State Council executive meeting decided that with effect from December 1, to forecasting product to levy 15% export tariff. At this point, corundum products experienced by the export tax rebate, the elimination of export tax rebate to increase export tariffs on the road. The face of the financial turmoil sweeping the globe, this tariff adjustments in turn has brought to the abrasives industry, what kind of variables? The implementation of the policy period of December 1, 2008 to December 31, 2009. Can be seen in 2009 for the period of adaptation. Has just concluded abrasives industry, industrial development policy research conference, the industry experts, key business representatives were thinking in the industry and development. Also in connection with the national tariff adjustments in place to supplement and improve the places?

Reporters interviewed the country on these issues, Machine Tool Industry Association Branch of the Secretary-General Mr. Cui Yu Abrasives.

Reporter: corundum products plus the adjustment of tariffs, please talk about the Association of view.

Cui Yu: The State Department to adjust the decision of corundum products export tariffs, the association is supported by. This adjustment in line with current energy-saving emission reduction, development of environment-friendly society. According to statistics, China's exports accounted for corundum abrasives more than 70% of world trade in the international community has the right to speak, and the adjustment of export prices is also in the exercise of our right to speak. That export enterprises to improve their export prices to absorb increasing tariffs, the impact to enterprises, while enterprises should also improve product quality and reduce consumption from the cost savings aspects. We understand that foreign businessmen still be able to accept my corundum products with 15% of the tariff after the price, just to have a process of adaptation, which is making the foreign money, for the state tax. Quo is a good thing. Affected by raw material prices, the financial crisis and and product inventories and other factors, makes the product being unmarketable, foreign customers are holding cash at hand to watch, but it is imperative to increase tariffs, industries and enterprises should actively face.

Reporter: The tariff collection methods can be divided into ad valorem taxes and from the amount of taxes, what do you think take the form of corundum products to levy tariffs on more reasonable?

Cui: The tariff levy is based on transaction volume of 15% to collection, belonging to the ad valorem tax. High value-added products because of the high cost of high prices turned over more tariffs, low value-added products will be charged less duty. We also proposed that from the amount of tax to be charged according to tonnage. As a result, high added value and good quality products in the exports will be more dominant, is conducive to optimizing the structure of export products. This suggests that we will be ongoing, "abrasives industry, industrial development policy research," reflected a view to be adjusted later in 2009.

Reporter: This policy will abrasives industry in China What impact?

Cui: corundum products imposed export tariffs would lead to foreign clients to purchase to make selective and more inclined to buy good quality products. As exports increased costs, more abrasive will be fought in the domestic market enterprises. This business is a good domestic abrasive news. In the long run, will promote China abrasives industry towards a more healthy direction.