Australian olive oil producers should be aware of recent changes to export tax policy that are expected to increase the cost of glass bottles and jars used for olive oil packaging.

What Has Changed

China has removed two VAT export exemptions previously applied to glass packaging, including bottles and jars used for food and beverage products. These exemptions were previously applied at 4% and 9%, and their removal results in a combined effective increase of approximately 13% on affected glass packaging exported from China.

Expected Impact on Olive Oil Producers

As China is a major global supplier of glass bottles, this policy change is expected to:

• Increase the cost of Chinese-manufactured glass bottles and jars

• Result in price increases passed through the supply chain, from manufacturers to packaging suppliers and ultimately to olive oil producers
  
• Place upward pressure on packaging costs, which may affect production margins or retail pricing
  

Producers who rely on imported glass packaging from China should expect higher unit costs and potentially longer lead times as supply chains adjust.  Most of the glass packaging available in Australia is from China.

Considerations for Producers

Olive oil Consider alternative sourcing, bulk purchasing, or packaging design adjustments to help manage increased costsmay wish to:

• Review current and future packaging contracts and pricing
• Discuss cost impacts and options with packaging suppliers
  
• Consider alternative sourcing, bulk purchasing, or packaging design adjustments to help manage increased costs
  

Sources

• China Ministry of Finance & State Taxation Administration, Announcement No. 2 (2026) – Cancellation of VAT export rebates on selected products, including glass packaging
• Industry analysis from Chinese glass packaging manufacturers and exporters confirming removal of 4% and 9% VAT rebate rates on glass containers
  
• Trade and customs data identifying affected glass packaging under HS Code 7010