Textile Export Tax Rebate Adjustment Puzzle

Exit

Recently, rumors about textile and garment export tax rebates will emerge one after another.

Sang Qingdong, deputy director of the general manager office of Jiangsu sainty Limited by Share Ltd, told the first Financial Daily reporters that he heard the latest version of the export tax rebate in the industry started in June 1st this year, and the reduction rate has not yet been finalized.

The textile industry has great objection and collective opposition. Under the multiple pressures of labor and raw material cost increase and RMB appreciation, once the export tax rebate is readjust, it will be a serious blow to many enterprises.

Sang Qingdong reflected that there were hardly any new buyers at this Canton Fair. From January this year, the demand for textile and clothing in the international market showed a weakening trend. Because the global economy has not yet fully recovered, European and American customers have not been very active in purchasing, and exports are expected to slow down in the second half of the year.

In view of the bad situation, enterprises dare not raise prices at this Canton Fair.

Zhong Haosen, assistant general manager of Guangdong textiles import and export Limited by Share Ltd, is also pessimistic about this year's export prospects.

He believes that even if export rebates do not fall, the export orders for textile and clothing have begun to stagnant. As the price increases as the exchange rate fluctuations and manufacturing costs rise, many customers are scared off. It is expected that 50% of the customers will go to Southeast Asia after the worst situation in the second half of the year.

In his view, the export tax rebate will be the last straw to crush the textile and garment export enterprises, and some small and medium-sized enterprises will be closed down.

The textile industry is worried about getting into trouble again.

Due to the downgrade of export tax rebates, the impact of multiple factors on the appreciation of the RMB, the rising cost and the shrinking of international demand, China's textile and garment export growth declined obviously in 2008, and a batch of enterprises went bankrupt in the Pearl River Delta and other regions.

To this end, the state has introduced a number of policies in six months since August 2008, including the 4 increase in the export tax rebate rate of textile and clothing, which has been raised to 16% from the original 11%.

Under the complicated and changeable export situation, most enterprises are expecting the stability of national policies.

Liu Jianjun, spokesman for the Canton Fair, also said at yesterday's press conference that enterprises are calling for stable export tax rebates under the circumstances of various factors that encroach on profits.

"Textile enterprises oppose the export tax rebate reduction very strongly, and hope that the state will not make any adjustment at the moment, which is mainly determined by the state's attitude towards exports, and the state tends to encourage imports. At present, the export attitude is not clear. It may be because of too much foreign exchange reserves, not paying attention to exports or even suppressing exports."

Zhong Haosen said.

Zhou Shijian, a business commentary expert of the Ministry of Commerce, said in an interview with our reporter yesterday that the plan for adjusting the export tax rebate was mainly raised by the Ministry of finance. As the Department of foreign trade, the Ministry of Commerce objected to the reduction of textile export tax rebates. Several ministries and commissions should still be in the game, and no final decision was made. Judging from the current situation, considering the need for stable development of the textile and garment industry, it is estimated that the export tax rebate will not be adjusted for the time being, and the possibility of a reduction to 11% is negligible.

"The export tax rebate adjustment is basically carried out before the Canton Fair, allowing enterprises to prepare for orders, and the eve of this Canton Fair does not see any policy movement, which may mean that the period will not be adjusted."

Lin Yan, manager of cotton textile department of Hangzhou light industry craft textiles import and Export Co., Ltd.