China has abrogated 3 per cent Coking coal import duty on Australian imported material, as both countries have signed Free Trade Agreement (FTA).
China, world’s largest coal importing country, had imposed 6% import duty on imported Thermal coal and 3% on Coking & Anthracite. The country has levy import duty to support domestic miners, who have been struggling owing to rising costs and falling prices. Post import duty announcement, the government decided to exempt Australia from new coal tariffs.
On 17 Nov’14, both countries have signed a Free Trade Agreement (FTA) and abrogated 3% import duty on Australian Coking coal but Thermal coal has not been exempted. However, Chinese buyers are still required to pay 6% import duty on Thermal coal.
Coking coal imported from Australia is most preferred by Chinese steel manufacturers & traders as the grade is suitable for their plant, but buyers show less interest until the material offered at cheaper rates than domestic.