Recently, the reporter saw from the Xinyi Glass website "a letter from the president of Xinyi Glass to the customer about the price increase." In the letter, President Dong Qingshi said that in the past two years, due to the cumulative appreciation of the RMB, which is about 8%, the prices of various raw materials and packaging materials have risen sharply, and the national export product tax rate has been adjusted, the cumulative total cost of Xinyi Glass has increased by more than 20%. Encountered unprecedented pressure on rising costs. And to customers and industry companies to overcome the difficulty of adjusting product prices, of which export processing glass prices rose 12%, export float glass prices rose 10%.
Obviously, the price increase measures of Xinyi are exactly the response to the policy of reducing the export tax rebate rate of some commodities since July 1. In the notice issued by the Ministry of Finance and the State Administration of Taxation, the export tax rebate rate for glass and its products was reduced from 13% to 5%. What Dong Qingshi mentioned in his letter is the common feature of most domestic auto glass manufacturers with export business: the reduction of export tax rebate rate is bound to have an impact on auto glass export enterprises.
Glass industry faces structural adjustment
As soon as the policy was introduced, there were complaints from some industries that were hit hard. The relevant person in charge of the Ministry of Finance clearly stated the original intention of the government's export tax rebate rate adjustment policy: although China's economic situation has maintained a steady and rapid development state, there are problems such as excessive trade surplus and continuous high investment growth. Still outstanding. At the same time, the unreasonable commodity structure has led to the export of low-value-added and low-tech products with high energy consumption, high pollution and resources. Therefore, easing the trade surplus and the resulting trade friction and promoting the balance of foreign trade are the focus of the current government foreign trade work.
Relevant experts believe that Xinyi Glass's implementation of national policies and the initiative to increase the export price of automotive glass is worthy of promotion. For those enterprises with stronger competitiveness, when exporting products, they can transfer part of the cost by adjusting the contract pricing in the negotiation process to compensate for the loss of profits. This adjustment policy will not affect it much.
On the contrary, those small companies that rely on simple price competition and rely on tax refunds to maintain profit levels have a greater impact. Through the adjustment of the tax rebate rate, the company is guided to adjust the investment direction to avoid blind investment and overcapacity.
According to an analysis by a person in the glass industry, the export tax rebate rate of the glass industry has suddenly dropped to 5%, mainly due to overcapacity and unreasonable structure. The output of flat glass in China has ranked first in the world for 17 consecutive years. However, the energy consumption for manufacturing is 32% higher than the international advanced level. There is also a big gap in production technology, equipment and management. Last year, the state issued the "Notice on Several Opinions on Promoting the Structural Adjustment of the Flat Glass Industry", which clarified the guiding ideology and objectives of the structural adjustment of the glass industry during the "Eleventh Five-Year Plan" period. The adjustment of the tax rebate rate is to continue to implement the national policy through economic means.
Need to strengthen product competitiveness
As the cost advantage of China's auto glass is decreasing year by year, in recent years, companies in South Africa, South America, India and other places have entered the international market, and its technical level is close to or even exceeds the trend of China, and the pressure on domestic enterprises is not allowed. Xiao Yan.
Zhang Yuheng, secretary-general of China Building Glass and Industrial Glass Association, believes that the country's reduction of export tax rebate rate, so that enterprises to increase the price of export products may not reduce the competitiveness of China's products. Because in the international market, price is not the decisive factor, the research and development level, quality technology, variety function, after-sales service of automobile glass production enterprises are also of great concern to foreign supporting enterprises or agents, and the price increase is also to provide better products and service.
Zhang Yiheng said that although most companies have raised prices for export glass at different levels, this is only a short-term expedient. From the national industrial policy and the recent introduction of new policies, it can be seen that the export of “high energy-consuming, high-pollution, resource-based†products is bound to continue to be restricted. China’s export enterprises should adapt to the adjustment of national industrial policies, and they must work harder. Internal work of the product, while reducing costs through energy saving.
Industry insiders suggest different treatment of different products
Although the policy design has been persuaded to have a different pressure, the deputy general manager of an auto glass manufacturer believes that this difference is not detailed enough. He said: "In the glass industry, energy and resource consumption The most serious is the production of original glass, and China's production capacity in this field is seriously oversupplied. It is understandable that the state has adjusted the product structure of such enterprises, but it should be treated differently.
As a deep-processed glass product, automotive glass, it is a product with high added value and low energy consumption. It should not be treated the same as original glass or flat glass. Moreover, at present, China's auto glass has just been able to compete with European and American companies in the rising period, and the key stage of development in the direction of export support, and it will be transferred to the country's restricted development industry, and the loss will not only be a temporary loss of profits. It is more hindering its pace of development towards the high end. â€
In this regard, Zhang Haoheng, secretary general of China Building Glass and Industrial Glass Association, agreed. He believes that the state should further reduce the export tax rebate rate for low value-added products such as original glass, but it should be encouraged for high-tech, low-energy processing glass such as automotive glass.
