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    Japan Will Modify Preferential Tariff System Shandong Clothing Enterprises Are Afraid Of Being Affected

    2010/9/26 11:41:00 98

    Service Enterprises

    Learned from the Qingdao customs, the Ministry of finance of Japan is preparing to modify preferential tariff system for imported products from developing countries. It intends to reduce the preferential tax rate from 20% to 10% - 15%, and is scheduled to be formally implemented in April 2011.


    It is understood that Japan's preferential tariff quota is 5 billion 500 million yen, of which about 20% of our country's use. Tariff changes will further enhance the export price of Japanese textile and clothing and reduce the competitiveness of Chinese products in the Japanese market.


    "At present, there are as many as thousands of textile enterprises in Shandong Province, and Japan has always been the largest market for textile and garment exports in Shandong province." Liu Yongsheng, deputy director of Industry Management Office of Shandong textile industry office, introduced. Qingdao customs statistics show that in the first 8 months of this year, Shandong ports exported 2 billion 820 million US dollars of textile and apparel to Japan, accounting for 24.3% of the total value of textile and garment exports over the same period. This means that on average, four pieces of textile and clothing exported to Shandong are sold to Japan.


    In response to the revision of preferential duties in Japan, Qi Xueyong, director of the foreign trade department of the Provincial Department of Commerce, said: "this proposal is still in the process of planning, because there is no formal implementation, and the scope and type of things are not easy to say. It is difficult to judge the impact of Shandong textile enterprises."


    Liu Yongsheng said that compared with Japan's revised preferential tariff, Raw material And labor costs continue to rise, I am afraid, for textile enterprises, it is more difficult to deal with.


       cotton Prices have been rising since October 2009, rising 37% in the first half of this year, and domestic cotton prices are approaching the highest level in 15 years. Meanwhile, the national minimum wage standard has increased by 12% this year, and the labor cost of Shandong textile enterprises has increased by 20% over the previous year.


    Liu Yongsheng believes that "the rising cost of raw materials and labor pushes up the price of textiles, but also compresses the profit margins of textile enterprises." Judging from the current situation, due to the reduction of domestic cotton planting area and the decline of international cotton stocks, coupled with the strong imbalance between supply and demand in the domestic market demand, this year cotton supply and demand tightening situation is difficult to change.


    ASEAN countries such as Kampuchea, Bangladesh and Thailand have been competing fiercely with China in the low-end market of Japanese textile and apparel with low cost advantages. Vietnam's textile and clothing exports to Vietnam increased by 23% in the first 7 months of this year, thanks to the EPA agreement signed with Japan (from the ASEAN countries to enjoy zero tariff treatment on Japanese exports).


    In this regard, Liu Yongsheng suggested that in the face of the overall rise of production factors, the textile enterprises in our province should segment the market according to their own product characteristics so as to avoid the homogenization competition among enterprises in the province; in addition, textile enterprises should increase their efforts in independent innovation and technological transformation, increase the added value of products, consolidate their dominant position in the Japanese market, timely develop new markets, reduce export risks, and rationally implement industrial transfer.


    Faced with the increasingly severe export situation, some enterprises in Shandong have begun to try directly to sea mergers and acquisitions.


    Shandong Ruyi group successfully acquired Japanese clothing giant prestige Co., Ltd., and directly entered the Japanese market. Shandong smart home textile Ltd is the first Australian textile brand to earn its income.

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