National import work conference delays import tax, it is difficult to shake

Christmas 2010, an autumn afternoon, Italy. A pair of well-dressed Chinese couples appeared in a watch boutique in the luxury shopping district of Milan. Accompanied by a Chinese translator, a store employee and a security guard, the couple carefully watched the display in the window and finally decided to buy a Roger Dubuis Excalibur double tourbillon jewel for her husband. Watches, and then they turned their attention to the Patek Philippe women's watch collection. Together, this shopping has cost at least 250,000 euros.   In 2011, when the first national import work conference was about to be held, everyone was most concerned about whether this picture will be transferred to China.   Because of the specific incentives for expanding imports, Minister of Commerce Chen Deming (column) once said that while the Ministry of Commerce is considering import trade facilitation, the issue of import tax is also being studied. "As far as I am concerned, I tend to In this regard (import tax adjustment) there are further considerations and advancements." Chen Deming said. With the delay in the national import work conference that should have been held in March, there are more and more speculations about import taxes and consumption tax adjustments. "A series of policies to expand imports are indeed at the stage of discussion and finalization. However, it is difficult to make breakthrough progress in the adjustment of import taxes and consumption tax. Different ministries have different opinions. Of course, this issue is still under discussion. We also hope to advance," said a person from the Ministry of Commerce. Difficult import tax and financing Since last year, the Ministry of Commerce has been mulling a policy to support the expansion of imports. And this policy will also become the focus of the work of the Ministry of Commerce this year and throughout the "Twelfth Five-Year Plan" period. Chen Deming clearly stated on many occasions that he must adhere to both import and export. While stabilizing export growth, maintaining and expanding the share of the international market, we will pay more attention to expanding imports and play an important role in the macroeconomic balance and structural adjustment of imports. At the National Business Work Conference at the end of 2010, Wang Shouwen, Director of the Foreign Trade Department of the Ministry of Commerce, disclosed possible support measures, including import discounts, import credit, import credit insurance, etc.; improved import structure, expanded consumer goods, medical equipment and energy conservation Imports of products; expansion of imports from members of the free trade zone, countries with large deficits and least developed countries, and said that the national import work conference will be held in Beijing for the first time in March this year. "In the series of policy discussions on expanding imports, it is more difficult to shake the import tax rate, the adjustment of the consumption tax rate, and the difficulty of financing the import enterprises." The above-mentioned Ministry of Commerce said, "It is difficult to reach consensus on the opinions of several ministries." The adjustment problem is also the most concerned by domestic scholars and the public. On March 20th, at the “2011 China Development High-Level Forum” held at Diaoyutai State Guesthouse, Chen Xingdong (column), the chief economist of BNP Paribas China, directly raised the issue of luxury tax reform to Chen Deming. Now everyone realizes that the price of goods purchased in China has exceeded the international market, especially a large number of consumer goods and luxury goods. Many Chinese tourists go abroad to buy things in small bags, or buy them abroad through mail order. According to the statistics of the US Federal Ministry of Commerce, the average Chinese tourist spends US$7,200 per person in the United States, which is far higher than the average consumption of US$4,000 for international tourists. The strong spending power of Chinese tourists has repeatedly shocked the world, ranging from cosmetics, handbags, electronic products and local specialties. Even the real estate mansions have become the target of Chinese tourists’ outbound consumption, so that even the New York Times magazine should be on the cover. Take "ShopChinaShop!" The headline of the book is amazed that "China is transforming into a consumer economy." In the United States, Japan, France and other places, Chinese shoppers with Chinese faces provide Chinese services for Chinese tourists. In France, there are luxury brand stores that provide services for Chinese people. In Japan, an electrical store hangs the banner: " Warmly welcome the Chinese who dare to spend the most!” “The high import tax rate makes the domestic market price far higher than the foreign market price, which is the main reason for this phenomenon.” Huang Guoxiong, a professor at Renmin University of China Business School, believes. It is reported that Chinese imports are subject to import tax, value-added tax, and consumption tax, which require more than 50% of taxes and fees. But reducing the import tax rate is not a consensus of all, and the voice of opposition is extremely strong. Some people are worried that the price cuts of related products may impact competitive brands in similar industries in China, and may cause high-income people to consume more luxury consumer goods with less money and avoid higher tariffs. Others believe that even if the import of luxury goods is expanded, the overall amount of the former is smaller than that of imports of bulk commodities, and the effect on promoting balance of payments is not significant. "From the current progress, the import tax and consumption tax are large and wide-ranging adjustments are unlikely. Of course, they are still under discussion, but the variables are not big." The above-mentioned Ministry of Commerce said, "The other thing that is difficult to shake is the import. In the final analysis, the issue of corporate finance is still classified as a problem of financing difficulties for SMEs, so it is not so good.” The dilemma of export-to-domestic sales “causes that some international brands’ luxury goods are sold at a higher price than foreign prices in addition to these brands. In addition to the relatively high comprehensive import tax rate, there is a very important factor in the distribution system and pricing system of multinational companies.” Yao Jian, a spokesperson for the Ministry of Commerce, pointed out at a regular press conference on March 22. Similarly, at the 2011 China Development Forum, Chen Deming said that China will take measures to promote competition, improve the logistics system, transform and innovate retail models, and reduce the burden on retail enterprises to solve this problem. He said that since many products are produced in China and international brands are processed in China, why should we go to the international community for a big trip, a big cycle, and then export domestically? This increases carbon dioxide emissions and increases logistics costs. “For example, the men’s Zegna suit is partly produced in Dongguan, China, but we put it in the container of the plane and transport it to a very distant place. Beijing needs to order a few pieces and then transport it by plane.” Chen Deming said. "But there are still many problems to be solved in export-to-domestic sales," said the Ministry of Commerce. The first is the attitude of multinational corporations. Are these big multinational groups letting you switch to domestic sales? The focus of this is on intellectual property issues. A new product, such as the iPad, may have no intellectual property problems if it is first sold in the United States. It will be sold first in China, and many imitations will come out. This is also the reason why multinational companies are not willing to come to China for sales. Just like Foxconn, in principle it is only a processing company and there is no right to sell. Another tricky problem is the issue of taxation. Processing trade has tax incentives for the introduction of equipment and the import of materials. If these products are converted into domestic sales, how should this tax be supplemented? This is a big problem. The Ministry of Commerce is currently preparing comprehensive measures to solve this problem, including further creating a good domestic distribution operation environment for foreign-invested enterprises; foreign-owned brand enterprises should give fair and reasonable price positioning to the Chinese market; the Ministry of Commerce will further improve with relevant departments. The domestic policy system, for example, the Ministry of Commerce is currently improving the domestic sales policy of processing trade products with the General Administration of Customs and the taxation departments. "It is easier and smoother to make progress on trade facilitation. This time, there may be more articles in this area," said the Ministry of Commerce. Mainly to clean up the relevant import management measures, further relax import management, and adjust the implementation of automatic import license management of goods. At the same time, it will work with customs, quality inspection and other departments to promote the efficiency of customs clearance and implement inspection and quarantine facilitation measures. He said: "We strive to achieve a balance between import policy and export policy." For example, the current export is a 24-hour customs clearance, and imports are only 8 hours; now there are only three ports in the country that can import cars; import inspection, if the current inspection standards, fruit and agricultural products The whole meeting is rotten and so on.

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