Textile Export Tax Rebate Rate Increases "Hemostasis" Must Be "Hematopoiesis"

A notice issued by the Ministry of Finance and the State Administration of Taxation on the website has made the entire textile industry like rain.

According to the notice of these two departments, since August 1st, the export tax rebate rate of some textiles and garments has increased from 11% to 13%.

Long-awaited good

According to the notice on adjusting the export tax rebate for some textiles and garments, besides the high pollution viscose fiber products, the callback rate of textile and clothing export tax rebates basically covers most products in the whole industry.

"The export tax rebate rate has been raised, the enterprise has called for a long time, and now it is finally promulgated. We feel that it is a long drought to meet manna, and we can take a little breath."

Wei Hua, a salesman of a textile enterprise in Shaoxing, said.

Since 2006, in order to curb the excessive growth of trade surplus, reduce trade frictions and speed up the upgrading and pformation of industries, the state has repeatedly reduced the export tax rebate rate of textiles.

However, under the influence of a series of factors, such as the shrinking of external demand, the rapid appreciation of RMB and the increase of cost, the Chinese textile industry has encountered unprecedented difficulties, and exports have been declining continuously. Many enterprises are in a loss and even bankruptcy.

Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, provided data that China's textile and clothing exports totaled US $81 billion 679 million in the first half of this year, an increase of 11.4% over the same period last year, but the growth rate declined month by month.

In June, China's textile and clothing exports decreased by 4.2% compared with the same period last year, of which clothing exports dropped by 15%.

"Textile and garment export tax rebate rate increases, which means that the state attaches great importance to the difficulties encountered by the textile industry and gives timely support, and the industry welcomes it."

Cao Xinyu said.

A survey conducted by the Shaoxing economic and Trade Bureau of Zhejiang province showed that the export rebate rate of clothing, viscose fiber and products decreased to 11% and 5% respectively from July 1st last year. The tax rebate rate was reduced by 1 points, and the tax rebate was about 8 cents per 1 dollars. In those days, 44% enterprises in Shaoxing county were affected, involving an export volume of 347 million US dollars, accounting for 18.9% of the county's exports.

It is difficult to solve worries and worries.

It is estimated that the total export volume of textiles and clothing is expected to reach US $184 billion 700 million this year. According to the general trade export account for 70%, the export tax rebate rate will be adjusted by 2 percentage points, and the total profit of the textile industry will increase by nearly 2 billion 600 million US dollars. According to the exchange rate of RMB 6.8:1 against the US dollar, the profit of enterprises will increase by about 17000000000 yuan.

"For the textile industry that is struggling now, the adjustment of the export tax rebate rate is indeed a timely relief."

Li Yanli, chief executive of Zhejiang's Limited by Share Ltd, said that the appreciation of the RMB exchange rate, the rising interest rate of bank loans and the increase of raw material and labor costs all made it difficult for companies to be optimistic.

In the first half of the year, the sales revenue of the company declined by 10% and its profit fell 48%.

The performance of its 6 trading branches declined, 2 of them fell into losses, and 5 of the 11 manufacturing enterprises lost a record high.

"RMB appreciation has become the biggest pressure on enterprises. Even European customers insist on using US dollars to settle accounts. The 3 month settlement period will be 5% at the fastest time, while the average profit margin in the textile industry will be around 3%."

She said.

According to the insiders, although the export tax rebate rate has eased the survival pressure of enterprises in the short term, the situation has not been fundamentally improved, such as increased production costs, tight credit environment and weak external demand market.

Moreover, the policy "dividend" produced by the increase of export tax rebate rate can not be fully enjoyed by domestic enterprises.

Because of the low bargaining power of domestic enterprises, foreign buyers are bound to get a share.

"Hemostasis" must be "hematopoiesis"

Some people worry that the export tax rebate rate will delay the industry's survival of the fittest, and is not conducive to industrial upgrading.

However, reporters found that under the background of globalization, the current development trend did not appear obvious market concentration to the dominant enterprises, but to make the market flow to low cost countries.

Because of the increase in domestic products, many buyers in Europe and the United States have pferred orders to Southeast Asia, such as Vietnam, India and Bangladesh.

Like the ordinary knitted T-shirt, China's price is 80 yuan a dozen yuan -90, while Bangladesh can be 10 yuan -15 yuan cheaper.

Cao Xinyu said that the analysis data can be found that the increase of textile fabrics imported from some Southeast Asian countries from China is very close to that of their exports to Europe and the United States.

Due to the poor local matching capability, Vietnam imported 57.7% years of textile fabrics from China over the 1-5 months of this year, while Vietnam's exports of textiles and clothing to the United States increased 36% over the same period in 1-3.

Some enterprises in Jiangsu, Zhejiang and other places reflect that industry pformation and survival of the fittest are inevitable trend, but it does not mean that in a very short period of time, the whole industry will be severely strenuous.

At present, survival has become the top priority for enterprises. It has reduced the investment in technological pformation, design and R & D of advantageous enterprises, and many enterprises have embarked on the "incremental" way.

Cao Xinyu believes that compared with the export tax rebate rate adjustment, to speed up the export tax rebate, ease the credit difficulties of enterprises, and enhance the "hematopoiesis" function of enterprises, may be more beneficial to enterprises.

Due to the sluggish market in Europe and America, the settlement period of foreign customers has been greatly extended, which has increased the pressure of capital turnover and greatly increased the financial cost.

The continuous tightening of credit gates in China also makes the cost of corporate financing rising.

Cao Xinyu believes that by alleviating the pressure of enterprise funds and reducing the occupation of funds, enterprises will virtually increase substantial profits.