Job Resumption, Capital Chain, Export... How Should Textile Enterprises Cope With The Impact Of The Epidemic?

Over the past few days, many textile and garment enterprises have carried out their mission to fight against epidemic diseases. They have rushed back to work to produce important materials such as masks and protective clothing. They have actively donated money and donated goods to implement epidemic prevention and control. At the same time, the challenges and pressures brought by the epidemic to industry and enterprises are attracting more and more attention. Especially, SMEs are faced with many difficulties, such as cash flow capital chain, recruitment and export.

In February 1st, the five departments of the central bank, the Banking Regulatory Commission and so on, launched 30 measures to propose that the wholesale and retail industries, especially small and micro enterprises, which are more affected by the epidemic, should not blindly loan, break the loan or pressure the loan. In February 1st, China Council for the promotion of trade (CCPIT) issued information to help foreign trade enterprises apply for a factual proof related to force majeure.

Objectively speaking, the impact of the epidemic on industrial production and social economy is expected to last for a long time. The main contradiction is concentrated on the rapid decline of consumer demand, shortage of human resources, tight capital chain, and the impact of export and foreign trade. However, the more difficult we are, the more we need to strengthen confidence, act positively and overcome difficulties. At the same time, governments at all levels are making relevant policies at the fastest speed to ensure social stability and enterprise operation. On the issue of manpower and rehabilitation, the textile industry as a "pioneer industry" to fight the epidemic, some related enterprises have resumed production and resumed production at the early stage of the outbreak, and the manpower shortage problem faced by the industry is also the first to be exposed.

A protective clothing manufacturer is located in Pang Chang town, Xiantao, Hubei, China. There are only 7 employees on the production line of the new year's day. They are the heads of the enterprise and 6 of their relatives. They work overtime day and night, and only provide a suit of professional protective clothing for the front line of anti epidemic. This is the responsibility of a Chinese textile entrepreneur, but also a helplessness. Affected by multiple factors, the person in charge sent a notice of resumption of work with a three times salary, with few respondents. This is a microcosm of the shortage of manpower in textile enterprises in the current situation, and it also reflects the problems that will be faced in the future.

On the issue of capital chain tension, entrepreneurs in this anti epidemic war are worthy of respect, and are not only limited to the textile industry. On the one hand, many enterprises continue to donate money and donations to Wuhan. According to statistics from the Chinese Academy of Social Sciences, 1068 enterprises have donated 14 billion 710 million yuan as of January 31st. On the other hand, some small and medium-sized enterprises are affected by the epidemic, the capital chain is tight and the operation is difficult.

Recently, the restaurant veteran and Jia Guolong, the founder of Xibei, has aroused widespread concern in the society, and has also pointed out the dilemma of the capital chain of many affected enterprises. "At present, the biggest pressure is to raise more than 20 thousand people, more than 10 thousand people in the dormitory, more than 10 thousand people at home. One month's salary is 1.56 billion. The time is short, and the time is long. I can't afford it. Who reserves so much cash? If we dismiss the employee now, it will be irresponsible for the other side. " The textile industry is also the case. Even if it is a big business, it is quite a headache for the workers to send and order, but not to mention the large and medium-sized enterprises.

Since the problem is unavoidable, we need to find solutions actively. For this reason, we observed that every policy measure is setting up a green way for enterprises. In February 1st, the people's Bank of China, the Ministry of finance, the Banking Regulatory Commission, the Securities Regulatory Commission and the foreign exchange bureau jointly issued the notice on further strengthening financial support to prevent and control the epidemic of pneumonia caused by a new coronavirus, and launched 30 measures at one go. The notice mainly covers increasing the support of money and credit, rationally managing financial resources, ensuring the safety of financial infrastructure, establishing a "green channel", and strengthening the leadership of the financial system in five aspects. (see Appendix 1)

On the issue of foreign trade, in the evening of January 30th, WHO finally announced that the new coronavirus epidemic situation will be listed as a PublicHealth Emergency of International Concern (PHEIC), which also adds new complexities to China's foreign trade situation.

