One-time upward adjustment of the 3486 export tax rebates, processing trade policy adjustment has become a foreign trade policy to save the city’s new wind vane.

The export tax rebate adjustment, the Ministry of Commerce has begun the review of the processing trade restrictions on the adjustment of the directory category. However, compared to October 21 last year, most of the increase of textile products, cut the export tax rebate rate of efforts to promote the transfer of upgrading the processing trade will be the extent to which major policy adjustment will be a similar test on the balance beam.

From the local part of the opinion that “the export tax rebate cut, these industries will be included in the restricted list; now raised the export tax rebate, should be light and textile products from the processing trade restrictions removed in the directory category.” October 23 China’s processing trade in Guangdong Province, the largest of the Office of Foreign Trade and Economic Cooperation, an official told reporters out their real thoughts.

Knot system needs to end it. In June 2007, the Chinese government in order to narrow the trade surplus, one-time cancellation of 533 kinds of “a high-capital” of the goods the export tax rebate rate, reducing the 2268 “easily cause trade friction,” the product of the export tax rebate rate. Subsequently, will be the elimination of export tax rebates, included in the processing trade ban catalog, that is, the abolition of bonded processing trade imports; to lower export tax rebates will be included in the processing trade of products restricted list, the implementation of margin account “is a half turn.” Included in the list of restricted products mainly in the textile, light industry in the area.

Guangdong Province on this issue has been central to a similar view, the central government in the hope that the next wave of policy, to consider these proposals.

Textile 8,000,000,000 funding restrictions

In the textile industry, most of the accounting policies troubled by the margin, in the eastern coastal China is a large number of U.S. imports of cotton (information market), made of fabric and then export the textile industry.

China’s cotton imports quasi-sliding tax rate, only the cotton import quota was only 1% of the collection of customs duties. Even so, if the company imports 100 million in cotton, in accordance with the requirements of processing trade policy, it must be deposited into a designated account to the Customs equivalent to 1% tariff increase of 17% of the value-added tax half of the margin account, that is 90,000 U.S. dollars, only Exports to wait until after the write-off, the bond will be returned.

Estimates that in the first half of 2008, Chinese textile and garment processing trade imports 6,751,000,000 U.S. dollars, that is, paid about 623,000,000 U.S. dollars of the margin account. 1 U.S. dollars in accordance with the Exchange 6.8 yuan terms, the equivalent of about 4,240,000,000 yuan. Such calculations, as if this policy restrictions, the textile industry this year to pay the margin account up to 80 million.

In accordance with purchase, orders, production cycle, the enterprise funds have been frozen from the time a few months to six months. Participated in a China Textile Industry Association said the research, such as large-scale textile enterprises Wei Bridge, in brief, are the focus of the accounting referred to the margin squeeze a lot of money, resulting in a very tight chain enterprise funds.

The China National Textile Industry Council to the relevant government departments in policy proposals, put forward a clear and hope to re-adjust the restrictions on processing trade category directory will be removed from the textile industry.

The China Textile Import and Export Chamber of Commerce also turned over to the Ministry of Commerce of the proposed policy: “the abolition of the processing trade is transferred to enterprises of the capital chain tension relaxed.”

In addition to the textile, according to the Ministry of Finance, informed the Administration of Taxation raised the export tax rebate of goods, is currently in the processing trade restrictions on the type of directory, but also furniture, toys and many other industries.

Processing trade policy disputes

“If the export tax rebate adjustment policy is not to relax at the same time the processing trade, it will cause a policy on processing trade enterprises unfair,” the aforementioned officials in Guangdong said that “processing trade enterprises, domestic value-added part of the implementation of the general trade and export enterprises Tax rebate policy. Macroeconomic situation in China changed, for the processing trade policy should be flexible attitude. ”

Guangdong is China’s largest province of processing trade. Processing trade policy adjustment is essential for Guangdong. According to the Guangdong Provincial Foreign Trade and Economic Cooperation Department released data, January to August this year, imports of processing trade in Guangdong 170,680,000,000 U.S. dollars, the province’s exports accounted for 54% of the total, total export volume of processing trade, 38.4 percent. However, compared to the same period last year, an increase of only 12.34 percent, the province of Guangdong is not only lower than 13.46 percent of the export growth rate, far below the national average of 22.4 percent export growth.

From the national perspective, last year’s processing trade policy adjustment is an immediate impact, the impact of the export tax rebate adjustment is greater than 1-in August, the national growth rate of processing trade exports 16.2 percent, far below the general trade 26.5 percent of growth .

The aforementioned officials said, although the Ministry of Commerce has begun the review of the processing trade restricted list, but the Government to promote the transfer of upgrading the processing trade will not change. Two years earlier, the Ministry of Commerce has been designed to promote the implementation of a processing trade enterprises in the eastern coastal areas to central and western transfer.

However, government departments and scholars for the processing trade policy has been to the existence of intense controversy. A coastal provinces in the eastern part of the Office officials in charge of foreign trade and economic cooperation said that as the processing trade “large” the characteristics of logistics enterprises foremost concern, it is difficult to transfer to the Midwest.

While the other considered that, in addition to the processing trade to address employment, value-added, revenue contribution of domestic technology transfer are very limited, due to the previous regulation and policies in place to support the distorted, resulting in the processing trade to occupy half of Chinese exports, Inviting surplus. Adjusting the structure of foreign trade, should be strengthened to gradually standardize the management of processing trade.

Guangdong Foreign Trade and Economic Cooperation aforementioned officials said, because of increased export tax rebate policy has just been released, so if the processing trade is expected to be revised directory, take some time.