Views: 0 Author: HUIHE Publish Time: 2026-01-12 Origin: HUIHE PACK
Dear Valued Partners,
At HUIHE, we believe in proactive communication and ensuring our clients are always ahead of the curve. As your trusted manufacturing partner for high-quality glass packaging, we are issuing this urgent notification regarding a significant policy change from the Chinese government that will impact the global supply chain for various glass products.
The Ministry of Finance and the State Taxation Administration of China jointly released Announcement No. 2 of 2026 on January 8, 2026. This critical directive stipulates the cancellation of export tax rebates for a range of products, including most glass packaging items, effective April 1, 2026.
This is not merely a change in administrative procedure; it's a fundamental shift that will affect your sourcing costs and procurement strategies. We are committed to helping you understand these changes and adapt seamlessly.
The new policy eliminates the Value-Added Tax (VAT) export tax rebate that has historically been applied to many exported goods. For glass packaging, this effectively means that the cost base for manufacturers like HUIHE will increase, as the VAT portion will no longer be refunded for shipments departing China after the cutoff date.
Key Details:
Issuing Authorities: Ministry of Finance and the State Taxation Administration of China
Announcement Number: Announcement No. 2 of 2026
Issuance Date: January 8, 2026
Effective Date: April 1, 2026
Official Source Link: Ministry of Finance Website
Download the Full Policy Document: Detailed Product List PDF
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The attached official list (see PDF link above) specifically targets several HS codes relevant to our industry. As a factory specializing in diverse glass packaging solutions, we have meticulously reviewed the list. The primary categories affected include:
7010.1000: Glass ampoules
7010.2000: Glass stoppers, lids, and other closures
7010.9010: Glass containers (exceeding 1 liter volume) for conveyance or packing
7010.9020: Glass containers (0.33 to 1 liter volume) for conveyance or packing (e.g., spirits bottles, food jars)
7010.9030: Glass containers (0.15 to 0.33 liter volume) for conveyance or packing (e.g., smaller cosmetic and fragrance bottles)
7010.9090: Other glass containers (not exceeding 0.15 liter volume) for conveyance or packing (e.g., miniature perfume bottles, nail polish bottles)
This broad coverage means that a significant portion of our glass bottle and jar offerings, from liquor and food packaging to cosmetic and pharmaceutical vials, will see a direct cost adjustment.
Quick Reference: Affected HS Codes for Glass Packaging
Crucial Deadline:
The policy's application is determined by the export declaration date. This means any goods officially declared for export on or after April 1, 2026, will be subject to the new no-rebate rule, regardless of when the order was placed or production began.
Let's Talk About Your 2026 Strategy. The impact of the new tax policy varies by product and volume. We are happy to discuss how these changes specifically affect your business. Feel free to reach out to us at [ max@huihepackaging.com ] or send inquiry for a deep dive into the policy details. We are more than just a factory; we are your strategic consultants in the glass industry. --- HUIHE PACK |
This adjustment is part of China's broader economic strategy to:
Encourage manufacturers to move up the value chain, focusing on high-tech, high-quality, and innovative products rather than relying on volume and low-cost exports.
Glass manufacturing is energy-intensive. This policy aims to incentivize factories to invest in greener technologies and more efficient production methods, aligning with global environmental goals.
For HUIHE, this means a direct increase in our operational costs, which will necessarily translate into revised pricing for new orders placed for post-April 1st shipments. This is an industry-wide impact, not specific to any single factory.
The cancellation of the export tax rebate is a significant shift that will resonate throughout the global glass packaging supply chain. For international buyers, the impact primarily manifests in three critical areas:
Historically, the export tax rebate (typically around 13%) acted as a critical price buffer. With its removal, this cost will transition directly into the purchase price. As a factory, while we strive to absorb costs through internal efficiencies, this policy change represents a structural industry-wide price adjustment that all global procurement teams must factor into their 2026 budgets.
We anticipate a massive surge in order volume during the first quarter of 2026 (January–March) as businesses worldwide race to complete export declarations before the April 1st deadline. This "export rush" will inevitably lead to tightened production capacities and logistics bottlenecks across the industry. Early scheduling is no longer just a suggestion; it is a necessity to ensure your goods depart before the policy takes effect.
This policy serves as a catalyst for industry consolidation. Smaller manufacturers with thin margins may face severe financial strain, potentially leading to sudden supply disruptions. For buyers, prioritizing "Supply Chain Stability" over "Lowest Price" is now paramount. Partnering with a financially stable, direct factory like HUIHE ensures that your production remains secure amidst these regulatory fluctuations.
In times of regulatory change, the perspective of a direct manufacturer is indispensable. Understanding the operational realities behind the policy allows buyers to make more informed, strategic decisions. At HUIHE, we highlight two primary reasons why our factory-level insights are critical to your business right now:
The 13% export tax rebate was historically a refund of the VAT paid during our production process. Its cancellation represents a direct loss of net margin at the manufacturing level. Consequently, the upcoming ex-factory price adjustments are not arbitrary increases but a necessary, industry-wide response to the new tax structure. By working directly with our factory, you receive transparent cost breakdowns, ensuring you are not overpaying during this market transition.
