Certain textile categories free from export tariffs

02 Aug '05

3 min read

China eliminated the export tariffs on 17 Chinese-made textile goods following the European Union's new trade restrictions.

China, fourth time modified its export tariffs on textile products in this current year. China still collects export tariffs on 51 other textile goods.

The decision was made by the commission on July 21 after it was approved by the State Council, China's cabinet.

Zhao Yumin, an expert with China Academy of International Trade and Economic Cooperation under the ministry, said major importers like the EU and the United States are using quantity controls on imports of Chinese textile products, so there is no need to levy tariffs on these products anymore.

"Besides, the management of tariffs has its uncertainties, which might cause damage to the overall industry," said Zhao.

Experts hope the measure will help Chinese textile producers make a better living, especially after the appreciation the Renminbi, which has further encroached on the profits of textile companies.

Textile traders and producers in China welcomed the decision, saying the readjustment of tariffs will help companies to lower costs.

The EU also expressed understanding of the situation. Claude Veron-Reville, spokeswoman for the EU was quoted by overseas media as saying that as there have been the new-set restriction on the quantity of China's textile imports, tariffs are not necessary for these products.

Both, the EU and the United States have moved to limit their imports of Chinese textile goods despite global textile liberalization arrangement as of January 1, 2005.

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