Export Tax Rebates Will Be Adjusted Soon. Textile And Leather Industry Needs To Be Cautious.

Over the past few years, there has been a clampdown on the readjust adjustment of the export tax rebate rate in textile industry, and it has reached its peak on the day before yesterday. At present, the more popular version is: the textile export tax rebate rate will be raised from 11% to 13%, the export rebate rate of clothing will be raised from 11% to 15%, the import tariff of some textile machinery and automatic winding machines should be exempted, and measures should be taken to slow down the appreciation rate of RMB exchange rate moderately, and the liquidity of textile and garment industry should be appropriately solved.

In addition, it is also reported that the Ministry of Commerce has formally recommended to the State Council that the pace of RMB appreciation should be slowed down appropriately, and timely policy recommendations will be put forward according to the research situation.

If the above plan is put into practice, it will be the first time that China has adjusted the export tax rebate rate since 2006, which is undoubtedly a ray of sunshine in the plight of many textile and garment enterprises in the "cold winter".

In this connection, a number of parties concerned have been interviewed, and all sectors of the community have maintained a wait-and-see attitude. They have consistently agreed that export tax rebates are only one part of the multiple negative factors that affect export enterprises. The negative effects of exchange rate, high cost and market demand are also restricting the "magic curse" of enterprises, and simply raising the export tax rebates is not enough to relieve the survival difficulties of export enterprises.

     The state has been supporting the textile industry for a long time.

As a matter of fact, all this has long been a clue.

As early as this year's spring fair, as the old Liliu Museum as a textile and garment exhibition area, the sparsely deserted scenes of merchants have triggered a "decline" controversy of the Canton Fair, which reflects the true reflection of the cold trade of Chinese foreign trade enterprises.

At the spring fair, clothing and accessories were down by 4.8%, and textile yarn, fabrics and products fell by 16.8%. As the "vane" of China's foreign trade export, a series of negative factors have brought about the impact of China's export on the Canton Fair.

And at the end of the Spring Festival fair, the Ministry of Commerce held a forum on textile export enterprises at Liuhua Road Exhibition Hall to listen to the views of the business representatives of Guangdong, Zhejiang, Jiangsu and other coastal provinces on the export situation. According to the personage at that time, the small conference room was filled with the head of the Ministry of Commerce and coastal provinces and cities, and the atmosphere was very heavy. The meeting lasted from 9 a.m. till 12 noon.

As one of the three Guangdong enterprises participating in the meeting, Wang Yongli, deputy general manager of the provincial silk company, told reporters that enterprises were "complaining" at the meeting, and the relevant responsible persons of the Ministry of commerce also encouraged enterprises to not lose heart at the meeting, and revealed that the state would give timely support policies.

Industry speculation, there are indications that the survival crisis of the textile industry has already caused high-level concern. Although the specific supporting measures have not yet been formally promulgated, the general direction of the state's policy of moderately supporting the textile industry has been clear, and considering that the textile industry is the main body to absorb the social labor force, the focus of supporting policies is likely to fall on the small and medium-sized textile and garment enterprises.

     Textile enterprises have entered the last ten years. Life and death period "    

The export figures released in the first half of the year are also not optimistic. According to Guangzhou customs statistics, in May this year, the export of clothing and accessories in Guangdong was 2 billion 480 million US dollars, a sharp decrease of 30.6% compared with the same period last year. From May to May, the total export volume of clothing in Guangdong was 8 billion 620 million US dollars, down 21.8%. Except for January and March, the remaining 3 months were all 20% above the decline.

Obviously, China's textile industry has entered the most difficult "life and death period" in the past ten years. And forcing many textile enterprises to go to the end is the surging production costs, labor force appreciation, raw material prices, RMB appreciation, export tax rebate cancellation plus loan interest rate increase. For the textile industry that relies on low cost, low market price and low profit, all roads are mandatory.

In the mid year of the first textile net, it was reported that "the textile crisis at high cost - the textile situation in the first half of 2008 and the outlook for the second half of the year", Wang Jin, an industry analyst, used the "most difficult days" to describe the current situation of textile enterprises.

     Enterprises are simply saying that simply raising tax rebates is not enough to solve difficulties.

However, in an interview, reporters found that the export enterprises were not optimistic about the news of the export tax rebate callbacks, but they were "a drop in the bucket".

Xie Wentao, who imports and exports textiles in Shantou, says: "the news is unbelievable now. We are waiting for the official caliber." He said that now enterprises can only adapt to the policy, in the process of policy introduction, enterprises have been in a passive position, no new plan can only be carried out according to the old policy, and so on, and then according to the new regulations.

"Even if the export tax rebate rate will be raised to a certain extent everywhere, we do not have much hope. Simply speaking, the tax rebate can not save the export enterprises. In the case of exchange rate failure, the tax rebate is just doing useless work." For export enterprises in the "cold winter" situation, he believes that in the current situation of enterprises, "there are too many difficulties, it is very difficult to say exactly what policy support needs to be done, so we can only say we want to do something about it."

Jiang Wei of Shenzhen Xiao Bai cashmere textile Co., Ltd. said that although raising the export tax rebate rate can not solve the plight of export enterprises, it is still early to make a good start. But he also believes that the fundamental problem faced by enterprises is not on export tax rebates. "The main problem remains in the exchange rate. Now every 1.6 dollars a dollar is exported to the enterprise, and the export tax rebate rate can not offset the loss gap caused by the exchange rate. In addition, the export tax rebate is also very important, the intensity of the government's callback is very important for the survival of enterprises.

According to Jiang Wei, according to the current rate of increase, there is still a gap with the expectation of enterprises. "In some areas, the original tax rebate rate has been less than 9%, even if the increase of 4% is not enough, the tax rebate rate of 13% is obviously a drop in the bucket."

     Once the tax rebate rate rises, Guangdong benefits the most.

People in the foreign trade and Economic Cooperation Department said that as a traditional labor-intensive industry, the textile and garment industry has played a huge role in solving the problem of labor employment, and the local government has strongly appealed and reflected it. But before the formal introduction of the policy, it is not easy to speculate. "In the open statement of the Ministry of Commerce, we only disclosed that there will be support measures. Many people will understand that the export tax rebates have been raised. In fact, there are many ways to support, in addition to tax rebate, and customs clearance convenience, foreign trade means tilt and other comprehensive methods, tax rebate is the most intuitive and most powerful.

But at the same time, he also said that Guangdong, as a major province of clothing exports, is the most affected and the most influential one. If the export tax rebate is raised, the positive effect will be obvious. "Why did textile and garment exports decrease by 11% in the first half of this year, but Guangdong dropped 20% to 30% in a few months? The main reason is the market structure. Guangdong textile and clothing are mainly exported to the United States and Hongkong. Therefore, the depreciation of the US dollar and the reduction of market demand caused by the US subprime mortgage crisis are the biggest blow to Guangdong's clothing export enterprises. In contrast, the Yangtze River Delta region developed relatively early on the European market and was less affected. Conversely, once the state support policy is introduced, the degree of improvement in Guangdong will be more obvious. "