China will cut coal import tariffs to zero from 1 May 2022-31 March 2023, the Customs Tariff Commission of the State Council has announced 28 April 2022.
The move aims to reduce import costs as Beijing enhances efforts to strengthen energy supply security.
Tax rates on major sources of coal supplies — Australia and Indonesia — remained unchanged at zero. Arrivals of coal from other import sources — including Mongolia, Russia, Canada and the US — that were taxed mostly at 3pc, will be dropped to zero. Tariffs for other types of coal taxed at 3-6pc will be removed as well.
Market participants expect a limited impact on boosting import volumes, suggesting minimal price change. "Indonesian coal was not subjected to any import tax even before this lift and tax rates for other origins were also not a limiting factor to procurement, particularly given smaller import volumes," a major Chinese buyer said.
China's coking coal imports from January-March rose by 8.9pc on the year to 12.26mn t, Chinese customs data show.Imports in January-March, excluding pre-ban Australia-origin coal, registered a year-on-year decline of 8.9pc to 10.26mnt.
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