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    Footwear Industry Calls For Higher Export Tax Rebate Rate

    2008/10/23 0:00:00 74

    From November 1st, the refund rate of some textile and clothing exports will rise from 13% to 14%. This is the second time the country has raised the rate of textile and garment export retreat this year.

    The industry generally believes that this increase in the short term is still unable to change the current difficulties faced by the textile industry.

    Wang Qianjin, senior analyst at China first textile network, said in an interview that the increase was only 1 percentage points this time, and that the adjustment did not meet the industry's expectations, and the textile products increased by 1%.

    At present, China's textile yarns are still growing rapidly. This is mainly due to the pfer of some garment orders to the surrounding countries, thus stimulating the export of raw materials in China.

    Under such circumstances, the state may consider adjusting the export tax rebate rate of apparel products such as clothing with high added value to 17% at once.

    Due to multiple factors such as exchange rate, rising cost of raw materials and labor, and weakening international demand, many export enterprises in the textile and garment industry have been in trouble this year. Since August 1st this year, the export rebate rate of some textiles and clothing has increased from 11% to 13%.

    This adjustment makes the export tax rebate rate of textiles and clothing back to the level before the adjustment of the two rounds of export tax rebate rate in 2006 and 2007.

    In 2006, the textile export tax rebate rate dropped from 13% to 11%, and the export tax rebate rate in 2007 dropped from 13% to 11%.

    Customs statistics show that in the 1~9 months of this year, most of China's exports of traditional bulk commodities dropped.

    Among them, clothing and clothing accessories exported $87 billion 80 million, an increase of 1.8%, 21.2 percentage points lower than the same period last year (the same below); textile yarn, fabrics and products exports 49 billion 860 million U. s.dollars, an increase of 21.3%, an increase of 7.1 percentage points; footwear exports 22 billion 80 million U. S. dollars, an increase of 15.1%, a return of 1.7 percentage points.

    Wang Qianjin said that the effect of raising the export tax rebate rate in August was not very obvious. However, from the export situation over the past two months, it still played a role in slowing down the growth of textile and garment exports to a certain extent.

    From the current situation, the textile and garment foreign trade environment has deteriorated further, and the industry has called for at least 15% increase.

    Although the trend of demand reduction in Europe and the United States can not be reversed, the increase in export tax rebate rate will help to enhance the competitive edge of China's textile and garment industries and neighboring countries in securing European and American orders.

    "We predict that if we increase the 2 percentage point this time, we will get 10 billion 600 million yuan tax rebate for textile and garment export enterprises, and increase the net profit of the textile industry by about 8 billion yuan."

    Wang Qianjin said.

    Zhou Xiaonan, deputy general manager of Ningbo Dunhuang import and Export Co., Ltd., told reporters that in the first few months of this year, the economic downturn in the United States had weakened the demand for the US market. In recent months, Europe was also swept away by the US subprime mortgage crisis. The euro depreciated, and the appreciation rate of RMB against Euro dollar in just three months reached 15% to 20%. At present, the business in Europe is basically unable to do business, and the country once again adjusts the tax rebate rate, which will make some profit margins for enterprises.

    According to many enterprises, under the influence of the spread of the US subprime mortgage crisis, the global economy is in recession. The three major markets of China's textile and clothing export will be all affected.

    In addition, emerging economies have also been hit one by one.

    Zhu Sujun, assistant president of Ningbo Shanshan Limited by Share Ltd, said yesterday that the export tax rebate rate alone was not enough for the garment enterprises, because the orders of several large customers of the company were all in the form of raw materials processing. The company did not feel the benefits from the increase in the export tax rebate rate. The state could also consider introducing some measures to support the export of superior enterprises and products.

    Li Peng, Secretary General of the Asian Footwear Association, told reporters yesterday that the two export tax rebate rates raised this year did not include shoes and hats. The export tax rebate rate for shoes and hats was still 11%. However, this year, the closure of export shoe enterprises in Dongguan and other places in Guangdong is very serious. If the shoe product orders are pferred to the surrounding countries on a large scale, this will have a great impact on the Chinese footwear industry. The shoe industry is appealing to the state to consider the situation and raise the export tax rebate rate.


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