Rules Of Origin Are Touted By &Nbsp; Chinese Textile Enterprises Can Make A Detour.

After experiencing the baptism of the financial crisis, the textile industry of every country has made frequent moves to protect the interests of its own industries.

The trade protection measures related to the rules of origin will not only close the door to some developing countries which are mainly processing trade, but will also become the hidden worries of their passive occupation of the export share of these countries.

New patterns of trade protection

In recent years, western countries and regions such as Europe, America and Japan, which import more textiles and clothing, have set high limits on the exports of developing countries.

Among the many tariff policies and technical regulations, the relevant provisions on origin identification are the most "implicit" and the most directive.

As a "grey" policy tool, it has more concealment, lower pparency, and less supervision and prediction.

The "Italy made" provenance code adopted in April 2010 stipulates that labels for products of textile industry, shoe making industry and leather products must be identified as the origin of products, indicating the processing procedures, hygienic standards and safety and reliability of the instructions that conform to the existing laws and regulations.

At the same time, enterprises violating the regulation will be fined 50 thousand ~7 euros, and enterprises with repeated violations will be fined for 3 years.

The regulations will be implemented from October 1st this year.

In fact, as early as last year, when the Italy house of Representatives drew up the bill, Adolfo Urso, Vice Minister of economic development of the country, said that the bill would serve as a banner to help create a truly "Italy made" product image.

Most members of the house of Representatives believe that the passage of the bill will be very good for the country's industrial recovery, and it can provide about 1 million jobs for Italy.

More than Italy is keen on this new means of trade protection.

Recently, it is also reported that the EU intends to enforce the label system of clothing country of origin so as to prevent consumers from buying the products of third countries originating outside the EU without knowing it.

It is understood that the EU's current country of origin label is voluntary, and the use and labeling of labels are different according to the national laws of different countries. After the mandatory implementation of the label system of clothing country of origin, the contents of the existing labels containing only the names of textile fibers should be supplemented.

The predecessor was the differential treatment.

In international trade, due to the different treatment of tariff and other trade measures, the origin of products is an important basis for deciding whether or not they can enjoy certain tariff treatment.

Especially in countries adopting anti-dumping, countervailing measures, trade sanctions and other trade measures, only by accurately judging the origin of goods, the trade measures they take can play a role.

The rules of origin are the precondition for different countries to implement differential treatment, especially when they take anti-dumping measures. Judging the "economic nationality" of the products is not only convenient for their targeted implementation, but also in the process of anti-dumping, countries try to use different rules of origin to achieve the purpose of anti circumvention.

China's current rules of origin are relatively low in determining the "economic nationality" of our export products. Many foreign products are therefore covered with "made in China" clothes and sold in the international market in the name of Chinese products. When the product is dumping on other countries, China has become the object of anti-dumping and the victim of trade disputes.

To protect the manufacture of Italy, for the relevant imported products beyond the "Italy manufacture", after attributing to the origin of the country, it will undoubtedly lose the high immunity created by Italy.

The EU's label system of clothing country of origin will also make the products of some developing countries face the same situation.

From the perspective of appearance, these imported products may lose a group of consumers who have a high degree of loyalty to local products. The deeper implication is that after being deprived of the "Italy made" signature right, these only part of the links (such as finishing) completed in Italy, re export of fabric products, will occupy Italy's share of the country's exports to these products, thereby affecting the country's export situation, and even bilateral trade statistics.

Bypass barriers have a way to follow.

Today, with the acceleration of economic globalization and regional economic integration, the importance of rules of origin in the field of international trade is increasingly significant.

Despite such an era dominated by importing powers, they restrict the influx of textiles and clothing in a large number of developing countries through various kinds of trade protection measures.

However, we can still guarantee the share of export market in some ways and avoid trade barriers.

The start of the China ASEAN Free Trade Area has opened another window for export enterprises, and the rules of origin of the free trade area are based on the "value-added standard".

According to the agreement on trade in goods between the China ASEAN Free Trade Area, if the local processing value of a product is not less than 40% of the total value of the product, the product can be regarded as a product originating from China ASEAN Free Trade Area, enjoying preferential tariff treatment in the import and export trade.

That is to say, as long as a product is located in a free trade area and is not limited to a free trade area, the value of the raw material exceeds 40% of the total value, so it can be regarded as the original product of the China ASEAN Free Trade Area.

China's textile export enterprises can make use of the advantages of low cost of labor in Bangladesh and Vietnam to launch processing trade in ASEAN. Some local sales, some of which are exported to the European Union and other countries in these areas, make effective use of the "regional origin accumulation" provisions of these developed countries and enjoy preferential treatment.

In addition to vigorously developing overseas processing trade, improving export commodity structure, implementing market diversification strategy and reducing dependence on European and American markets will also reduce the risk of China's textile and clothing export.

In addition, strengthening the understanding and research of rules of origin in developed countries should also become a compulsory course for export enterprises in China.