Export Tax Rebate Policy Adjustment in China Prices Higher

July 1, the country introduced a new export taxstructure and the promotion of industrial integration
rebate policy, the policy reduced the profit margin iswill become a trend. Shaw Harrier fly that low that
part of the export enterprises in doing everythingtheir technical content, products strong alternative to
possible to resolve the losses, a more intense thelow cost form of exports, driven by expansion
strong survive, survival of the fittest in the marketmeans to enhance the performance of growth model
competition inevitable.has been difficult to sustain, enhance the
Policy of export profits of enterprises moving cheesetechnological content of products and enterprise
The export tax rebate policy adjustment related tograde, take the meaning type growth path of
2831 products, accounting for all goods in thetransformation is imminent.
Customs Tariff of 37% of the total. Foshan City inAt the same time, the export tax rebate cut will
Guangdong, an anonymous official told ceramicsaccelerate the industry reshuffle, through survival of
enterprises: "Ceramics of the export tax rebate ratethe fittest, dominant enterprises will be more bigger
to 5%, which means that enterprises export 40and stronger. Advantage of the industry should take
million yuan a month there is no profit of 3.2 millionthe opportunity to increase business value added
yuan a! "policy changes in the business of exportexport products, change the export model.As for
profits of the cheese.To encourage enterprises tosteel, cement and other industries continued to
export more, China export tax rebate policy for overdecline in the export tax rebate rate, abolition of
20 years, means that the state has been thetariffs and even increase the macro policy guidelines,
departure of export goods declaration, pre exportthese industry leading enterprise restructuring should
production and circulation in all sectors of thebe accelerated to speed up the pace of product
domestic value added tax already paid tax and otherrenewal, tap the domestic market potential, improve
indirect taxes or consumption taxes , returned to thethe industrial chain, to find the motivation and means
exporters. Many foreign trade enterprises in China'sof sustainable development.
main profits come from the Government's annual taxLeather clear trend of export prices up
refund.The main thrust of the export tax rebateFrom July 1, China's export tax rebate leather
policy adjustment is to reduce trade surplus, aproducts to be canceled. At the same time, labor
considerable number of export enterprises for thecosts this year due to rising raw material prices,
means to directly reduce profits. It is reported thatappreciation of the yuan and other factors, experts
many export enterprises in time for the policypredict the trend of Chinese leather goods export
"weaned" prior to overtime goods, grab the relevantprices rise significantly.According to latest Chinese
export, led to a sharp rise in trade surplus in May thiscustoms statistics, in January 2007 to April, China's
year.major commodity exports of leather industry
China's huge trade surplus with the textile industry isamounted to 7.12 billion U.S. dollars, up 5.8%, with the
a major creator of the textile industry in China'sexception of leather clothing, fur clothing, foot basket
trade surplus last year reached 129.2 billion U.S. dollars,volleyball, semi finished leather, finished leather down ,
accounting for 71% of the total trade surplus.the other main commodities increased in varying
Therefore, the export tax rebate policy adjustment,degrees over the previous year; while the export
the textile industry bear the brunt.Since the exportvolume terms, in addition to raw hides, footwear
tax rebate policy has announced that Wang Yong,components and the like, leather and shoemaking
deputy general manager of Guangdong Silkmachinery growth, other major commodities were
Corporation immediately force the cost of personnel,decreased.
re calculation of the order. "July 1 to sign orders, inExport value growth, exports decline, it is clear that
accordance with the original tax rate to calculate thein January to April, China's leather export unit price
costs, tax rates are lowered further, has signedhas quietly increased. Specific to higher exports of
orders on July 1 after exports will directly result inleather gloves, for example, in January to April, China
minimum loss of several hundred million yuan." Yongexported 230 million pairs, down 2.3%, export value
force "The more severe is the single received thisof 230 million U.S. dollars, up 3.3%.According to the
year will mainly depend on price increases to absorbChina Leather Association, introduced the Secretary
losses due to changes in the profit tax, the customerGeneral Su Chaoying, before the import and export
will be lost if not to accept a certain market share,of leather as the "processing trade", the import of
annual export situation is not optimistic."raw materials is not taxed, nor export tax rebates,
According to professional estimates, the export taxthere is no tariff burden on enterprises. But last year,
rebate rate declined one percentage point each, thethis preferential policy on processing trade abolished,
textile industry's operating profit would fall about 4%.import and export of leather began to pay taxes
The clothing, shoes, hats, etc. to adjust export taxaccording to the normal trade rates. For example,
rebate rate from 13% to 11% from 11% viscosesemi finished leather hides required to pay 5% 14%
adjusted to 5%. Last year the national textiletariff and 17% of the value added tax, thus
industry, the average profit of only 3%. Not only isincreasing the cost of leather exports.
the textile industry, chemicals, paper, furniture, steel,"This year's labor shortage downtown Pearl River
cement and other industries are included in the scopeDelta, Yangtze River Delta flood of migrant workers
of this adjustment will more or less, sooner or laterflock to the area, a corresponding increase in labor
feel the pain caused by this decrease incosts, coupled with imports of raw hides and related
profit.Learned that many companies have in theproducts, raw material prices, the current company
brewing industry, price increases, some advance wasaverage price ladies pack up about 30%." Guangzhou
started in May raised the price.Rui Cippi a company Ms. troops.Information Office of
Adjustment for potential release of the signal movingChina Leather Association Yexiang Ju said that
companiesbecause the state social security requirements are
Policy variable transmission with national industrialstringent, corporate labor prices is inevitable. "China is
policies and a strong signal. First, restrictions on highthe largest producer of leather products, raw material
energy consumption, high pollution, resourcedemand for the domestic self's not enough, especially
commodity exports, 553 of such goods the exportin high end most of the variety to be imported.
tax rebate policy has been canceled; first to minimizeLeather imported from China in recent years has
trade friction, enhance product value added, 2268 thebeen rising raw material costs, coupled with
export tax rebate rate for such goods furtherappreciation of the renminbi, the transport costs
reduced.Guangdong University of Foreign Studiescontinue to increase export tax rebate policy
Professor of International Economic and Trade Xiaoadjustment and other factors, leather goods
Harrier fly analysis pointed out that countries useexporters export price increases entirely to be
export tax rebate policy to adjust the exportexpected.