China has announced a 3 percent tax on imports of steam coal with low calorific value but is yet to spell out details of its applicability, leading to uncertainty whether shipments from top low-grade supplier Indonesia will be subjected to the tariffs.
Indonesia is the biggest seller to China of lignite, a form of low-grade coal, with its shipments accounting for 97 percent of China's total lignite imports in 2013 up to end of July.
The statement did not specify what grades of lignite, in terms of heating value per kilogram, would be affected, although industry sources said Chinese customs statistics classify coal with a calorific value of between 3,800-4,200 kcal/kg as lignite.
China's State Council, the country's cabinet, last week approved a plan to implement a 3 percent tariff on lignite imported from countries under the most-favoured nation trade status, according to a statement from the finance ministry.
The new tax rule came into effect on Aug. 30, according to the statement. Lignite currently enjoys zero import tariff.
Source: Reuters
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