The Need To Control Foreign Trade Policy Is Urgent.

At present, it is rumoured in the industry that the export tax rebate rate for textile and garment is likely to drop by 2 percentage points next year.

It is understood that the national development and Reform Commission Senior internal sources revealed that the current news is nothing more than enterprise reflection, the industry is just talking about it, but has not heard of this adjustment intention.

This person also informed the Ministry of finance this month that the reply was "there is no intention of formal adjustment at present. However, a large state-owned textile enterprise in Beijing submitted to the Ministry of finance that the effect of export tax rebate adjustment is too great, which requires the government to take various measures to mitigate the contradictions faced by enterprises.

Since 2001, the state has adjusted the export rebates of textile and clothing for the 5 time. The last adjustment was made in June 18th this year. In the Circular of the Ministry of Finance on the reduction of export tax rebates for some commodities, it was stipulated that the export tax rebate policy for some commodities should be adjusted from July 1, 2007 onwards.

Products related to the textile industry are mainly leather, clothing, shoes and hats, bags and viscose fibers and other products.

The specific adjustment ranges are as follows: garments, shoes and caps and bags are adjusted from 13% to 11%, and viscose fibers are adjusted from 11% to 5%.

The key to the export tax rebate policy is to see the import and export data of textile and clothing in 2007.

The export of textile industry has always been the main creator of China's trade surplus. In 2006, the trade surplus of the textile industry was 129 billion 200 million US dollars, accounting for 71% of the national surplus of 177 billion 400 million US dollars.

If textile exports and trade surplus increase rapidly this year, reducing the export rebate rate of textile and clothing is inevitable.

The statistics released by the customs also showed that in 2007 1-8, the total import and export volume of textiles and clothing was 118 billion 572 million US dollars, up 19.24% over the same period last year.

Among them, exports totaled 107 billion US dollars, an increase of 18.84%.

Textile exports amounted to US $37 billion 216 million, up 13.83%, and clothing exports were US $69 billion 784 million, up 21.70%.

Imports totaled $11 billion 572 million, an increase of 5.12%.

Textile imports amounted to US $10 billion 361 million, up 4.86%, and clothing imports were US $1 billion 211 million, up 7.45%.

In 1-8, China's textiles and garments reached a balance of 95 billion 428 million US dollars, an increase of 20.25%.

In August, import and export trade hit a new high throughout the year. The total import and export volume of textiles and clothing was 19 billion 139 million US dollars, up 2.74% over the same period last year.

Among them, exports totaled 17 billion 605 million US dollars, an increase of 18.42%.

Textile exports amounted to US $5 billion 647 million, up 18.36%, and clothing exports were US $11 billion 957 million, up 18.43%.

Imports totaled $1 billion 534 million, an increase of 2.47%.

Textile imports amounted to US $1 billion 324 million, up 0.53%, and clothing imports were US $210 million, up 16.67%.

In August, the balance of trade in textiles and clothing was 16 billion 71 million US dollars, an increase of 4.14%.

To sum up, we can see that the export of textile and clothing in China is still very high, especially in terms of larger export growth and a further increase in trade surplus.

Although the export rebate rate of textile and garment has declined, the impact is not significant from the trade data.

The proportion of textile and clothing trade accounts for 9% of the total foreign trade of the country. The total export volume accounts for about 15% of the total export value of the country, and has little change compared with the same period of 2006.

The cotton textile and apparel trade, which accounts for most of the textile and garment trade, has a good foreign trade situation, especially for the export of cotton garments, which has even achieved an increase of more than 40%.

Besides, under the multiple functions of raising labor costs, adjusting the RMB exchange rate and lowering the tax rebate rate, the export tax rebate will continue to be adjusted, which will certainly lead to further reshuffle of the textile and garment industry.

However, in the long run, enterprises that are under the impact of the export tax rebate rate reduction seem to have to export products with high added value or high technology content, but in the short term, the pfer of production is not a goal that can be achieved.

Therefore, faced with the situation of reducing export tax rebates, SMEs must first carefully calculate the cost of export products based on the reduction of export tax rebates and the appreciation of the renminbi.

The fundamental solution is to shift to high value-added products, but not changing production means nothing.

For those big enterprises, the impact of the export tax rebate reduction will not be too great.

Those small export enterprises with low added value can also consider pformation.

In the communication with enterprises, a lot of people in the industry generally say that once again the reduction will not be able to bear. After all, the previous adjustments have approached the critical point that the small and medium textile enterprises have to bear. Therefore, for the healthy development of the industry, the government's hand in regulating foreign trade policy is in urgent need of "high and low."