Official with China's MOF: Export Drawback on "Two Highs and One Resource-Based" to be Lowered

China will lower the export drawback rate on "two highs and one resource-based" products (products of high energy consumption, high pollution, and resource-based) to restrict the exportation.

It is reported that this move is to coordinate with the State policy on curbing excess capacity, which does not mean the tightening in China's foreign trade policy. Hence, industries like textile & costume will not be affected. It is generally believed that the biggest impact of this move will be brought to iron and steel enterprises.

The increase in export tariff is also part of the policy, the report said.
At the end of last year, the Ministry of Finance of China (MOF) once indicated that in 2010, China is to continue the temporary export duty rate on resource products of high energy consumption and high pollution such as crude oil, wood pulps, ferroalloy, billet, and some steel products.