Chinese government has removed tax rebate on alloy grade Bar & Wire Rod from immediate effect.
Export tax benefit on certain alloy grade steel that was being largely enjoyed by the Chinese steel exporter, is now withdrawn wef 1 Jan, 2015. Bars (HS code 72283010) had a rebate of 9% whereas, Wire Rod (HS code 72279010) had 13% before this announcement.
It is a positive move for steel manufacturers in India, who were threatened from rising import of Chinese Bar & Rod.
Recently on 25 Dec’14, the Bombay High Court had also dismissed a plea against Rebar importers, who had filed a case against CBEC (Central Board of Excise and Customs), which had passed an order dated 7 Nov’14 that clearly mentioned all imports on Rebar will be mandatory according to BIS norms.
As per Chennai Rebar Association’s spokesperson, “There should be level playing field, i.e. all imports should be legal and as per BIS norms. Since last couple of months, booking of Rebar & Wire Rod has been seen less owing to disputes going on between the Bombay High Court and the importers, along with rumors of China rebate cancellation, which is now implemented.”
He added that the All India Steel Reroller Association (AISRA) welcomes Chinese government’s step to withdraw the tax rebate, which exporters claimed by adding 0.0008% Boron to Non-alloy steel and categorize it as Alloy steel.
Total Imports of Bar & Rod till Oct’14
| Month | Alloy Steel | M-o-M | Non-Alloy Steel | M-o-M | Total | M-o-M |
| Apr’14 | 21,560 | 0 | 25,210 | 0 | 46,770 | 0 |
| May’14 | 32,070 | 49% | 34,580 | 37% | 66,650 | 43% |
| Jun’14 | 8,230 | -74% | 45,970 | 33% | 54,200 | -19% |
| Jul’14 | 14,380 | 75% | 73,090 | 59% | 87,470 | 61% |
| Aug’14 | 44,040 | 206% | 64,450 | -12% | 108,490 | 24% |
| Sep’14 | 23,490 | -47% | 131,500 | 104% | 154,990 | 43% |
| Oct’14 | 61,600 | 162% | 142,300 | 8% | 203,900 | 32% |
| Total | 205,370 | – | 517,100 | – | 722,470 | – |
Quantity in MT
Source: JPC – Ministry of Steel
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