In 2021, the Ministry of Finance and the State Administration of Taxation issued two announcements on the cancellation of tax rebates for the export of some steel products, and the export of domestic steel products will no longer enjoy preferential tax rebates. The cancellation of export tax rebates has played an important role in reducing domestic steel production, ensuring resource supply, restricting primary product exports and promoting the balance between supply and demand in the domestic market, but it has also affected the export competitiveness of China's high-end steel products to a certain extent.

China Iron and Steel Association (CISA) actively reflected the appeal of steel enterprises to the relevant departments to continue to participate in the international competition of high-end products, put forward suggestions on encouraging the export of high-end products, controlling the export of common products, and organized experts to carry out research on high-end product division and tax code segmentation. 

On December 28, 2022, the Tariff Commission of the State Council issued an announcement to adjust the tariff items of some goods. Three new tax numbers are added for tax adjustment includes the following:

(1) Under tariff No. 7225 (other alloy steel flat rolled products, with a width of 600mm and above), subheading 72253000 (other coiled materials, without further processing except hot rolling) is deleted and adjusted to 72253 (other coiled materials, without further processing except hot rolling), and two new subheadings 72253010 (with a thickness of 2mm and below) and 72253090 (other) are added under this heading

(2) The original subheading 72279090 (other) under tariff No. 7227 (other alloy steel hot-rolled bars and rods with irregular coils) was deleted and adjusted to 7227909 (other), and two new subheadings 72279091 (round section) and 72279099 (other) were added under this item.(3) The original subheading 72283090 (other) under tariff No. 7228 (other alloy steel bars and rods; other alloy steel angles, sections and profiles; hollow drill steel made of alloy steel or non alloy steel) is deleted and adjusted to 7228309 (other), and two new subheadings 72283091 (round section) and 72283099 (other) are added under this item.

To sum up, three sub tax numbers mainly are added for this adjustment of steel related tax items , namely 72253010 (alloy steel coil with a thickness of 2mm or less), 72279091 (alloy steel rod with circular section and irregular coil) and 72283091 (alloy steel rod with circular section).

(3) The original subheading 72283090 (other) under tariff No. 7228 (other alloy steel bars and rods; other alloy steel angles, sections and profiles; hollow drill steel made of alloy steel or non alloy steel) is deleted and adjusted to 7228309 (other), and two new subheadings 72283091 (round section) and 72283099 (other) are added under this item.

To sum up, three sub tax numbers mainly are added for this adjustment of steel related tax items , namely 72253010 (alloy steel coil with a thickness of 2mm or less), 72279091 (alloy steel rod with circular section and irregular coil) and 72283091 (alloy steel rod with circular section).