Tax Rebate Adjustment: Tough Situation In Leather Industry And Adjustment Of New Structure

The export tax rebates indicate that the goods exported and exported by the export enterprises, unless otherwise stipulated, may be submitted to the tax authorities for approval or refund of VAT and consumption tax on the basis of the relevant certificates.

The tax refund policy for export products is an international practice and an important means for the state to support export.

China began to implement the export tax rebate policy in 1985. After that, it carried out major reforms in 1994, 2003, 2004 and 2006 respectively.

In view of the stubborn trade surplus, our government finally fired the strongest blow in recent years.

The five ministries and commissions of the Ministry of finance, the State Administration of Taxation, the NDRC, the Ministry of Commerce and the General Administration of Customs recently announced that since July 1st, the export tax rebate policy for 2831 commodities has been adjusted, covering 37% of the total number of goods in the customs tariff.

The export tax rebate of leather enterprises was abolished. In the export tax rebate adjustment, the impact on enterprises everywhere is obvious, leather enterprises are the first to bear the brunt.

So how much impact will the new export tax rebate have on local enterprises?

The rumor of export tax rebate adjustment turned into a fact that the "honey pot" broke the pain. In February and March, there was a rumor that the 2007 country would reduce the export tax rebate rate. At that time, some chambers of Commerce issued a notice to clarify that the reduction of export tax rebate rate is of great significance to clothing export. If there is a policy, the relevant government departments will issue a notice through formal channels, hoping that enterprises will not misunderstand and mislead rumors.

The implication is that the export tax rebate rate will not be lowered.

However, what failed to do was that in June 19th, with the approval of the State Council, the Ministry of Finance and the State Administration of Taxation jointly issued the notice on adjusting the export tax rebate rate for some commodities (fiscal and taxation [2007]90), and adjusted the tax rebate rate for 2831 commodities.

Since July 1st, the export tax rebate policy for some commodities has been formally adjusted, and the export tax rebates of 553 items of "high energy consumption, high pollution and resource" have been cancelled, including the leather, dyestuffs and other products.

According to the latest statistics from the customs, the export value of China's leather industry's main commodities was $7 billion 120 million from 1 to April, up 5.8% from the same period last year.

Except for leather clothing, fur clothing, foot basket volleyball, semi-finished leather and finished leather, all the other major commodities have increased to varying degrees on the same period.

Before the import and export of leather as "processing trade", the import of raw materials is not taxed, exports are not tax rebates, enterprises have no tariff burden.

However, this preferential policy for processing trade was abolished. Leather import and export began to be taxed according to the general normal trade tariff.

For leather semi-finished products, 5%~14% duty and 17% value-added tax are needed, so the export cost of leather products is increased.

Leather enterprises rely on tax rebate to eat at the end of the new policy announced, immediately on the domestic leather enterprises, especially export enterprises have a huge impact.

Due to the greater impact this time, the owners concerned are worried.

While clothing, leather and other products are directly affected by the export tax rebate policy, some enterprises supporting the terminal products are also very worried: the profit of parts products is low, and the drawback of terminal products will inevitably affect the supply enterprises, so that the profits of enterprises will be even smaller.

This policy has made domestic leather enterprises owners frown.

Shandong Province: the enterprises that lack the advantages will therefore be "closed" and also suffer from "thorough adjustment" in the leather products industry. The export tax rebate rate of footwear products will be adjusted from 13% to 9%, and the export tax refund for leather and other leather products will almost be abolished.

In Shandong, leather enterprises are mostly materials processing enterprises. The average profit rate of the whole industry is only about 4%. Reducing or abolishing the export tax rebate rate has the greatest impact on the leather industry export.

Experts believe that the export of leather industry will be reduced sharply, and the enterprises lacking superiority will therefore "close".

Jiangxi Province: the profit margins of leather enterprises are reduced.

Leather products, leather products, footwear, buttons and so on are the most influential products.

In canceling export rebates, leather, leather processing, fertilizer, fuel and wooden furniture in chemical products play an important role in export products.

