Home Blog Chinese Steel And Machinery Associations Suggest Higher Export Rebates

Chinese Steel And Machinery Associations Suggest Higher Export Rebates

Release time : 2015-06-15 12:32:30
21st Century Business Herald reported that China steel, machinery and petrochemical industries associations have again suggested to raise export tax rebates for some products to support low exports. The suggestions were put forward on an industrial meeting convened by the Ministry of Industry and Information Technology on last Friday. Over 10 government departments or industrial associations attended the meeting. And a consensus was reached on the meeting that low overseas demand still bucks a steady recovery of industrial economy, though industrial production, sales and profit are on the rise benefited from Beijing's 4 trillion fiscal stimulus. In detail, China Iron & Steel Association suggested to further uplift export rebates for high value added products, China Machinery Industry Federation hoped to resume bearing export rebate to 17%. And China Petroleum and Chemical Industry Association wanted to raise chemical products tax rebates to help reduce costs and increase global competitiveness. In fact, CISA has been asking for an increase since last year and suggested to raise it directly to the highest 17% in this May, when rebates for stainless steel and CR steel stood at 13% and most products like HR steel still beyond the cover of it. Long products even suffered a 15% tariff at that time. Responding to the strong requests, Beijing raised export tax regime by 4 to 9 percentage points for rail steel, some alloy bar and wire rod, medium plate, HRC all narrow strip etc effective as of June 1st. However, rebates for some high value added products like flats still have some distance from the top 17%. Mr Qi Xiangdong deputy secretary general of CISA said "Price for some steel products posted sharp declines recently, forcing part of steelmakers to cut output. And this coupled with other factors like exchange rate of Yuan, still battered domestic steel export and an export rebate increase on flat products, stainless steel and pipes would tip in favor of a healthy market development."