Zhejiang Textile Enterprises: Export Tax Rate Callback Will Earn More Than 2 Billion 600 Million Dollars In 2% Years.

Since August 1, 2008, the export rebate rate of some textiles and garments has increased from 11% to 13%.

According to Hangzhou customs analysts, total exports of textiles and clothing in Zhejiang amounted to US $19 billion 298 million in the 1-6 months of this year, and the total export volume will generally increase in the second half of this year.

The export tax rate callback 2% also means that the profit of Zhejiang's textile exports will increase by at least 2 billion 600 million US dollars in the second half of this year.

Business confidence has been lifted, and some foreign trade enterprises have indicated that they will be able to sign long-term orders with customers in the future.

The Ministry of Finance and the State Administration of Taxation issued a notice on adjusting the export tax rebate rate for some textiles and garments, which eased some pressure on textile and garment enterprises on the verge of export difficulties.

Yong 2200 textile enterprises will reduce costs by 450 million

Ding Haibin, deputy director of the Ningbo Municipal Bureau of foreign trade and economic cooperation, said that more than 2200 textile enterprises in Ningbo will benefit directly. It is expected that the export cost will be reduced by about 450 million yuan in the second half of the year.

According to the accounting department of Ningbo foreign trade and Economic Cooperation Bureau, the tax rebate rate adjustment relates to more than 2200 textile and garment enterprises in the city, with an export volume of US $3 billion 870 million (according to Customs Statistics in the first half of this year), of which textiles are US $1 billion 450 million and clothing is US $2 billion 420 million.

After raising the tax rebate rate by 2 percentage points, the export cost of the US dollar will be reduced by 0.14 yuan. If it is calculated according to the export level in the first half of the year, it is estimated that the export cost will be reduced by about 450 million yuan from August to December.

According to Ding Haibin analysis, the export of Ningbo's textile and garment industry reached 7 billion 500 million yuan last year, accounting for 1/5 of Ningbo's overall exports. This tax rebate rate adjustment will help enhance the export confidence of the textile and garment enterprises and alleviate the survival difficulties of the labor-intensive products export enterprises. At the same time, he reminds the vast number of export enterprises: in the long run, enterprises should change their growth mode and enhance their overall competitiveness, expand the brand, strengthen the R & D and marketing network construction, and promote exports with innovation.

Ningbo Ji enterprises upgrading by machine industry

He also pointed out that the government will continue to promote the development of new markets in the future, and garment export enterprises should take advantage of the opportunity of rising profits to upgrade industries and enhance the added value of products.

Ding Haibin also reminded enterprises that because of the appreciation of the renminbi, the foreign party should not have much room for price reduction, and enterprises should strive for price.

Instead of price war, 2 percentage points of interest can be pferred to purchasers, otherwise, the long-term development of enterprises will be affected.

It is understood that the gross profit of textiles in Zhejiang is now 5-6%, the largest of which is 7-8%, which can reach 10% of the total.

After deducting the cost, the profit is very thin.

The export rebate rate of textile and clothing has increased by 2 percentage points. For textile enterprises, it will still face the test of RMB appreciation, raw materials rising and labor force price rising.

In June, the average price of imported raw materials for textile enterprises in Zhejiang was at a record high.

Experts: tax rebate rate callback effect Brief

Experts believe that the export tax rebate rate callback for Zhejiang's textile and garment enterprises, can only play a short-term role, RMB appreciation and cost rise is the most important burden on enterprises.

In addition, since August 1st, the export tax rebate rate of some bamboo products has increased to 11% in addition to the export rebate rate of textiles and clothing.

At the same time, the export tax rebates for some "chemical products, pesticide products" and other "two high one capital" commodities have been abolished, involving more than 100 export enterprises in Ningbo, with an export volume of about 78 million US dollars, but the overall impact is not large.