Others News
- Guangdong News
Date: 2-Mar-2007 Sources: (Shenzhen Daily)
THE city's textile industry was criticized for exaggerating its export volume so as to illegally acquire and sell extra export quota, the national textile association said on its Web site recently after an investigation in February.
'Last year, the city claimed its textile export reached US$16.2 billion, soaring nearly 179 percent within 12 months,'the China Chamber of Commerce for Import & Export of Textiles (CCCIET) declared on its Web site, saying that the rate was several times higher than the average 25 to 30 percent increase nationwide.
The US$16.2 billion export amount would account for 10 percent of the country's total. However, in 2005, the city's textile export volume was only US$5.8 billion.
Quota when illegally acquired can be sold to textile manufacturers who failed to get the necessary quota.
The chamber estimated that 30 to 50 percent of the city's textile export quota was misused, and much of it was sold to other textile companies.
According to the country's export regulations, the quota allocated to individual textile exporters is based on their export volume in the previous year.
The chamber and officials from four ministries investigated 17 textile companies in Shenzhen in early February.
'Sixteen out of the 17 companies illegally exaggerated their export quota last year,'said Jiang Zhe, vice chairman of the chamber.
According to the CCCIET, in the most extreme cases, underwear priced at US$2 was shown as costing US$230 by some companies.
'The practice is damaging other law-abiding companies' interests, and should receive severe punishment from government,'the CCCIET said in a press release on its Web site.
A spokesman surnamed Xie from the municipal trade and industry bureau told the Shenzhen Daily on Thursday that the current allocation system should be blamed for the quota problems.
Jiang said similar quota scandals had been unearthed previously in Sichuan and Heilongjiang provinces.
Domestic media have reported that the Ministry of Commerce is expected to apply more stringent standards for individual quota applications from March.
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