November 25, 2008
China Customs Duty at 1 Yuan?
Effective December 1, 2008, the majority of Chinese light industry and textiles exports (and imports) will pay only a "nominal payment" of customs duty requirement versus "actual payment." Chinese exporters and manufacturers asking their native English speaking clients and partners for an English translation of "nominal payment" are told that it is the equivalent of saying "just give me a dollar" or Euro or Yen, etc. This move along with increase in VAT rebates is part of Beijing's massive financial crisis stimulus package and aimed at shoring up declining exports.
The US textile industry is in uproar over this action and want the US Government to put quotas on Chinese imports. This is not likely to happen in the final weeks of the Bush administration. But the new Congress might be tempted for political gain...
Labels: foreign trade, panic of 2008
# posted by Sinomania! : 11/25/2008 04:41:00 PM
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