Abolish The Processing Trade Of Mink Fox And Promote The Healthy Development Of The Industry

Huang Yanjie, director of China Leather Association's fur Specialized Committee, briefed China Leather net reporter about the "past and present life" of processing trade from promoting the development of the industry to seriously impeding the development of the industry.

He said that at the time, the China Leather Association had played a positive role in promoting the 3 tax numbers in the processing trade. Based on the general survey of the industry, it consulted the local associations and representative enterprises. On the basis of collecting, collating and assembling opinions, the government departments responsible for processing trade policies, such as the Ministry of Commerce, the Ministry of finance, the Ministry of industry and commerce, the General Administration of customs, the Ministry of reform and development, the forestry bureau and the Ministry of agriculture, have received the understanding of the relevant departments of the state. The government finally accepted the proposal of the China Leather Association and put the 2 commodities 3 tax numbers in the prohibited catalogue of processing trade.

Huang Yanjie further explained the commodity name and coding coordination system of the 2 commodity 3 tax numbers (hereinafter referred to as the "coordination system").

He explained that China, as a state party to the Convention on coordination system, has adopted the "coordination system" since January 1, 1992 as the basic directory of China's import and export tax regulations and the Customs Statistics catalogue.

"Coordination system" is the most widely used international trade commodity catalog.

Among them, fur in the forty-third chapter fourth sections, entries are 4301 raw fur, 4302 have tanned fur, 4303 clothing, 4304 artificial fur.

The 3 tax code takes 4301 1000 whole mink skin, whether or not to take the lead, tail or claw; 43016000 whole fox skin, whether or not to take the lead, tail or claw, and 43016090 non tanned wild fox skins.

Huang Yanjie said that at the very beginning, in order to compete for the international market and increase export earnings, the state provided the enterprises with convenient policies for processing trade.

Because before 2005, the whole industry was export-oriented, showing a "28" state, that is, 20% domestic sales and 80% exports; and after 2005, it began to develop towards the inward direction. As of now, the export delivery value only accounts for more than 10% of the fur industry output value.

Judging from the present market, the introverted market is our main target market, and exports account for only a dozen percent, and the processing trade of large scale is no longer in line with the objective reality of the market.

Since 2010, smuggling cases have been dealt with through fake processing trade every year, and the industry has been hit very hard. Regardless of trade order or atmosphere, the industry is gradually losing its sense of security.

Large and medium-sized enterprises want to be regular industries, and are impacted by other smuggled enterprises that have been smuggled into them, so that they are subjected to unfair treatment.

It is good for the industry to develop and develop healthfully at this time.

Guangzhou customs anti smuggling Bureau aims at "9 + 14" in 2010.

The smuggling case once wrote that "there is an industrial smuggling risk in China's fur industry", and clearly pointed out that fur processing trade has completed its historical mission and has now become the main channel for trade smuggling.

These illegal behaviors not only damage the interests of the state, but also disrupt the fair competition order of the fur industry, which seriously affects the sustainable development of the fur industry.

according to

Statistics show that due to the sluggish international market, China's large imports of leather products are mainly sold in the domestic market after processing into garments and products in China, in 2012.

The export value of products and products enterprises accounted for only 14.2% of sales value.

However, according to customs statistics, 4975 tons of raw mink were imported in 2012, of which processing trade accounted for 93.5%, that is to say, a large number of imported leather should be re exported after processing, but this is not in line with the actual situation of the industry.

This is mainly due to the rampant phenomenon of "fake processing trade", and it has even formed a "one-stop service" of collusion between the domestic and foreign merchants, from the raw material market to the production and processing and the sale of the products.

Because the goods are exempt from customs duties and VAT, other parts of the customs are difficult to control in addition to the regulation of individual consumption and cancellation.

After last year's tariff has dropped by 5 percentage points, the president of the fur trade, Fu Li Yao, predicts that in the future, the direction of tariff reduction should also be developed, especially the fox skin should be reduced to the same as mink.

The emphasis is on reducing the tariff of Fox Skins because it allows Chinese enterprises to have more high-quality and more abundant choices in the Chinese market and make the enterprises more flexible.

China is a big country in demand for fur products, and after the tariff reduction, the Chinese market is a direct beneficiary.