To this end, the China Council for the promotion of trade (CCPIT) issued an urgent notice that the enterprises could not fulfill the international trade contract on schedule or were unable to fulfill the international trade contract due to the outbreak of the epidemic. The company could apply to the Council for the factual proof of force majeure. How to use and apply for "force majeure" certificate, how to deal with PHEIC export enterprises, how to express the epidemic situation, and how to pay attention to foreign trade personnel are also given detailed answers. (see Appendix 2)

Enclosure 1

Central bank, China Banking Regulatory Commission and other five departments to launch 30 initiatives

In February 1st, the people's Bank of China, the Ministry of finance, the Banking Regulatory Commission, the Securities Regulatory Commission and the foreign exchange bureau jointly issued the notice on further strengthening financial support for the prevention and control of the new type of coronavirus infection in pneumonia (hereinafter referred to as the "notice"), and launched 30 measures at one go.

The notice mainly covers increasing the support of money and credit, rationally managing financial resources, ensuring the safety of financial infrastructure, establishing a "green channel", and strengthening the leadership of the financial system in five aspects.

The reporter summed up 10 key points as follows:

1, the people's Bank of China will continue to strengthen its expected guidance and provide sufficient liquidity through the open market operation, standing lending facilities, refinancing and rediscount, so as to maintain a reasonable and abundant liquidity in the financial market. The financial institutions affected by the adjustment of the Spring Festival holiday will appropriately increase the tolerance of the deposit reserve assessment in late January 2020 according to the actual situation.

2. During the epidemic prevention and control period, the people's Bank of China, the development and Reform Commission, the Ministry of industry and information technology will carry out the list management of the key enterprises of production, transportation and sale of important medical and living materials. The people's Bank of China will provide low cost funds to financial institutions to support financial institutions providing credit support to preferential interest rates for enterprises listed on the list.

3, provide differentiated preferential financial services for areas, industries and enterprises affected by the epidemic. Wholesale and retail businesses, housing and catering, logistics and transportation, cultural tourism and other industries that are affected by the epidemic, and enterprises that have difficulties in developing, but are temporarily affected by the epidemic, especially small and micro enterprises, should not blindly borrow, break loans or suppress loans. If the enterprises that are seriously affected by the epidemic are difficult to repay, they may extend or renew the loan.

4, financial institutions can reasonably postpone personal credit repayment arrangements such as housing mortgages and credit cards for those who are hospitalized or isolated from new type of pneumonia, need to isolate observation personnel for epidemic prevention and control, participate in epidemic prevention and control personnel, and temporarily lose their income sources.

5, improve the efficiency of financial services during the epidemic period; support development and policy banks to increase credit support; and strengthen credit support in key areas such as manufacturing, small and micro enterprises and private enterprises.

6, financial institutions should make reasonable arrangements to ensure smooth access to basic financial services, allocate cash resources rationally and ensure adequate cash supply.

7, the people's Bank of China will release the business limit of the small payment system according to the needs, extend the operation time of the large payment system and the central bank's accounting data centralized system, and support the financial institutions to handle Renminbi deposits and other businesses online. Under the premise of controllable risks, banking financial institutions should expedite the prevention and control of epidemic related bank accounts and open up a "green channel" for epidemic prevention.

8, the listed companies, listed company and corporate bond issuers are affected by the epidemic. It is difficult to disclose the quarterly reports in 2019 or the first quarter of 2020 within the statutory time limit. The SFC, stock exchanges and the share transfer system of small and medium-sized enterprises nationwide should be properly arranged according to law. If a listed company is affected by the epidemic situation, it is difficult to announce the performance notice or performance bulletin on schedule, it may apply to the stock exchange for extension. If it is difficult to disclose the 2019 annual report on the original appointment date, it may apply to the stock exchange for extension until April 30, 2020. The Hubei securities fund management institution may apply to the local Securities Regulatory Commission for the extension of the audit, disclosure and reporting of the annual report. If a public fund or other asset management product managed by a securities fund operating institution is affected by the epidemic, the manager may apply to the local securities regulatory bureau for an extension of audit and disclosure of the annual report.

9. If the financial information can not be updated on schedule or the notice of shareholders' meeting can be updated, the company can extend the validity period of the financial information or postpone the notice of shareholders' meeting for 1 months after the full disclosure of the specific impact of the epidemic on the reorganization. Up to 3 applications can be extended at most.

