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