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Adjustment of steel import and export policy
Adjustment of steel import and export policy
Date:2021-05-02 Views:1762
On April 28, the Ministry of Finance and the State Administration of Taxation issued the announcement of the Ministry of Finance and the State Administration of Taxation on canceling the export tax rebate of some iron and steel products (hereinafter referred to as the announcement), which will cancel the export tax rebate of some iron and steel products from May 1, 2021. At the same time, the Tariff Commission of the State Council issued an announcement to adjust the tariff of some iron and steel products from May 1, 2021.

The cancellation of export tax rebate involves 146 tax numbers of iron and steel products, and 23 tax numbers of high value-added and high-tech products are retained. Taking the annual export of 53.677 million tons of steel in 2020 as an example, before the adjustment, about 95% of the export volume (51.11 million tons) adopted the 13% export rebate rate; After the adjustment, about 25% (13.58 million tons) retained the export tax rebate, and the remaining 70% (37.53 million tons) cancelled the export tax rebate.

At the same time, the tariff of some iron and steel products will be adjusted, and the temporary duty rate of zero import will be implemented for pig iron, crude steel, recycled iron and steel raw materials, ferrochrome and other products; The export tariff of ferrosilicon, ferrochrome, high purity pig iron and other products should be appropriately increased. After the adjustment, the export tax rate of 25%, the provisional export tax rate of 20% and the provisional export tax rate of 15% should be implemented respectively.

Chinas iron and steel industry has been to meet domestic demand and support national economic development as the main goal, and maintain a certain amount of iron and steel exports to participate in international competition. Based on the new development stage, implementing the new development concept and building a new development pattern, the state has adjusted the import and export tax policies of some iron and steel products. As a combination of policies to curb the rapid rise of iron ore prices, control production capacity and reduce production, it is a strategic choice made by the state after the overall balance and a new requirement of the new development stage. Under the background of "carbon peak, carbon neutral", facing the new situation of domestic market demand growth, resource and environment constraints, and green development requirements, the adjustment of iron and steel import and export policy highlights the national policy orientation.

First, it is conducive to increasing the import of iron resources. The temporary duty rate of zero import shall be applied to pig iron, crude steel, recycled steel raw materials and other products; Appropriately increasing the export tariff of ferrosilicon, ferrochrome and other products will help to reduce the import cost of primary products. It is expected that the import volume of these products will increase in the future, which will help reduce the dependence on imported iron ore.

Second, it is conducive to improving the domestic steel supply and demand relationship. This time, 146 general steel products will be cancelled export tax rebate, and the export volume will be 37.53 million tons in 2020, which will promote the export of these products back to the domestic market, increase domestic supply, and help to improve the domestic steel supply and demand relationship. This also releases a signal to the iron and steel industry that the state restricts the export of general steel products, suggesting that iron and steel enterprises should put their foothold in the domestic market.
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