ew Readjustment Policy Worries Textile Producers
Source: Fibre2fashion Date: 2007-07-19
Though some Chinese textile manufacturers want to switch over to the processing business because of RMB appreciation and decrease in export rebate rate, they may face fresh hurdles if Government’s plans to further readjust the policy of processing business takes practical shape.
The Government had begun adjusting the policy in 2006. According to the new policy, Chinese enterprises will have to pay a 17 percent import tax when they import raw materials. This tax will be returned to them when the finished goods are exported. However, the Government will withhold the tax if products sell only in the domestic market.
Textile manufacturers feel that the new policy will only add to their woes as it will increase their production cost. They got a chance to air their concern at a conference held recently by the Government.
The conference -- attended by 15 delegates of 12 textile, clothing and craftwork enterprises from Beijing, Guangdong, Sichuan and other provinces -- was held to discuss ideas about RMB appreciation and decrease of export rebate rate.
Textile manufacturers expressed hope that Government would carefully consider their pleas before implementing the new policy.
