China Cancels Export Tax Rebates for 146 Steel Products
China cancels export tax rebates for 146 steel products, which is commencing on May 1, 2021.
In order to better guarantee the supply of steel resources and promote the high-quality development of the steel industry, with the approval of the State Council of China, the Tariff Commission of the State Council recently issued an announcement to adjust the tariff of some steel products from May 1, 2021.
At the same time, the export tax rebate of some steel products will be canceled. According to the announcement of the Ministry of Finance and the State Administration of Taxation, it is clear that from May 1st, the export tax rebate of 146 types of steel products such as alloy steel powder, cold-rolled non-coiled material, stainless steel wire, and steel sleepers will be canceled.
After the long wait and make speculation, China governing bodies have finally announced the list of the steel products that will no longer enjoy any tax rebates when exporting, and the new measure will be applied to any customs declaration forms that are dated on May 1st and afterward the joint statement explained briefly.
The abolition of export tax rebates for related products will increase the export costs of related export companies. Related companies can only obtain profits by increasing the export price of steel products, which will weaken the price competitiveness of related products in the international market and inhibit their exports. Most product exports will be transferred back to the domestic market, which will help ease the tension in domestic supply and demand and help stabilize steel prices.
The measure that China cancels exports tax rebates has affected the export prices of our honed tubes and chrome-plated rods to a certain extent, but basically has no effect on the export prices of hydraulic cylinders and cylinder parts. At the same time, we are actively discussing countermeasures to deal with this problem, hoping to ensure reasonable profits and minimize the increase in customer costs, so as to achieve a win-win situation.