The Purpose Of The Import Cotton Quasi Tax Adjustment Is To "Ask For Directions".

Imported cotton occupies an increasingly important position in the market. How to ensure that cotton spinning enterprises use cotton reasonably and effectively, and ensure that domestic cotton industry is not affected, has become the main starting point for the state to weigh the import cotton policy.

From June 5th to October 5th this year, a provisional slip tax policy was applied to certain quantities of cotton imported from the quota.

Experts say that one of the purposes of the quasi tax reduction of imported cotton is to "ask for directions" to speculate on the impact of other policies that will be implemented on the industry.

"Import cotton sliding quasi tax adjustment is not only a single policy for cotton and textile industry, but a" one card "in response to imported inflation, resource products and food prices.

First textile network analyst Chen Xiaoyan said in an interview with our newspaper reporters.

It is reported that in May 28th, the Ministry of Finance issued a notice, and the State Council Tariff Commission decided to adjust the import tariff rate of 6 categories of 26 tariff items.

From June 5th to October 5th this year, a provisional slip tax policy was applied to a certain quantity of cotton imported from outside the quota, and the application of the high quality cotton with high import price was reduced from 570 yuan / ton to 357 yuan / ton, equivalent to reducing the cotton sliding tax from 5% to 40% to 3% to 40%, and restoring the current sliding tax from October 6th.

Chen Xiaoyan said that temporary import cotton sliding quasi tax rate is difficult to change the difficult situation of textile enterprises, and it will not fundamentally change the supply and demand relationship of domestic cotton market.

In fact, one of the purposes of sliding tax reduction is to "ask for directions."

The effect of other policies that will be implemented on the industry can be predicted through the reaction of the cotton enterprises after the sliding quasi tax rate of the imported cotton is lowered.

Cotton city "tail"

Implementation of temporary import cotton sliding duty is now.

"The implementation of the temporary sliding tax policy is at the end of 5, when the domestic cotton market appears" tail up "phenomenon.

To cotton city "tail" phenomenon, Chen Xiaoyan explained: beginning in late May, domestic cotton resources gradually concentrated, high-grade cotton resources are slightly insufficient, cotton textile enterprises purchase cotton initiative increased, cotton market gradually changed from buyer to seller, spot cotton price rose slightly.

"The domestic cotton spot market now has a similar phenomenon of" tail up "with 2006/07.

In the international market, cotton prices are in the trough, at 74 cents per pound.

Under the 1% tariff, imported cotton is 50 yuan to 300 yuan lower than the corresponding grade cotton per ton. Under the sliding duty, the import price of cotton is basically the same as domestic cotton price.

"Lowering the tariff level of imported cotton at this time will help promote cotton import and prevent the cotton price rising at the end of the year, which is in line with the principle of reasonable use of low price cotton imports."

Chen Xiaoyan said.

For the difficult textile enterprises, the adjustment of the policy of sliding cotton quasi tax has a positive effect.

Because of the appreciation of the renminbi, the domestic textile enterprises are getting more and more weight. At present, many textile and garment enterprises are afraid to take long orders and dare not pick up large bills or even dare not pick up them.

Nowadays, the implementation of the temporary slip tax policy, though not directly changing the plight of the textile industry, has a positive effect on reducing the cost of cotton production in textile enterprises, promoting the import of cotton and ensuring the supply of textile cotton.

The cost of imported cotton reduces the pressure of domestic spot market.

The most direct response of the state to the adjustment of the quasi tax policy of imported cotton is to reduce the import cost of some medium and high grade cotton.

According to Chen Xiaoyan's calculation, according to the exchange rate of 6.9597 in June, the duty paid value of imported cotton is less than 74.28 cents / pound. The cost of imported cotton is basically unchanged under the old and new scheme; the cost of imported cotton is reduced by 241 yuan / ton under the new scheme at 74.28 cents to 77.65 cents per pound.

It is estimated that in the 4 months from 6 to September, if we import 300 thousand tons of cotton per month, all cotton import prices will enjoy a discount of 241 yuan per ton, and cotton spinning enterprises will save 289 million yuan in 4 months.

This amount only accounts for 4% of the total profit of the cotton textile industry in the 4 months. "Therefore, although the cotton spinning industry has some positive effects, the direct benefit is very limited."

Chen Xiaoyan said.

Chen Xiaoyan said that while paying attention to the direct impact of the cost reduction of imported cotton, reducing the policy direction of sliding tax and reducing the pressure of imported cotton prices on the domestic cotton spot market is more noteworthy.

It is understood that a number of textile enterprises have indicated that they will consider using imported cotton, and at present, there are some signs that the prices of Xinjiang cotton are also down.

The effect of the real operation of the market needs further attention.

Balancing the interests of farmers and enterprises to prevent cotton prices from rising too fast in Chen Xiaoyan's view, the application of the new sliding tax policy is only 4 months, which is the result of balancing the interests of cotton growers and cotton spinning enterprises.

It is understood that from June 5th to October 5th, the supply of cotton market is in short supply, and the relationship between supply and demand of cotton can be reflected. A period of time before the new cotton is listed in large quantities, at this time, lowering the tax rate is one of the means that will benefit the textile enterprises and prevent the cotton price rising at the end of 2007/08.

"The deadline for the application of the new sliding tax policy is set at the beginning of October, in order to protect the interests of cotton farmers."

Cotton is characterized by centralized listing, decentralized sales and use. The time for domestic cotton concentrating to market is about October each year. The annual supply and demand situation of lint and the relationship between supply and demand during the sale period directly affect the purchase price of seed cotton, and also affect the income of nearly 100 million cotton farmers.

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