Ease The Labor Gap Xiamen Yao Ming Ribbon "Exit Processing" Business To Reduce Costs

Floral production line moved to India

The so-called "

"Business" refers to the business of carrying out export processing and returning to domestic sales by means of overseas labor force after domestic enterprises undertake domestic orders.

In August this year, the General Administration of Customs formally approved Yao Ming's weaving belt to carry out the pilot business of outbound processing business for a period of 2 years.

Not long ago, the Xiamen Customs issued the "export processing trade paper handbook" to Yao Ming's ribbon, which is also the first "manual of export processing trade paper" obtained by Fujian enterprises.

"In August of this year, Yao Ming weaving belt set up a new factory in the southern city of Brandi, India: India Rui silk ribbon Jewelry Co., Ltd.

Yao Ming ribbon related personage told reporters that the factory early stage to make the company inventory flower ornaments, before the end of this year will gradually start to take account of some large orders, long term foreign customers.

According to the above personages, not long ago, Yao Ming ribbon had completed the first processing of the goods - the value of about $4. 5 million worth of ribbon material.

It can save a lot of cost.

The "exit processing" business of Yao Ming's ribbon has attracted the attention of the industry. So what expenses can be saved from the export processing?

Yao Ming weaving belt related personage said, "we produce ribbon in China to produce value-added tax and other related taxes and fees, and we send the ribbon to the industrial park in India. When the finished flower is returned to mainland China, the business is encouraged by the national policy and can get the relevant tax relief."

It is reported that through exit

Business, manufacturing export enterprises not only reduce the cost of products and taxes, but also more importantly, the cost of production has declined.

Huang Xiaofeng, deputy general manager of Yao Ming ribbon belt, said: "most of our ribbon products are mechanized and can be completed in China.

The floral production line to India is a pure manual production line, which requires a large number of workers to cut and weave the ribbon.

Yao Ming, the head of Customs weaving customs, said Wu Liangyi had a large gap in the original company, and the workers at the peak reached more than 200 workers. The capacity of the workshop production line was limited.

The "exit processing" approach can effectively utilize the manpower cost advantage in Southeast Asia to alleviate the shortage of manpower and the difficulty of production line operation in processing enterprises.

It is reported that the wages of front-line workers in Xiamen clothing and Ribbon enterprises are around 3500 yuan / month, while the wages of similar workers abroad, especially in Southeast Asia, are 1500 yuan / month ~1600 yuan / month.

"With this manual, our company can produce $240 thousand worth of material in India's port of visa, and then return to the domestic market for sale, which will save about $1 million of the cost."

Yao Ming ribbon weaving Customs responsible person said.

Many enterprises are interested.

Reporters learned that many of the enterprises interviewed were "right".

"Strong interest.

People in the Xiamen textile and garment industry association said that before that, dozens of enterprises in Xiamen had expressed strong interest in overseas factories, and actively organized investigation and wanted to "go out".

Zou Peng, President of Xiamen Wanli Stone Limited by Share Ltd, has also visited the ASEAN countries several times to investigate the plan of investment and plant establishment.

It is learnt that the next step will be to further liberalize the scope of the business according to the pilot situation of Yao Ming's Webbing, so that more enterprises will benefit from the Xiamen customs.

Interested enterprises can also consult with customs related windows.

However, some people in the industry have reminded that investment in the lower production costs can really lighten the burden on enterprises, but in practice, they need to be familiar with local laws, regulations and local customs, so as to find the most suitable way of investment and not blindly follow suit.