Chinese producers impose 13% tax on pipes

Some of the Chinese pipe manufacturers apply 13% VAT on steel exports.

It has been reported that some Chinese steel pipe producers have decided to impose a 13% value-added tax (VAT) on steel exports from August, in response to the policy of canceling export tax rebates for cold rolled coils (CRC). Galvanized coils, steel made in the electric arc furnace and steel pipes will be included in this application. Therefore, both buyers and sellers will negotiate new pricing.

In addition, VAT can be applied to products that were sold three months ago and whose shipment was postponed to August due to shipping problems.

Traders said some pipe makers raised their prices before the policy was announced, while most suppliers are still in wait-and-see mode.