Quanzhou Shoes And Clothing Enterprises Calmly Treat Export Tax Rebates Up

Since the beginning of this month, China has begun to raise the export tax rebate rate of 3486 labor-intensive and high technology and high value-added commodities. In the face of the current international economic crisis, this policy is tantamount to a shot in the arm, but enterprises are becoming more and more mature.

Since November 1st, China has begun to raise the export tax rebate rate of 3486 labor-intensive and high technology and high added value commodities, while Fujian province has 1090 kinds of commodities related to the export tax rebate rate.

The industry generally believes that although the export tax rebate rate increases, to a certain extent, relieves the pressure of enterprises and helps to prevent a sharp decline in exports, but its role is still limited. If enterprises want to get rid of the current difficulties fundamentally, they must rely mainly on their own efforts to accelerate the pace of industrial upgrading and change the direction of development and operation.

Raising tax rebates to enhance enterprise confidence

In the first half of this year, influenced by factors such as economic decline in Europe and America, accelerated appreciation of Renminbi, and increased production costs, business pressures on enterprises increased, and export situation was grim. Textile, clothing, shoes, toys, daily necessities and other industries were all in trouble. Some foreign trade enterprises could barely maintain production and dare not take orders.

The export tax rebate raised to some 14% of textile, clothing and toys export tax has raised the pressure of many export enterprises in Quanzhou.

"Good, at least show that the country is helping the enterprise."

A toy business manager in Jinjiang lamented that since this year, the pressure of production costs and market shrinkage has been attacked.

The export tax rebate up is really a good news, although it may not really play a big role, but how much will help ease the pressure on enterprises, and promote the total export volume of the industry as a whole.

As China's clothing city Shishi, in this adjustment saw the confidence of development.

Shishi has 36 textile and garment self export enterprises, 5 shoe industry self export enterprises, and thousands of textile and clothing products and footwear enterprises export through foreign trade companies.

According to the preliminary estimates of the tax authorities of Shishi national tax department, the total export tax rebates for self employment of Shishi will increase by more than 50% after the two increase in the export rebate rate of textile and garment industries this year, of which only 20% of the textile and garment export tax rebates will increase.

Yang Chengjie, director of the China leather and footwear industry research institute, who recently held a meeting in spring, said that the adjustment is a good news for leather clothing, and will stimulate the export of leather garments. It is also a good thing for leather enterprises to provide raw materials for garment enterprises, and will bring more orders for such enterprises.

Competitiveness is the permanent solution.

Although the industry generally believes that the export tax rebate up is a good sign, but many enterprises also believe that enterprises are facing more pressure from the cost of raw materials and labor costs. The rise in costs has thinned the profit margins. The loss of profits can not be compensated by a slight increase in the rebate rate. The two or three point increase is only a drop in the bucket, and it can only relieve the supporting role, and it is also necessary to rely on itself to improve the current situation.

Enterprises should strengthen internal management, pay more attention to the style and quality of products and increase the technological content of products, so as to enhance the market competitiveness of products.

Lei Jun, manager of the export oriented Jinjiang Renhe weaving company, told reporters that the increase in the export tax rebate rate is only a temporary constraint on business pressure, rather than a long-term policy.

The company has formally established a new R & D department this year, specializing in developing its own product brand.

Lei Jun believes that only by developing new fabrics and new processes with market competitiveness and playing their own brands can we consolidate our position in the international market and stabilize our customer base.

Wang Zhibin, director of the international brand Department of the 60%% export business, said that he had attended the autumn fair and the Shenzhen International Toys and Gifts Fair not long ago. Due to the impact of the current international economic crisis, the two international exhibitions were deserted and the traffic volume was reduced by half over the previous years.

He said frankly that the export tax rebate increase has limited role in the development of enterprises. Enterprises mainly need to increase the added value and technology content of products, continuously improve product competitiveness, and play their own brand in the international market, which is a long-term solution to promote sustained and healthy development of enterprises.