What is the impact of Chinas entering into WTO on Sinopec Corp.?
China became a formal member of WTO on December 11, 2001. The following are major changes of petroleum and petrochemical trade regulations and their impacts on Sinopec Corp.: 1. Concession of Tariff Import tariff of crude oil has been canceled from RMB16 per ton since January 1, 2002, which means the cost of importing crude oil will be saved at RMB16 each ton. Sinopec Corp. will benefit from this. Sinopec Corp. imported 68.93 million tons of crude oil in 2001, accounting for 70% of total quantity of crude oil. Tariff of petrochemicals: Refined oil products, Tariff of gasoline was reduced to 5% from 9%, however, it will keep the original level on diesel oil and kerosene, respectively 6% and 9%. As a result of concession of tariff of gasoline, the sales revenue of Sinopec Corp.’s refined oil products will be reduced accordingly. Chemical products, Tariff of rubber will keep the same level with the past; average tariff of synthetic resin in 2001 was 16%, while it will be reduced to 6.5% g
