Boron steel export tax rebates cancellation

On December 31 of the state council executive meeting, the review by the law of the People’s Republic of China government procurement regulations (draft), the meeting also decided to improve the export tax rebate mechanism, promote the foreign trade of qualitative, reasonably adjust some products export tax rebate rate, pollution existing in the production process of boron steel products cancel the refund.

To better service the open economy new system construction, promote the stable growth of foreign trade, the meeting decision, to further reduce the decentralization, the export rebate mechanism was improved. One is the lower the examination and approval authority, will work of production enterprises tax refund all down to the county (district) level for examination and approval, approval to the conditional place the delegate for examination and approval of foreign trade enterprise tax refund at the same time. Second, the implementation of classified management. Has “first turned back on for good corporate tax credit”, the business review with poor credit. Network, 3 it is to declare tax declaration for a variety of ways, such as, self-help provide enterprises with convenient tax returns. Part four is reasonably adjust products export tax rebates. From January 1, 2015, improve stent, electric bicycle, spraying robot products such as tax rebates, pollution existing in the production process of boron steel products cancel the refund. Through rotary control, promote foreign trade structure optimization.

Figures show that in 2014, China’s steel exports presents the fast growth momentum, 1 ~ 11 month accumulative total exports of 83.61 million tons of steel, year-on-year growth of 46.79%. Of (among) all the export of steel varieties, bar, wire rod, hot-rolled medium thickness steel strip as the main varieties, wide and boron steel accounted for more than 70%. According to statistics, in the export of steel products, boron alloy steel bar is accounted for 72% of total rod export, boron alloy wire accounted for 90%, and total boron steel occupies 43% of the total steel products export. Previously, boron steel can enjoy 5% ~ 5% of the tax rebates, the export tax rebates cancellation, in the short term will impact on steel export market.

Boron steel export tax rebates cancellation to wide attention by the industry in 2014 years, China’s iron and steel industry association, the planning institute of metallurgy industry, and other institutions in different occasions called for export tax rebates cancellation of boron steel. The export tax rebate policy, our country to PuGang (excluding the carbon steel alloy) has cancelled the export tax rebate, but exports special alloy steel products can enjoy the corresponding preferential policies of tax cuts, rebates in 5% ~ 13%. And enshrined in the customs tariff, boron content of 0.0008% or more by alloy steel products can declare, can enjoy export tax rebate policy. Under this policy, some enterprises in the PuGang adding boron element, transformed into alloy steel products are exported to foreign countries, and thus enjoy export tax rebates, has become the industry rules. Massive growth in China’s steel exports in 2014, has also led to double the case against Chinese steel products increased, grumbling against Chinese products containing boron steel exports. South Korea’s three big steel maker posco, eastern modern steel and iron in April 2014, at the same time China boron steel market has great impact on the south, make it into a crisis, its called “China’s steel exports boron thermal volume rebate (9%), but harm the interests of south Korean steel mills, forcing the domestic spot price weakening”. In this situation, China’s steel industry for boron steel export tax rebates cancellation has had expected.

Cancel steel export tax rebates, the short term to steel products export and the domestic market will produce certain effect, according to the 1, 2014 to November 83.61 million tons of steel exports, accounting for 40% of total exports of boron steel only if the backflow of the domestic market will greatly boost the domestic market supply pressure. But for now, the domestic and foreign steel spreads remain at high levels, cancel the export tax refund after the export of Chinese steel mills can still add other countries in the international market is also difficult to fill the blank part of the market. Now, national export tax rebates cancellation of boron steel main still is hit the non-standard exports, and in the long run, cancel the boron steel export tax rebates will help domestic iron and steel industry structure adjustment, accelerate the dissolve excess production capacity, backward and other related work.