Be wary of "export to domestic sales" push up trade surplus
[China Glass Network] The export situation in the first half of this year is gratifying. With the global economy stagnating, China’s foreign trade exports have risen against the trend, and monthly exports have reached new heights. On the Other hand, Da Vinci’s fake doors have been raging in recent days. Again, letting "export to domestic sales" enter people's field of vision, let us have to reflect on the deep-seated reasons behind this. Body Chain,Body Jewelry Belly Chain,Wholesale Sexy Body Chain Jewelry Wheatseedling Import & Export Co., Ltd. , http://www.jh-jewelryset.com
The Da Vinci fraud incident has aroused people's concern about fake foreign goods. The "Da Vinci" not only obtained excessive profits through the price manipulation of "one entry and one exit", but also enjoyed a high export tax rebate, resulting in the loss of national taxes. China's production system with processing trade as the main body, tax reduction, export tax rebate, and the tariff reduction rate of finished products are higher than the tax rate inversion caused by the raw material reduction rate, which is caused by “export to domestic sales (also known as re-import of domestic products)†The main reason for the large increase in phenomena.
China's internal and foreign trade have been managed separately for a long time, and different tax policies have been adopted. Domestic trade is subject to VAT and consumption tax; while foreign trade is to promote exports, export tax rebates are implemented. Domestic production units of materials, parts, primary forms of finished products and semi-finished products can directly obtain export tax rebates through export, while the state implements tax reduction and exemption policies for import of processing trade methods, so imports materials, parts and components from abroad. You can enjoy tax breaks in the form of primary and semi-finished products. In this way, domestic materials, parts, primary forms of manufactured goods and semi-finished products are exported, so that export enterprises have the benefits of national tax rebates; and through the import of processing trade, the import enterprises have obtained national tax exemption. benefit.
Da Vinci’s fraud model is no longer a password. Many foreign trade companies are able to avoid a series of formalities such as customs clearance and export tax rebate when processing and exporting goods, and even adopt the “one-day tour†method in the bonded area to achieve “ Domestic goods are re-imported." Since the “re-import of domestic goods†is in trade statistics, imports through processing trade are generally not counted in imports, while exports are calculated on a normal basis, which causes a surplus in surplus. In 1980, China’s domestic exports were re-imported at only US$24 million, mostly from overseas returns. However, according to customs statistics, by the end of 2006, the total annual import of domestic exports reached US$73.36 billion, which exceeded China’s annual import volume from the United States. In recent years, the scale of China's “re-investment of domestic products†has gradually expanded. In Shenzhen alone, in the first five months of this year, the import of domestic goods was 12.28 billion US dollars, an increase of 58.9%.
At present, the global economic recovery is weak. The developed countries have suffered from the debt crisis, which has led to weak external demand and sluggish consumption. However, China’s export trade has gone against the trend and its export performance has been staggering. In the first half of this year, export trade increased by 24% year-on-year, and exports in June reached US$161.98 billion, which was the highest monthly export volume. This is of course related to the strong competitive advantage of China's exports. However, the repeated occurrence of fake foreign goods and the “remaining foreign tide†incidents are enough to worry us about how many “exports to domestic sales†in China's fast-growing export trade are inflated. ingredient? Because of the growing momentum of "export to domestic sales", it has apparently disrupted the normal foreign trade order and distorted China's foreign trade figures.
The export-driven growth and the “double surplus†international balance of payments structure are the structural factors that lead to huge additional reserves. With the continuous growth of foreign exchange reserves and the “reversal intervention†policy implemented by the central bank, China’s foreign exchange account has soared. From the end of 2002 to the end of May 2011, foreign exchange holdings increased from 2.21 trillion yuan to 24.39 trillion yuan, an increase of 11 times. Foreign exchange reserves far exceeded the balance of foreign exchange reserves. This has increased the endogeneity of the money supply, which not only led to the central bank's initiative and flexibility in controlling the money supply, but also caused the policy dilemma of liquidity regulation.
In addition, under the pressure of increasing trade balance, the excessively fast trade surplus has also triggered international trade frictions, resulting in unnecessary game costs. Therefore, in the short term, we should speed up the reduction of the export tax rebate rate, especially the tax rebate rate for those products with high pollution, low added value and high resource consumption. In the long run, whether it is from the transformation and upgrading of the economic structure or the need for the strategic development path to shift from external demand to domestic demand, reform and even the gradual abolition of the export tax rebate system should be the general trend.