Ministry Of Commerce Strictly Control Abnormal Foreign Exchange Inflow Of Export Tax Rebate Callback In The Near Future.

Some foreign trade enterprises' expectation of export tax rebate may soon be lost.

Li Rongcan, director of the financial affairs department of the Ministry of Commerce, recently said at the general meeting of the Chinese medicine and health products import and Export Chamber of commerce that the relevant ministries such as the Ministry of Finance and State Administration of Taxation will keep the export tax rebate policy relatively stable, and there will be no new export tax rebate motion in the near future.

It is understood that since last July, China has made a series of adjustments to the export tax rebate policy for some commodities, including the cancellation of 553 export tax rebates for "two high and one capital" products, the reduction of the export tax rebate rate of 2268 items that are likely to cause trade friction, and the export tax rebates of the 10 commodities to export tax exemption policies.

Li Rongcan said that the above policies led to a decrease of about 2.01% of the export profits of enterprises, so the recent export tax rebate policy will not be adjusted in large areas.

On the contrary, labour intensive enterprises may also raise some proportion.

The foreign trade enterprises that rely on export tax rebates to maintain their meager profits are just like a "head start", which is one of them.

Recently, it is widely rumored that the state will introduce support policies to textile enterprises. The highest voice is export tax rebate callback 2%-4%.

It is estimated that if the export tax rebate is 2%, the profit margin of the textile industry will increase by 0.6 percentage points.

The average profit margin of the industry in 2007 was about 3.97%, but only 3.4% in the first two months of this year.

Li Rongcan revealed that the Ministry of Commerce's future work priorities will appropriately grasp the appreciation and expectations of RMB appreciation, increase the regulation of abnormal foreign exchange capital inflows, and step up measures to control the scale of export settlement and delay in payment, and expand imports and encourage entry lists.

In this regard, Wu Yixiong, general manager of VIGOSS Clothing Co., Ltd. believes that the impact on foreign trade enterprises is limited.

"Generally speaking, the export receipts from enterprises that have the right to export business will not be too large for the collection of single items, such as the proportion of prepaid textiles and clothing is basically fixed. Even if measures are put into effect, they should be controlled within the scale."