The Chinese Ministry of Finance, General Administration of Customs and State Administration of Taxation has announced its decision to cancel the tax protection policy on certain categories of imported steel into the country. The decision is intended to boost the usage of domestic steel and reduce the dependence on imported steel.
Accordingly, tariffs and import taxes will be imposed on 78 products which are produced domestically in the country. This includes products such as steel wire and electrical steel. The new tariffs will be applicable with effect from July 31st onwards. However, all orders signed before that date with shipments in 2014 will be exempted from the tariff.
The country has introduced tax protection policy on imports to boost foreign trade and to increase the use of domestic steel. Steel is the main category in the country’s imports, accounting for nearly 50% of the total imports by the country. Hot-rolled and cold-rolled steel coils are the heavily imported items.
The decision to cancel the tax protection policy will lead to large number of imported steels losing their advantage over domestic steel. Further it will help domestic steel to compete with international market on an equal footing.
Source – Scrap Monster