New Export Regulations Test Nearly 3 Textile Enterprises

The State Administration of quality supervision, inspection and Quarantine recently announced the entry and exit catalogue (2009) of the entry exit inspection and quarantine institutions for inspection and quarantine, and new products included in the catalogue of legal inspection, nearly 90% of them involved in textile and garment enterprises.

The China Textile Import and Export Chamber issued a notice in January 5th to explain the new regulations: 357 commodities added to the catalogue of legal inspection, involving 317 textiles and clothing, accounting for 88.8%, mainly including baby garments, children's wear, knitted and woven shirts, knitted underwear, pajamas, corsets, swimsuits and electric blankets.

The total export volume of these commodities amounted to 29 billion 900 million US dollars in 2007, involving nearly 3 export enterprises.

The addition of the "law inspection catalogue" means that the manufacturers that produce these products will need to undergo inspection and quarantine at the time of export and pay the inspection and quarantine fees.

This means a new test for the textile industry in the low tide.

Lu Longsheng, general manager of Shanghai Pegasus import and Export Trading Co., Ltd. told our reporter that according to the current standards, the new deal involves about 50 million yuan of goods flying horses, and the corresponding export inspection cost will increase by about 600 thousand.

Hu Min, director of the clothing department of the China Textile Import and Export Chamber of Commerce, also said in an interview that the matter had great influence on textile and garment enterprises.

After the introduction of the new deal, the China Textile Import and Export Chamber of Commerce and the China Textile Industry Association have received reports from relevant enterprises that the new clothing law inspection directory has caused inconvenience to the export of enterprises.

It is reported that the China Textile Import and Export Chamber of Commerce will report to the Ministry of Commerce and the General Administration of quality supervision, inspection and quarantine, and propose to relax commodity inspection and reduce charges.

In January 6th, our reporter contacted relevant associations and departments, and the other side did not respond to the results of the communication.

An industry veteran told reporters that the adjustment is not impossible. In fact, there has been a precedent for adjusting the relevant policies after corporate feedback.

Since the second half of 2008, export textile and garment enterprises have generally reflected that the export situation faced by enterprises is rather severe due to reduced market demand and increased trade risks.

Statistics show that in 2008 1-11, textile enterprises above Designated Size realized profits of 104 billion 200 million yuan, down 1.77% from the same period last year, and the growth rate dropped 38.76 percentage points over the same period in 2007.

Relevant departments of the state are also drawing up plans for upgrading the textile industry.

The reporter was informed that the AQSIQ has adopted interim interim management measures on this new regulation: before June 30, 2009, enterprises only need to declare to the local inspection and quarantine institutions in advance, and receive the customs clearance list for outbound goods, without paying the inspection and quarantine fees. In July 1st, the inspection and quarantine will be formally implemented according to the relevant provisions of the general administration.