China has announced the removal of VAT rebates on exports of 146 steel products from May 1, a move the market had been widely anticipating since February.Steel products with HS codes 7205-7307 will be affected, which includes hot-rolled coil, rebar, wire rod, hot rolled and cold-rolled sheet, plate, H beams and stainless steel.
export prices for Chinese stainless steel softened in the past week, but exporters plan to raise their offers after China’s Ministry of Finance said the 13% export tax rebate for such products would be removed from May 1.
According to a notice released by the ministry late on Wednesday April 28, stainless flat steel products classified under the following Harmonized System codes will no longer be entitled to the rebate: 72191100, 72191210, 72191290, 72191319, 72191329, 72191419, 72191429, 72192100, 72192200, 72192300, 72192410, 72192420, 72192430, 72193100, 72193210, 72193290, 72193310, 72193390, 72193400, 72193500, 72199000, 72201100, 72201200, 72202020, 72202030, 72202040, 72209000.
The export rebate for stainless long steel and section under HS codes 72210000, 72221100, 72221900, 72222000, 72223000, 72224000 and 72230000 will also be removed.
China’s new tax regime for ferrous raw materials and steel exports will kick off a new era for the steel sector, one in which demand and supply will become more balanced and the country cuts its dependency on iron ore at a faster pace.
Chinese authorities announced last week that, from May 1, import duties for metallics and semi-finished steel would be removed and that export duties for raw materials such as ferro-silicon, ferro-chrome and high-purity pig iron would be set at 15-25%.
For stainless steel products, the export rebate rates for stainless HRC, stainless HR sheets and stainless CR sheets will also be canceled from May 1.
The current rebate on these stainless steel products is at 13%.
Post time: May-12-2021