China announced on 28 April 2021 that it would cancel value-added tax rebates on the exports of 146 steel products from 1 May, in the biggest change to its steel trade policy in years. The 13 percent rebates had applied to pig iron, hot-rolled and cold-rolled coil, plate, rebar, wire rod, welded and seamless pipe, coated sheet and stainless products. The Ministry of Finance and the State Administration of Taxation gave exporters no transition period: the rebate would disappear for any customs declaration dated 1 May or later. At the same time, Beijing cut import duties on pig iron, direct reduced iron, steel scrap, ferrochrome and billets to zero, and raised export tariffs on ferrosilicon, ferrochrome and high-purity pig iron. The aim was to keep more steel at home, cool domestic prices and cut carbon emissions from the steel sector. Analysts noted the policy was milder than feared, since rebates survived on cold-rolled, galvanised and coated sheet, leaving room for some exports to continue.
Source: Pillsbury Law — https://www.pillsburylaw.com/en/news-and-insights/china-export-tax-rebate-steel.html
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