News & Publications

China Removes VAT Rebate on Certain Steel Exports

Effective May 1, 2021, a 13% VAT rebate no longer applies to many steel products upon their exportation from China.

146 products are impacted by these new regulations, including but not limited to pig iron, seamless and ERW pipes, wired rods, rebar, alloy, and stainless bards and rods, cold-rolled steel, hot-rolled coils, hot rolled steel, as well as structural and flat products.

This change in export policy coincides with reductions on import tariffs for such steel items as billets, pig iron, crude steel, and recycled steel raw materials.

The Chinese government appears to feel that decreasing import duties and increasing export costs should help the domestic steel industry scale back on the production of crude steel. With the end goal of reducing carbon emissions while promoting high-level development of the Chinese steel industry.

HTS Numbers With Canceled Export VAT Rebates:

72052100	72191429	72223000	72288000	73043110	73061900
72092500	72192100	72224000	72292000	73043120	73062100
72092600	72192200	72230000	72299010	73043190	73062900
72092700	72192300	72253000	72299090	73043910	73063011
72092800	72192410	72254010	73011000	73043920	73063019
72099000	72192420	72254099	73012000	73043990	73063090
72101100	72192430	72259910	73023000	73044110	73064000
72102000	72193100	72259990	73024000	73044190	73065000
72104100	72193210	72262000	73029010	73044910	73066100
72105000	72193290	72269110	73029090	73044990	73066900
72106900	72193310	72269199	73030010	73045110	73069000
72107010	72193390	72269200	73030090	73045120	73071100
72107090	72193400	72269910	73041110	73045190	73071900
72109000	72193500	72269920	73041120	73045910	73072100
72124000	72199000	72269990	73041130	73045920	73072200
72141000	72201100	72271000	73041190	73045990	73072300
72172000	72201200	72272000	73041910	73049000	73072900
72173010	72202020	72279090	73041920	73051100	73079100
72173090	72202030	72281000	73041930	73051200	73079200
72191100	72202040	72283090	73041990	73051900	73079300
72191210	72209000	72284000	73042210	73052000	73079900
72191290	72210000	72285000	73042290	73053100
72191319	72221100	72286000	73042310	73053900
72191329	72221900	72287010	73042390	73059000
72191419	72222000	72287090	73042400	73061100

These import and export changes will impact many companies, their landed cost, and their pricing to their customers. If you have any questions on how these regulations may affect you, please contact Allyn at sales@allynintl.com