China cuts export rebates

ACCORDING to Chinese reports, China has reduced the tax rebate applicable to a wide number of steel exports.

ACCORDING to Chinese reports, China has reduced the tax rebate applicable to a wide number of steel exports.

If so, it’s the second such credit reduction in less than a year, as Chinese government officials work to stem the flow of steel exports, in response to criticism from trading partners.

China offers exporters of most steel products an 8% rebate on a value-added tax applied to all domestic goods. But, that rebate had been 11% as recently as last September.

Now the rebate will be 5% for exports of cold-rolled coils and many coated products (including hot-dipped galvanised, tinplate, and colour-coated strip.) As well, the rebate has been discontinued for hot-rolled coil and plate, sections, beams, channels, MBQ, and wire rod.

The reports suggest 83 different steel product categories will be affected. However, there will be no change in the more aggressive effort to curb exports of semi-finished steel goods — a 10% duty, in place since last November.