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Tax Rebate Positive Impact On Limited Spinning Enterprises Are Still Exploring The Way Of Development

2008/8/15 13:03:00 26

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Export Rebate Rate Garment And Textile Industry Upgrading

The export rebate rate of some textile and garment products increased from 11% to 13%.

This policy, which has been brewing for a long time and eagerly awaited by the industry, has finally been put into effect in August 1st, and has injected a strong heart for the small and medium sized textile enterprises in the predicament.

However, facing the still unfavorable internal and external environment, Chinese textile enterprises are still exploring the way to break cocoon.

The impact of tax rebate is limited.

The export tax rebate rate increased, most of the textile enterprises response is: although good, but the impact is limited.

According to their calculations, the adjustment of the export tax rebate rate is not obvious for their performance.

Wang Yongli, deputy general manager of Guangdong silk textile group, said that after the tax rebate was raised by two points, the value of each dollar exported to the US dollar would probably be more than 13 Fen yuan. Although it could temporarily relieve the pressure of losses, the export prospect of textile and clothing is still worth worrying because of the superposition of export negative factors.

A senior textile analyst said that in the first half of this year, China's textile and clothing exports grew by only 9.69% over the same period last year, an increase of 7.28 percentage points lower than that of the same period last year. The main reason is the continued appreciation of the renminbi, the intensification of the sub-prime mortgage crisis and the increase in costs. As long as the environment does not change, the new tax rebate policy will be difficult for enterprises to benefit for a long time.

Last week, the Shanghai and Shenzhen stock market textile sector was not very eye-catching. In addition to the expectation that the export tax rebate had been digested before, it also proved that market participants believed that the impetus for the textile sector was limited.

Although compared with the earlier request of the textile enterprises to increase 4% (back to the level of the former 15% tax rebate for export tax rebates), the 2% increase is not enough to cause the industry to quench thirst, but industry experts say that most enterprises, especially those facing difficulties, show positive emotions, because they understand that the symbolic significance is greater than the actual significance, indicating that the state has not given up the textile industry.

Will it subsidize foreign purchasers?

Guangzhou city tax bureau recently said that after the export rebate rate of some textiles and garments was raised, more than 1000 export enterprises in Guangzhou benefited, involving an export amount of more than 4 billion dollars.

However, there are also people in the industry questioned: the tax rebate raised the two points of profit, and how to ensure that the foreign buyers do not quickly "dry"?

Due to the lack of the right to price, in the field of textile and garment exports, the profits from export tax rebates in the past have already been presented to foreign buyers in many rounds of competition. Therefore, some people say that export tax rebates are actually subsidized to foreign purchasers.

"We have strict demands on all the enterprises under the group, and will never let the buyers make a price."

Wang Yongli said, recently, foreign buyers have been aiming at two points, and the tax rebates have been lowering prices. Many textile enterprises have agreed that pulling up the price line is a matter of life and death.

However, there are also analysts who say that China's clothing and textile industry is of high homogeneity. All of us are committed to expanding the scale of export, leading to the fact that export enterprises do not have the advantage in bargaining power. Therefore, the preferential tax rebate increase may not be fully enjoyed by domestic enterprises.

US market demand remains the key

The main market of Guangdong's textile and clothing exports is in the United States. Whether it can stabilize or decline will depend on whether the US demand can be warmed up.

According to statistics, the demand for subprime loans was weak, and Guangdong's exports to the United States dropped by 27.3% in 1-6 months.

Wang Yongli said that what worries us most at the moment is the loss of us customers. Because of competition from counterparts in India, Vietnam and Bangladesh, it is not easy to pick up customers if they lose their customers.

He reluctantly indicated that large foreign customers often tied up orders with high added value and no money, and wanted to upgrade and pform only to make a profitable business, often facing the risk of losing the entire customer base.

It is understood that the US "restrictions on some Chinese textiles" expire in December 30th this year.

For this familiar so-called "quota free era", will once again fall into the "export boom" - the reincarnation of big stick, many textile enterprises are worried.

According to a report from the China Textile Import and Export Chamber of Commerce, the prospect of textile trade liberalization next year is not clear. The domestic textile industry, especially the NCTO, the government and Congress will take specific measures to prevent Chinese textiles from pouring into the United States after 2008.