Why Is Raw Material Smuggling Banned Repeatedly?

Raw material skin Why repeated prohibition?
In recent years, with the rapid development of leather industry in China, the demand of leather enterprises for raw materials is also increasing. At present, China has become the largest selling market for raw material skin in the United States, and the purchase volume accounts for more than half of the total export volume of American cowhide. It is precisely because of the active participation of Chinese enterprises that the price of American cowhide and even global leather has gone up sharply. Leather making enterprises have become the main drivers of the rising price of leather. On the other hand, China's fur industry has also seen leaps and bounds in the past few years. Chinese enterprises have also become the main buyers of international fur auction. With the huge market demand, the rising price of raw materials and the higher tariffs imposed on China's raw materials, under the combined effect of these factors, some enterprises choose to import raw materials by illegal means in order to reduce production costs.
A leather entrepreneur gave reporters such an account. If an enterprise imports raw materials worth 100 US dollars, the minimum tax payable is: (100 * 1.07) * 1.13-100=20.91 US dollars, and so on. If the enterprise imports 100 miners of water mink and raw fox fur, the taxes and fees that need to be paid are 28.7 and 34.55 US dollars respectively. Such high taxes and fees do cause a heavy burden to the enterprises. Huang Yanjie, director of China Fur Association fur (fur) Specialized Committee, told reporters that China's raw fur is not well sourced and its quality is relatively low. It needs to import a large number of raw materials from the top of the world every year. China is also one of the countries with higher tariffs on fur products in the world. Many enterprises are too high and overburdened with the Leather Association's reaction tariffs. Why do they want to keep the raw materials smuggled? Why can they be banned repeatedly? They will be able to negotiate with the relevant agencies as a trade representative to reduce the import duty of raw fur. Therefore, in 2013, after the efforts of the association, the tariffs on mink skin and raw fox fur were reduced to 10% and 15% respectively.
How do customs in every place crack down on smuggling of raw materials?
Qian Zhen, director of the Tianjin customs price division, told reporters that customs departments specialized in anti smuggling and anti smuggling departments. They will have their own intelligence personnel to provide clues for customs. There will be different themes of activities in each summer season, such as green wind action in 2014. This is a special action against agricultural smuggling. The local customs will cooperate with the general department in conducting rigorous inspections in relevant fields according to the theme of the activities of the general administration. In addition, local customs will also have a special analysis platform to analyze the situation of customs clearance in a certain period of time, such as: problem enterprises, risk assessment, smuggling techniques, batches of goods, quantity and price factors, etc. after background analysis, we can find out those enterprises or goods with high risk after analysis, and conduct targeted inspections.
Qingdao Customs
Qingdao Customs attaches great importance to the interview. In response to the questions raised by reporters, Qingdao customs has specifically searched for relevant information in recent years. According to the information provided by the Qingdao customs, since 2005, the Qingdao customs has investigated 44 cases of smuggling of raw materials, with a total value of 314 million yuan and a tax of 37 million 367 thousand yuan. In the above cases, 22 cases of sheepskin and salted sheepskin were reported, with a value of 176 million yuan and a tax of 16 million 548 thousand yuan, accounting for 50%, 56% and 44% of the total respectively. 17 cases of salt wet cattle skin and cattle leather were reported, with a value of 115 million yuan and 15 million 81 thousand yuan for tax, accounting for 38.6%, 36.6% and 36.6% of the total respectively.
How do businesses feel about smuggling of raw materials?
Xu Jianxin, chairman of Volkswagen Leather Co., Ltd.
As far as I know, the raw materials for smuggling into China are mainly imported through Hongkong grey customs clearance, and then smuggled in according to the price of a cabinet through Guangdong port. In the smuggled products, raw materials and leather billets are available. Not only traders, but also for tax evasion, some illegal leather production enterprises in Guangdong and Fujian are also involved in smuggling of raw materials. Leather smuggling has seriously affected the market order and created an unfair competition environment, which has seriously damaged the economic interests of legitimate production enterprises.
Pan Jianxin, vice chairman of Tongxiang Gaoqiao Leather Co., Ltd.
It is understood that domestic smuggling Raw material skin Mainly through the Hongkong grey customs clearance. No matter what form of leather smuggling will disturb the normal market order and bring losses to legitimate enterprises. Smuggled raw materials have more cost advantages. The competition between legitimate enterprises and illegal enterprises is not the same. The same is a price finished leather. Legitimate enterprises use the leather imported from normal customs clearance to produce less profits, but illegal enterprises will have higher profits and profits by producing smuggled leather.
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