Source: Yiwu sourcing agent Author: Helan Date: 2008-05-14
The June 22 news from Yiwu Municipal Bureau of State Taxation says that as from this July 1, the State ‘s policy of export tax rebate for certain kinds of commodities will be adjusted .
This policy adjustment involves 2831 commodities, about 37% of all the commodities listed in customs tariff schedule, with the average reduction in export tax rebate rate being around 2% , which will inevitably influence Yiwu’s foreign trade and export .
In Yiwu, the comprehensive export tax rebate rate will have a 2 . 9% drop from the former 12.5 4% to 9.6 4% after the adjustment, the biggest adjustment since 2000 . With the current exchange rate, the adjustment may result in the cost increase for export enterprises; the cost will raise 0.22 yuan for each dollar they export.
This adjustment in export tax rebate rate involves 35 kinds of commodities out of the 38 Yiwu commodities with an export volume over 10 million US dollars. All these 35 kinds of commodities have a 2-8% drop in export tax rebate rate. The export volume for these 35 commodities represents 88.4% of total export volume.
The adjustment of export tax rebate policy will have some impact on most of Yiwu’s export-oriented industries except carpet, taps and lace industries. The export tax rebate rate of garment, hosieries, underwear, zippers, toys, scarves, Christmas stuffs, cases and bags, umbrella and pen manufacturing industries decrease 2% to average 11% . That of frames, tapes and plastic ( including plastic film) industries decrease 6% to average 5% , and for jewelries, cosmetics, iron products ( such as easy-opened products, stainless products) industries there will be a 8% decrease to average 5% . The new policy of export tax rebate will take effect starting July 1, 2007 . For specific items exported, the export date on the customs declaration ( export tax rebate only)will be the date for execution, as is the case in Yiwu .
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