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Obviously, the price increase measures of Xinyi are exactly the response to the policy of reducing the export tax rebate rate of some commodities since July 1. In the notice issued by the Ministry of Finance and the State Administration of Taxation, the export tax rebate rate for glass and its products was reduced from 13% to 5%. What Dong Qingshi mentioned in his letter is the common feature of most domestic auto glass manufacturers with export business: the reduction of export tax rebate rate is bound to have an impact on auto glass export enterprises.
Glass industry faces structural adjustment
As soon as the policy was introduced, there were complaints from some industries that were hit hard. The relevant person in charge of the Ministry of Finance clearly stated the original intention of the government's export tax rebate rate adjustment policy: although China's economic situation has maintained a steady and rapid development state, there are problems such as excessive trade surplus and continuous high investment growth. Still outstanding. At the same time, the unreasonable commodity structure has led to the export of low-value-added and low-tech products with high energy consumption, high pollution and resources. Therefore, easing the trade surplus and the resulting trade friction and promoting the balance of foreign trade are the focus of the current government foreign trade work.
Relevant experts believe that Xinyi Glass's implementation of national policies and the initiative to increase the export price of automotive glass is worthy of promotion. For those enterprises with stronger competitiveness, when exporting products, they can transfer part of the cost by adjusting the contract pricing in the negotiation process to compensate for the loss of profits. This adjustment policy will not affect it much.
On the contrary, those small companies that rely on simple price competition and rely on tax refunds to maintain profit levels have a greater impact. Through the adjustment of the tax rebate rate, the company is guided to adjust the investment direction to avoid blind investment and overcapacity.
According to an analysis by a person in the glass industry, the export tax rebate rate of the glass industry has suddenly dropped to 5%, mainly due to overcapacity and unreasonable structure. The output of flat glass in China has ranked first in the world for 17 consecutive years. However, the energy consumption for manufacturing is 32% higher than the international advanced level. There is also a big gap in production technology, equipment and management. Last year, the state issued the "Notice on Several Opinions on Promoting the Structural Adjustment of the Flat Glass Industry", which clarified the guiding ideology and objectives of the structural adjustment of the glass industry during the "Eleventh Five-Year Plan" period. The adjustment of the tax rebate rate is to continue to implement the national policy through economic means.
Need to strengthen product competitiveness
As the cost advantage of China's auto glass is decreasing year by year, in recent years, companies in South Africa, South America, India and other places have entered the international market, and its technical level is close to or even exceeds the trend of China, and the pressure on domestic enterprises is not allowed. Xiao Yan.
Zhang Yuheng, secretary-general of China Building Glass and Industrial Glass Association, believes that the country's reduction of export tax rebate rate, so that enterprises to increase the price of export products may not reduce the competitiveness of China's products. Because in the international market, price is not the decisive factor, the research and development level, quality technology, variety function, after-sales service of automobile glass production enterprises are also of great concern to foreign supporting enterprises or agents, and the price increase is also to provide better products and service.
Zhang Yiheng said that although most companies have raised prices for export glass at different levels, this is only a short-term expedient. From the national industrial policy and the recent introduction of new policies, it can be seen that the export of “high energy-consuming, high-pollution, resource-based†products is bound to continue to be restricted. China’s export enterprises should adapt to the adjustment of national industrial policies, and they must work harder. Internal work of the product, while reducing costs through energy saving.
Industry insiders suggest different treatment of different products
Although the policy design has been persuaded to have a different pressure, the deputy general manager of an auto glass manufacturer believes that this difference is not detailed enough. He said: "In the glass industry, energy and resource consumption The most serious is the production of original glass, and China's production capacity in this field is seriously oversupplied. It is understandable that the state has adjusted the product structure of such enterprises, but it should be treated differently.
As a deep-processed glass product, automotive glass, it is a product with high added value and low energy consumption. It should not be treated the same as original glass or flat glass. Moreover, at present, China's auto glass has just been able to compete with European and American companies in the rising period, and the key stage of development in the direction of export support, and it will be transferred to the country's restricted development industry, and the loss will not only be a temporary loss of profits. It is more hindering its pace of development towards the high end. â€
In this regard, Zhang Haoheng, secretary general of China Building Glass and Industrial Glass Association, agreed. He believes that the state should further reduce the export tax rebate rate for low value-added products such as original glass, but it should be encouraged for high-tech, low-energy processing glass such as automotive glass.
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