Export Tax Rebate in September Recorded a New High

The latest statistics of the State Administration of Taxation showed that, in September, China provided export tax rebate in total amount of RMB 40.426 billion (excluding the tax exemption & deduction and treasury adjustment, the same below), a rise of 45.9% year-on-year and a rise of 22.9% on a month-on-month basis. It is learned that September witnessed the largest amount of tax refunds among the nine months till now.
Statistical data showed that in the first three quarters this year, China provided export tax rebate in total amount of RMB 303.779 billion, a rise of RMB 33.507 billion or 12.4% yoy. On average, export tax rebate of RMB 33.753 billion was provided each month.
As normally around three months are required for collection of documents from the export of commodities till the handling of export tax rebate, the export tax rebate offered in September mainly involved the commodities exported in June. From June 1 2009, China raised the export tax rebate rates for deeply processed farm produce and labor-intensive products such as luggage, shoes and hats, toys, furniture, as well as products with higher content of science and technology such as household electric appliances. Moreover, an increase of 7.6% in export in June compared with that in the previous month led to a dramatic growth in the amount of export tax rebate in September.
According to statistics of the Customs for the first three quarters this year, the total value of China's import and export was USD1557.82 billion, decreasing 20.9% yoy, of which export decreased 21.3% to USD846. 65 billion and import decreased 20.4% to USD711.17 billion. The total accumulated trade surplus amounted to USD135.48 billion, dropping 26%.
In September, China's total import and export value amounted to USD218.94 billion, decreasing 10.1% yoy, increasing 14.2% on a month-on-month basis. Both import and export exceeded USD 100 billion. Up to September, China's month-on-month growth of import and export has witnessed rebound for seven months consecutively.
In the mean time, the transportation volume of ports also showed that trade was recovering. In August, Container throughput at the Guangzhou Port increased by 25.5% yoy. According to statistics, although the container throughput in the nation's eight major ports still decreased yoy, the month-on-month growth rate reached 3.6%. Sources from the General Administration of Customs said previously that due to last year's low base figure and the recovery of international market demand, the yoy comparison will become positive at the end of the year.
Among export commodities, the major labor-intensive products for which the export tax refund rates have been raised many times by the government generally showed only a moderate decline in export. The Custom's statistics showed that, in the first three quarters of this year, the yoy decrease rates of China's export of major labor- intensive products were all lower than the overall export decrease rate of 21.3% for the same period. Specifically, export of garments and garment accessories amounted to USD78.54 billion, decreasing 10.2%; export of spinning yarns and textile products amounted to USD43.1 billion, decreasing 13.7%; export of footwear amounted to USD20.89 billion, decreasing by 5.6%; export of furniture reached USD17.73 billion, decreasing by 8.5%. During the same period, China's export of electromechanical products amounted to USD496.37 billion, decreasing 19.6% yoy. Specifically, export of electrical and electronic products reached USD206.38 billion, decreasing by 19.5% and export of mechanical equipment reached USD164.77 billion, decreasing by 18%.
Among import commodities, import of principal bulk commodities all showed growth to various degrees. Statistics of the Customs indicate that in the first three quarters of this year, the import value of primary products stood at USD201.32 billion, decreasing by 31.6% yoy. However, import of principal bulk commodities all increased to various degrees, among which the import of iron ore sand increased 35.7% to 470 million tons and import of crude oil increased 8.2% to 150 million tons. During the same period, import of industrial products decreased 14.8% yoy to USD509.85 billion, among which import of electromechanical products decreased 16.8% to USD 345.93 billion; the number of cars imported decreased 16.8% to 257,000 ; import of steel products increased 8.6% to USD13.38million tons .
The obvious narrowed decline rate of import and export again testified to the expectation of the accelerating recovery of China's foreign trade. Despite factors of the approaching Christmas season and consequent sudden surge of orders, this is still favorable news for China's economy currently under recovery.