10, reduce and exemption from serious regional Corporation listing and other expenses. Hubei's listed companies and listed company should be exempt from the annual listing fees and annual listing fees paid in 2020 to the stock exchange and the SME share transfer system. The 2020 annual membership fee and seat fee payable by the Hubei Futures Company should be paid to futures exchanges.

Enclosure 2

The most complete! Secrets of foreign trade to cope with the epidemic (constantly updated)

At present, the epidemic is still raging.

On the night of January 30th local time, WHO announced that the new coronavirus epidemic situation will be listed as an international public health emergency event (Public Health Emergency of International Concern, PHEIC). Although WHO stressed that it is not recommended to implement travel and trade restrictions, and once again highly affirmed China's prevention and control measures, it is undoubtedly a huge test for exporters and foreign trade people.

The impact of pneumonia caused by a new coronavirus infection can lead to failure to fulfill or fail to fulfill the international trade contract. The enterprise may apply to the Council for the factual proof of force majeure. There are still many points to note. Xiaobian compiled this secret book, hoping to help you!

/ 01 / how to use and apply the "force majeure" certificate?

"Force majeure" is an exemption clause. It means that after the signing of a sales contract, it is not due to the negligence or negligence of the parties to the contract, but because the contract can not be foreseen, prevented, prevented and controlled by the parties concerned, so that it can not fulfill or fail to fulfill the contract on time. The party who has an accident may be relieved of the responsibility for performing the contract or postpone performing the contract. In the general principles of the civil law of China, it refers to the "unforeseeable, unavoidable and insurmountable objective situation".

The fact proof issued by the Council with force majeure is used to reduce the liability for breach of contract and minimize the losses caused by the epidemic. It has been widely recognized by governments, customs, chambers of Commerce and enterprises in more than 200 countries and regions around the world.

Business advisory telephone:

Ccccc commercial certification center

Consultation, contact number: 010-82217027/7035/7010

For each province (municipality) and City Council for promotion, please contact: https://www.rzccpit.com/company/organization.html

/ 02/ in the face of PHEIC, what should an exporters do?

On the night of January 30th, the WHO (WHO) announced that the new coronavirus epidemic will be defined as a public health emergencies of international concern (PHEIC). Although the focus of this decision is to protect some vulnerable countries in the medical system, it is undoubtedly a huge test for domestic export enterprises. In view of the impact of the epidemic on domestic export enterprises and the risks it may bring, China's insurance company has made the following four hints:

First, check the order and pay attention to the risk of performance.

It is suggested that the order should be fully combed and evaluated, and the orders which may be delayed by the delayed rework may be communicated with the buyers timely, explain the relevant circumstances, and strive to extend the time of delivery with the buyers through written form (mail, supplementary agreements, recontracts, etc.). For orders affected by the impact of the epidemic, it is recommended that the contract be terminated in consultation with the buyers in a timely manner, and if necessary, a force majeure fact proof issued by China Council for the promotion of trade will be obtained to reduce the risk of counterclaim against buyers later.

Second, arrange transportation in advance and pay attention to logistics risk.

At present, traffic in some areas is temporarily blocked due to epidemic situation. Therefore, we should pay attention to avoid late shipment due to logistics reasons. In particular, in the form of L/C payment in trade, we should pay close attention to the latest date of shipment. If necessary, negotiate with the buyers the latest shipment date, and reserve adequate shipment period, so as to avoid discrepancies when presentation is made. At the same time, it is suggested that export enterprises should pay close attention to the operation of important ports such as ports and airports. If the reasons for the outbreak are temporarily closed, the logistics and warehousing will be changed in time.

Third, combing upstream customers, focusing on supply chain risks.

It is suggested that export enterprises should maintain close contact with domestic suppliers, assess the extent of the affected suppliers, and confirm the latest status of reemployment time and delivery arrangements. In the case of a tight supply situation, it is necessary to formulate domestic suppliers' options or increase inventories appropriately to ensure the safety of raw materials supply.

Fourth, we urge buyers to pay attention to foreign exchange risk.