We project a nationwide "order rush" across China's glass industry in Q1 2026. As a factory, we have a front-row seat to the tightening of production schedules. This surge in demand will likely lead to "capacity logjams," where late-coming orders may face significant delays or miss the April 1st tax-free window entirely. Our internal planning allows us to provide real-time updates on kiln schedules and production slots, helping you bypass the risks of a congested supply chain.
To minimize the impact of the upcoming tax rebate cancellation, we recommend that our global partners take the following proactive steps. As your manufacturing base, HUIHE PACK is ready to support you in executing these strategies:
The most immediate way to protect your bottom line is to expedite your procurement timeline. We strongly advise completing production and finalizing export declarations before March 15, 2026. This ensures a safe buffer to clear customs and secure the current rebate before the April 1st cutoff.
For high-volume items such as spirits bottles or food jars, consider "Strategic Stockpiling." By placing bulk orders now, you can lock in current pricing for your 2026 inventory. Additionally, signing a Long-Term Agreement (LTA) with us will help stabilize your supply chain and allow for a phased transition into the new cost structure post-April.
If your budget is sensitive to the 13% adjustment, our engineering team can assist with high-impact optimizations:
Lightweighting Technology: Our engineers can help redesign your glass containers to reduce wall thickness while maintaining structural integrity. Lower glass weight directly reduces raw material costs and ocean freight expenses.
Value-Added Upgrading: Consider upgrading your packaging with premium finishes (e.g., custom embossing or eco-friendly coatings). Increasing the perceived brand value can help absorb the rise in base packaging costs.
One-Stop Accessory Sourcing: Explore sourcing non-glass components (like plastic pumps, aluminum caps, or sustainable liners) that are not affected by this specific policy change, optimizing your overall landed cost.
To further offset tax-related increases, we suggest exploring settlement in RMB (CNY) or utilizing financial tools to lock in exchange rates. This can provide an additional layer of protection against currency fluctuations that often compound with policy changes.
At HUIHE, we view this policy change not just as a challenge, but as an opportunity to demonstrate the strength and transparency of our partnership. As your direct manufacturing base, we stand by the following commitments to ensure your business continuity:
While the policy environment is shifting, our dedication to your success remains constant. We are committed to absorbing as much impact as possible through continuous improvement in our production processes and more precise scheduling. Our goal is to work alongside you to navigate these changes, ensuring that we mitigate risks and maintain supply chain stability together.
Trust is built on honesty. We guarantee that any price adjustments made post-April 2026 will be based strictly on verified policy changes and actual cost fluctuations. We offer a "Transparent Quote Breakdown" for all partners, clearly showing how the tax rebate cancellation affects the final price, ensuring you have the data needed for your own internal reporting.
The new list of affected HS Codes can be complex. To help you plan accurately, we provide a Free HS Code Audit Service. Our export specialists will help you verify your specific product categories against the latest government lists, confirming whether your current or future orders are impacted and to what extent.
As a dedicated factory, we are committed to minimizing the impact on your business through operational efficiencies and transparent communication. Here's how we are preparing and how you can strategically respond:
Optimized Production Scheduling: We have already begun to adjust our production lines and capacity allocation to prioritize orders that can be completed and shipped before April 1, 2026.
Cost Control Initiatives: Our engineering and procurement teams are actively exploring every avenue to enhance efficiency, reduce energy consumption, and negotiate better raw material prices to mitigate the impact on our ex-factory prices.
Technological Investment: We are accelerating investment in advanced manufacturing technologies that can improve yield, reduce waste, and enhance product quality, ultimately offering better value.
Deep Customization Support: We encourage complex OEM/ODM projects now. Investing in custom molds and designs with us creates a higher barrier to exit for future policy shifts, solidifying our long-term partnership.
Act Now for Pre-Policy Savings: We strongly recommend placing your orders as soon as possible, ideally targeting completion and export declaration by mid-March 2026. This is the most direct way to secure your current pricing.
Review and Accelerate Your Procurement Plan: Re-evaluate your 2026 glass packaging needs. Consider placing larger, strategic orders now to build a buffer inventory under the current tax rebate structure.
Explore Light-Weighting and Design Optimization: Our R&D team is available to consult on design modifications, such as lightweighting your current glass packaging. Reducing material usage can help offset a portion of the increased cost in the long run, and also contributes to sustainability.
Confirm HS Codes & Impact: If you have any doubts about specific products you order from us, please reach out with your product details. We will cross-reference with the official list to confirm the exact impact on your orders.
Policy Implementation Timeline
The cancellation of China's export tax rebate marks a new chapter for the glass packaging industry. While this transition brings cost challenges, it also highlights the importance of working with a manufacturer that prioritizes transparency, technical innovation, and strategic planning.
At HUIHE, we are ready to help you navigate this change without compromising your product quality or market competitiveness. Whether it's optimizing your designs for lightweighting or securing a production slot before the March 15th rush, our team is here to provide the expert guidance you need.
Don't wait until the price goes up. Secure your costs and production capacity now.
Take the Next Step:
Consult Our Specialists: Contact us today for a customized supply chain strategy tailored to your 2026 procurement needs.
Free Policy Audit: Send us your current product list, and we will provide a free HS Code impact assessment.
HUIHE Packaging Group - Tap into 16 Years of Glass Bottle Expertise:
Contact us now to get your customized glass alcohol bottle wholesale quote!
Email: max@huihepackaging.com