Among them, the raw leather industry is mainly foreign-funded enterprises. This part has been operating for many years and has many bank loans, and its business varieties are relatively single, and its ability to deal with external risks is weak.

The tax rebate was abolished from 8% to all, and the export tax rebate from US $0.3 to $0.4 per dollar was reduced.

Henan Province: 40 million dollars will come to nothing.

A few days ago, in order to fully understand the impact of the export tax rebate on Henan, the State Administration of Taxation made a calculation and found that the 553 "high energy consumption, high pollution and resource" products (hereinafter referred to as "two high and one capital") were abolished in the country, involving 158 items in Henan, 2268 of which were reduced, and 1107 involving Henan.

Because of the adjustment of the export tax rebate rate, Zhengzhou's export enterprises will reduce about 40 million US dollars in export earnings in the second half of this year.

Fujian Province: the area is large and the amount is large.

The export tax rebate rate lowered in July 1st will have a greater impact on leather, clothing, shoes and sporting goods industries in Fujian. It is estimated that the export tax rebate rate will be reduced by 26 million 310 thousand yuan over the previous year and the exemption tax will be reduced by 11 million 680 thousand yuan after the export tax rebate rate is lowered in July 1st.

At present, the government quickly convened various relevant departments' meetings, thematic studies to actively respond to the reduction of tax rebate rate, and maintain the healthy development conference of export enterprises. The departments of customs, commodity inspection, foreign trade and state taxation work together to help enterprises export and minimize the negative impact caused by the reduction of export tax rebate rate.

Zhejiang Province: the new tax rebate policy has forced the pformation of export enterprises.

The tax rebate has not set up a pitional period and has not yet fulfilled the contract business, which has suffered heavy losses.

Zhejiang's export growth has dropped markedly.

The structural adjustment of the new export tax rebate rate is relatively large, and the extent of adjustment is different.

The most affected sectors are leather clothing, hardware, chemical industry and so on. The export tax rebate has been reduced by more than 8 points. The export of the general trade mode in these industries will be seriously affected, which will directly lead to the loss of competitive advantages such as the neighboring countries. The export of goods in the form of processing trade will have a relatively small overall impact, but profits will be affected.

Hubei Province: leather enterprises accelerate domestic expansion.

The export tax rebate rate is down, which has a great impact on the leather industry in the whole province.

Some low and low value-added small and medium-sized foreign trade processing enterprises may withdraw from the market.

It is learnt that in order to mitigate the impact of the new deal, besides exporting to high value-added products, garment enterprises in the province are also ready to accelerate the development of the domestic market by way of group formation.

The export of domestic fur industry is worsening.

China's fur industry has just adapted to the rectification and clearance policy of Russia's main battlefield, and has also met the adjustment of the state's export tax rebate.

The export rebate rate of leather and fur products decreased from 13% to 5%, making the domestic fur industry worse and worse, bringing new challenges to enterprises.

The development of fur industry is very bad this year, and many enterprises have already stopped production.

This is mainly due to the continuous decline in the prices of mink skin in the near future. For example, the price of mink skin from 83 centimeters to 89 centimeters has dropped from around 370 yuan at the end of the year to about 260 yuan.

In addition, the increase of the RMB exchange rate has made the fur export enterprises suffer more losses in the process of settlement of foreign exchange.

Lu Zhiyuan emphasized that as the main raw material industry, farmers thought that the state would support the fur industry, encourage the development of animal husbandry, and support the related industries of deep processing of agricultural products. However, the reduction of the export tax rebate rate has greatly affected the fur manufacturing enterprises.

Export tax rebates are not the end of the business experts' guidance to actively explore ways to export tax rebates, which is an effective measure to avoid double taxation between countries and regions and to maintain fair competition in international trade, and is also in line with the principle of fairness and neutrality in taxation.

Export tax rebates have a positive effect.

Enterprises with core competitiveness will expand the scale of production in this adjustment.

Those small businesses that are strongly affected by export tax rebates can also be bought by large enterprises.

For those big enterprises, the impact of the export tax rebate reduction will not be too great.

Those small export enterprises with low added value can also consider pformation.

Many small businesses earn profits every year from export tax rebates. Such enterprises will not last long.

