Textile Enterprises Look Forward To The Expectation Of Margin Accounts "Idling"

Last week, two ministries and commissions of the state promulgated some support policies for raising the export rebate rate of some textile and garment products, but the industry generally believed that this policy had no fundamental impact on China's textile and apparel industry in decline. In the second half of this year, the state may also introduce a series of supporting policies, most likely of which is "idle" in the processing trade margin account. ""

The situation of textile and clothing is still very grim.

According to the data released by the customs, the export volume of textiles and garments in China in June was 15 billion 64 million US dollars, down 4.64% from the same period last year.

Among them, textile yarn, fabric and products were US $5 billion 754 million, an increase of 21.26% over the same period last year. The export of garments and accessories reached US $9 billion 310 million, a decrease of 15.76% compared with the same period last year. This is the two consecutive negative growth in garment exports since the entry into WTO, and the decline has been increasing.

The situation of textile and clothing is still very grim. In August last year, the "processing system" of processing trade margin accounts for a large backlog of funds for small and medium-sized textile enterprises.

It is reported that a medium-sized enterprise, for example, needs a monthly margin of 200 thousand yuan to 300 thousand yuan a month, and the cost will increase by more than 10%.

According to the statistics of the first textile network, the import volume of China's textile and garment processing trade in the first quarter of 2008 amounted to US $2 billion 916 million, of which the deposit margin required to pay was US $261 million 100 thousand, equivalent to RMB 1 billion 869 million yuan.

Simple push to the whole year, processing trade enterprises only account for margin to reach 7 billion 400 million yuan.

Ma Xinzheng, deputy editor in chief of the first textile network, said: "although the deposit and the corresponding interest can be retrieved after the cancellation of the export verification, under the current tight monetary situation and the tight working capital of enterprises, enterprises should also pay the bank deposit paid to the customs, and the large sum of money is locked for half a year or even longer, resulting in a lot of enterprises doing processing trade to carry out private lending activities to solve urgent problems, and the indirect losses can be imagined."

The head of the Hongkong economic and Trade Association told reporters that in March this year, Chen Deming, Minister of Commerce, said to the Hongkong enterprises that, due to the large number of employment opportunities in the processing trade export industry, all the traditional industries that belong to small and medium sized enterprises, which provide a large number of job opportunities and pollution-free will be excluded from the regulatory list that must be paid in advance.

The official said: "in the increasingly difficult situation of textile and clothing exports, the" idling "policy is very likely.

Ma Xinzheng also indicated that if the margin accounts for processing trade were to achieve "idling", the quickening of the turnover speed of the enterprises' liquidity would be difficult to estimate the indirect benefits from the promotion of the export of processing trade and the related business operations.

Up to now, there are four main textile support policies that have been promulgated or are being promulgated. First, the provisional sliding rate of cotton has been reduced from 5%~40% to 3%~40%, and the implementation time is from June 5, 2008 to October 5, 2008; two is the increase in the export tax rebate rate of textile industry that has been introduced; three, the margin of processing trade tax, which increases the pressure of capital turnover of enterprises, and may cancel or reduce; four, it is appropriate to relax credit control.

Changing export growth mode and policy unchanged

Ye Shuangpeng, general manager of Guangdong silk International Group Clothing Co., Ltd., also believes that the RMB exchange rate is the biggest factor affecting the textile enterprises. "The state should have a foresight in the appreciation of the RMB, so that the enterprises can prepare for signing the bill."

Like the small list we signed in January, we lost hundreds of thousands of dollars to the foreign exchange settlement in June.

He said that in the second half of the year, the state should focus on the preferential lending policy for small and medium-sized enterprises.

However, some people in the industry also pointed out that while maintaining steady growth in exports, the policy orientation of optimizing the structure of export commodities and changing the mode of export growth will not change. The export of products with high pollution, high energy consumption and resources will be restricted.

So far, major textile support policies have been introduced or are being launched:

The provisional sliding rate of cotton has been reduced from 5%~40% to 3%~40%, and the implementation time is from June 5, 2008 to October 5, 2008.

The export tax rebate rate of textile industry has been raised.

The tax margin of processing trade increases the pressure of capital turnover of enterprises, which may be cancelled or reduced.

Moderate relaxation of credit control.