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Low rebate rate affecting Fujian revenue
22 Aug '07
1 min read
According to China Custom statistics, lower export rebate rate has affected garment exports of the Fujian Province, which is considered as the second biggest export merchandise of the region. July export value of the territory was US $510 million, down 19.8 percent compared to last month.
Export enterprises have been incurring losses since export rebate rate was lowered from 13 to 11 percent in July.
Other reasons which are responsible for low export value are quota restriction by EU and the US, setting up of trade preference excluding China and EU REACH rules which have added to the production and inspection cost of clothing enterprises.
In order to reduce the effect of this new policy, garment enterprises have started manufacturing high-end products as well as focusing on domestic markets. They are also setting up units in other countries.
Export enterprises have been incurring losses since export rebate rate was lowered from 13 to 11 percent in July.
Other reasons which are responsible for low export value are quota restriction by EU and the US, setting up of trade preference excluding China and EU REACH rules which have added to the production and inspection cost of clothing enterprises.
In order to reduce the effect of this new policy, garment enterprises have started manufacturing high-end products as well as focusing on domestic markets. They are also setting up units in other countries.
Fibre2fashion News Desk - China
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