Export tax rebate cut foreign trade hardware companies to deal with

According to relevant media reports, the Ministry of Finance is brewing to lower the tax rebate for export of some commodities. The export tax rebate rate for some aluminum profiles will be reduced from the current 13% to 9%, and the export tax rebate for commodities such as stainless steel bars, rods, models, and silks may be cancelled. At present, the rebate rate for such products is 5%.

In the first quarter, China’s trade deficit just started, and the news of “export tax rebates” was lowered. Although the country hopes to limit the export of high energy consumption, high pollution, and resource-based products, these enterprises will promote industrial upgrading through life and death competition, integration and restructuring. . However, for hardware export companies, in the face of wage increases, raw material prices, while the loss of tax protection benefits this layer of "protection film", the increase in export costs is undoubtedly aggravated.

As we all know, the export tax rebate is mainly to balance the tax burden of domestic products by returning domestic tax paid for export goods so that domestic products enter the international market at a cost that does not include tax, and compete with foreign products under the same conditions, thereby enhancing competitiveness. , expand export earnings. In simple terms, it is the government that implements preferential policies to encourage exports.

Over the years, many hardware companies accustomed to such government subsidies have been dependent on export tax rebates for many years. Nowadays, as policy trends change rapidly, hardware companies must cope with various situations if they want to find a place to survive.

Coping with one: collective price increase

Although the export tax rebate faced downward adjustment is still in rumors, but many hardware industry has expressed concern. Some people think that the impact of the export tax rebate reduction is the entire hardware industry, so when it comes to how to deal with the export tax rebate rate reduction, the entire industry needs to work together.

The most effective way is to collectively increase the price of the entire hardware industry, because the rise in export costs is not much different, and new cost pressures can only be passed on to customers.

For enterprises, although this year's development is in good shape and orders are more than before, the wages of workers and raw material prices are rising rapidly, and the cost pressure has not been reduced. If the export tax rebate rate is adjusted at this time, the pressure on companies alone will suffer. It's really big enough.

According to the electromechanical online Xiaobian analysis, the collective price increase is also a matter of fact. If this road fails, leading companies in the industry will not be affected by the reduction in export tax rebates, because they have stronger bargaining power. Therefore, SMEs should choose other routes on the basis of price increases. Domestic sales are one of them.

Coping 2: export to domestic sales

Nowadays, the export road of foreign trade hardware companies is getting more and more difficult: foreign anti-dumping strikes, cost-rising prices, and advantages have been lost. Once exports are no longer the best shortcuts for profit, the export of hardware companies to domestic sales is imperative.

However, the transfer of foreign trade to domestic sales cannot stop at the verbal level. Instead, it is implemented in solid and realistic actions. Nowadays, as foreign brands have taken hold of the Chinese market one after another, we can see that the Chinese market has great demand and great potential. For hardware companies, the layout of the domestic market is also the right time.

And industry professionals have said that the hardware exporter's export to the domestic market is not a good way to go, Xiaobian believes that as long as the unwinding of foreign trade to domestic sales "dead end", entering the domestic market is not difficult.

Since the hardware companies in foreign trade are sold at home, they are all in the initial stage of brand building and generally lack brand power. At this stage, it does not mean that companies cannot make a difference. In fact, in the domestic sales market, consumers have not really established a concept of brand consumption. These consumers are still in the stage of product consumption. For these consumers, the product power of a company will directly determine the size of the chance of being selected.

As long as products that cater to the eyes of domestic consumers are developed, attracting consumers directly from the products will be the first step in the domestic market.

Coping 3: Industrial Transformation

Some export-oriented hardware companies have expressed their incomprehensible reduction in the tax rebate rate. They believe that lowering the tax rebate rate means increasing production costs and the previous price advantage does not exist. They are worried that foreign buyers will abandon the Chinese market and turn to other countries.

In fact, if our product quality, variety, style can meet the needs of foreign buyers, we do not have to worry about the loss of customers. “If you have a good product, you will never sell it. If you meet the needs of your customers and continue to develop new products, even if the price goes up a bit, you will be able to accept an outside buyer,” said one company executive.

In fact, although China’s export-oriented companies have raised their product prices, this year’s Canton Fair’s first-stage transactions are still optimistic. Some foreign buyers have expressed their understanding of price increases.

Therefore, the reduction in the export tax rebate rate by the state may allow hardware companies to enter the critical period of the industry's reshuffle in advance, to stop the rapid development of the hardware industry, to solve various obstacles to industry issues, such as: product homogeneity, in the There is little difference in quality and appearance.