Customs: Carrying Out Metamorphosis For Textile Enterprises Encountering "Severe Winter"

In July 31st, the Ministry of Finance and the State Administration of Taxation jointly issued the notice on adjusting the export tax rebate rate of some textiles and garments.

The circular pointed out that since August 1, 2008, the export tax rebate rate of some textiles and clothing has increased from 11% to 13%.

The increase of export tax rebate rate undoubtedly injected a needle "analgesic" for the small and medium-sized textile enterprises in the predicament. However, due to the influence of RMB appreciation, shrinking external demand and increasing labor costs, it far exceeded the benefits brought by the tax rebate. In addition, this adjustment focused on the knitting and garment industries in the lower reaches. Most textile enterprises still hold pessimistic arguments and are not optimistic about textile prospects.

"The export tax rebate rate has not yet been related to the wool processing enterprises. In order to cope with the difficulties and avoid the loss of skilled workers, our company was forced to take five days off a week for two days, reduce production lines, and so on, but this is not a long-term solution.

This is not the most difficult time for our wool processing enterprises. After all, some orders in the first half of the year can still barely maintain production. But by the end of the year?

Do you know when we can wait for the revival of the textile industry?

The head of a wool textile enterprise in Zhangjiagang bonded area is deeply worried.

The current situation of the enterprise is only a microcosm of the whole textile industry encountering "severe winter".

It is reported that 2003-2007 years is the spring of the entire textile industry. Especially in 2007, the textile industry has been developing vigorously. Enterprises have introduced a large number of equipment and expanded production capacity.

In 2008, the "cold winter" came, and the textile export market was rapidly weakening. Many enterprises immediately faced the embarrassment of overcapacity, capital turnover and hoarding of large quantities of goods. Under such vicious cycle, many small and medium-sized enterprises had ceased production, and the prospect of large enterprises was also worrying.

Many wool processing enterprises can only hope that the adjustment of export tax rebate policy for downstream products will help increase exports, stimulate foreign demand, and smooth the entire textile production chain, indirectly supporting the development of textile industry in the upper and middle reaches.

Zhangjiagang bonded area currently owns many large scale wool processing enterprises such as Tianyu, aoleng, Xie you and so on. It is the largest production base and export base of wool strips in China. In 2007, the export of wool strips in the bonded area accounted for 35.8% of the total export volume of wool articles in China, ranking the first in the country. The shrinkage of the wool added enterprises will inevitably affect the overall economic development of the bonded area.

The customs of Zhangjiagang bonded area is painstaking to promote the development of wool processing enterprises.

"What we can do now is to provide" one-stop "service for enterprises, such as the difficulty in exporting large quantities of wool strips and tight shipping schedule, so that enterprises can pre declare to customs. The customs will check overtime on Saturday and Sunday, and implement the 24 hour check and release of bayonet, so as to ensure that enterprises can timely pass customs, reduce the cost of enterprises, provide quality service and convenient customs clearance for wool enterprises.

Hu Su, a customs clearance officer, listed the customs' practices one by one.

The difficult operation of wool processing enterprises has also brought various pressures to the customs of Zhangjiagang bonded zone.

If we need to monitor a large number of goods hoarding in the warehouse, or pay attention to the serial problems brought about by the sudden bankruptcy of the wool processing enterprises, we need the customs officers to make a pair of eyes, shorten the write off period and increase the number of offline inventory.

In seven and August, when the high temperature alarm was rounded, the wool warehouse was hot and stinky. Chen Liang, a member of the processing trade section, kept a high inspection rate to ensure that the supervision of wool was not a problem.

"Now the development of wool processing enterprises is very slow. When we do well in service, we must also ensure that the national tax revenue should be collected, which is the responsibility of our customs people."

Chen Liang expressed his simple thoughts.