China changes tariff codes for HRC, CRC and coated steel, export tax rebates awaited

Tariff Commission of the State Council of China’s State Council announced on December 21 that it further defines the tariff code for the high value-added steel. Accordingly, five subclassifications have been inserted in categories—hot rolled coil (7208.5120), hot rolled coil (7208.5190), cold rolled coil (7209.1690), cold rolled coil (7209.1790) and coated coil (7210.4900), which are common steel products in exporting. For instance, in the January-November period this year, the export volume of those five categories amounted to 14 million mt, accounting for 17 percent of overall steel exports in the given period.

Meanwhile, the specific yield strength, tensile strength and elongation after fracture have been mentioned in classification, which makes market players believe that China’s import and export policies for different steel products will be accurately adjusted in the future. Moreover, export tax rebates for high value-added steel products may be on the way.  

In 2021, China cancelled export tax rebates for all steel products. Over the past few years, some steelmakers and China Iron and Steel Association have been actively communicating with relevant departments of China in the export tax rebate policies for high value-added steel products.