Textile & Clothing Players Forced to Raise Prices
Source: Fibre2fashion Date: 2007-05-09
On April 20, the curtain of the first phase of the 101st Canton Fair came down in an atmosphere of ‘looming thunderstorm’.
The export transaction of the first phase reached US $23.98 billion, up 8.1 percent compared with the same time of 100th session, and higher than the growth rate of 6.5 percent of 100th session.
But this does not reduce the lingering doubts of many garment manufacturers, as the rumors of reducing textile export tax rebate are flying everywhere.
Predictions say that the export tax rebate rate for the entire textile industry would be adjusted downward by four percentage points. The rebate rate for clothing imports and exports would be lowered from 13 to 9 percent and that for textiles would be cut from 11 to 9 percent. The rate for chemical filament would decrease from 9 percent to 5 percent.
The industry widely believes that the main cause in export tax rebate reduction on clothing and textiles is to reduce trade surplus and ease pressure for RMB revaluation.
Affected by this, many textiles and clothing enterprises at the fair have been compelled to raise their order prices between 2 to 10 percent.
