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VAT and duties changes for China's steel industry

The Ministry of Finance and the State Administration of Taxation jointly issued on April 26th, the Announcement [2021] No. 16, “On the Cancellation of Export VAT refund for Certain Steel Products” starting from May 1st, 2021.

The implementation of the new policy will increase the production cost for Chinese exporters and consequently raise the price of steel products in the international markets. The cancellation will affect goods belonging to 146 different items classified in HS chapters 72 (Iron and Steel) and 73 (Articles of Iron and Steel).

The complete list of items interested in the cancellation of the export VAT refund is available here.

Announcement of the Customs Tariff Commi
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In addition, on April 27th, the Customs Tariff Commission of the State Council issued the Announcement [2021] No. 4 “On Adjusting the Tariff of Certain Steel Products”, which will guarantee a better supply of steel materials by reducing the import duty rates of certain steel products starting from May 1st, 2021.

In particular, the import duty rate for iron raw materials and recycled steel is lowered to a provisional rate of 0%

The complete list of the adjusted duty rates is available here.