Textile and garment export tax rebate to 17%

Textile and garment export tax rebate to 17%

Recently, the Ministry of finance, the State Administration of Taxation jointly issued an announcement, since January 1st, 2015, the State will improve export tax rebate production on vascular stent, spraying robot, corn processing products and textile and garment products. The abolition of the tax rebate of boron steel products. Among them, some textile and garment’s export tax rebate rate will increase to 17%, and will achieve full export tax rebate.Textile and garment export tax rebate rate adjusted firstly since April 1st, 2009.

The export tax rebate bases on the total value-added tax invoice, the state will return a part of value-added tax to the exporter. At current, China’s highest export tax rebate rate is 17%, the same as the highest value added tax rate, namely the state returns the full value-added tax to the exporters.

Textile and garment occupy a high proportion in Chinese exports, and have strong ability to absorb employment. According to customs data of the General Administration, from Jan. to Nov. of 2014, textile and garment together account for 13% of China export. but the growth is slowing down. From Jan. to Nov. of 2014, textile and garment exports were up 5.3% and 6%, respectively, the growth rates were less than the half of the same period in 2013.

At present, enterprises can achieve full export tax rebate.

Since joined the WTO, China once used the export tax rebate rate as an important policy tool, and adjusted the export frequently. It caused a lot of controversy. After the financial crisis in 2008, China increased the export tax rebate rate for many times. And currently, it maintained at a high level. It also gradually formed a consensus: the export tax rebate rate should remain relatively stable, and it can not be used as a control tool.

Textile and apparel listed enterprises has reached 292

As of December 31st, 2014, Zhejiang Xinao textile CO.,LTD, listed in Shanghai and Shenzhen stock market on the last trading day, China’s textile and garment enterprises listed in major global stock markets has reached 292.

Among them, the companies which listed in the Shanghai Stock Exchange, Shenzhen Stock Exchange (including the main board, small and medium-sized panels, GEM), and Beijing national small and mediumsized enterprises share transfer system (new edition three) reached 139.

Shanghai and Shenzhen stock market suspend the listing since the third quarter of 2012, and restarted the listing from early 2014. No enterprises listed in the15 months. At the same time, a large number of enterprises doing a long preparation for listing or seek other channels, such as list in stock exchange of HongKong and other overseas markets.

There were a total of 5 textile and garment enterprises listed in Shanghai or Shenzhen stock markets in the year of 2014. They were GRN-group, SANLIAN HOPE, Desiccant technology, V-Grass and Xinao textile. In addition, there are two enterprises have not listed for various reasons. Although they have passed the examination of the SFC in 2012. They are Fujian’s“Jordan sports” and Guangdong’s “Qiu Sheng resource”.

At the same time, in 2014, there were four listed corporations were forced to withdraw from the market. The four companies were: Huarun Jinhua, Demian shares, Hua Fang textile, and Fujian NanFang. Due to various reasons, the enterprises were forced to withdraw from the Shanghai or Shenzhen stock markets amounted to 28.

By the end of 2013, in order to speed up and improve the construction of multi level capital market in China, the State Council officially approved New three board- an equity trading platform for Small and micro enterprises. It has the equal status with Shanghai or Shenzhen two big stock exchange markets. They were important bases for multi-level capital market in China. By December 31st,2014, the number of enterprises in the system for transfer or listing equity reached 1572, including 11 textile and garment enterprises.

As of December 31st, 2014, there were 103 textile and garment enterprises listed on the Hongkong stock exchange market, among them, 99 enterprises listed on the main board, 4 enterprises listed on the gem. There were 3 H-share companies (Shanghai petrochemical, Yizheng chemical fiber and Jingwei Textile Machinery) also listed in the mainland, Shanghai or Shenzhen stock exchange markets. In 2014, there were 9 new textile or garment companies listed on Hongkong stock exchange market.

About 50 China’s textile and garment enterprises listed in other global major stock markets In 2014, there were two new enterprises listed in global major stock markets. Both of them listed in Frankfurt’s market of Germany. They were Fick’s sports and Snowbird industry.

China's cross-border electric business scale will exceed 4 trillion Yuan

In 2013, China's cross-border electric transaction size was 3.1 trillion Yuan, a growth rate of 31.3%, accounting for 11.9% of the total volume of import and export trade. Along with some favorable policies have been introduced for national cross-border electric transaction and industry chain gradually improved, in the next few years, cross-border electric business will continue to maintain a steady and rapid development. It is expected that, in 2017, cross-border e-commerce’s penetration rate in the import and export trade will reach about 20%.

From structure of China's import and export with cross-border e-commerce, in 2013, exports accounted for 88.2% of China's cross-border business, imports accounted for 11.8%. At present, China's imports of cross-border e-commerce is still in its initial stage, with the domestic market demand for foreign goods is rising, which’s share of imports is expected to keep increasing over the next few years, but because of the larger impact by the state policy, cross-border e-commerce’s share of import will remain relatively stable and slowly improving.

From China's cross-border electric transaction mode, at present, B2B transactions of cross-border e-business accounted for more than 93.9%, to occupy the absolute advantage. Because the B2B transaction orders are normally larger, and more stable, so the future of B2B transaction of cross-border e-business trading is still the mainstream,but with the cross-border trade body is more and more small, cross-border trading orders tend to be more fragmented and small, the future of B2C trade will appear certainly promotion, which share is expected to reach 10% of cross-border e-business in 2017.

Translated by Zhou Hongmei