According to the insiders¡¯ analysis, the export rebate will face further decrease and be apt to be withdrawn in the near future. Export enterprises are advised to make the preparation in advance to avoid the loss caused by the decrease in export rebate.

 

First, Enhance Bidding Export Accounting

 

In order to enhance the price competitiveness, many enterprises have taken export rebate into account in product pricing. It is the key strategy for enterprises to enhance bidding export accounting and consider well the potential impact caused by adjustment in export and the possibility of export tax, which will leave more gap of profit for the enterprises. In the long term, the enterprise should not rely on export tax rebate to earn the profit or treat the export rebate as the main part of profit. They should take the possible export tax of resource products into account.

Zhejiang Qifeng Hardware Make Co., Ltd. located in economic development zone in Haiyan, Zhejiang Provice, is a professional manufacturer with more than 10 years' experience in hardware industry. Mr.Yu Yanjun, the Sales manager, told us in the interview that starting from the emergent shipment in June, 19, Qifeng has shipped 20 containers of product in one month which is two times as usual. Although the shipment is effected on time, the company still suffers three million losses and the decrease in purchase orders in the next three months. As to the price negotiation with foreign purchasers, he comments that the profit will be very low if the foreign purchasers are not the end users, while the price will be negotiable if they are the end users.

Mr.Yang, from SHS in Shanghai, comments that the products from their company are mainly exported to EU and USA. Most purchasers will accept the increase in price caused by the objective factors as they trust and pay more attention to the quality and brand products in SHE.

 

Secondly, improve the product quality, speed up new product research, launch its own brand in order to expand exports and increase international market share.

 

Mr. Zhu Shujun, the president of Evan Fastener System Shanghai Ltd. thinks that it is the best choice for fastener enterprises to establish their own brands and launch new products by themselves. The enterprises had better manufacture the products according to the customers¡¯ request and design instead of becoming only the processing factories of other enterprises.

President of KINFAST Hardware (Shenzhen) Ltd., shows that the philosophy of ¡°choice should be good for products and customers¡± is the main method for the company to avoid the risks. Meanwhile, the factory director tells the reporter that adjusting the industrial structure and manufacturing high added-value products are the only ways for the enterprises to sustain development.

 

Thirdly, Control the material cost

 

The material price still maintains in a high level as the over demand and limited resources. However, experts analyzes that there is a developing rule for every thing- up and down; if enterprises are able to foresee the low point of the material cost, they had better  enlarge the storage accordingly instead of making a mess when the cost climbs to the peak. The product price changes according to the material cost, which will put the enterprises into a very negative position and be bad for their development.

 

 Fourthly, improve the inside management, control the cost, improve efficiency

 

Dalian Hengping Jinggong Fastener Co., Ltd. exports 50% products to Japan which are mainly two-tooth wood screws.

Mr. Zheng Liangyong shows that the decrease in export rebate results in low profit; they have to improve the inside management and try their best to cut down the cost during the producing process in order to achieve more profits. The government has adjusted the export tax refund policy for many times, which leads some medium and small sized enterprises suffer a lot. But he expresses that the government makes this adjustment on the interest of the whole country, so the enterprises should accept the policy for the sake of the whole. He hopes that the Chinese fastener industry will not only expand business scope but also enhance competitiveness.

Fifthly, develop more purchasers, choose good purchasers

 

Wuxi Anshida Hardware Co., Ltd. is one of the leading mandred rivet and rivet nut exporter manufacturers in China. It continually introduced advanced production equipment and technology from Taiwan and Italy. The company has passed ISO9001:2000 Quality System Authentication. Mr. Dai Zhizhong, technical manager in Anshida tells us that the profit decreases in despite of the same Sales volume. Thanks to the on time shipment of all the ready products before July, 1st, the company will turn to the high ¨Cprofit orders while reduce the high-risk and small sum orders. Meanwhile, the company will resort to improving the inside management, low cost and high-grade products, launching new products to face the current and future risks.

All above measures are for the fastener manufacture-oriented enterprises. So what about the foreign trade company? Mr. Xu, Sales manager in Haiyan East Printing&Dyeing Co., Ltd advises that ¡°many foreign trade companies store their products in the bonded area. In this way, the fee is not expensive and what¡¯s more, it is equal that the products have been exported. Besides, the powerful foreign trade companies who have warehouses aboard can transfer a large number of products to foreign warehouses.

   The policy of 8% decrease in export rebate rate has been  carried out for more than half a month. It is obvious that it makes on sense for the foreign trade companies to transfer the products to bonded area in advance or transfer the products to foreign warehouses. The most direct and workable ways are as following: increase the price for the purchasers or cut down the price offered by the suppliers, only in which can they get more profit. However, Mr. Xu points it out that it is not easy for the foreign trade companies to make it. So it is a hard time for the new foreign trade companies without long-term business partners.

 Some experts suggest that the foreign trade companies should cultivate the ability of risk foreseeing; gain more long-term and stable partnerships through supplying excellent service and decrease the cost in logistics to increase the profit.

 

 

It is known that the current adjustment in export rebate leads the medium and small sized enterprises who are already in a bad situation into a more difficult position. The enterprises focus on the market while the market focuses on the brand, so the enterprises can find out the solution in the market and product brand. Therefore, the most urgent task for the enterprises is to improve the technological content of products and high-added value products. The new export rebate policy make the enterprises have to resort to ¡°high quality, brand¡± business management.

     Changing from "export opportunities" to the "strategic exports", it is inevitable for the Chinese fastener enterprises to enter into the export times.