China Removes Export Rebate on Several Steel Products
China’s Customs Tariff Commission of the State Council breaking the 3 month long suspense finally announced removal of export tax rebates on many steel
China’s Customs Tariff Commission of the State Council breaking the 3 month long suspense finally announced removal of export tax rebates on many steel products, currently enjoying 13% rebate, from 1 May 2021 to steel exports. At the same time, another announcement from the Ministry shows that China is taking measures to boost steel imports in order to reduce domestic crude steel production. The Ministry said ''The adjustments are conducive to reducing import costs, expanding imports of steel resources, supporting domestic reduction in crude steel production, guiding the steel industry to reduce total energy consumption, and promoting the transformation and upgrading of the steel industry and high-quality development. The measures will reduce the cost of importing, expand the import of iron and steel resources and lend downward pressure to domestic crude steel output, guiding the steel industry towards the reduction of overall energy consumption, promoting the transformation and high-quality development of the steel industry.”
The items covered in export rebate removal notice include carbon steel cold-rolled sheets, coated non-alloy steel sheets, non-alloy bars and wire rods, coated non-alloy wire rods, hot-rolled stainless steel coil, sheets and plates, cold-rolled stainless steel coil, sheets and plates, stainless steel bars and wire rods, alloy-added hot rolled coil, plates, alloy-added cold-rolled plates, coated alloy-added steel sheets, hot rolled non alloy and alloy added rebar and wire rod, carbon and stainless steel pipes and sections. Most of the steel products which have not had their rebate cancelled in the latest announcement, such as carbon steel HRC, have had rebates cancelled previously.
As per media reports new structure is
HR Coil (all width) - 0% tax rebate
HR Sheet & Plate (all sizes) - 0% tax rebate
CR Sheet (all sizes) - 0% tax rebate
CR Coil (above 600mm) - 13% rebate
GI Coil (above 600mm) - 13% rebate
PPGI/PPGL Coils & Roofing Sheet (all sizes) - 0% tax rebate
Wire Rods (all sizes) - 0% tax rebate
Seamless Pipes (all sizes) - 0% tax rebate
Please decipher the impact on your business through HS codes details given vide another article.
The ministry also announced a policy on adjusting import taxes of ferrous raw materials, which aims to reduce import costs and increase imports of steel making raw materials. Import duties on pig iron, DRI, scrap, ferrochrome, carbon billet and stainless steel billet are removed from 1 May while the export taxes on ferrosilicon, ferrochrome, high-purity pig iron and other products has meanwhile been raised by about 5%.