Industry Rumor Textile And Clothing Export Tax Rebate Rate Reduced By 5%

Recently, it was reported in the industry that China's textiles and clothing Export tax rebate The rate will be lowered from 16% to 11%, down 5 percentage points, causing panic in the industry. For more than 20 years, in China's export-oriented traditional textile and clothing industry, the upward and downward adjustment of export tax rebate rate is like a "barometer", which confirms the prosperity or decline of the entire industry.

In recent years, the government has twice increased the export tax rebate rate in order to stimulate the industry. Last year's textiles and clothing exit The amount of export tax rebate has reached a record high. This is the first time that the export tax rebate has dropped. It is no longer groundless. Is this a blessing or a curse for China's clothing industry? What impact will it have on the industry? How will the industry respond to this?

　 Exports hit a new high, hiding the crisis of low prices

In February 2009 Economics Against the backdrop of the crisis, China's export tax rebate rate of textiles and clothing has undergone two adjustments, reaching the current 16%. In 2010, with the gradual recovery of the international market and the demand of foreign buyers to fill in the relaxed inventory scale, the export volume of textiles and clothing reached 206.53 billion US dollars, an increase of 23.59% year on year It not only swept away the negative image of the financial crisis, but also set a new record, breaking the $200 billion mark for the first time. Moreover, China's textile exports still maintained a high growth rate in the first quarter of this year. In theory, the export tax rebate rate, which has always been the "booster" of the industry, should be lowered again.

Over the past week, journalists from Nandu have contacted many garment manufacturing enterprises in Dongguan, Kaiping, Qingyuan, Xintang and other places, and each of them mentioned the issue of the reduction of export tax rebate. Their tone was not chat after dinner, but more worried. What is hidden behind the figures of the rapid growth of the textile and clothing industry?

In Qingxin County, Qingyuan City, Guangdong Province, Mr. Cheng pointed to the nearby Shuanghui factory and told reporters in Nandu that since the "clenbuterol" incident, many workers have left there to find another job. "Many people have found me through various relatives." Mr. Cheng runs a local township enterprise supply and marketing company, and there are some garment factories that are OEM oriented to the export market. "To be honest, I am also short of people, but the current order is somewhat unstable." He said that the shortage of labor after the Spring Festival also appeared in his own enterprises. In addition to the appreciation of the RMB, the price of raw materials and other problems, whether or not to take orders has become a problem.

However, this ambivalent and complex mood seems to be quite different from the export figures of China's textile and clothing industry in the first quarter of this year. On May 13, the China Textile Industry Association announced at the analysis meeting on the operating situation of the textile industry in the first quarter of 2011 that the total export volume of China's textile and clothing from January to March reached 49.866 billion US dollars, an increase of 23.68% year on year, 8.24 percentage points higher than the same period last year.

Last year, China's textile and clothing exports have reached a very high level. According to customs statistics, in 2010, China's export of textile clothing (including textile yarns, fabrics and products, textile clothing and clothing accessories) reached 206.53 billion US dollars, an increase of 23.6% over the previous year, and the annual export value exceeded 200 billion for the first time. By the fourth quarter, the cumulative export volume of 10 months had exceeded that of 2009, and the cumulative export volume of 11 months had exceeded that of 2008.

In theory, China's textile and clothing export industry has been on the rebound track since it fell to the bottom in 2009, when the global economic crisis had a greater impact. Mr. Cheng, who is engaged in the clothing industry, should have been the beneficiary. However, according to the interview and investigation by the Nandu reporter, Mr. Cheng is not an individual garment export manufacturer with "low peak season".

In a 500 person garment factory in Xintang, Liang Pei, the head of the company, told the reporter in Nandu that two-thirds of his business came from overseas, and the monthly shipment volume during the peak period could reach 300000 pieces. However, since March this year, the overseas oriented part was only 70000 pieces per month at the minimum. "There are many garment factories nearby that can't do it anymore," Liang Pei said, In particular, some smaller factories only do outsourcing. Liang Pei shook his head and said that "there must be growth, but now many costs are rising, and the price is not easy to meet." He stressed that it is not without orders, it is impossible to make money.

　　 The reduction of tax rebate rate has been supported

"Is there any exact news in your media circle? It is said that the export tax rebate rate will be lowered?" Interestingly, Mr. Cheng and Liang Peijun mentioned this problem to the reporter from Nandu during the interview. The third interviewee, Dong Tianqiang, the general manager of Guangdong Yuanli Clothing Co., Ltd., also mentioned the same topic. "There is news on the Internet that the relevant national departments have passed the decision to reduce the textile export tax rebate from 16% to 11%, which will be implemented in June and July. Recently, the industry has been discussing this matter."

