China’s export tax rebate on boron-added steel cancelled

December 31, the Ministry of Finance and the State Administration of Taxation jointly issued a notice, announced that china government cancel the boron steel export tax rebates from January 1st, 2015.

It is reported that from January to November 2014, China exported 83.74 million tons of steel, an increase of 46.8%, of which the total amount of boron steel accounted for about 43% of total steel exports. The boron steel export tax rebate cancellation will affect 40% of steel exports.

Because of special alloy steel products to encourage exports of steel products.Earlier in the customs tariff provisions, amounted to 0.0008% boron and above alloy steel products according to the declaration, china's steel companies can enjoy the export tax rebate policy (Rate as 9% or 13%).

For this reason, some steel enterprises adding boron alloy element in mild steel when rolling, then makeover into alloy steel to export, and thus enjoy the export tax rebate, which has become the industry "boron steel" unspoken rules.

Deputy Secretary General of China Council for the Promotion of International Trade Metallurgical Council Jiang told "Many steel enterprises export boron steel for obtaining tax rebates, exporting prices gains advantage and lower." In response, many countries, especially Southeast Asian countries's steel mills "very angry", "strongly and repeatedly appealed to us to be addressed."

Thus, in 2014 Chinese steel exports surge, while the anti-dumping received subsidies hair constantly,in this context,boron steel export tax rebate cancellation from 2015.

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