China has been importing high-quality raw materials, but due to the term "slag" in the product name, customs authorities classified it as "residue" and imposed tariffs accordingly. This practice has hindered the growth of China's titanium dioxide industry. In response, the China Coatings Industry Association submitted a report to the National Tax Committee, requesting tariff exemptions for imported high-titanium residues and establishing appropriate import tariffs for them.
According to the association, high-titanium slag is not waste or a by-product—it is a premium raw material used in titanium dioxide production. Experts note that titanium dioxide consumption reflects a country’s economic development and living standards. In 2005, China produced 700,000 tons of titanium dioxide, accounting for one-sixth of global output. Despite having 965 million tons of proven titanium reserves, high-grade titanium resources are limited. During the "Eleventh Five-Year Plan," it is estimated that China’s titanium dioxide output will reach between 3.7 million and 14 million tons. To meet demand, about 4.4 million tons of ilmenite or 2.8 million tons of high-titanium slag would need to be imported over five years.
High-titanium slag has a titanium content of over 7%, compared to around 45% in ilmenite. Using high-titanium slag results in higher-quality titanium dioxide and reduces acid, power, and water consumption by 40%, 20%, and 30%, respectively. It also significantly reduces the generation of solid ferrous sulfate.
However, despite its environmental and resource-saving benefits, high-titanium slag faces no specific import tariff code in China. Customs has classified it under "residue" or "unlisted chemical goods," imposing tariffs ranging from 4.5% to 6.5%. This contrasts sharply with the zero tariffs on ilmenite, which has dampened the willingness of titanium dioxide producers to use high-titanium slag and negatively impacted the industry's development.
In contrast, many foreign countries include high-titanium slag under the "2614" tariff code or assign a separate zero-tariff code. According to industry sources, using imported titanium slag instead of ilmenite aligns with national industrial policies. Authorities are urged to address the tariff issue promptly, enabling better utilization of overseas mineral resources and promoting sustainable growth in the titanium dioxide industry.
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