Imported sapphire substrate levy 10% consumption tax LED manufacturers said it was accidentally injured

LED epitaxial wafer manufacturing of key materials - three oxidation of aluminum substrate (commonly known as sapphire substrate), perhaps because of the words with sapphire and misunderstood, recently began to be levied on the consumption tax of 10% of the amount of.

Yesterday, reporters from the Chinese optical photonics industry association to understand, according to the classification of goods "customs analysis bulletin" in 2011 fifth and June 29, 2011 Guangzhou Center issued by the W-2-5100-2011-0042 classification decision, the customs will be used for encoding three oxidation LED epitaxial wafer production of two aluminum substrate, from the original 3818009000 approved by the customs into 7104901901 classes (Chapter seventeenth), per kilogram tariff levied a 10% consumption tax and 1%, and the LED chip companies pay for a year of import tariffs and consumption tax.

Reporters on the website to the General Administration of customs, commodity number 7104901901 Name: sapphire substrate by artificial corundum processed semi precious gemstones (thickness <0.5mm), the lowest tax rate is 1%, average tax rate of 14%, value-added tax rate of 17%, the consumption tax rate is 10%.

"The name must have been misunderstood, or how would an industrial raw material be subject to a consumption tax?. A LED chip manufacturers executives pointed out that the original sapphire substrate does not need to pay any import tariffs, now the local customs department also require us to pay last year, the consumption tax, which means that the unwarranted increase in millions of dollars in spending, is in need of funding the development of the LED chip companies, is undoubtedly a great spending.

Reporter obtained materials, including industry departments and financial department, Ministry of industry and electronic information division, Ministry of Chinese optics and Optoelectronics Industry Association and Hangzhou, Shandong and Wuhan Silan azure Inspur Di source photoelectric part of officials, experts and business representatives LED has formed a committee of experts at the end of August, jointly with the general Administration of customs and the Ministry of Finance recommendations to reconsider the classification and nomenclature on sapphire substrate.

Name or misunderstood

"Provisional Regulations of the national consumption tax, artificial gemstones to produce 10% of the tax levied on the production of jewelry. But sapphire substrate for the production of LED materials, and jewelry are not related. "The LED chip manufacturers executives pointed out that the consumption tax levy of 10% sapphire sapphire manufacturers let overseas are very confused, because the domestic production of sapphire substrate enterprises, such as Yunnan, Chongqing, four langene hit Jiaozuo, Austria Reed and Cressida is not the collection of consumption tax.

It is reported that the current domestic LED chip manufacturers in the high-end LED chip products, many of which are relatively good quality of foreign sapphire substrate. Now because of the issue of 10% consumption tax, we are also in consultation with foreign sapphire substrate manufacturers to see if they can afford to bear this cost. Above LED executives say.

2011 fifth issue of the General Administration of customs commodity classification analysis, pointed out that the sapphire substrate and crystal pear, crystal stick according to its chemical composition, structure, should be included in the seventeenth chapter of synthetic gemstones. But Shen Dezhong, director of the Committee of experts pointed out that the expert opinion in the material, the sapphire substrate is colorless and transparent, single crystal structure, is the six party system; while the sapphire blue, rich in iron and titanium impurities, is the three party system. Therefore, the three oxidation of two aluminum substrate commonly known as sapphire substrate, in fact, is not scientific. In addition to being the chairman of the Committee of experts, Shen Dezhong is also a member of the Chinese Academy of engineering, a researcher on artificial crystals and a professor at Tsinghua University.

Chinese optics Optoelectronics Industry Association said that the domestic LED chip industry has just started, most of the sapphire substrate need to be imported, if levied a 10% consumption tax, will not benefit as a national strategic emerging industries LED lighting core components of industrial development.

Director of the finance and tax department of Zhongshan University south of the Five Ridges Linhai University pointed out that the consumption tax levy of 10% to the sapphire substrate, mainly because the main chemical components of sapphire substrate and sapphire is the same, is likely to prevent illegal businesses use sapphire sapphire identity, circumvent the legal consumption tax.

It is understood that the sapphire is the original film cut, can only be used for LED epitaxial wafer materials, can not be used for other purposes.

Domestic enterprises benefit

The practice of the General Administration of customs, inadvertently may protect the domestic sapphire substrate manufacturers. At present, the sapphire substrate proportion of the total cost of the LED chip in 10%, the 80% sapphire LED enterprise purchase from overseas, but now the domestic sapphire substrate has been close to the quality of overseas products, basic can achieve replacement.

More critical is that the current domestic sapphire substrate production capacity has been showing signs of excess.

High technology industry research institute data show that the current domestic LED sapphire annual production capacity has reached 6 million 850 thousand, there are 41 projects under construction, investment amounted to 12 billion 80 million yuan, after the completion of the expansion, then the domestic LED sapphire annual production capacity will rise to 101 million tablets. On the contrary, this year the global demand for less than 50 million LED sapphire substrate, of which domestic demand is less than 10 million.

Crystal Optoelectronics (002273.SZ) and Tong Tong shares (600330.SH) were invested about 100 million yuan last year, for sapphire substrate project. A few days ago Dongjun laser is also trying to raise funds through the market, into the sapphire project, only the first application by the Commission is not.

The progress of the complaint is not particularly smooth, there is no result. Expert committee member said.