On February 13, with the great support of Dalian Customs, China Marine Bunker Supply Company (CHIMBUSCO) together with China National Petroleum Corporation (CNPC) Liaohe Branch successfully unloaded 5,300 tons of low sulphur bunker oil for international ships to the export warehouses of CHIMBUSCO Dalian, the company said in its release. As the “last mile” of the supply of domestically produced low sulphur oil to international ships, it marks the beginning of export rebates for China-made fuel oil resources. The initial supply of 3,900 tons of bunker oil to international ships is expected to start on February 15.
Previously on January 22, the Ministry of Finance, State Tax Administration, and General Administration of Customs jointly released the “Notice on Export Rebates for Bunker Oil Supplies to International Ships”, which requires that as of February 1, 2020, an export rebate (or exemption) shall be applied to fuel oil bunkered by ships plying international routes at Chinese ports at a VAT rebate rate of 13%. The policy is an important step taken by China amid the deep changes of the international industrial development. On the one hand, it aims to meet the rising market demands for low sulphur oil and secure an adequate market supply of bonded bunker fuel in China; on the other, it can leverage the capacity of China’s refineries in supplying low sulphur bunker fuel to put an end to the country’s long dependence on the imports.
The successful discharge of bunker fuel from CNPC Liaohe to the export warehouses of CHIMBUSCO marks the new beginning of independent supply of bonded fuel oil in China and also the end of its past dependence on pure imports from foreign countries. Moreover, it will play a critical role in pushing forward the reduction of fleet operation cost at COSCO SHIPPING and help the corporation seize the first market opportunities in the first year of the low-sulphur era.