Proposal Of Two Sessions: Abolition Of Cotton Import Quota System

The National Federation of industry and Commerce will propose 45 proposals for deepening the reform, promoting the healthy development of the non-public sector of the economy and building ecological civilization in the two sessions this year.

Yesterday (March 3rd), reporters learned that the National Federation of industry and Commerce in the proposal, cotton The drawbacks of the import quota system have been very obvious. The commercialization of import quotas has become an open secret in the industry after obtaining quotas. It is recommended to cancel the quota system of cotton imports.

2013 is a difficult year for domestic cotton enterprises. According to the statistical data of Xinjiang Commission, 1-8 of Xinjiang's textile enterprises above Designated Size suffered losses in 2013. Xinjiang textile enterprises have been unable to afford high price Xinjiang cotton, and enterprises want to get cheap imported cotton abroad, and are subject to quota restrictions. The proposal of the National Federation of industry and Commerce shows that Xinjiang textile enterprises are not only restricted by quotas, but also happen in small and medium-sized enterprises throughout the country.

It is reported that the current quota management system for cotton imports in China is divided into two categories: Tariff quota (referred to as 1% tariff quotas) and tariff quotas preferential tariff rates import quotas (referred to as 5% sliding quasi tax quotas). The quota of imported cotton has always been a special commodity controlled by the state. The cotton imported over the quota will be charged 40% of the high tariff.

But at high tariff Below, domestic and international cotton prices are still hanging upside down. Li Hailong, manager of Yueyang cotton distributor, said that the average price of domestic lint in grade 4 lint is 17000 yuan per ton, and the average price of imported lint at the same grade after tax collection is still cheaper than one thousand yuan.

In the proposal, the National Federation of industry and Commerce said, "there is no uniform distribution basis and standard in the distribution of specific enterprises in the enterprises that can be declared, so it is easy to breed corruption problems, and textile enterprises have great opinions."

In the proposal of the National Federation of industry and commerce, the cotton quota has been reduced to a rent-seeking tool. For small businesses that are not easy to get cotton import quotas, they can only get quotas by purchasing quotas, with an additional payment of 3000-4000 yuan per ton quota, leading to the rising cost of enterprises and unfair competition between state-owned enterprises and private enterprises.

However, the industry believes that if the international low price cotton fully rushed into the domestic market, cotton farmers will lose less than 20%.