China to remove restrictions on ‘processing trade’ for 136 steel products

China will remove its prohibition on the “processing trade” for 136 steel products from December 1, 2020, the country's Ministry of Commerce (MOC) said last week.

This means steel mills and other factories in the downstream supply chain need not pay import duties on imported steel substrate materials that will later be processed into downstream products meant for re-export.
The 136 steel products include actively traded commodities such as hot-rolled coil, cold-rolled coil and long steel products.
This could help lower the production costs for steel mills and other factories in the downstream supply chain in bonded warehouse areas, sources said.

“This will also help factories stay in...

Published

Jessica Zong

Miranda Song

November 18, 2020

11:31 GMT

Shanghai