refining technology, and the import demand for orange oil originating in the United States, Brazil and other countries is increasing.
Flavors and fragrances are important additives for fashion consumer goods such as food, cosmetics and daily necessities, and are also the main source of high added value and core competitiveness of the fashion consumer goods industry. Shanghai Customs found through research that peppermint oil and orange oil are one of the main raw materials for blending flavors and fragrances, but before 2022, the import tariff rate of peppermint oil and orange oil is 20%, while the finished products (daily flavors) are imported The tariff rate is 10%, and there is a problem that the tariff rate of raw materials and finished products is inverted, which is a great impact on the domestic daily chemical industry. At the same time, affected by the epidemic, the cost of logistics supply chain has increased rapidly, from production cost to transportation cost, which has caused great operational pressure on enterprises.
Shanghai Customs earnestly follows the requirements of the General Administration of Customs to strengthen taxation research, deepens comprehensive taxation, adheres to the orientation of "steady growth and excellent service", focuses on the needs of beautiful and healthy industries and people's livelihood, supports the high-quality development of the daily chemical industry with taxation research, and pays attention to flavors and fragrances The supply chain of raw materials for spices is safe, and a tax adjustment proposal to reduce the import tariff rate of peppermint oil and orange oil was proposed, which was adopted by the Customs Tariff Commission of the State Council and included in the "2022 Tariff Adjustment Plan". Since January 1 this year, the import tariff rate of peppermint oil and orange oil has been reduced from 20% to 10%.
The reduction of the tax rate stimulates the potential of enterprises to import raw materials, directly benefiting the flavor and fragrance industry, and indirectly promoting the development of fashion consumer goods industries such as cosmetics, daily chemicals, and essential oils with flavor and fragrance as the main components. The relevant person in charge of the company's operations in China said: "This tariff reduction is expected to bring considerable reductions in import taxes and fees to the company this year, which can help companies further ease the cost pressure caused by rising raw material prices and enhance the company's product market. Competitiveness, thus bringing more cost-effective products to downstream customers and consumers. At the same time, the reduction of the tariff rate by half directly makes the production cost of Chinese factories have a comparative advantage over the Group in India and other Southeast Asian regions. With the help of Shanghai's superior business environment, With the efficient and convenient customs clearance efficiency of the customs, we are confident that we will undertake the group to move more production lines to China in the future."
