To Our Overseas Partners: Collaboration Recommendations in Response to Adjustments to China’s Glass Export Tax Rebate Policy

On January 8, 2026, the Ministry of Finance and the State Taxation Administration of China jointly issued Announcement No. 2 of 2026, stipulating that starting from April 1, the VAT export rebate will be fully cancelled for 249 categories of glass products, including float glass (HS Code 7005), tempered glass (7007) and Laminated glass (7008).

The implementation of the policy shall be based on the export date indicated on the customs declaration form of exported goods. Relevant products exported on or after April 1 shall be subject to VAT as domestic sales. According to our calculation, affected by this policy, the price of glass products is expected to rise by 5%-9%.

I. Core Impacts and Scope of Application

This VAT rebate cancellation policy mainly targets processed and safety glass products under HS Codes 7003, 7004, 7005, 7006, 7009 and parts of 7010, including but not limited to:

• Processed Glass: Tempered glass, laminated glass, insulated (hollow) glass, bent glass

• Safety Glass: Wired glass, bulletproof glass and other safety glass components

• Glass Mirrors: Including framed mirrors and rear-view mirrors

• Glass Products: Certain glassware and containers

  Note: Raw glass (float glass) and some specialized industrial glass not listed in the attachment are not included in this policy adjustment and will not be affected.

II. Impacts on Your Orders

Orders shipped before April 1, 2026: Unaffected by the policy, eligible for standard VAT rebates as usual.

Orders shipped on or after April 1, 2026: The export VAT rebate rate will be adjusted to 0. Since VAT will no longer be refunded, the cost structure of relevant products will rise accordingly.

III. Our Recommended Response Solutions

For customers with existing orders, we commit to giving priority to the production scheduling of all order batches that can complete customs declaration before the end of March. Our production department has readjusted capacity allocation and launched a green production channel for these orders, ensuring efficient connection of the entire process from production and inspection to customs declaration. This helps you directly lock in the price advantage under the original VAT rebate policy and avoid the risk of cost increases after April.

For high-frequency purchased standardized products, we recommend customers place orders as soon as possible to lock in prices and appropriately increase safety stock to cope with short-term price fluctuations.

We will make every effort to provide various supports during the policy transition period. If you have any questions about the production schedule of existing orders, or price locking and stock preparation for new orders, please feel free to contact us at any time.