Chinese industrial expert has called on the government to retain the policy of five percent export rebate for special steel products, and amend tariff standards to guard against export duties avoidance in form of alloy steel.

     Hu Mingyang, secretary-general of Special Steel Enterprises Association of China (SSEA), suggested that China should give support to special steel products export, retaining its 5 percent export rebate policy.

     He urged the government to amend the definition of "other alloy steel" in custom explanation, increasing the requirement on chemical composition.

     He also called for taking into consideration the export qualification standard, and giving more control on the general quality of steel export.

     Statistics showed that the export volume of "other hot rolled alloy steel strip and steel pole" in January-May surged 263.21 percent year on year.

     Hu said that this was absolutely not normal. A possible conclusion was that a great proportion of the other alloy steel products export was not real alloy steel products, which was encouraged to export by the country.

     The current export tariff rate of plain steel bar and plain steel sheet products are 15 percent and 5 percent respectively. The export of alloy steel products enjoys a 5 percent rebate.

     The cost to turn plain steel products into alloy steel is very low, so the profit is very significant to change from a tax payer to rebate beneficiary.