It is understood that since this year, the news about the reduction of export tax rebate rate of textile and clothing export industry will emerge from time to time. The most recent one originated from the relevant responsible person of the China Chemical Fiber Association, who said, "It is not excluded that the export tax rebate will be reduced from 16% to 11%." Another news said that the China Chemical Fiber Association has obtained conclusive information. However, when a reporter from Nandu asked about the association yesterday, the response was that "the association cannot confirm in advance".

Despite various signs, the issue of the reduction of export tax rebates in the textile and clothing industry is still a "shadow trap". But if it was just an ordinary rumor, Liang Pei and Dong Tianqiang would not care so much. "To be honest, it's really not true, because objectively the current situation of industry exports has formed the basis for the reduction of tax rates." Dong Tianqiang said.

In addition to the figures released at the "Analysis Meeting on the Operation Situation of the Textile Industry" mentioned above, the views from third-party organizations are also optimistic about the textile and clothing industry. A research report of Guotai Jun'an mentioned that, in addition to the substantial year-on-year growth of China's textile and clothing exports in the first quarter, the cotton price fell back to about 24600 yuan/ton, which is obviously beneficial to clothing enterprises and aggravates the cost pressure and profit space of the textile industry.

Throughout the history of China, the export tax rebate rate of textile and clothing has been reduced several times. In July 1995, the export tax rebate rate of textile and clothing was reduced from 13% to 10%; In December 1996, the export tax rebate rate of textiles and clothing was reduced from 10% to 6%; In January 2004, the export tax rebate rate of textiles and clothing was reduced from 15% and 17% to 13% respectively; In September 2006, the textile export tax rebate rate was reduced from 13% to 11%; In July 2007, the garment export tax rebate was reduced from 13% to 11% The background is the rapid development of textile and clothing export industry. This makes it possible to reduce the export tax rebate rate again, which becomes regular. {page_break}?

　　 Industrial upgrading, long pain is better than short pain?

"When the country is considering reducing the export tax rebate rate, is the situation the same as it is now? Is there a shortage of labor? Is there a rapid rise in the cost of raw materials?" Dong Tianqiang believes that many adverse conditions for textile and clothing export enterprises have only emerged since this year. If the tax rebate rate is reduced under such circumstances, it will undoubtedly make things worse. According to the analysis of insiders, once the export tax rebate rate is reduced by 5 percentage points, the loss of Chinese clothing orders will be greatly aggravated, while the space for price increase will be more limited, and a large number of domestic textile and clothing export enterprises may close down.

In fact, at the "Analysis Meeting on the Operating Situation of the Textile Industry in the First Quarter of 2011" mentioned above, China's textile industry also mentioned the current problems. In addition to indicating that the textile industry has achieved sustainable development, quality and efficiency have steadily improved, and the overall start is good, it also mentioned that the impact of raw materials, employment, tax rates, foreign exchange, energy, environmental protection and other factors on the industry should be recognized, We should prevent risks scientifically and effectively to ensure healthy and stable development throughout the year.

"Every time we decide to adjust the tax rate, there is a careful consideration behind it." Liao Jierong, an analyst of the clothing industry, said that at present, the export tax rebate rate of China's textile and clothing industry is 16%, which is only one step away from the highest tax rebate rate of 17%, that is, "zero tariff". She believes that the export-oriented enterprises that are still difficult to maintain under such circumstances may account for a large proportion, but they must be small-scale enterprises that have been unable to adapt to the current competitive environment. "Since the outbreak of the financial crisis three years ago, the discussion on enterprise transformation and upgrading has continued, because if there is no industrial upgrading, no adjustment of product structure and production mode, it will be eliminated by the market."

A person in charge of an international sports brand OEM enterprise who did not want to be named also shared the same view. "Now customers will choose to put some relatively low-end products in Southeast Asia, while we will keep the more complex and advanced parts of the process." He said that Southeast Asian countries are like China in the early years. Now we have to compete with them on production costs and labor costs, which is "useless". "After so many years of manufacturing, China should establish an image of manufacturing medium and high-end products, and powerful manufacturers will not worry too much about tax rate adjustment. Those (small enterprises) that do not adapt will be eliminated sooner or later unless they move their factories to Southeast Asia and continue to do low-end products."

"Sometimes long pain is better than short pain, and tax refund is like a 'back road'." Liao Jierong said that only by narrowing the back road can enterprises keep moving forward, and really spend energy and cost to develop to a higher level and achieve industrial upgrading. However, she does not approve of the "drastic" downward adjustment, and believes that the gradual and small step adjustment can better test the affordability of small enterprises.

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Adjustment of export tax rebate rate of textile and clothing in recent years

In August 2008, the export tax rebate rate of some textiles and clothing was raised from 11% to 13%;

From 13% to 14% in November 2008;

In February 2009, the export tax rebate rate of textiles and clothing was raised from 14% to 15%;

In April 2009, it was raised from 15% to 16%