Reporters also interviewed Li Qingyuan, chairman of China Leather Association fur Specialized Committee. He said that the abolition of processing trade is indeed a temporary difficulty for enterprises that really do processing trade. The 10% tariff of mink, plus 13% of value added tax, and 13% of export tax rebates, even if they can be deducted, the cost of them still increased a lot.

The current domestic situation is that a large number of products are processed for general trade, and less than 30% are processed trade.

Only by continuously applying for tariff reduction can we promote the sustainable development of the industry.

He hopes to drop to 2%-3% and level with other Asian countries in order to achieve normal trade and fair competition.

At the two sessions in 2014, Shi Biceng, member of the CPPCC National Committee and academician of the Chinese Academy of engineering, put forward a proposal on "zero tariff for raw leather imports". At the same time, it also suggested that strict restrictions should be imposed on the processing trade of mink and Fox Skins, and the implementation of zero tariff on such raw skins would not only increase national taxes but also promote the development of fur industry.

Huang Yanjie expressed high support for this.

Huang Yanjie said that because of the shift of the target market, China has become the main consumer market of fur products all over the world. Due to the reversal of "28", the products sold to the international market are less and less, and the sales volume in the domestic market is more and more, but the tariff in China is very high.

High tariffs actually can draw on some international experience, such as Italy decades ago, also had high tariffs on fur raw materials.

At that time, Italy was also a big country in leather and fur processing. At that time, it also reached the level of industrial smuggling, obviously higher than other countries' tariffs, but it was also a major producer country, so smuggling could not be avoided.

Later, after zero tax, not only did not smuggle, but also promoted the healthy and rapid development of the industry.

The smuggling caused by processing trade is mainly due to changes in the target market: first, the domestic market has become the main market.

Second, it is directly related to excessive tariffs.

The domestic market needs a large number of high-grade leather sheets. China's locally bred mink skins and Fox Skins are inferior in quality to the international ones, such as Nordic and North America, and their prices are obviously lower than international prices.

When some illegal enterprises enter the country, they import high-grade leather sheets purchased by foreign trade auction houses through bonded trade in processing trade. After processing, "steal dragon and turn Phoenix", and take some domestic leather sheets to import high-grade raw materials to deal with the cancellation of customs.

Fur industry is an industry requiring experience. It is a relatively high technology industry. It needs long-term technological accumulation. It is difficult for ordinary people to distinguish whether they are foreign or domestic, whether they are high-grade or low-grade, which is relatively difficult for customs officials.

Therefore, from the point of view of regulation, it is very difficult to control the real smuggling enterprises in processing trade through the protection of processing trade policies.

The import tariffs of raw fur in many EU countries are "zero". Asian countries, such as Korea and Japan, have only 3% import tariffs. ASEAN countries import "zero" tariffs from Europe, while China's 10% and 15% are still far higher than the world average level. Under such circumstances, it is very unfavorable for fur industry to play a fair role in international competition.

Huang Yanjie said that during the process of visiting relevant departments, the China Leather Association has always insisted on the positive role and key role of the combination of "reducing import tariffs and adjusting processing trade" to the healthy development of fur industry and realizing China's development from fur power to fur power.

In the process of appealed for tax reduction, the China Leather Association has been sparing no effort and unremitting efforts to reflect the actual situation of the industry to the relevant departments.

Since January 1, 2014, tariffs on mink and fox skins have dropped by 5%, a result of long-term efforts.

Even now, this level is obviously higher than the international tariff average.

Combining fur industry with the cold winter of the industry, the industry and enterprises are more difficult and need further rational adjustment of industrial policies.

If we cancel the processing trade only, it will be a blow to the enterprises that really do the processing trade, which will increase their cost and weaken their international competitiveness.

How can it help enterprises to participate in international competition? Huang Yanjie believes that, in addition to blocking the smuggling of fake processing trade, if we can reasonably adjust the tariff policy and reduce it to the international average level of 3%-5%, we will achieve an industrial area that is more suitable for the healthy development of industry.

In this way, the combination of the two can really let the enterprises participate in the fair international competition.

For the next step of the China Leather Association, Huang Yanjie stressed that this year, during the two sessions, it will reflect the industry demands and promote the process through the CPPCC members and standing committee members and NPC deputies to the NPC and CPPCC.