SteelOrbis Shanghai
China is to impose or increase export duties on products including steel billets, some finished steel products, alloy steel and coke as of January 1, 2008, the Chinese Ministry of Finance (MOF) announced on Friday, December 21.
The MOF explained that the aim of the export duty changes is to limit the country's growing trade surplus and to further strengthen control over the domestic steelmaking industry, which consumes large amounts of energy and is responsible for high levels of pollution. The MOF announcement also said that China will continue to apply interim tariff rates for exported coal, crude oil, and metal ores.
However, the announcement did not include the details of the adjustments to the export tariffs for steel products. At present, steel industry insiders are expecting that the export tariff will be increased from the current 15 percent to 25 percent for semis and coke. Furthermore, they expect that the tariff rate for hot rolled steel may either remain at five percent or be increased to 10 percent, and that the tariff for long products is likely to be upped from 10 percent to 15 percent. Also, it is thought likely that the VAT rebate for exports of CR and HDG products may be reduced to zero percent from the current five percent.
Meanwhile, the MOF also announced that certain adjustments to import tariffs would also be made. However, the details have not yet been made available.
SteelOrbis will keep readers posted as soon as further details emerge.