Yesterday, the Ministry of Finance formally announced that since January 1, 2008, it has lowered the export tariffs for gasoline, diesel, and aviation kerosene, and raised the export tax rate for steel billets and some steel, coke, and semi-coke.
According to an announcement by the Ministry of Finance, China will reduce the import tariff rates for gasoline, diesel and aviation kerosene from 2% to 1% from January 1 next year. The import tariff rate for fuel oil will remain at 3%. The naphtha import tariff rate is also set at 1%. In addition, the announcement shows that China's crude oil export tariff rate will remain at 5%.
In view of the strong domestic demand for refined oil products, the Chinese government has been cutting import tariffs and encouraging imports in the past few years. The last time China lowered the import tariffs for gasoline, aviation kerosene and diesel was on November 1, 2006, when the tax rate was lowered from 5% to 2%.
In addition, the export tax rates for steel billets and some steel, coke and semi-coke are raised. The billet export tax rate will be increased from the current 15% to 25%, and the export tax rate for some steel products will be increased from the current 5% to 15%.
Not long ago, relevant persons of the Ministry of Finance accepted an interview with Xinhua News Agency that China will further restrict the export of high-energy and high-pollution products and continue to impose export tariffs on products such as coal, crude oil, and metal ore at a tentative tax rate. Pulp, coke, ferroalloys, steel billets, and some steel products have high energy consumption and have a large impact on the environment. In addition, we continue to impose seasonal tariffs on the export of fertilizers such as urea and diammonium phosphate.
Prior to this, steel export tariffs have been raised several times and the effect has gradually emerged. After the crude steel export volume reached a record high of 8.444 million tons in April this year, it declined month-on-month, and steel exports fell for the second consecutive month in October and November. China Steel Association consultant Wu Xiyu expects that the export volume of China's steel products will decrease by about 20 million tons in 2008.
In addition, the Chinese government has been increasing its efforts to limit coke exports. Coke is mainly used for the production of steel. The process of producing coke has a very serious environmental pollution. China had previously raised the export tariffs on coke and semi-coke from 5% to 15% on June 1, 2007, and raised the tariff on coal tar from 5% to 10%.