Chinese export tax rebate rate of some steel products increased to 13%
The Ministry of Finance and the State Administration of Taxation issued an announcement on increasing the export tax rebate rate of some products, which includes certain steel products such as coated and painted steel products and stainless steel products. The implementation of this policy will effectively reduce the cost of steel exports and increase the competitiveness of exporting enterprises. At the moment when the volume of steel exports continues to decline, it will have a positive impact on the steel industry. In January of this year, due to the impact of the Spring Festival holiday, the volume of steel exports experienced a seasonal decline. In February, with the spread of the new corona epidemic in China, some countries feared to be infected and adopted restrictions on China’s steel exports, which led to a continued decline in steel exports in February. According to data released by the General Administration of Customs, China’s cumulative exports of steel from January to February 2020 were 7.811 million tons, a year-on-year decrease of 27.0%, the fastest decline since March 2018. At present, China’s steel export destinations are mainly concentrated in Asian countries. In 2019, the volume of steel exports to Asia will be 45.07 million tons, accounting for 70.0% of the total steel exports; the Americas region will be followed, with exports of 7.743 million tons, accounting for 12.0%; The African region ranked third with 6.105 million tons, accounting for 9.5%; the European region was 4.68 million tons, accounting for 7.3%; the smallest was Oceania, with 754,000 tons, accounting for only 1.2%. Among the products announced by the Ministry of Finance and the State Administration of Taxation to increase the export tax rebate rate, there are 122 steel products under the customs code 72 and 73, of which 37 are under the 72 code, involving stainless steel, coating, alloy steel. There are 85 kinds of products under 73 code, involving seamless pipes, welded pipes and other steel products. By increasing the export tax rebate rate of steel-related products, on the one hand, it will effectively reduce the burden on enterprises and increase their enthusiasm for exporting steel products; on the other hand, it will provide export companies with a certain price reduction space and improve the international competitiveness of steel-related products. Overall, the increase in export tax rebate is good for China’s steel exports.