Textile Or Clothing Exports Will Revive

On October 17th, Premier Wen Jiabao of the State Council just put forward at the executive meeting of the State Council to raise the export tax rebate rate of clothing, textile and other labor-intensive products and high value-added electromechanical products, and support the export of dominant enterprises and products.

In October 21st, the Ministry of Finance and the State Administration of Taxation jointly announced that the export rebate rate of some labor-intensive and high technology and high added value commodities will be appropriately raised from November 1, 2008 onwards.

Among them, the export tax rebate rate of some textiles, clothing and toys increased to 14%.

This is another important measure that China has announced since August 1, 2008 that "the export tax rebate rate of some textiles and garments has increased from 11% to 13%", and the implementation of "rescue the market" in three months.

"When the current international financial tsunami is sweeping the globe, the export of foreign trade is sluggish, and when the government takes the initiative, it shows the strong ability of our government to regulate the macro economy."

China's export growth has slowed down since the international market demand weakened, RMB appreciation, raw material prices and labor costs increased this year. In the past 9 months, the export growth rate in 8 months was lower than that in the same period last year.

Profits of export enterprises have been greatly reduced.

In particular, some labor-intensive small and medium-sized enterprises absorb more labor force and have a wide range of employment, but their ability to resist risks is weak and business faces greater pressure.

The situation in Fujian is no exception.

Data show that Fujian's textile and apparel exports in the first three quarters of the year amounted to $5 billion 840 million, an increase of 9.8%, an increase of 17.3 percentage points lower than that of the same period last year. Footwear exports amounted to 3 billion 900 million US dollars, an increase of 11%, an increase of 7.4 percentage points, and the export of plastic products 940 million US dollars, down by 13.6%.

With the continuous expansion of the financial crisis in the United States, the consumer confidence index of developed countries has dropped sharply, and the import demand has dropped, which will have an adverse impact on China's exports.

"If we do not take measures, we expect that exports will continue to decline in the future, and the difficulties of export enterprises will further increase, which will have a negative impact on China's overall economic development."

Wang Qiming, chairman of Fujian Textile Industry Association and chairman of Haitian Textile Co., Ltd., Quanzhou, said.

To raise the tax rebate rate and improve the textile and clothing toys, the Ministry of Finance and the State Administration of Taxation issued a notice on raising the export tax rebate rate of some commodities. The export tax rebate rate adjustment involves a total of 3486 commodities, accounting for 25.8% of the total number of goods in the customs tariff.

"Textile and clothing export tax rebate rate has been adjusted to 14% from 13% in the previous period, although it has only increased by 1 percentage points, but for textile enterprises, it is equivalent to a 1% reduction in cost.

This is like a timely relief for the struggling textile and garment industry.

This policy reflects the importance of the state to our industry.

Wang Qiming praised the new export tax rebate policy.

He said that the export tax rebate rate callback of 1 percentage points, equivalent to the total net profit of enterprises increased by 1%.

In the first half of this year, Fujian exported 2 billion 820 million dollars of textile and clothing in general trade mode.

The export tax rebate rate will increase by 1%, equivalent to the total profit of Fujian textile and garment industry will increase by 28 million US dollars. According to the exchange rate of 1 yuan to 6.8 yuan, the textile and clothing in the whole province will increase profits by 380 million yuan a year.

Guan Xiuhua, Secretary General of the Fujian Textile Industry Association and the provincial clothing and apparel industry association, believes that the introduction of the policy is a measure taken by the state to see the current difficulties faced by the textile industry.

Compared with those superior export enterprises, their export products are of good quality and high grade, so their products have the advantage of bargaining, and export tax rebates have great effect on these advantageous export enterprises.

The rebate rate of toy export dropped from 13% to 11% in September 15, 2006, up to 13% in August this year, and now it has increased to 14%. The change of tax rebate rate actually reflects the change of national macro-control policy.

In the Fujian provincial Toy Association's strict Secretary General's view, "this toy tax rebate rate improvement is the state's concern for the manufacturing industry."

From August 1st this year, the rebate rate of toy export increased from 11% to 13%, which began to have an impact on the industry. It eased some of the pressure from RMB appreciation, raw materials, labor costs and so on.

However, in order to develop well, the overall development of enterprises depends on whether the products produced by enterprises are competitive. "

Zheng Wu, general manager of Xincheng Chemical Fiber Co., Ltd., Changle, Fujian, said: "for our chemical fiber industry, clothing is our downstream business, the tax rebate is raised, the export pressure of downstream enterprises is relatively small, and their sales volume is large. As an upstream enterprise, we will benefit from it."

Of course, under the shadow of the current international financial tsunami, the export tax rebate rate is up to some extent.

Wang Qiming points out that "the export tax rebate rate increase is mainly reflected in the future market. For the time being, the volume of export of enterprises will not be greatly changed because of these 1 percentage points. At present, enterprises basically do not have any orders, and export volume has been greatly reduced."

We hope that the tax rebate rate will increase and the tax rebate rate will be raised. Some people will be happy and worried.

I heard that since November 1, 2008, some textile, clothing and toys export tax rebate rate increased to 14% of the good news, the same is the export volume, labor-intensive shoe enterprises generally puzzled to make such a complaint: why the increase in tax rebate will not fall on the shoe enterprises?

"I am very puzzled!"

This is the first sentence spoken by reporters during the interview with Pan Yangzheng, Deputy Secretary General of the Fujian footwear and import and Export Chamber of Commerce.

"As a shoe and hat industry, we do not understand this policy. The footwear industry is also facing the same predicament as RMB appreciation, raw material prices and labor costs rising, as well as textile and garment industries. Just as deeply under the pressure of the international financial crisis, I do not understand why the policy of this country does not relate to the footwear industry."

Pan Yangzheng thinks that the policy has a thick tile. "Compared to the clothing and textile industry, our shoes and caps industry is still facing the EU anti-dumping duties and so on, we do not enjoy the same policy, this is really boring!"

Lin and lion, vice chairman of Shishi riches and bird group company, have the same reaction with Pan Yangzheng. "Uneven and unfair!"

The shoe industry should also have the export tax rebate rate, like the textile and garment industry.

In our country, the export volume of footwear industry is also very large. Our country is also a big shoemaking country. Why can't our shoes industry enjoy the enjoyment of textiles and clothing? "

He urgently hoped that the state could also treat the shoe industry fairly. "Let us enjoy the same rights as textiles, clothing and toys."

In fact, shoe companies also need the attention and care of the state as well as those industries.

Pan Yangzheng told reporters: "the state promulgated this policy or after a comprehensive consideration was formulated, with selectivity, but we also hope that the state can consider the footwear industry, to the footwear industry related support and support."