Procurement Of Shoe Materials New Tactics, World Procurement Risk Avoidance

The rising price of raw materials is becoming an unbearable burden for Wenzhou. Second of Wenzhou's shoe industry, the 16 largest industry in Wenzhou, can not be avoided.

However, there are many shoe enterprises in Wenzhou now purchasing through the world, which effectively reduces the cost pressure caused by the rising price of raw materials.

Recently, Wenzhou jalda Shoes Co., Ltd. has bought a batch of cowhide from overseas market.

Mao Jiancheng, manager of the foreign trade department of the company, said that since last year, the price of raw materials in shoes industry has risen very sharply, for example, the price of leather has increased by 20%.

Fortunately, the company has been in contact with foreign suppliers of raw materials since 2008, and has been approved to carry out the processing business.

Now, the raw materials of the jalda shoe industry can account for 90% of the imports, of which cowhide is 100% of imports.

India, Pakistan and South America are the main importer of raw materials for their enterprises.

Wenzhou customs relevant personage introduces, such as Jill Da shoe industry such way of adoption is called feed processing.

It is one of the ways of processing trade. It refers to the import and export of imported materials by enterprises, and the export of finished products by enterprises.

As of June 30th this year, there were 306 processing trade enterprises in processing trade in Wenzhou customs area. Among them, there were more than 30 shoe processing enterprises in Wenzhou in 1-6 this year, with a record value of $180 million.

Global sourcing of cowhide has become a new choice for Wenzhou shoe companies.

Wenzhou customs officials also pointed out that processing trade is a trade mode between raw materials and markets, and the state has implemented a fairly preferential policy for it.

Enterprises that engage in processing trade can be exempted from customs duties, value-added tax and consumption tax on imports of raw materials.

The development of processing trade can make full use of related preferential policies to reduce the occupation of capital, speed up capital turnover, reduce the cost of enterprises, and achieve better results.

Wenzhou has specific incentives for processing trade.