On November 1, 2018, my country officially implemented a number of foreign trade policies and regulations, including reducing tariffs on some imported goods, increasing export tax rebates for some products, etc. Among them, the import tariffs on textile fabrics, yarns, textile machinery, sewing machinery and other products of more than 400 tax items have been reduced; the export tax rebate rates for textile raw materials such as cocoons, wool and hemp have been increased.
According to an announcement by the Customs Tariff Commission of the State Council, import tariffs on 1,585 tax items will be reduced starting from November 1, 2018. This tax reduction covers many industrial products and other commodities needed for people’s production and daily life. The average tax rate has been reduced from 10.5% to 7.8%, with an average reduction of approximately 26%. It mainly includes four parts: First, reduce import tariffs on goods with considerable domestic production capacity and level. Including textiles, building materials, base metal products, steel, etc., there are a total of 677 tax items, and the average tax rate has dropped from 11.5% to 8.4%. The second is to reduce import tariffs on some mechanical and electrical equipment. Including textile, light industry, engineering, general, metal processing and power machinery, agricultural machinery, power transmission and transformation equipment, electrical equipment, instruments and related equipment parts, a total of 396 tax items, the average tax rate dropped from 12.2% to 8.8%. The third is to reduce import tariffs on some resource commodities and primary processed products. Including non-metallic minerals, inorganic chemicals, wood and paper products, gems and jade, etc., there are a total of 390 tax items, and the average tax rate has dropped from 6.6% to 5.4%. The fourth is to reduce import tariffs on goods that are conducive to promoting trade facilitation. The main purpose is to integrate the tax rates for some similar or similar goods and appropriately reduce the tax rates. Too many tax levels will bring some difficulties to enterprises. This time, the tax rates are integrated or reduced, with a total of 122 tax items, and the average tax rate is reduced from 12.3% to 8.5%.
After sorting out statistics, the published “Most Favored Nation Tax Rate Adjustment Table for Imported Goods” involves more than 400 commodities related to textile production, mainly textile fabrics and yarns. The tax rate for a variety of unbleached or bleached, dyed, yarn-dyed, and printed textile fabrics has been reduced from 10-18% to 8%. The tax rate for ramie, flax, jute, hemp and other hemp yarns has been reduced from 6-10%. to 5%.
In addition, the executive meeting of the State Council decided to adjust the export tax rebate rate for some products, which will take effect on November 1, 2018. In accordance with the principle of structural adjustment and with reference to common international practices, the current export tax refund rate for goods is 15% and some 13% are raised to 16%; 9% is raised to 10%, some is raised to 13%; 5% is raised to 16%. 6%, partially raised to 10%; the export tax rebate rate for high energy consumption, high pollution, resource-based products and products facing overcapacity reduction tasks will remain unchanged; the tax system will be further simplified, and the tax rebate rate will be reduced from the original seven levels to five levels. The average time for processing tax refunds will be shortened from the current 13 working days to 10 working days before the end of this year. This adjustment is also the second time this year that my country has increased its export tax rebate rate.
In this adjustment, the export tax rebate rate for camera film, plastic products and other products has been increased to 16%. The related products in the textile field are mainly textile raw materials, mainly including: mulberry cocoons suitable for reeling, other silkworm cocoons, etc. Carded fat-containing sheared wool, other fat-containing wool, other uncarded camel hair, velvet, uncombed fine and coarse hair of other animals, wool lint, raw or retting flax, processed unspun hemp, hemp short fiber and waste hemp, raw ramie, raw or processed, unspun abaca, raw or processed, unspun sisal and agave fiber for textile purposes, raw or processed, not listed For famous textiles such as plant fibers, the export tax rebate rate will be increased to 10%. In addition, the export rebate rate for carbon fiber has been increased to 13%, and the export rebate rate for glass fiber and other products has been increased to 10%.
According to analysis, the reduction of tariffs on imported products such as textile fabrics and yarns will directly reduce the cost of raw material procurement for textile companies that use imported raw materials for subsequent processing and production. The shortening of the export tax rebate cycle and the improvement of efficiency will theoretically play a positive role in stabilizing exports and foreign trade for enterprises. But at the same time, people involved in textile foreign trade exports generally said that since this year, the increasing uncertainties in the international external environment and the fluctuations in the RMB exchange rate against the US dollar have affected people’s hearts and have a more direct impact on the foreign trade production and operation of enterprises. Reducing the risks brought by a single market and balancing the export market are the current priorities of foreign trade business.
Title: A batch of new foreign trade regulations will be implemented from November, and import tariffs on more than 400 textile products will be reduced
