China announced the cancellation of Export Tax Rebates for 146 types of steel products, effective from May 1st!

According to news from the Ministry of Finance Website on the 28^th April, 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, the Tariff Commission of the State Council issued the “Announcement on Adjusting Tariffs on Certain Steel Products” (hereinafter referred to as the “Announcement”) According to the report, from May 1, 2021, tariffs on some steel products will be adjusted.

1. Cancellation of Export Tax Rebates for 146 types of steel products

The list of steel products for which export tax rebates have been cancelled is as attached:

2. Adjust the import and export tariffs on certain steel products

The “Announcement on the Cancellation of Export Tax Rebates for Certain Steel Products”, starting from May 1, 2021, the export tax rebates for certain steel products will be cancelled. Judging from the list, it contains 146 specific products such as alloy steel powder and stainless steel plates. This will undoubtedly greatly increase costs for export enterprises of steel products.

3. Adjustment and impact of import and export tariffs on steel products

In terms of imports, the “Announcement” clearly states that a zero import temporary tax rate will be imposed on pig iron, crude steel, recycled steel raw materials, ferrochrome and other products.

In terms of exports, the “Announcement” stated that the export tariffs on ferrosilicon, ferrochromium, high-purity pig iron and other products will be appropriately increased. After adjustment, the export tax rate of 25%, the temporary export tax rate of 20%, and the temporary export tax rate of 15% will be implemented respectively.