SUBSCRIBER NOTE: Platts clarifies prevailing standard duties for PX deliveries to China

SUBSCRIBER NOTE: Platts clarifies duties around prevailing market standards for PX deliveries to China

Following an extensive methodology consultation regarding the potential delivery of tariffed material into China, S&P Global Platts would like to clarify that for bids, offers and trades provided for publication in the benchmark paraxylene CFR Taiwan/China Market on Close assessment process, buyers are expected to cover typical import duties. Currently for cargoes delivered into Taiwan/China, an import duty not exceeding 2% would be expected to be borne by a buyer, based on the prevailing market standard.

Bids and offers for the delivery of material of an origin which would require a buyer to pay an import duty that exceeds the typical prevailing import duty may be subject to normalization. Sellers should clearly state at the time of providing an offer for publication if the material they intend to deliver is of an origin that would require a buyer to pay a higher import duty. Such material should only be delivered against trades reported through the MOC process with mutual consent between buyer and seller.

Platts is constantly reviewing the existing methodology to ensure its assessments reflect standard traded parameters in a given market. This clarification follows feedback received to a consultation by Platts regarding how market practices are developing around the potential delivery of US-origin paraxylene into the delivered China market. Details of that consultation, which opened on November 7, 2018, are available online here: https://www.platts.com.es/subscriber-notes-details/21329307. The consultation was extended on December 5, 2018.

Platts invites all further questions or comments to petchems@spglobal.com with a copy to pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.