Three Ways To Solve Difficulties Textile Exports Out Of Winter

　　 textile industry Our experience in winter requires three fires to revive. Let's take a look:

Taking the textile industry as a breakthrough and stabilizing textile exports can play a role in stabilizing China's overall exports. For the various difficulties faced by textile export enterprises at present, the government can respond by issuing a number of targeted measures.

1、 Stabilizing China's Export by Focusing on Textile Industry

Stabilizing textile exports does not contradict the transformation of China's foreign trade structure. The textile industry in the narrow sense refers to the textile yarn, fabric and products in the customs statistics, excluding the textile clothing, shoes and hats manufacturing industry. It is generally believed that the textile industry is a highly polluting industry. However, we cannot generalize. In recent years, many large textile enterprises are also responding to the national call to take the road of energy conservation and environmental protection production. What is really difficult to eradicate is many small textile enterprises, which have no power and ability to save energy and reduce emissions. In the current context of weak external demand, many large textile enterprises are facing difficulties in business. If measures cannot be taken to boost the production and export of the textile industry and help enterprises overcome difficulties, enterprises can only aim at survival and will lose the stamina of transformation. This is not conducive to the transformation of foreign trade structure.

Stabilizing the export of textile industry can instead play a role in stabilizing the overall export of China. The textile industry is China's traditional competitive industry. In 2014, textile exports reached 688.8 billion yuan, accounting for 23.1% of the total export of labor-intensive products, and 4.8% of the total export of that year. Moreover, textile export enterprises have solved a large number of employment problems, attracting tens of millions of people. However, in recent years, due to various reasons at home and abroad, the growth rate of textile exports is low or even negative. In 2014, textile exports only grew by 3.8%, lower than the total export growth rate of 4.9%; In the first half of this year, against the background of a year-on-year growth of 0.9% in total exports, textile exports declined by 0.7%. Although China's textile exports only account for 4.9% of the total exports, if we take into account the textile clothing, shoes and hats manufacturing industries in downstream industries, their total exports account for 14.4% of the total exports. Stabilizing textile industry exports can also stabilize the growth of total exports by driving downstream industry exports.

　　 2、 Main difficulties faced by textile export enterprises

First, the limited quota of imported cotton makes our export enterprises face higher production costs than other countries, which is unfavorable to international competition. In terms of raw material supply, since the implementation of the cotton purchase and storage policy in 2011, textile export enterprises have faced a situation of "closed raw material market and open product market", and the cotton price at home and abroad has always maintained a high price difference. This is not conducive to the competition of processing trade enterprises in the international market. Before 2013, the government gave key support to large processing trade enterprises with competitive advantages, and the distribution of import cotton quotas could guarantee 80% of the cotton consumption of enterprises. However, after August 2014, the National Development and Reform Commission began to control or even stop issuing cotton quotas, forcing all export enterprises to use Xinjiang cotton and local cotton. At present, for processing trade enterprises, the import quota issued can only meet 20% of cotton consumption. The price of domestic cotton is much higher than that of imported cotton, which greatly increases the production cost of enterprises. Textile enterprises cannot compete with textile enterprises in India, Turkey, Pakistan and other countries in the international market.

Second, cotton inspection agencies cannot strictly control cotton quality. There are problems with cotton quality. There is still a big gap between the quality of China's cotton and that of imported cotton. The prominent problem is that the "three filaments" phenomenon of domestic cotton is relatively common. At present, the quality supervision, inspection and quarantine department of the State Council is in charge of the national cotton quality supervision, which is organized and implemented by its subordinate Chinese fiber inspection institution. For local governments, fiber inspection institutions at all levels carry out cotton quality supervision and inspection. However, the problem of falsification in cotton quality inspection is more prominent, and the inspection institution issues a notarized inspection certificate higher than the actual quality to cotton operators. It not only causes economic losses to the textile enterprises using cotton, but also makes the quality of raw materials substandard, and has disadvantages when competing with textile products produced by enterprises in other countries.

Third, the textile enterprise value-added tax "high levy and low deduction" makes the enterprise tax burden too heavy. The input tax rate for textile enterprises to purchase cotton is 13%, and the output tax rate is 17%. Since the value-added tax payable by enterprises is equal to the output tax minus the input tax, this means that even if the enterprise has no value added, it will bear the tax burden of 4%. The "high levy and low deduction" of input and output tax makes textile enterprises bear 4% more tax rate. Before the global financial crisis, textile enterprises were able to bear additional tax rates due to their high profits. At present, the profit rate of textile enterprises has been extremely low, and the phenomenon of "high levy and low deduction" undoubtedly causes great difficulties for enterprise operation.

　　 3、 Policy Suggestions on Stabilizing Textile Export

First, set Imported Quotas are mainly distributed to export enterprises, so that imported cotton can be used for enterprises to produce exports. This year, the National Development and Reform Commission issued 894000 tons of cotton import quotas in accordance with China's WTO commitments. Since the price of imported cotton is significantly lower than that of domestic cotton, using more imported cotton can effectively reduce the production costs of export enterprises. The textile products exported by enterprises mainly compete in the international market, and the competitors are foreign low-cost enterprises. Therefore, import quotas should be used for the production of exports. It is suggested that the quotas of enterprises that have stopped production and non export enterprises should be withdrawn, and the import quotas should be mainly distributed to export enterprises, so that imported cotton can be used to produce exports. After using the above policies to enable textile export enterprises to expand their exports, in order to encourage these enterprises to use more domestic cotton, we can consider allocating more import quotas to enterprises that use domestic cotton to a certain scale.

Second, the quality supervision, inspection and quarantine department of the State Council can send working groups to local areas to inspect cotton quality supervision and inspection for dereliction of duty. The quality supervision, inspection and quarantine department of the State Council shall take measures to strictly investigate the dereliction of duty in local cotton quality supervision and inspection. A working group was sent to the local government to investigate the cotton quality supervision and inspection work. Professional fiber inspection institutions, government agencies and their staff who violated the Regulations on the Supervision and Administration of Cotton Quality were severely punished according to the regulations.

Third, increase the cotton input tax rate to make the textile industry's input tax rate and output tax rate consistent. At present, Shandong, Anhui, Hebei, Shaanxi and other places have started pilot projects to implement a unified tax burden for textile enterprises. Specifically, the cotton input deduction will be increased from 13% to 17%, so that the input and output tax rates are the same, and the tax will be levied and deducted at the same time, thus reducing the value-added tax burden of textile enterprises.

This work makes spin The enterprise saw the hope of survival, effectively stabilized the production and export of textile enterprises, and achieved certain results. Relevant departments should expand the scope of the pilot, summarize the experience of the pilot, and introduce relevant policies at the national level as soon as possible to solve the problem of "high levy and low deduction" of value-added tax in the textile industry.