Under The Pressure Of Rising Costs, Textile Enterprises Look Forward To The New Deal.

There is no good news about export tax rebates.

Zhou Xiaonan felt as if he had a stone in his mind and was becoming more and more heavy. The Internet verification method for export collection and settlement has begun to take effect. He thought it might increase the export pressure of Ningbo Dunhuang import and Export Co., Ltd. (hereinafter referred to as "Ningbo Dunhuang").

Zhou Xiaonan, deputy general manager, is trying to digest the fast rising cost.

In order to save money, he took the lead instead of taking the plane to take part in the Canton Fair.

However, it seems that all efforts are of no avail, and it is still unable to change the current situation of increasing operating pressure.

Difficult times for textile enterprises

In order to strengthen the supervision of cross border capital flows and improve the authenticity and consistency check of export and foreign exchange settlement, the State Administration of foreign exchange, the Ministry of Commerce and the General Administration of Customs jointly promulgated the "Internet connection verification method for export collection and settlement". It was formally implemented on the 14 day of this month, and stipulates that enterprises' Export Receipts (including advance payments) should first enter the accounts receipts of foreign exchange receipts from enterprises.

On the one hand, the amount of prepayment is equal to the amount of liquidity in the verification process; on the other hand, the risk of contractual default and direct exchange rate risk are the risk of low payment.

In the face of difficulties facing exports, Zhou Xiaonan is worried that the new deal will further increase the pressure of corporate capital turnover and exchange rate risk.

Under heavy pressure, Zhou Xiaonan's expectation that the export tax rebate rate increase will soon become a reality. Although it can not fundamentally reverse the current situation, it can at least allow enterprises to take a breath.

"The increase in tax rebate rate can lighten the burden of enterprises to a certain extent, but the biggest impact on textile enterprises is the exchange rate problem."

Zhou Xiaonan said.

Since the beginning of this year, international oil prices have been rising. A considerable proportion of the raw materials of the yarn products produced in Dunhuang, Ningbo are the by-products of petroleum, and the prices are also rising.

The cost of raw materials is about 30%, the cost of labor is also rising, and the appreciation of the renminbi, etc., as a whole, the combined cost has risen by 8%.

How much can it be passed on to purchasers? Just 3%, Zhou Xiaonan gave his answer.

At the 103rd Canton Fair held in Guangzhou in April this year, he raised the price of the products by 8% according to the budget. Although it accurately predicted the cost of the overall rise in exports, it failed. After fierce bargaining with purchasers, the number of orders signed with customers in the first half increased by only 3%. Other 5% still needed to be paid by Ningbo Dunhuang.

"We have been trying to raise prices through technological pformation and quality improvement, but because yarn itself is a low value-added product, there are too few articles available. Once the price is increased, the order will be pferred to other factories immediately.

We are also designing and developing products from yarn to bedspreads, garments and so on. But this year, influenced by the US subprime crisis, the export of these products with relatively small added value is even more unsatisfactory.

As for why to make concessions, Zhou Xiaonan seemed very helpless: "more than 1000 workers wait for dinner. In order to maintain normal production, they can only choose this way. Even some orders that may lose a few percentage points are connected.

The shortage of orders will lead to the loss of some workers, and the increase in orders will lead to a serious shortage of workers.

In the superposition of many factors, Zhou Xiaonan believes that RMB appreciation is the main factor affecting corporate profits.

In order to reduce exchange rate risk, in addition to product price increase, enterprises also require customers to pay 30%~50% in advance, mainly for the purchase of production materials.

Raising the proportion of advance payments to overseas customers is a way for many exporters to deal with the appreciation of the renminbi, so that the exchange rate will not be affected by the exchange rate after several months.

Not only is the Ningbo Dunhuang family under pressure from export, but also many PRD enterprises are struggling on the critical line of profit and loss.

According to data from Guangzhou customs, thousands of garment export enterprises have gone out of Guangdong this year, and thousands of enterprises are coming on the stage.

According to the statistics of China Textile Industry Association, under the combined influence of various factors, the actual profit margin of 2/3 in the whole industry is only 0.62%.

Many companies worry that profits will be affected by the continued appreciation of the renminbi and will lead to losses.

Due to the influence of international market demand and RMB appreciation, the volume of Chinese traditional export commodities generally declined in the 103rd Canton Fair, of which clothing and accessories were traded at 2 billion 870 million US dollars, down 4.8%, and textile yarns, fabrics and products traded at 2 billion 460 million US dollars, down 16.8%.

In view of the severe test of China's commodity exports, the Ministry of Commerce has conducted on-the-spot investigation of the existence of enterprises in this Canton Fair. It mainly conducts research on traditional export enterprises such as clothing, toys, shoes and hats, and holds several seminars to listen widely to the views of enterprises.

During this period, many textile and garment export enterprises appealed to raise the export tax rebate rate to help the industry overcome the difficult period.

Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, admitted in an interview with the first financial daily that the chamber of Commerce submitted a written report to the Ministry of Commerce on behalf of the industry, including the analysis of the export situation in the first few months of this year, the prediction of export trend in the second half of the year, and suggestions for policy support.

Part of the policy recommendations involved lending support to small and medium-sized textile and garment enterprises and raising the export tax rebate rate to alleviate the pressure on enterprises.

Possibility of tax rebate increase

Recently, the industry has been rumored: textile and garment export tax rebate policy is ready to come out. In late July, the textile export tax rebate rate may rise from 11% to 13%, and the export tax rebate rate of clothing export has been raised to 15% from 11%.

The earliest news came out of China's first textile network. When our reporter asked the general manager of China's first textile network and the textile industry senior analyst Wang Jin to verify the source of the information, his reply was an authoritative source, and the relevant ministries and commissions are taking the lead in advancing this favorable policy.

"I haven't heard the latest news for a few days, but I personally feel that the possibility of this policy is 70%."

Wang said, "from the data released by the customs in the first half of this year, we can see that the export situation of the textile and garment industry is not.