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Second Half Of 2008, China Intends To Launch Textile Industry Supporting Policy Again.

2008/8/15 15:57:00 22

Assistance Policy Textile Export Tax Refund

In August 1, 2008, China implemented the support policy of the export rebate rate of some textile garments and raised the export tax rebates of some high energy consumption, high pollution and resource products in 2%.

However, the industry generally believes that the policy is unlikely to have a fundamental impact on China's textile garments in decline. In the second half of this year, China may also offer a series of supportive policies, most likely of which is the "idling" of processing trade margin accounts.

According to the data released by China Customs, the export volume of Chinese textile garments in June this year amounted to US $15 billion 64 million, which was 4.64% lower than that in the same period in 2007.

Among them, textile yarn, fabric and products were US $5 billion 754 million, an increase of 21.26% over the same period. The export of garments and clothing accessories was US $9 billion 310 million, which was 15.76% lower than that of the same period. This is the two consecutive month since the entry of WTO into China that garment exports have experienced negative growth in the months outside the objective month.

The situation of textile garments is still very grim. In August 2007, the "processing system" of processing trade margin accounts for a large backlog of funds for small and medium-sized textile enterprises.

Taking a medium-sized enterprise as an example, a monthly account margin of 200 thousand to 300 thousand yuan is required, and the cost is increased by more than 10%.

According to the statistics of the first textile network, the import volume of China's textile and garment processing trade in the first quarter of this year amounted to US $2 billion 916 million, of which the deposit margin required to pay was US $261 million 100 thousand, equivalent to RMB 1 billion 869 million yuan.

Simple push to the whole year, processing trade enterprises only account for margin of about 7 billion 400 million yuan.

Ma Xinzheng, deputy editor in chief of the first textile network, said that although the deposit and corresponding interest could be collected after the cancellation of export verification, under the current tight monetary situation and the tight working capital of enterprises, enterprises should also pay the bank deposit to the customs, and a large number of funds would be locked for half a year or even longer. As a result, a lot of enterprises engaged in processing trade must undertake private lending activities to solve urgent problems, and their indirect losses can be imagined.

The head of the Hongkong economic and Trade Association said that in March this year, Chen Deming, Minister of Commerce of China, told the Hongkong enterprises that, due to the large number of employment opportunities in the processing trade export industry, all small and medium-sized industries, which provide large number of employment opportunities and pollution-free industries, will be excluded from the regulatory list that must be paid in advance.

The official said that under the increasingly difficult situation of textile and garment exports, the launch of the "idling" policy is very possible.

Ma Xinzheng also indicated that if the margin accounts for processing trade realized "idling", the quickening of the turnover speed of the enterprises' liquidity would be difficult to estimate the indirect benefits from the promotion of processing trade exports and the related business operations.

So far, four major textile support policies have been launched or are being launched by China. First, the provisional sliding rate of cotton has been reduced from 5% to 40% to 3% to 40%. The implementation time is from June 5, 2008 to October 5, 2008; two is the increase in the export tax rebate rate of textile industry already launched; three is the margin of processing trade tax, which increases the pressure of capital turnover of enterprises and may cancel or reduce; four is moderately relaxed credit control.