Beijing grants tax waiver on VLSFO exports

Beijing grants tax waiver on VLSFO exports

Beijing has given the green light to a tax waiver on exports of very low sulphur fuel oil (VLSFO) with Chinese refiners keen to take a significant global market share of the new fuel type.

Zhoushan, off Ningbo, is trying to position itself as a bunkering hub to rival Asia’s dominant Singapore with a host of bunker-related companies setting up in the area over the past two years.

Reuters reported on Friday that Chinese refiners will supply the new VLSFO to bonded storages along the country’s coast, and from there they will be retailed to ships by 12 licensed bunker dealers. Supplies to bonded tanks are considered as exports and will be managed by a quota system.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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