The Government Plans To Raise The Export Tax Rebate Rate Of Textiles To Rescue The Market

The average profit of 2/3 enterprises in the first quarter was 0.62%, and the government planned to raise the export tax rebate rate to rescue the market
background
From September 15, 2006, the export tax rebate rate of textiles was reduced from 13% to 11%, and it was reduced again after being reduced from 17% to 4 percentage points in 2003. On June 19, 2007, the export tax rebate rate of clothing, bags and toys was reduced from 13% to 11%, and the export tax rebate rate of viscose fiber was reduced to 5% So far, the tax rebate rate of textile and clothing export products (except viscose fiber) is 11%
In January April this year, the United States imported US $8.699 billion of textiles and clothing from China, down 2.64 percent year on year
The Lixin Cloth Street of Guangzhou Zhongda Textile Circle used to be entangled by large and small freight cars. Now, the whole street is quiet and even lazy. At three o'clock in the afternoon, the door is deserted and there are few guests turning the cloth. "This is almost the difficulty that China's textile industry has never encountered. The appreciation of the RMB and the rise of enterprise costs are mixed with various factors." Sun Huaibin, director of the News Center of the China Textile Industry Association, said that the Association is lobbying in many ways to promote the adjustment of textile export policies
This month, the central leadership frequently visited key areas of the manufacturing industry, and the textile industry became the focus of the government. Premier Wen Jiabao of the State Council went to Jiangsu and Shanghai, Vice President Xi Jinping went to Guangdong, Vice Premier Wang Qishan went to Shandong, Minister of Commerce Chen Deming and Vice Premier Li Keqiang went to Wenzhou successively... The launch of large-scale research was interpreted as a precursor to the emergence of government support policies.
It is reported that the export tax rebate rate of textiles will be increased by 2 percentage points, the export tax rebate rate of clothing will be increased by 4 percentage points, and the export tax rebate rate of viscose fiber will be increased from the current 5 points to 15 points. The policy is expected to be introduced from the end of this month to the beginning of next month. However, the Ministry of Commerce did not respond to the specific details, only saying that it had submitted the adjustment proposal to the relevant ministries and commissions, pending the plan of the Ministry of Industry and Information Technology and the final approval of the State Council.
Tough times, pressure on both ends
"I have worked in textiles for more than ten years, and I have never encountered such a weak market. Upstream raw materials continue to rise, while downstream clothing exports decline sharply. Both sides are under pressure, and everyone is still in vicious competition." Liang Guangquan, chairman of Jiamei Textile Co., Ltd., shook his head as he said. Liang's office has three clocks, which can tell the time of New York, Paris and Beijing at a glance. But now, domestic and foreign sales are the same.
"There used to be a customer who ordered millions of dollars. This year, the amount is less than 50000 or 60000 dollars." Liang Guangquan said that last year, Jiamei's direct export of various fabrics overseas accounted for 50% of the annual sales, and this year, less than 20% "If it was 3 dollars a meter of cloth last year, the customer asked not to raise the price this year. Now the raw materials and labor are up, so it's really no good not to raise the price, so we have to stop."
In Liang Guangquan's view, the global economy is weak, and international buyers prefer to digest the inventory first and be more cautious when purchasing new fabrics and clothing—— According to the textile office of the US Department of Commerce, the US imported US $8.699 billion of textiles and clothing from China in January April this year, down 2.64 percent year on year Among them, the import of textiles reached US $2.948 billion, up 6.74% year on year; Imports of clothing reached US $5.751 billion, down 6.84 percent year on year
In the men's wear department on the second floor of Guangzhou Baima Clothing City, the owner of the stall, Mr. Gan, has been here for seven years. The contract expires in two months. He intends to leave and switch to other businesses. "In the past, there were customers everywhere, packing and moving in batches, but now the business is light." Mr. Gan said that the RMB exchange rate appreciated too fast, and the export business of stalls basically stopped. "In the past, this stall could sell 20000 pieces of ready to wear clothes a year, but now it can only sell 7000 or 8000 pieces of ready to wear clothes at most, and it will not earn any money if the shop rent is removed."
After interviewing for more than half an hour, no one patronized Mr. Gan's stall. He said that when he sublet the stall from others, the rent was 23000 yuan a month. "Now it's only 15 thousand yuan, down 35%".
The government conducts extensive research and plans to rescue the market
In fact, the impact of the textile and clothing industry has spread to upstream and downstream industries. According to the data from the National Bureau of Statistics, the profit of chemical fiber industry, the main raw material of the textile industry, fell 26.8% year on year from January to May; Feiyue Group, the world's largest sewing machine manufacturer, was also broken by the capital chain and was on the verge of bankruptcy.
A boss who did not want to be named told the reporter that the overall gross profit margin of the textile industry was about 5%, which was all based on volume. "This year's profit fell by at least 30%, and it would be good if it could be kept flat.".
According to the survey of China Textile Industry Association, in the first quarter of this year, the average profit of two thirds of enterprises in the textile industry in six provinces and cities including Jiangsu, Zhejiang and Shandong was only 0.62% "What industry is more prosperous now?" asked a shopkeeper in Lixin Bujie doubtfully.
In the bleak market, Zhejiang and Jiangsu, the major textile and clothing export provinces, have become the key areas for research by the Ministry of Commerce and the State Administration of Taxation. On July 4, Minister of Commerce Chen Deming, when attending the "Symposium on Business Situation of Zhejiang Enterprises and Industry Associations", stressed that there would be no regulation unfavorable to the manufacturing industry at the policy level at present. For the issue of RMB exchange rate, he suggested that enterprises "make good use of dollar assets and look for opportunities in the crisis". Two days later, Vice Premier Li Keqiang also visited Wenzhou. "The state has attached great importance to the survival status of textile enterprises, and the purpose of the survey is to prevent inflation and economic downturn," said Cao Xinyu, vice president of the China Chamber of Commerce for Import and Export of Textiles.