Import Slipping Tax Quota To Advance The Cotton Spot Market To Show Calm.

In order to guarantee the needs of textile enterprises to use cotton, in April 12th, the national development and Reform Commission issued a notice on the issuance of quasi tax quotas for cotton imports in 2019. The announcement pointed out that the amount of quasi tax quotas for cotton imports was 800 thousand tons, all of which were non state trading quotas.

The survey was informed that the quota issuance time was two months ahead of 2018, and the application conditions for enterprises were slightly relaxed.

In 2018, the terms of application for enterprises were: they were registered before the industrial and commercial administration before October 1, 2017; they had good financial status, tax records and integrity; there were no illegal records in customs since 2016; they were not included in the blacklist of the "credit China" website; they did not violate the "Interim Measures for the management of agricultural products import tariff quotas".

This year's application for enterprise's spare parts is: before April 1, 2019, it was registered in the business administration department; it has good financial status, tax records and integrity; since 2017, there has been no illegal record in customs and so on; it has not been blacklisted in the "credit China" website.

It can be seen that this year's application conditions relax the requirements for the registration time of enterprises in the administration of industry and Commerce and comply with the Interim Measures for the management of import tariff quotas for agricultural products.

The early delivery of the imported cotton quasi tax quotas has given the textile enterprises a reassurance and has made a bad profit for the cotton market.

And because of the downstream yarn market generally, textile enterprises insist on the strategy of purchasing with purchase, which restricts the rising pace of the lint market in the spot market.

But at present, the resources are limited, and the quality is better. The price of seed cotton is less than the price. The price of seed cotton in the more active areas in the mainland is as follows: the seed cotton price in Shandong is 3.40-3.65 yuan / Jin, the Hebei area is 3.55-3.60 yuan / Jin, and the Henan area is 3.35 yuan / Jin. This week's quotation is stable temporarily; the lint market is stable and the local quotation is rising.

Among them, the mainstream price of grade three lint in Shandong area is 15300-15500 yuan / ton (gross weight, with tickets), local low price rises 100 yuan / ton; the three grade lint mainstream quotation in Hebei area is 15600-15700 yuan / ton (gross weight and ticket) stability, Henan area 15200 yuan / ton (net weight, no ticket), stability is the main.

Import quota applicants must be cotton spinning enterprises with more than 50 thousand spindles and above spinning equipment, and small textile enterprises will not be able to catch up. They will also bring some support to the spot lint market.

To sum up, the issuance of quasi tax quota policy for cotton imports has injected some vitality into the market, but because of the stalemate of external factors, the spot market is more calm and the market is becoming more mature and rational.