China's lifting of VAT export rebate lacks commitment, says EUROFER

Published: Jan 15, 2015 15:02

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The European Steelmakers' Association (EUROFER) has stated that the Chinese decision to remove VAT export rebate on boron-added steel exports is lacking commitment.

Author: Paul Ploumis
15 Jan 2015 Last updated at 00:26:13 GMT
BRUSSELS (Scrap Monster): The European Steelmakers' Association (EUROFER) has stated that the Chinese decision to remove VAT export rebate on boron-added steel exports is lacking commitment. Firstly, it excludes hot-rolled wide strip. Secondly, it allows mills to enjoy VAT rebate by switching from boron-added to chromium-added products.

According to EUROFER, the lifting of rebate suggests a radical change in the country's steel export policy in response to the concerns raised by the global steel industry. However, it allows steelmakers in the country to continue enjoying rebate rates by replacing boron with other alloys such as chromium. Such an action could lead to serious steel performance issues, EUROFER noted.

Meanwhile, imports of alloyed steel by EU region jumped significantly higher during the past one year. The EU imports of boron-added plates from China surged higher by nearly 83% during the initial ten-month period in 2014. Rebar imports by the region soared by 375% during this period. According to EUROFER, the Chinese policy may cause temporary decline in EU imports. But, the imports are likely to peak once the market absorbs the policy change.

The Association called upon the EU Commission to act immediately in order to re-establish fair trade for European steelmakers. It noted that the Chinese export policy may distort the European steel industry and jeopardize the jobs in the region.

It must be noted that the Chinese Finance Ministry had announced cancellation of VAT export rebate on all boron-added steel except HR effective Jan 1, 2015.

customs finished steel export import VAT tax rebate tax policy chinese steel export shipment EUROFER

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