On December 31, 2014, the Ministry of Finance and the State Administration of Taxation jointly issued Caishui [2014] No. 150, notifying that the export tax rebate rates for some high value-added products, corn processed products, textiles and clothing will be increased, and some will be canceled or reduced. The export tax rebate rate for products is an effort by the country to optimize the export tax rebate structure and stabilize the development of foreign trade. In the product list, the export tax rebate rate for some products in Chapter 50, Chapter 51, Chapter 52, Chapter 53, Chapter 63 and Chapter 94 and the entire Chapter 54~62 has been increased from 16% to 17%, in line with the international practice of equal taxation and refund, so that my country’s textile and apparel products compete fairly in the international market. Among the previous adjustments to the export tax rebate rate for textiles and clothing, except for clothing in 1999 and cotton yarn, cotton cloth, and cotton products in 2001, which reached over 17%, the export tax rebate rate after this adjustment has become the most widely covered historical high value in the industry. Financial During the crisis, the peak was only 16%. Against the complex background of slowdown in macroeconomic and market demand growth and intensified competition in the international market, it is undoubtedly a good thing for many export companies in the textile industry.
From January to November 2014, my country’s textile and apparel exports totaled US$280.54 billion, a year-on-year increase of 5.7%, and the growth rate decreased by 5.9 percentage points compared with the same period last year. Although export growth has been picking up month by month since February 2014, it has slowed down from double-digit growth in 2013 to single-digit growth, and is expected to maintain medium-to-low growth. Textile and apparel exports have made a huge contribution to my country’s export earnings, economic growth, and combating the risks of economic globalization. This time, textiles and apparel are regarded as one of the main adjustment targets, indicating that the country affirms and attaches great importance to the textile industry, aiming to encourage industry exports and increase exports. Competitiveness.
The global economic growth is slow and the international market demand is sluggish. my country’s own traditional advantage of low cost is weakening. Countries in Southeast Asia have joined the competition and their share of the mid-to-low-end market continues to increase, which has caused a negative impact on the international market share of my country’s textiles and apparel. The negative impact has made my country’s export competitiveness face more severe challenges. From January to October 2014, my country’s share in the import markets of the United States and Japan dropped by 0.9 and 3.8 percentage points respectively year-on-year. From January to September, China’s share in the EU market dropped by 0.6 percentage points. In the context of intensified competition in the international market, the increase in the export tax rebate rate has relieved the pressure on many export companies to a certain extent, allowing foreign trade companies to have more room for maneuver when negotiating prices with foreign businessmen, which is conducive to improving the quality of my country’s textiles and clothing. Export competitiveness is conducive to consolidating the industry’s international market share, and also makes the industry feel the country’s determination and confidence in stabilizing foreign trade development during a period of greater economic downward pressure.
Since 2014, the prices of textile raw materials and auxiliary materials have generally increased. Domestic cotton prices are on average about 30% higher than the international market. Dyestuff prices have remained high. Channels, financing and other expenses have continued to increase. In the first half of 2014, the average monthly income of migrant workers has increased. 10.3%, the comprehensive cost pressure of enterprises is increasing day by day, and the export price index only grew positively in October 2014. Corporate profits have been severely squeezed, and small and medium-sized enterprises are facing severe pressure to survive. From January to October 2014, the country’s 38,000 textile enterprises above designated size realized a total profit of 268.35 billion yuan, a year-on-year increase of 9.1%. The growth rate was 9.2 percentage points lower than the same period in 2013. The sales profit margin was only 0.1 percentage points higher than the same period last year. percentage point. Increasing the export tax rebate rate by 1 percentage point is undoubtedly a good policy for labor-intensive industries with increasingly shrinking profit margins to ease survival pressure and boost confidence. It will help foreign trade companies restore their export and investment confidence, and will help them survive in the new economic normal. Promote the stable development of the textile industry. (The author is an industry analyst at China Textile Economic Research Center)
