Textile Export Tax Rebate Rises to 13%

Background:
According to a notice issued on 31 Jul 2008 by the Ministry of Finance of the People's Republic of China and the State Administration of Taxation, the export tax rebate rate on certain textiles and clothing products will be raised from 11% to 13%, effective 1 Aug 2008, as a result of which textile enterprises will undoubtedly benefit tremendously.

Investment highlights:
1. The production management of Shandong Yutai Fengzhu Textiles Co., Ltd, a subsidiary of the company, has been strengthened and the cotton project at Jiangxi Fengzhu Textile Co., Ltd., a subsidiary of the company, entered production in May. As a result, the industrial chain of the company has been formalized.
2. In 2007, the company’s competitiveness was recognized as being among the Top 10 in the textile industry and its knitted fabrics products were honored as a 'Top Brand' in China.
3. The company is the first in the industry to be certified as being safe for infant products and textiles with direct skin contact, thus meeting Western environmental protection standards. Consequently, environmental barriers set by Western countries have been overcome.

Risk warnings:
However, the outlook for the textile industry is not optimistic, with increasingly severe competition, the appreciation of the RMB, a tight financial environment and soaring prices for raw materials.

Related plate: Textiles plate


Source: www.topcj.com

Date: 1 Aug 2008

CN01/NW/JL/BT/MM