Some hardware products export tax rebate on July 15th

Recently, the Ministry of Finance and the State Administration of Taxation promulgated the "Notice on Canceling Tax Refunds on Certain Goods Exports." Since July 15, 2010, China will cancel the export tax rebates for 406 kinds of commodities. Among them, steel products, especially hot rolling, will bear the brunt. Qi Xiangdong, deputy secretary-general of China Iron and Steel Association, said that the country intends to use this measure to curb excess steel production capacity and actively reduce trade frictions.

It is understood that this adjustment has been made for the first time since the 2008 global financial crisis erupted and China's merchandise export tax rebate rate has been lowered for seven consecutive times.

The 406 kinds of commodities are mainly composed of some steel materials, some non-ferrous metal processing materials, silver powder, alcohol, corn starch, some pesticides, pharmaceuticals, and chemical products, and some plastics and products, rubber and products, glass and products. Commodities. In terms of quantity, steel products bear the brunt of 48 products, including almost all hot-rolled products, as well as some medium and heavy plates, hot and cold rolled narrow bands and steel products, and only one cold-rolled product. In fact, rumors that hot-rolled, cold-rolled and other products are about to cancel export tax rebates have been in place for a long time. Iron and steel companies were quite nervous because hot-rolled and cold-rolled products were higher value-added products. In June 2009, due to the severe impact of the financial crisis on China's steel exports, the state introduced policies to export products such as hot-rolled products to export tax rebates. So far, this policy has just been introduced for about a year. The export tax rebate for hot rolled steel products is 9%.

The second item in this tax cancellation product involves hardware products (heading No. 7415). The specific products are: refined copper pipe fittings; copper nickel alloy or copper nickel-zinc alloy pipe fittings; other copper alloy pipe fittings; copper nails , tack nails, pushpin U-nails and similar articles (including copper heads made of steel); copper washers (including spring washers); copper other non-threaded products; copper wood screws (including copper heads made of steel); Other screw bolts and nuts (including copper and iron with copper heads); other copper threaded products; copper chains and their parts. A total of 10 products.

According to industry insiders, in the initial stage of the global financial crisis, raising the export tax rebate for some products has played a positive role in restoring China’s economy, restoring business confidence, and maintaining social stability. However, along with this, various countries have introduced trade protection measures, which have caused continuous escalation of trade frictions. In particular, China’s anti-dumping cases have gradually increased. In addition, China has been actively pursuing recognition as a “market economy country” by the international market, but tax rebates are in place. The policy has been criticized by the outside world. Cancellation of government protection is an important measure to actively strive for the status of a "market economy country." The cancellation of export tax rebates for some industries has prompted the need to adjust the product structure of the industry.

Combined with the recently introduced policies, the author believes that the cancellation of this tax rebate rate covers the dual meaning of curbing energy consumption growth and promoting industrial upgrading; balancing trade surpluses and meeting domestic consumption. The hardware industry as a whole, long-term good, short-term impact on various sub-sectors.