Export tax rebates should not be abolished and should be used rationally. We should recognize the positive role of export tax rebates. On the one hand, we can use export tax rebates to encourage the export of high-tech products with independent intellectual property rights. On the other hand, we should take into account the tax reform and make detailed plans for tax rates, products and industries.

Experts are given the following points for attention.

The government plays an active role in guiding and reducing the impact to a minimum: scientific guidance and structural adjustment.

The reduction of export tax rebate rate in policy design adopted a policy of "holding pressure", releasing the clear signal of the national industrial structure and the adjustment of export commodity structure, which is conducive to guiding enterprises to reduce exports of "two high and one capital" products, reduce exports of products with low added value and low technology content, and increase exports of products with high added value and high technology content. All localities and relevant departments should combine reality to guide enterprises to adjust investment and production direction, avoid overcapacity and blind operation, and focus on developing high value-added electromechanical products, high-tech products, high-grade textile and clothing, deep-processing agricultural products, and emerging biopharmaceutical industries.

The business sector should further play the role of regulating and supporting funds from all kinds of supporting policies of the state and province, and increase the support for enterprises with large export scale, fast growth and strong aftereffect. At the same time, it is suggested that the government should set up special subsidy funds to give special care to the growth oriented enterprises that are pferred to the camp for marketable export commodities because of policy adjustment and help them tide over difficulties.

Leather enterprises should change the way to deal with the New Deal: first, adjust the size of the trade mode and the way to reduce the tax rebate rate.

As we all know, foreign trade can be divided into general trade, processing trade and other trade.

When the state reduces the export tax rebate rate and limits the export of some commodities, enterprises can increase their exports by increasing processing trade, because processing trade can enjoy preferential tax preferences for import bonded (free import tariffs and import link tax).

In this way, the larger the export tax rebate rate will be, the faster the processing trade will grow.

But this is just a response strategy for some small and medium enterprises in the short term.

For some large enterprises, the main way to do so is to set up factories in the sea to produce products overseas and sell them overseas, so that they will not be affected by the policy of lowering the export tax rebate rate.

Far sighted enterprises, especially large enterprises, can also consider brands to go abroad, to set up direct selling stores abroad, or to register brands abroad.

Change two: adjust the export tax rebate rate adjustment of the product structure has different effects on different industries. The industry should take corresponding measures according to its own characteristics.

The Secretary General of the footwear industry association of Fujian believes that the export products of Quanzhou footwear enterprises account for a large proportion of labor-intensive and low value-added products. The export tax rebate rate has been lowered to a certain extent, which has weakened the export competitiveness of enterprises and reduced the profit margins of manufacturers.

If the product structure adjustment is lagging behind and the additional is not worth upgrading, it will lose the market, lose customers, and endanger the survival and development of enterprises.

Secretary General Wang suggested that footwear enterprises should adjust their export varieties, that is, developing new products as much as possible, reducing the production of conventional varieties, minimizing the "low value" goods and improving the export proportion of high-end products.

Enterprises should implement the strategy of differentiated products management, do not set prices in traditional markets, and strive to win by quality.

Change three: adjusting the export tax rebate policy adjustment of customer structure is not only a domestic enterprise, but also a test of foreign importers.

In order to cope with the reduction of tax rebate rate, export enterprises will inevitably adjust their export prices. In the process, they will inevitably lose some customers who are mainly engaged in low price and low grade products.

In view of this situation, Zhou Quanzhong, deputy director of the national synthetic fiber research center, believes that this is also an opportunity for the long-term development of enterprises, which can eliminate some low-end customers and raise the level of export prices in an all-round way.

Before, in order to maximize export performance, enterprises are always "no matter big or small" for foreign importers, and the tax rebate rate is down. Some small strength foreign importers will surely retreat.

Deputy director Zhou believes that taking this opportunity, it is easier for enterprises to find and cultivate a group of high quality customers.

He believes that as long as there are stable orders, fixed large customers, marketable commodities, the impact of tax rebate reduction can still be digested.

Export tax rebate: export tax rebate points out export enterprises