Leather Products Are Included In The New Batch Of Prohibited Catalogue Of Processing Trade.

In order to optimize the structure of China's export commodities, suppress exports of products with low added value and low technology content, promote the pformation and upgrading of processing trade, and achieve the pformation of the growth mode of foreign trade, the Ministry of Commerce and the General Administration of Customs jointly issued the second batch of banned catalogue of processing trade this year, a total of 589 10 customs coded goods.

The catalogue mainly deals with animal products, plant products, animal and vegetable oils, foodstuffs, beverages, mineral products, chemical products, plastics and their products, iron and steel products, and aluminum products.

Some products containing endangered animal and plant ingredients are also prohibited, including leather products, animal hair and their fabrics, footwear, jewelry, spectacles, watches and clocks, miscellaneous products.

Since 1999, China has managed prohibited products, restricted categories and permitted categories for processing trade commodities.

In April this year, the Ministry of Commerce, the General Administration of customs and the environmental protection administration released the first batch of banned products catalogue of processing trade in 2007, involving more than 1800 tax number products, which is a relatively large macro-control measure, involving an export volume of about $30 billion.

In July 23rd, the Ministry of Commerce and the General Administration of Customs issued a number of processing trade restriction catalogues, including new products such as copper, lead and zinc, and plastic products and textiles.

In the 1-11 month of this year, China's processing trade imports and exports amounted to US $894 billion 600 million, accounting for 45% of the total foreign trade import and export volume.

Although processing trade has developed rapidly, processing links are mainly concentrated on the assembly of final products and supporting production of low-end parts. Labor intensity is high and technology content is low. In core technology, product design, software support, key parts matching, key equipment and mold and brand, most of them are controlled by parent companies of multinational corporations and are at the low end of global value chain.

Insiders pointed out that the expansion of prohibited categories and restricted categories of processing trade not only has a positive effect on China's optimization of export commodity structure, but also has the important significance of reducing China's foreign trade surplus and restraining the export of "two high and one capital" products.

The Ministry of Commerce said yesterday that the focus of the prohibition of commodity catalogues is to optimize the structure of export commodities and make proper arrangements in the pitional period. In general, it will play an active role in promoting the development of higher technological content and value-added links, promoting the pformation and upgrading of processing trade, and achieving sustained and healthy development of processing trade.