In recent years, China has imported high-quality raw materials for the titanium dioxide industry. However, due to the name containing the word "slag," customs authorities classified these materials as "residues" and imposed tariffs accordingly, which has negatively impacted the development of the domestic titanium dioxide sector. To address this issue, the China Coatings Industry Association submitted a report to the National Tax Committee, requesting the exemption of customs tariffs on imported high-titanium residues and the establishment of appropriate import tariffs for such materials.
According to the association, high-titanium slag is not waste or a by-product, but rather a premium raw material used in the production of titanium dioxide. Experts have noted that titanium dioxide consumption is an important indicator of a country's economic development and the standard of living. In 2005, China produced 700,000 tons of titanium dioxide, accounting for one-sixth of global output. Although China has proven reserves of 965 million tons of titanium, high-grade resources are limited. During the "Eleventh Five-Year Plan" period, it is estimated that total production will reach between 3.7 million and 14 million tons. Therefore, approximately 4.4 million tons of ilmenite or 2.8 million tons of high-titanium slag will need to be imported over five years to meet demand.
The titanium content in selected ilmenite sand is around 45%, while high-titanium slag contains more than 7% titanium. Compared to ilmenite, using high-titanium slag in the production process results in higher product quality and significantly reduces acid, power, and water consumption by 40%, 20%, and 30%, respectively. Additionally, it virtually eliminates the generation of ferrous sulfate solids.
Despite its environmental and resource-saving benefits, high-titanium slag currently lacks an import tariff code in China. As a result, customs classify it under "residue" or "unlisted chemical products" and impose tariffs ranging from 4.5% to 6.5%. This contrasts sharply with the zero-tariff status of ilmenite, discouraging companies from using high-titanium slag and hindering the growth of the titanium dioxide industry.
In contrast, many foreign countries include high-titanium slag under the "2614" tariff code (Titanium ore and its concentrates) or assign it a separate tariff number, applying zero tariffs. Industry sources confirm that using imported titanium slag as a substitute for ilmenite aligns with national industrial policies. It is hoped that relevant authorities will address this tariff issue promptly, allowing better utilization of overseas mineral resources and supporting the sustainable development of China’s titanium dioxide industry.
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