Sliding Tariff Change Cotton Import Cost
Source: chinaapparel Date: 2007-01-08
<The program for tax in 2007> will be implemented since January.1, 2007. Especially the sliding tax of new cotton will change cotton import cost greatly.
First, compared with last year, the import cost will be seen little fluctuation and can’t enjoy assured price range due to new sliding tax policy. Therefore, the textile enterprises who import low-level cotton still can make profit.
Second, the rate of sliding tariff is ranged from 6% to 40%. According to current exchange rate, 6% tariff is applied to the overseas cotton with over 66 cent/pound, 40% tariff to overseas cotton priced at less 41cents/pound; 6%-40% tariff to overseas cotton priced at 41-66 cents/pound.
Third, the average price of overseas cotton with sliding tariff at range of 50-70cents/pound is 12873 Yuan/ton instead of 13076Yuan/ton last year. That is, the price of overseas cotton is less than previous price.
Forth, with the new sliding tariff, the overseas import cost is less than that in 2006 when the quota of overseas is less than 59cents/pound or over 66cents/pound.
