China has rolled out stricter tax regulations on goods exports, specifically aiming at closing loopholes in export management and enhancingtax compliance, Mysteel has learned from an official announcement on March 28.
The announcement was jointly issued by five Chinese government departments - the State Taxation Administration, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs, and the State Administration for Market Regulation.
Under the new rules, taxable steel exports will be subject to the same value-added tax (VAT) and consumption tax as if sold domestically, regardless of whether they are exported directly by producers or through third-party agents.
Exporters must verify their tax registration status before customs declaration. For steel shipped via agents, the consignor must obtain an "Entrusted Export Goods Certificate" within the following tax declaration period and submit it to the agent for processing.
Companies with abnormal tax statuses - such as deregistered or unverified entities - must resolve their tax issues before proceeding with export transactions, according to the announcement.
Authorities have also imposed stricter penalties for tax evasion, including falsifying export transactions, underreporting export values, or altering customs declarations. Violators will face penalties under China's tax and customs laws, with severe cases potentially leading to criminal prosecution.
The new policy will directly affect the country's steel export sector, where the tactics of buying export license documentation for customs clearance to evade taxes have been a stubborn headache, resulting in lower steel export prices, tax revenue losses, and increasing concerns among other countries about potential dumping by Chinese suppliers. China's steel exports exceeded 100 million tonnes in 2024, Mysteel Global notes.
This policy underscores China's efforts to enhance tax compliance and stabilize steel export taxation, reinforcing fair trade practices in the global steel market.
Sourcing from: Mysteel
Written by Adele Pan, panqinjie@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
Time：2024-02-21
"Domestic steel demand could stay weak at the end of the year, while steel output is likely to remain at a low level with the production curbs imposed on steel mills in the winter heating season," CISA pointed out in the report.
The association mainly attributed the overall weak demand to slowing growth among major steel - consuming industries such as infrastructure and property development - where investment is lagging - and industrial machinery manufacturing, despite the slight recovery in business.
However, a new balance will emerge in supply and demand in the coming term as crude steel output may stay low, the report said. Output may dip due to restrictions placed on mills' production to improve air quality when Beijing hosts the Winter Olympic Games in February and the 'Two Sessions' political meetings in March, CISA noted.
During November, China produced 69.31 million tonnes of crude steel, lower by 22% from one year earlier, with daily crude steel output averaging 2.31 million tonnes/day, almost unchanged from the October average, CISA said, quoting data from the country's National Bureau of Statistics.
Besides, total inventories of the five steel major products comprising rebar, wire rod, hot-rolled coil, cold-rolled coil and medium plate in the country's 20 cities surveyed by the association slipped by 4.4% from late November to 8.27 million tonnes as of December 10. The total stocks held by CISA's member mills increased 6.9% during the same period to 13.34 million tonnes, leading CISA to suggest that prices are unlikely to experience large fluctuations as traders' stocks have declined further, even though mills' inventories have climbed.
Chinese steelmakers are still under great pressure to reduce their production costs due to the recovery in prices of imported iron ore and scrap this month, CISA warned. As of December 10, prices of imported iron ore and scrap had gained 3.1% and 1.9% respectively from the end of November, the association noted.
CISA suggested that domestic steelmakers pay more attention to Beijing's series measures to stabilize the economy in 2022 and arrange their production reasonably to keep domestic steel prices stable.
Source:Mysteel
Written by Nancy Zheng, zhengmm@mysteel.com
Edited by Zhenqi Yang, yangzhenqi@mysteel.com
Time：2024-09-09
An Industry insider suggested that although sales showed signs of recovering last month, "the performance of the property market in September will be crucial to the improvement of market sentiment," he said.
"With the arrival of the traditional peak season for the property sector in September, various measures to stabilize the market have been introduced and implemented, which may be conducive to the market mood," he elaborated.
Among the 16 major developers, six recorded on-month rises in sales value during August, while two saw on-year gains, the data showed. Poly Developments and Holdings Group Co (Poly Development) was the top-selling real estate enterprise last month, with its contacted sales climbing 16.6% on month to Yuan 38.5 billion.
Hongkong-listed China Jinmao Holdings Group achieved the largest on-month rise in contracted sales, surging 57.4% on year to Yuan 16.5 billion, according to its release.
As for January-August, the combined sales of the 16 developers plunged by 42.8% to Yuan 1.94 trillion, Mysteel calculated based on the data.
Within the total, Poly Development, China Vanke Co and Country Garden Holdings Co (Country Garden) were the only three developers whose sales exceeded Yuan 200 billion in the past eight months. Country Garden did not release data for contracted sales, but it posted the equity proportion of its investment in a property.
Source:Mysteel
--Written by Rong Zhang, zhangronga@mysteel.com
--Edited by Zhenqi Yang, yangzhenqi@mysteel.com
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