Finally, the long-awaited hour has arrived; China has announced its new tax rebate policy which will be effective from April 15 - as approved by China's State Council. The new taxes will be imposed according to the export date indicated on the declaration form for the cargo exported (which is used for tax refund purposes at customs).
According to the new policy, the tax rebate is expected to be decreased to zero percent for most steel products (a total of 83 tax numbers). The tax rebate rate for cold rolled sheet/coil, stainless steel and some special steel exports will be reduced to five percent (a total of 76 tax numbers), while the rebate rate for tubes and pipes will remain unchanged at 13 percent.
According to the policy issued today, the new rebate rates will be valid for shipments after April 15, even if the contracts were signed before that date. However, exports for foreign projects contracted before April 15 will be exempt from the new policy so long as applications are made to the tax office with the required papers before April 21.