SHANGHAI, Jun 24, 2010 (Dow Jones Commodities News via Comtex) -- China may soon reinstate restrictions on toll trading of some metal products, the Shanghai Nonferrous Metals Network reported Thursday.
The restrictions, however, will be expanded to metal products whose export tax rebate will be abolished based a decision Tuesday by the Ministry of Finance, the report cited an unnamed official from the foreign trade department at the Ministry of Commerce as saying. The ministry declined to comment.
"Toll trade" refers to the import of raw materials for processing and re-export as value-added products. The trades can qualify for preferable tax treatment, such as exemption on customs duty and value-added tax.
The Ministry of Commerce in February 2009 began allowing toll trading of copper, aluminum and nickel in an effort to increase imports and exports to stem the wilting of the economy at the time.
China began restricting trade in low value-added processed products in 1999 and has made several amendments over the years based on the country's domestic economic development and macroeconomic control, hoping to curb its huge trade surplus and control energy consumption and pollution.