In 2014, the Chinese Ministry of Finance released its "Tariff Implementation Plan," which confirmed that a wide range of coal types would be subject to a 0% import tariff. This includes unformed anthracite (whether or not in powder form), coking coal, other bituminous coal, manufactured coal (whether or not pulverized), coal briquettes, and similar solid fuels made from coal. Additionally, coal or semi-coke—whether molded or not—will also be imported duty-free.
According to data from the General Administration of Customs, China's coal imports have been on a steady rise. In 2011, the country imported 182.4 million tons of coal, representing a 10.8% increase compared to the previous year. The following year, 2012, saw a record high of 290 million tons. By the first 11 months of this year, cumulative coal imports had already reached the total of the previous year, with industry projections suggesting that over 300 million tons may be imported in 2014.
In May 2014, the National Energy Administration issued a draft document titled "Provisional Measures for the Quality Management of Commodity Coal." It set strict quality standards for imported coal, including a minimum calorific value of 4,544 kcal/kg, an ash content not exceeding 25%, and sulfur content no higher than 1%. These regulations effectively created import thresholds for coal traders. Despite the zero-tariff policy, it does not mean that there are no restrictions on coal imports.
Industry sources indicated that although the government has not imposed a total cap on coal imports, there is still some control over high-pollution coal types, such as those with high ash or sulfur content. The State Council recently released "Opinions on Promoting the Smooth Operation of the Coal Industry," which emphasized strengthening quality inspections of imported coal and including lignite in the statutory inspection list. It also called for research into differentiated import tariff policies, aiming to encourage the import of high-quality coal while prohibiting the production, use, and import of low-grade coal with high ash content.
The impact of imported coal is most evident in the thermal coal market, where competition from foreign coal is more pronounced. In contrast, the effect on the coking coal market is relatively smaller. Analyst Wang Xufeng noted that the price of imported coal arriving in Hong Kong via long-distance shipping is, on average, about RMB 60 per ton lower than domestic prices. For coking coal, which is less affected by international trade, the impact of imports is much less significant.
Du Hongfeng, an analyst at Nisshin Shinkansen, explained that coking coal has more complex specifications and less of a price advantage, making it harder for importers to achieve strong profits. He also revealed that several companies with coking coal import licenses did not perform well in the import business last year.