Textile machinery imports enjoy preferential duties

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BIZCHINA / From the Watchdogs

Textile machinery imports enjoy preferential duties

By Du Xiaoli (chinadaily.com.cn)
Updated: 2007-07-05 14:43

Visitors chat at a textile exhibition in Shanghai earlier last month.
Textile machinery is the first among the 16 key technical equipment
fields to enjoy the policy of preferential duties on parts and components
imports. [newsphoto]

China will carry out its policy of preferential duties on parts and
components imports in 16 key technical equipment fields and the policy
will be first implemented on textile machinery, according to the Ministry
of Finance. The document on policy implementation details was released
recently.

From January 1, 2007, China implemented rebates on importtariffs and
value-added taxes for some key parts and components imported by domestic
companies to develop and manufacture high-speed air-jet looms and
automatic winders. The rebates were treated as national investment used
mainly in product development and technological innovation.

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As part of the new policy, the country also abolished import tax
exemptions on related whole machines. During the transition period, all
automatic winders and air-jet looms will enjoy zero import tariffs from
July 1, 2007.

The launch of the new policy signals that preferential import duties to
revive domestic equipment manufacturing have entered substantial
implementation. Policies of preferential duties on other equipment
imports will be launched in succession.

As a basic industry, China's equipment manufacturing currently has many
problems, such as the inability to innovate, high dependency on foreign
products, unreasonable industrial structure and weak international
competitiveness.

China's textile machinery sector has two tasks - the revival of textile
equipment manufacturing and the promotion of textile industry upgrading
during the11th Five-Year Program, according to the Ministry of Finance.
The import duty adjustment aims at creating fair competition for textile
machinery enterprises, it added.

(For more biz stories, please visit Industry Updates)

20071121-Zhang Extracted From http://www.hellomandarin.net