Textile exports favorable policies to promote development of the industry

Ministry of Finance, State Administration of Taxation issued yesterday “on the adjustment of some commodities such as textiles and garments export tax rebate rate of notification”, since August 1, will be part of the textile, clothing export tax rebate rate from 11 percent to 13 percent, although this The textile and garment export tax rebate rate of increase in the magnitude and scope of the trade are lower than many expected. But for digestion appreciation of the renminbi, or the rising costs have a positive effect on the textile and garment industry is positive, will help enhance their profit margins and space. As the upstream industry, textile printing and dyeing prices and the relevance of the great prices, the export tax rebate rate of textile industry raised its profit growth on a catalytic role, but also benefit the printing and dyeing industries.

Second, printing and dyeing industry in the state of the economy

Dye is the largest user of the textile industry, the use of dyes account for 90 percent of output. In recent years, China dye production to an average annual growth rate of 20.87 percent. The dye production in 2004 reached 598,300 tons, ranks first in the world, the world dye yield of about 60 percent. China has not only is the world’s largest producer of dyes and dyes is the world’s largest exporter, dyes dye the world export volume accounting for about 25 percent of trade volume.

Third, favorable policies to promote development of the industry

We believe that this policy of printing and dyeing industries to promote the adoption of the following two channels of:

1. Textile and apparel products tax rebate rate of increase can reduce the cost of exports, which will promote the growth of textile exports, which will increase the demand for printing and dyeing, thus, stimulate the production of printing and dyeing industry growth.

In 2007 the domestic textile industry output value of 3 trillion yuan, and exports amounted to 167.9 billion U.S. dollars, equivalent to 1.15 trillion yuan (at 6.8), the export share of 38.33 percent. General trade accounted for 70%, in accordance with the export growth of 10% is estimated that 2008 full year total exports of textiles and garments to reach 184.7 billion U.S. dollars, which means total exports in general trade to reach about 130 billion U.S. dollars.

On the other hand, in 2007 China’s dye industry product sales revenue to 37.515 billion yuan, with total exports worth 1.004 billion U.S. dollars and imports 442 million U.S. dollars, the actual dye used for domestic consumption of the output value of 33.7 billion yuan. Based on the above projection, in the dye industry does not consider itself growing, 08 driven by the textile dyes on the static demand will reach 37.07 billion yuan.

2. As a complete industrial chain, the export tax rebate rate rise two percent of the proceeds will be shared throughout the industry chain. Include: textile companies, exporters, foreign importers, including of course the main raw material products – printing and dyeing enterprises.

Therefore, the dye industry will also get 2 percent this part of income. According to estimates, textile exports in general trade accounted for 70%, in accordance with the export growth of 10% is estimated that 2008 full year total exports of textiles and garments to reach 184.7 billion U.S. dollars, which means total exports in general trade to reach about 130 billion U.S. dollars. Well, this can be 2 percent to a total profit of the textile industry increased 2.6 billion U.S. dollars, 6.8 in accordance with the RMB exchange rate conversion, profits will increase 17.69 billion yuan. This portion of the profits of which will vest in the dye business.