Boron steel export tax rebate cancellation does not have a grace period, a greater impact on business

Ministry of Finance and the State Administration of Taxation issued a notice, decided since January 1, 2015 officially canceled boron steel export tax rebates. Currently boron steel in the customs statistics there are four tariff: (1) equal to 600mm wide at boron alloy hot-rolled steel, the former enjoying tax rate of 13%; (2) the width of less than 600mm hot-rolled steel sheet containing boron former enjoy the export tax rebate rate of 9%; boron alloy steel hot-rolled strip (3) irregularly coiled rod, original to enjoy export tax of 9%; (4) thermal processing of boron alloy steel bars, rods, formerly enjoyed the export tax rebate rate of 13%. After the tax adjustment, the above four categories boron steel export tax rebate rate of all zeros.

Data show that from January to November 2014, the country exported 83.61 million tons of steel, representing a substantial increase of 47%. One reason is that boron steel exports surge, boron steel accounted for nearly 40% of the country's steel exports, the export growth of boron products exports more than 60% of the total increment. Boron steel in the adjustment of the tariff lines under four sub-species, for example, over the same period of boron alloy steel bars, rods exports 11.967 million tons, accounting for 71% of the steel bar exports; boron alloy plate 4791000 tons, accounting for 77% of the export volume of the plate; boron alloy steel wire rod 9.355 million tons, accounting for 91% of the wire rod exports; boron steel narrowband export 90,000 tons, accounting for 38% of exports of hot rolled narrow, the proportion of all higher.

Lange Steel Information Research Center estimates, the iron and steel enterprises, adding boron extremely low cost per ton, with a cost of about 10 to 20 yuan of export tax rebates in exchange for about $ 300. Crazy boron exports also brought serious trade friction. Lange Steel Information Research Center monitoring shows that only in 2014, a total of more than 10 countries and regions, China's steel products launched since the last 30 trading investigation.Even so, when the tax is expected to abolish really into reality, the market still appears to be caught off guard. 

The elimination of export tax rebates steel exports will have an immediate impact, steel exports are expected in the first quarter of 2015 will be significantly reduced by 20% to 30%, do not rule out a higher possibility. The actual impact has been apparent in the corporate body. "Because there is no grace period policy, direct execution by policy, orders caused by breach of contract, or cancel the tax cost borne by itself, the loss may be a billion dollars." China's export quotations are generally lower than in other countries offer about $ 20 to $ 40, cheap the price makes the product competitive advantages. But the abolition of export tax rebate 300 yuan per ton after all varieties such as maintaining the current price would have a loss, which means that in the short term, there are companies that will increase the loss of orders, order the larger, more losses.