Export Tax Rebate Rate Rises, Shaoxing Enterprises Benefit From Geometry

From April 1st, China will raise the export rebate rate of some textile, clothing, light industry, iron and steel, nonferrous metals, petrochemical and electronic information products.

The export tax rebate rate increase involves 3802 commodities in six industries.

The export rebate rate of textile and clothing has increased to 16%, which is 1 points lower than the 17% expected by the enterprises. However, the export volume of Shaoxing's textile and clothing is large and the profit is still the biggest.

According to Shaoxing customs statistics, only in the 1~2 months of this year, the export volume of textile and clothing under the tax rebate rate of Shaoxing has exceeded 1 billion 50 million US dollars.

Insiders said that the export tax rebate rate increased by one percentage point, which will help Shaoxing textile and garment exports to get rid of the "negative growth" dilemma.

The export rebate rate of some copper pipes increased from 5% to 13%, and copper was the second largest industry in Shaoxing.

According to statistics from Shaoxing customs, Shaoxing's tax rebate rate rose to $35 million 310 thousand in 1~2 months.

Shaoxing's copper manufacturing industry mainly deals with processing trade. 1~2 processing trade exports copper materials to US $34 million 640 thousand, accounting for 98.1%, but the export of processing trade can only be rebate by value added part. Therefore, the benefit of Shaoxing related enterprises will be discounted.

The export rebate rate of plastic products has been raised to 11% to 13%, which is the third largest industry in Shaoxing.

According to the statistics of Shaoxing customs, in the 1~2 months of this year, Shaoxing raised the tax rebate rate. The export volume of plastic products amounted to US $21 million 140 thousand, mainly related to plastic bags, plastic pipes and other products.

In June 1st last year, the state formally implemented the "plastic restriction order", and the domestic market of plastic bags was affected to a certain extent. After the export tax rebate rate was raised, it would bring benefits to the plastic bag manufacturers to expand their export share.

Reporters learned that, after learning the news of the increase in the export tax rebate rate, many related enterprises have adjusted the shipping time in a timely manner, arranging the goods that should have been sold in recent days in early April.

The chief executive of a textile enterprise in the city said that the export tax rebate rate was raised, so that there was room for bargaining between enterprises and foreign businessmen, and the competition was more competitive.

But it depends on the bargaining power of the enterprise itself.

"The other party will take the initiative to lower the price when negotiating the price, and finally the only profit point may be eaten by foreign purchasers.

At present, many enterprises have poor bargaining power.

Since the beginning of 2008, the state has raised the export tax rebate rate for the 6 time, and the adjustment of the macro policy of textile and clothing products has been limited.

It is pointed out that raising the export tax rebate rate is just a helpless move to stabilize exports, and can not cure all diseases. In the long run, only when the international market returns to warmer and orders increase, can enterprises really get through the crisis.

Shaoxing customs warned that Shaoxing export enterprises should make long-term difficult preparations, pay close attention to import and export monitoring and early warning information, adjust their operational strategies, avoid export risks, and actively cope with the adverse effects of weakening external demand.

Editor in chief: Xu Qiyun