Changes to Chinese VAT refunds on Glass Products Effective 1st April 2026
RegaLead, like many other companies in the sector, are reliant on glass products imported from China, particularly when it comes to hand crafted, labour intensive processes.
In January 2026 the Chinese government changed the local rules pertaining to VAT refunds for local producers which has had a major effect on the cost base of our supply chain.
“ Starting April 1, 2026, China is cancelling the Value-Added Tax (VAT) export rebates for a wide range of glass and glass products, which will effectively increase export costs by roughly 9% to 13% for international buyers. This policy (often referred to as Announcement No. 2 of 2026) aims to reduce tax-driven export competition and covers products under Chapter 70 of the HS Code. [1, 2, 3]
Key Affected Tariff Codes (HS Codes)
The cancellations are widespread, targeting processed, industrial, and specialized glass, often under the following HS code ranges: [1, 2, 3, 4]
- 7001–7020: General glass and glass products.
- 7003–7009: Processed and safety glass, specifically:
- Tempered Glass (e.g., 7007.19).
- Laminated Glass (e.g., 7007.29).
- Insulated/Hollow Glass (e.g., 7008.00).
- Mirrors (e.g., 7009.xx).
- Wired Glass & Bent Glass.
Key Changes
- Rebate Reduction/Cancellation: Many products that previously enjoyed a 9% or 13% export VAT rebate will see this reduced to 0%.
- Effective Date: The changes apply to all export declarations filed on or after April 1, 2026.
- Impact on Pricing: Because the VAT rebate served as a price buffer, the removal forces the cost straight into the final purchase price, likely resulting in a 10-15% increase in FOB costs for buyers.”
These significant cost changes are out of the control of both RegaLead and our supply-chain partners and have a direct effect on our cost base. Due to the long-standing relationships with our supply partners in China we have managed to reduce the full effect down from the initial 13% down to 8%.
Despite our initial desire to hold pricing through 2026 to support our customers, we are now needing to increase prices on all our Signature units, glass bevels and fused tiles.
In addition to these unexpected cost increases, we have had very large increases in our inbound shipping costs, particularly on air freighted goods. Our Signature glass units are covered by our long-standing freight surcharge policy, but our bevels and fused tiles are not.
We are therefore increasing prices, effective from 1st June, on the following imported product ranges
Signature Glass (RL Codes) 4.5%
Bevelled glass clusters and pieces (RB codes) 8%
Fused Glass elements (RFU codes) 8%
