35 Yiwu commodities to face a drop of export tax rebate

The June 22 news from Yiwu Municipal Bureau of State Taxation says that as from thi s 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 li sted 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 1 2 . 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 . Al l these 3 5 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 wi ll have some impact on most of Yiwu’s export-orientedi ndustries except carpet， taps andl ace industries . The export tax rebate rate of garment，hosieries，underwear，zippers，toys，scarves，Christmas stuffs，cases andb ags，umbrella andpen manufacturing industries decrease 2% to average 11% . That of frames，tapes andplastic( including plastic film) industries decrease 6% to average 5% ，andf or jewelries ，cosmetics ，iron products( such as easy-openedpr oducts，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