China Announces the Cancellation of Export Tax Rebates for Some Steel Products

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 recently issued an announcement to adjust the tariffs of some steel  products starting May 1, 2021.

Among them, the zero import tariff rate for pig iron, crude steel, recycled steel raw materials,  ferrochrome and other products is implemented; Appropriately increase the export tariffs of ferrosilicon, ferrochrome, high-purity pig iron  and other products, and implement separately the export tax rate of 25%, the temporary export tax rate of 20%, and the temporary export tax  rate of 15% after the adjustment.

In addition, the Ministry of Finance and the State Administration of Taxation also issued the "Announcement on the Cancellation of Export Tax Rebates for Some Steel Products" on the 28th, clarifying that from May 1, 2021, there will be 146 internal steel products including alloy steel powder, cold-rolled non-coiled material, stainless steel wire, etc., to cancel export tax rebates.

The  above adjustment measures are conducive to reducing import costs, expanding imports of steel resources, supporting domestic reduction in  crude steel output, guiding the steel industry to reduce total energy consumption, and promoting the transformation and upgrading of the  steel industry and high-quality development.

The background of this policy adjustment is that the iron and steel industry should achieve the goal of  "carbon neutrality" and "emission peak", and guide the iron and steel industry to reduce total energy consumption. The domestic crude steel output is facing pressure, and the policy is directed to meet the domestic demand mainly and moderately expand the output of crude steel.  Import resources are supplemented and exports are reduced.