China will impose custom tax on imported steel by 31st July

As part of efforts to tackle overcapacity in the country's bloated steel industry, from 31st July, China will start levying tariffs on some imported steel products, which are re exported after processing, Reuters reported.

The finance ministry said that 78 steel products will be involved, including wire rod (steel rebar), plates and metal sheets (hot rolled coil, cold rolled plate etc.). The products to which the tariff will apply can be made locally to meet the quality requirements of manufacturers. China’s monthly about one million tons of steel imports and over 70 million tons of steel output form a striking contrast.

While, Beijing suggested that the impact of the latest tariff regulation whose target is to reduce the oversupply in the steel industry would likely be limited.

The government said that companies that have import contracts signed before July 31 and have those shipments arriving before end 2014 will be exempt from the new tariffs.