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The Declined Drawback Rate will Influence Textile Export

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Export drawback rate is an issue concerned by all export industries. For textile enterprise, it is introduced by authority department that China export drawback policy can be seen to change greatly, the export drawback rate will decreased to two percent, textile industry also involved. Some experts analyse that it is a big strike to the export enterprise in a bad way.   

To export enterprise, the decreasing of export drawback rate will make great negative effect, in 2006; it is more difficult for the textile export to rise continually in perch. The drawback rate being decreased by two percent is harmful to export enterprise in short term, especially the textile export enterprise specializing in low affixation value, At present, the decline of export drawback rate will increase enterprises cost in producing, communication and reduce the profit space due to the decreased export in area with quota, reduced profit, large shortage of cotton, increasing wicked international textile trade circumstance.        

However, in the long terms, the tax rate declined two percent is profit for textile enterprise accelerating to change quality orientated competition pattern. Due to cheap price, China textile export continue to increase and is criticized by Occident countries and areas who pose the quota on China textile while the over production, competition by demanding a low price is also unprofitable to industrys development. In this circumstance, the declined export drawback rate is in favor of changing the single international price- orientated competition pattern and improve products international competition capability. Under this condition with imperfect price advantage, increasing products technique content and affixation can play important role in changing the status of low-level production, depreciation.   


Facing crisis, textile enterprise should answer for actively, such as adjust product structure, improve technique content, increase product affixation, avoid profit loss brought by new drawback rate and keep previous market competition capability.
 

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