Rumors Of Clothing Export Tax Rebates Dropped To 11%&Nbsp; Textile Enterprises Were Panic Again.

Affected by the rumors of export tax rebate adjustment, the 109th Canton Fair is uncertain.

"If we cut 5%, we really have no profit."

In May 3rd, Gao Bingxue, chairman of the Zhejiang Provincial Native Produce and animal products import and Export Group, told the newspaper that since April, market rumors have been that the state will reduce export tax rebates for the "high pollution, high energy consumption and resource" industries. The export tax rebate rate of textile and garment will be reduced from 16% to 11%.

Gao Bingxue believes that textile and clothing exports are small profits, and the amount of export tax rebates is related to the living conditions of the industry.

If the tax rebate rate plummeted by 5 percentage points, under the multiple pressure of rising raw material and exchange rate, most of the small and medium-sized enterprises will be closed down.

Concerns about the reduction of export tax rebates

The loss of clothing orders will aggravate, and the space for price increases will be even more limited.

In the early morning of May 3rd, people of different colors in Xingang east station of Guangzhou metro line eight rushed out of the ground and rushed to Pazhou Club Hall of Guangzhou Trade Fair.

Looking at an endless stream of purchasers, Gao's learning mood did not become easy.

The RMB exchange rate against the US dollar has dropped 6.5 from 6.58 last month, leading to a 0.8 drop in corporate profits.

Data show that in 2010, the appreciation rate of RMB against the US dollar was 3.1%; in 2011, the yuan was against the US dollar.

Gao Bingxue told reporters.

"From the point of exchange rate, it is very likely that the long order will lose money."

Ying Xiuzhen, deputy general manager of Ningbo Zhongji import and export company, said that although the RMB exchange rate does not exceed 30% of the quoted price, the appreciation has great uncertainty. Many enterprises only dare to take some short lists.

Currently in commodities,

In April 26th, Liu Jingsong, deputy director of the Finance Department of the Ministry of Commerce, said that the average profit margin of China's export enterprises in 2010 was 1.47%, lower than the average profit level of industrial enterprises. In 2011 1 to February, the export profit rate of enterprises dropped further to 1.44%.

Despite the first quarter economic data released, despite the first deficit in 6 years, the total export volume of textiles and clothing in China increased by US $48 billion 627 million, up 23.96% over the same period last year.

"If we exclude the factors that firms generally raise their prices, we will probably be negative growth if they are calculated from volume alone."

Jin Fangping, general manager of China Commodity City (600415, stock bar) believes that this year's global demand for centralized replenishment has come to an end, and the export price of textile enterprises will be forced to rise by 10%~15% under the cost. The price game process will be extremely difficult.

The bigger worry comes from rumors that the export tax rebate quota is down.

In 2010, the total export volume of textiles in China amounted to US $77 billion 51 million, and the export tax rebate was about 78 billion 500 million yuan, fluctuating by one percentage point, which was related to the textile industry's profit of about 5 billion 200 million yuan.

Ouyang Meiqin, foreign trade manager of Zhejiang Xin Shi Garments Co., Ltd. pointed out that once the export tax rebate rate is reduced by 5 percentage points, the loss of orders in Chinese clothing (000902, stock bar) will increase, and the space for raising prices will be even more limited.

Gao said that if rumors become true, domestic textile and garment export enterprises will collapse.

Six major export provinces, the foreign trade situation is not optimistic.

About half of these enterprises have lost profits and increased their losses.

Export tax rebates play an important role in China's import and export trade.

Take the textile and garment industry as an example, Dr. Mei Xinyu of the international trade and Economic Cooperation Research Institute of the Ministry of Commerce introduced to this newspaper that between August 2008 and April 2009, the cost of the international market was sharply reduced, and the cost of the enterprises increased due to the introduction of the new labor law and the increase in raw material prices. The country raised the export rebate rate 4 times after the first time, making it gradually increased from 11% to 16%.

In January 2011, as the international oil price rose, the export tax rebate rate of the upstream chemical fiber industry also increased by 2 percentage points again.

To some extent, the export tax rebate has also become the "umbrella" of domestic enterprises.

Under its asylum, domestic enterprises have never stopped their low price advantage.

Even foreign buyers now understand that as long as the export tax rebate rate is raised, they can lower the price.

Moreover, the current situation of low price growth and the energy consumption ratio of the industry are expanding.

According to the data, the energy consumption of China's textile industry is roughly 4.84 tons of standard coal / ton fiber.

Among them, the clothing industry energy consumption is 1.05 tons of standard coal / ton clothing, weaving industry energy consumption is 0.95 tons of standard coal / ton fiber, printing and dyeing industry energy consumption is about 2.5 tons ~3.2 tons of standard coal / ton fiber, the average is 2.84 tons of standard coal / ton fiber.

This shows that the textile industry is the focus of energy conservation reform.

In 2010, China's export tax rebate amounted to 730 billion yuan, while the trade surplus of US $183 billion 100 million, which meant that the gap between export tax rebate and trade surplus was narrowing.

Therefore, some scholars put forward the proposal of phasing out or reducing the export tax rebate.

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But the market is different about this.

Recently, foreign trade research from six major export provinces of Guangdong, Zhejiang, Jiangsu, Liaoning, Sichuan and Hubei showed that about half of the enterprises in these areas decreased their profits and increased their losses.

The industry pointed out that reducing the export tax rebate rate should not be too large, within 1 to 2 percentage points in the year, as far as possible to maintain a relatively stable export environment.

Pan Yinglai, head of Zhejiang gold Textile Trading Co., Ltd. believes that from the strategic perspective of industrial pformation, China's textile export tax rebate should be lowered. What we need to consider now is the rate of tax adjustment and the time to launch the policy.

Pan Yinglai called for other ways to reduce the burden on enterprises, such as lowering the value added tax of industrial enterprises up to 17% and 30% of the income tax.

"As individuals in the real economy, factories are different from shopping malls. They need to invest money continuously in production. It is unreasonable for the two to bear the same amount of tax burden."

Pan Yinglai bluntly said.

Facing the worries of enterprises, Gao Hucheng, Vice Minister of international trade negotiations of the Ministry of Commerce recently made a public response, saying that "the state's foreign trade policy will remain relatively stable".