China Cuts Export Tax Rebate
Over the years, the export tax rebate has been used as an effective policy tool to encourage or discourage exports, by allowing exporters to apply for a partial return of Value Added Tax already paid in China. The general trend has been a reduction of this kind of support to provide for a more balance economy, but this trend was reverse in 2008 when China’s export sector was hit hard by the global financial crisis. On a number of occasions since August 2008, rebates were actually raised for thousands of products.
A turning point may now have been reached. For the first time since July 2007, a number of rebates have been cancelled. This will impact exporters of more than four hundred product categories, from certain steel products to corn starch and chemicals, including:
- 7412100000 Refined copper pipe accessories
- 7413000000 Non-insulated copper stranded wire, cable, tape etc.
- 7415210000 Copper gaskets (including spring washer)
- 7415339000 Copper nuts, screws and bolts (including those steel-made with copper heads)
- 7011100000 Unsealed glass coverings or accessories (without parts) used for lamps
- 1108120000 Corn Starch