Ministry of Finance and the State Administration of Taxation, the State Development and

Reform Commission, the Ministry of Commerce, released by the General Administration of

Customs, "Ministry of Finance, the State Administration of Taxation on some of the goods to

reduce the export tax rebate rate of the" Notice The regulations on July 1, 2007, a variety

of merchandise exports or cancellation of the tax rebate, or to reduce the rebate rate. The

main purpose is to curb "high-energy-consuming, high pollution and resources," exports of

products, reduce trade frictions, promote the transformation of the mode of production and

sustainable economic and social development. New export tax rebate policy adjustments

affecting the leather industry's nerves.
Several previous tax rebate policy readjustments, this time the adjustment is the following

characteristics : First, the purpose of the tax rebate policy adjustments to the first

directly aimed at easing trade surplus is too large. Second, tax policy adjustment is not

provided with the transition period, but will adjust the content of the policy some time in

advance of a public announcement that so that enterprises have prepared ahead of time.

Third, the tax rebate policy adjustments related to exports scope and magnitude of decline

were unprecedented.

Rebates on the new footwear, and other traditional export commodities subject to the

greatest impact. According to the country's export tax rebate policy adjustment, China this

year from July 1 to abolish the 553 products of export rebates and 2268 products to reduce

the export tax rebate rate. Fur leather export tax rebate rate down 8%, the biggest impact

is fur leather clothing, footwear, leather goods and other traditional export commodities.

Concerned that the export tax rebate rate for the implementation of the new policy, foreign

trade, exports of both pros and cons. From the macro view, the new export tax rebate rate

policy is conducive to optimizing the industrial structure and the structure of export

commodities, the "one-two high" effective commodity exports; conducive to the transformation

of the trade growth mode, promote the balanced development of import and export; conducive

to improving export products and the technical level, increase the added value of their

products. enhance the competitiveness of enterprises, so as to reduce the amount of

international trade friction, reduce price competition in export enterprises. vicious

competition, the purpose of the phenomenon. But at the same time, because some of the goods

to the export tax rebate rate cuts or completely eliminated, related businesses profit will

be further reduced. The industry estimates that the profit margin will drop by a third.

As the leather industry's export enterprises, in the fastest time to handle policy content

and requirements, do export rebates "modified" to reduce "high-energy-consuming, high

pollution and resources," exports of products and reduce low-value-added, low technological

content of export products, increase high value-added and high-tech product exports, and

timely adjust the orientation of investment, changes in trade patterns to digest the export

tax rebate rate downward impact. For "a high-two" and other labor-intensive enterprises, to

enhance awareness of risks, the export contract is signed. Add possible reduction of tax

rebates terms of the response.
(Source: Department of Commerce website)