Boron steel export tax rebate cancellation for steel export

Behind the surge in Chinese steel exports last year, boron steel "hidden rules" was highly controversial. December 31, the Ministry of Finance and the State Administration of Taxation issued a notice to the decision of boron steel export tax rebates canceling since January 1, 2015 officially. Insiders pointed out that, although the market introduction of this policy has long been expected, boron steel export tax rebate cancellation will cause some short term negative impact on the entire steel industry. Boron steel export tax rebate cancellation will get 40 percent steel exports impacted.

December 31, the Ministry of Finance and the State Administration of Taxation jointly issued a notice, announced that from January 1, 2015, the adjustment of export tax rebate rate products, which explicitly proposed to abolish the boron steel export tax rebates.

It is reported that boron steel in the customs statistics, there are a total of four tariff, (1) for equal to or greater than 600mm wide boron alloy hot-rolled steel, the former enjoying tax rate of 13%; (2) the width of less than 600mm boron alloy hot-rolled steel plates, original to enjoy the export tax rebate rate of 9%; (3) boron alloy steel hot-rolled strip irregularly coiled rod, original to enjoy export tax of 13%; (4) thermal processing of boron alloy steel bars and rods, enjoy the original export tax rebate rate of 9%. After the tax adjustment, the above four categories boron steel export tax rebate rate are all zero.

It is reported that from January to November of 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. That means the boron steel export tax rebate cancellation will affect 40% of steel exports.  Data show that from January to October 2014, total exports of the preceding four boron steel amounted to 32.59 million tons, accounting for 44% of total steel exports over the same period. Compared to last year, these four boron steel exports increased by 42.5 percent year on year, higher than the growth in total steel exports over the same period, which increased by 65.3% boron steel, width less than 600 hot-rolled steel boron alloy year on year is as high as 79.9%.

That means the boron steel exports surge to support the substantial growth of China's steel exports. But behind it is in the context of the domestic steel oversupply, some steel enterprises use the "boron" unspoken rules.

It is reported that, because of our special alloy steel products to encourage exports, there are steel products exports policy to maintain the appropriate tax incentives. Earlier in the customs tariff provisions, amounted to 0.0008% boron and above alloy steel products according to the declaration can enjoy the export tax rebate policy.  Deputy Secretary of China Council for the Promotion of International Trade Metallurgical Council told NetEase, "Many steel enterprises boron in steel for export tax rebates, export prices to gain advantage." In response, many countries, especially in Southeast Asian countries mills "very angry", "strongly and repeatedly appealed to us to be addressed."

Thus, in 2014, at the same time of Chinese steel exports surge, the anti-dumping and subsidies received constantly, and in this context, for the 2015 boron steel export tax rebate cancellation, steel industry including seamless steel pipe and welded steel pipe was expected there, a lot of steel enterprises also expressed they were ready.