In case of inquiries from overseas buyers, it is suggested that export enterprises actively communicate with buyers, truthfully inform the epidemic situation and the latest progress, and dispel buyer's doubts. In case of an overseas buyer's refusal to accept the goods or default on the cause of the epidemic, the exporters should make it clear to the buyer that the interim recommendations issued by the WHO do not contain trade measures that may restrict exports, and argue for and preserve relevant evidence properly. If there is a risk of buyer's default or rejection, please timely seek the help of China's credit insurance, which is initiated by China's credit insurance company on behalf of Chinese enterprises to overseas buyers, so as to safeguard the legitimate rights and interests of export enterprises.

03/ more performance issues

1. I am a foreign trade company. The contract with foreign customers has just stipulated a force majeure, including a major epidemic. Then I can not fulfill the contract now. Can I ask to terminate the contract?

Answer: priority is applied to the contract. If a major epidemic has been included in the contract, the two parties may suspend performance within the scope of the force majeure and its duration. At the same time, we should consider the nature of the contract to decide whether or not the result of the contract can not be realized because of force majeure. If the purpose of the contract has not been realized, the contract can be terminate according to the contract.

However, if the epidemic has an effect on the performance of the contract, but does not affect the realization of the purpose of the contract, it shall not terminate the contract on the grounds of force majeure, and may continue to perform the contractual obligation after the cancellation of the force majeure case, or in accordance with the results of the consultations between the two parties.

In any case, we should first notify the contract in time that the occurrence of such an epidemic has hindered the fulfillment of the contract. At the same time, we suggest that you take positive measures to avoid the loss.

2. I am a foreign trade company. Because of the epidemic reason, the international trade order can not be delivered now. Is this a force majeure? Can I terminate the contract or part of my obligations? What should I do now to reduce the loss?

A: in international trade, we attach particular importance to the "autonomy of the parties". Therefore, we should first pay attention to the contract text. If a contract is stipulated that a major epidemic is a force majeure, it shall be dealt with according to the agreement. If there is no agreement, and the buyer is a contracting party to the United Nations Convention on the international trade in goods, the provisions of the seventy-ninth paragraph, first of the covenant, may apply: "if the parties fail to perform their obligations, they shall not be liable for any duty, if he can prove that such a failure is due to some obstacle that he can not control, and there is no reason for him to consider or avoid or overcome it or its consequences in concluding a contract."

Whether the pneumonia epidemic is universally recognized as a force majeure in international trade, there is no unified opinion at present. The United Nations health organization has not issued any relevant resolutions, so it must be determined according to the three criteria: "unforeseeable, unavoidable and uncontrollable".

If an enterprise concentrates in areas such as Hubei, it will be a force majeure because the government has issued compulsory measures to suspend production and business and be subject to traffic control. It is important to note that the seventy-ninth article of the Convention also provides that: (3) the exemption stipulated in this article is effective for the period in which obstacles exist. (4) the party who fails to perform his obligations must inform the other party of the obstacles and their effects on his ability to perform his obligations. If the notice is not received by the other party within a reasonable period of time after the party whose obligations have been known or ought to know this obstacle, he shall be liable for damages caused by the other party's failure to receive the notice. (5) the provisions of this article shall not prevent any party from exercising any rights other than damages specified in the provisions of this Convention.

That is to say: first, an enterprise should notify the buyer at the first time when the performance of the contract is affected, so as to reduce the buyer's loss as far as possible; secondly, once the epidemic is over, it should be reworked in time and no longer procrastinate on the grounds of force majeure; again, the force majeure clause can only exclude the seller's liability for damages, and the buyer still has the right to take relief measures that require the seller to deliver the substitute and reduce the price.

If an enterprise is not coercive by the government and can overcome obstacles, it is not force majeure. In this case, we can consult with the buyer in accordance with the "difficult situation rules" (hardship) of the general principles of international commercial contracts. The rule of hard situation is derived from the principle of equity, which means that due to unforeseen and uncontrollable events, the cost of performance of one party is increased, or the value of one party's performance has been reduced. From this, the buyer can give reasons, and the two sides renegotiate, thereby changing the contract, reducing the number of performance targets or changing the time limit for performance.

04/, please pay attention to the foreign trade people who want to go abroad.

In addition, the National Immigration Administration issued a recent list of entry control measures on the prevention and control of the new coronavirus infection in the country. Foreign trade people who recently had business activities abroad should pay attention to it. To talk about