Customs ready for new tax levy
By Jiang Jingjing (China Daily)
Updated: 2004-12-29 08:36

An official with the General Administration of Customs (GAC) says the pending export tariff on textile products will improve China's textile export structure - from mostly low value-added products to high-end goods.

"China has expressed a responsible attitude towards the international textile market, aiming to establish a solid foundation for further economic co-operation and exchange," he said.

Imposing export tariffs, as a transparent, predictable and fair macro-adjustment measure, will stimulate technical upgrading and therefore improve the competitiveness of the whole sector, the official said.

"The move is in line with China's commitment to the World Trade Organization," he said, adding that the globalization of textile industry is a trend in the world's economy.

He said that much study on implementing measures has been carried out by the administration since the beginning of last month, including discussions with manufacturers, trading companies, industry associations and government departments.

Chinese Minister of Finance Jin Renqing said China on the one hand is against international trade protectionism and will guarantee the rights of Chinese enterprises; on the other hand, the country initiates export tariffs to reduce trade conflicts and seek a win-win deal with all its trading partners.

He was quoted by Xinhua News Agency as saying the country's textile exports will continue to grow next year with textile trade quotas being lifted at the beginning of the next year.

Sun Huaibin, spokesman with the Chinese Textile Industry Association, said the tariffs, in the short term, will deal a heavy blow to the exports of the firms manufacturing low-end products.

"The impact will be limited to products with higher values," he said.

Sun supports the intention of the measure, saying the move in the long run will promote the production level of the domestic textile sector.

"But it is hard to tell how long it will take to see the positive effect of the measure," Sun said.

He pointed out that the scale of the imposition of the tariffs should not be large, and that burdens on involved enterprises should not be too heavy.

He told China Daily the implementing period and tariff rates should not be fixed, but rather flexible to accommodate the new situation. "It is still rare to impose export tariffs on international trade since all countries encourage exports," Sun said.

He suggested duties imposed should be used as subsidies to textile enterprises to help them improve competitiveness.

So far, all software systems for collecting tariffs are completed, and are in a process of testing, said the GAC official.

Since the textile exports volume is large, and there are a large number of enterprises involved, the administration has assigned adequate personnel and equipment to guarantee a smooth and fast customs procedure for textile products, he said.

The administration will supervise export tariff collection, and compile information and suggestions for the revision of the rules.