Sliding Tariff Increases To Reduce China's Cotton Import Signal

< p > recently, the Ministry of Finance announced that in 2014, a certain amount of quota import a href= "http://www.91se91.com/news/index_c.asp" > cotton < /a > was applied to adjust the sliding tax. When the duty rate of cotton duty is below 15 yuan / kg, the tax rate will be about 1%~2% higher than that in 2013.

Insiders say this shows the tendency of the state to suppress imported cotton.

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< p > < strong > up to 1000 yuan per ton, < /strong > /p >

< p > reporter recently learned from the relevant departments of the state that compared with 2013, the formula of sliding cotton quasi tax has changed: the starting point is adjusted from 14 yuan / kg to 15 yuan / kg.

The current formula is 8.87 yuan, the price of imported cotton is RMB +2.908%, the price of imported cotton is RMB -1 (the maximum sliding limit is 40%), the new sliding duty formula is 9.337 yuan, the price of imported cotton is RMB +2.77%, the price of imported cotton is RMB -1 (the upper limit is 40%).

Yi Le futures analyst Yi Le said that the main change in 2014 formula was to change the constant 8.87 and 2.908% in 2013 formula to 9.337 and 2.77%, and raise 14 yuan / kg to 15 yuan / kg.

This means that when the price of imported cotton is greater than or equal to 15 yuan / kg, the sliding duty is still calculated at 0.57 yuan / kg; when the price of imported cotton is below 15 yuan / kg, the tax amount of < a href= "http://www.91se91.com/news/index_c.asp" > sliding tax less than /a "has increased by 200 yuan, ~300 yuan / ton compared with 2013.

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< p > the Ministry of Finance issued a document saying that in 2014, it continued to implement tariff quota management on the import of 7 kinds of agricultural products such as cotton, and continued to implement a sliding tax on a certain quantity of cotton imported from the tariff quota, and appropriately adjusted the tax rate, so as to ensure the stable supply and demand in the domestic cotton market.

Industry analysts believe that this adjustment is not large, but it can be seen from the domestic cotton inventory pressure.

Due to the large differences between domestic and foreign cotton prices for a long time, the increase in sliding tax also shows the tendency of the state to suppress imported cotton in order to stabilize the domestic cotton market.

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< p > < strong > domestic inventory is high and import cotton is reduced < /strong > < /p >.

< p > according to customs data, China imported 173 thousand and 100 tons of cotton in November 2013, an increase of 32 thousand tons compared with October, an increase of 22.6%, down 43% from the same period last year. The average import price was 2236 US dollars / ton, up 53 US dollars compared with October, or 2.4%, up 6.4% over the same period last year.

Data show that in 2013 1~11 months, China imported 3 million 541 thousand tons of cotton, a decrease of 23.1% compared with the same period last year, and 515 thousand and 600 tons in the first 3 months of 2013, a decrease of 38.5% over the same period last year.

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< p > the US Department of agriculture (USDA) recently released the < a href= "http://www.91se91.com/news/index_q.asp > December cotton outlook report < /a >, which predicted the end of world cotton futures in 2013/14.

Forecasts show that the end of global cotton stocks are expected to grow for fourth consecutive years, reaching a record high.

World cotton end inventory in 2013/14 is projected to be 96 million 400 thousand packs, 8% higher than 2012/13 (or close to 730 Wan Bao), two times the inventory level in 2009/10.

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< p > the US Department of Agriculture said that world cotton inventories increased significantly over the past few years, because output exceeded demand.

Cotton prices are relatively high, resulting in increased cotton production, but also limits the growth of cotton mill usage.

The global stock growth is mainly due to China's policy support price. Because the government's < a href= "http://www.91se91.com/news/index_s.asp" > national reserve cotton purchase < /a >, China has taken away a large quantity of cotton supply in the market.

By the end of 2011/12, China's inventory was 31 million 100 thousand packs, or 42% of world stock.

In 2013/14, the latest forecast shows that China's inventory will reach 57 million 300 thousand packs, or 59% of the world's total stock.

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< p > the US Department of agriculture believes that import demand is expected to decline by 46% this year as China's cotton inventories have grown significantly in recent years. This will directly affect the global cotton trade which has always been supported by China's cotton import demand.

The US Department of agriculture predicts that world cotton imports in 2013/14 are expected to be 38 million 500 thousand packages, down 16% from last year, or 7 million 600 thousand packs, to the lowest level in 3 years.

It is estimated that China will import only 11 million bales of raw cotton, which will lead to a 35% reduction in global consumption.

According to the analysis of the industry, the slide tax has recently been raised, and it is also a signal of China's < a href= "http://www.91se91.com/news/index_s.asp" > reducing cotton import < /a >.

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