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    Textile Enterprises Need Not Worry About The Change Of Export Tax Rebate Policy.

    2016/4/28 20:26:00 27

    Textile And Garment EnterprisesExportTax Rebate Policy

    Recently, a piece of news was cited by some domestic media and attracted the attention of the industry.

    The news said: in order to reduce trade friction with the United States, "China agreed to cancel seven major industries such as textiles export subsidies".

    In the absence of official response, the news has been fermented by the spread of many media, causing great concern to textile export enterprises, and even causing speculation and panic among some enterprises.

    "Whether or not the state should cancel the export tax rebate"?

    "The United States trade representative's office said China agreed to cancel its demonstration base and public service platform," the source said.

    Spin

    , light industry, special chemicals, medical products, hardware building materials, agriculture, advanced materials and metals. "

    The news also mentioned: "IMF President Lagarde said that the abolition of export subsidies is a positive sign, showing the determination of Chinese policymakers to reform and abide by the rules of international trade."

    To this end, reporters to the Ministry of Commerce, China Federation of textile industry to carry out verification and verification.

    Immediately after that, the Ministry of Commerce issued a memorandum of understanding on the signing of the memorandum of understanding signed by the Ministry of Commerce and the division of law.

    This talk gives an official explanation of the "antecedents and consequences" of the financial times, and helps to understand the whole story objectively and realistically.

    In order to further promote the pformation and upgrading of foreign trade, the Ministry of Commerce issued the "December 12, 2015"

    Ministry of Commerce

    Notice on doing well the work concerning pformation and upgrading of foreign trade bases.

    On the basis of the previous demonstration bases of foreign trade pformation and upgrading, the policy promotes the formation of a number of industrial pformation and upgrading bases with obvious industrial advantages, distinctive regional characteristics and perfect public service system, providing strong support for China to move forward from a major foreign trade to a trading power.

    An authoritative person from the China Federation of textile industry said in an interview that China's textile and garment industry has entered the market economy completely. There is no "subsidized export product price" provided by the government. Some industrial preferential policies are intended to guide the pformation and upgrading of enterprises, and there is no violation of the State export policy.

    According to the conversation, we can learn: "in February 11, 2015, the United States filed a consultation request under the WTO dispute settlement mechanism on the basis of our foreign trade pformation and upgrading demonstration base and the foreign trade public service platform.

    Since the request of the United States for consultation on the case, China and the United States have maintained close communication and active consultations, eliminating the misunderstanding of the US policy on the pformation and upgrading of our foreign trade base, and reached a constructive memorandum of understanding, confirming that my policy objective is to encourage foreign trade.

    Transformation

    Upgrading, rather than providing financial support for export enterprises, and clarifying the scope of support for relevant financial policies, and properly resolved the dispute in this case.

    "In April 14th, my permanent ambassador to the WTO, Yu Jianhua, and the permanent ambassador to the United States of America, Peng Ke, formally signed the memorandum of understanding to resolve the United States v. my foreign trade pformation and upgrading demonstration base and the foreign trade public service platform (DS489) in Geneva, Switzerland."

    The director of the Ministry of Commerce's division of law also pointed out that the demonstration base of foreign trade pformation and upgrading is an industrial gathering area spontaneously formed under the market economy condition, which has effectively promoted the stable, sustained, healthy and balanced development of foreign trade, and is one of the important measures for changing the way of foreign trade development.

    In view of the misunderstanding caused by misreading and misinformation, Sun Huaibin, Deputy Secretary General of the China Textile Industry Federation and spokesman, said that "export subsidies" should not be confused as "export tax rebates".

    The export tax rebate is a common practice in the world. It is in line with the WTO standard. Many countries are implementing it and there is no subsidy problem.

    In China, the value added tax is levied on export commodities, and the export tax rebate is adopted by the method of "retreating back", so that the domestic products can enter the international market without tax costs, and compete with foreign products under the same conditions. They can not be regarded as "trade subsidies".

    After many understanding, it is confirmed that there is no new adjustment and change in China's current export tax rebate policy.


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