Imported Cotton Quality Test Issued New Regulations On Market Impact Geometry

According to the latest announcement issued by the General Administration of Customs on the regulation of import cotton quality inspection and supervision, since April 5, 2020, the quality inspection and supervision methods of imported cotton have been optimized, that is, the cotton quality inspection method is adjusted by the current customs inspection of imported cotton by batch sampling, and the sample is inspected and issued according to the application of the enterprise (click to see the General Administration of Customs). On 2020, No. forty-third). This is the further optimization of the quality supervision method after the adjustment of weight inspection of imported cotton in 2019 (click on the Customs General Administration Announcement No. 159th in 2019). Then, how will the market impact after the implementation of the weight and the newly issued quality inspection regulation?

1, will the cost of cotton imports be reduced?

Can't. In recent years, import cotton quarantine and weight and quality inspection no longer charge any fees, so for enterprises, the related costs will not change.

2, what is the impact on enterprises if the cost remains unchanged?

On the whole, the inspection process will be simplified and the buyer's delivery speed will be accelerated. But in actual operation, we should also take a look at the situation.

First, for enterprises without quality inspection requirements, the inspection process and delivery efficiency will be significantly accelerated. Under the current commodity inspection clause, no matter whether there is a quality claim for imported cotton, the sampling inspection is a mandatory requirement. According to the actual operation situation, including the United States green card cotton or contract terms no quality claims of cotton, quality inspection certificate for enterprises, the actual role is not obvious, some enterprises for quality inspection demand is not strong. And in the case of larger shipments or downgrading of cotton grades, the cost of time taken by the buyer will also increase. So for this part of the enterprise, the new inspection method will simplify its operation process and improve the efficiency of delivery.

Two, the actual role of enterprises with quality inspection needs is not obvious. It is understood that although the new policy of weight inspection has been put into effect in November 1st last year, from the perspective of market feedback, there are not many enterprises actually executing, and most of them still weigh the certificates according to the previous commodity inspection and issue weight certificates. For the quality inspection announcement just released, it may not bring too much change to the market in the short term. Whether it is from trade habits or the buyer's concern about the quality of cotton, the mode of issuing certificates of inspection is difficult to change rapidly.

3, how does the market respond to the new policy?

From the perspective of corporate feedback, most enterprises believe that the new policy will not have a significant impact on the market in the short term. Whether it is based on the current trade environment or trade habits, most enterprises will continue to issue a certificate of inspection before the previous mode.

Of course, the landing and effect of any policy need time to achieve. But in the final analysis, the optimization of the system has given enterprises more choices.

Finally, I want to say a digression and express the feelings of cotton people. Recently, under the influence of the epidemic, the domestic demand and export weakness of spinning and weaving were uploaded to the upstream cotton market, and the import cotton trade was almost at a standstill. The implementation of all favorable policies is based on actual transactions. All parties are waiting for the market to warm up, so that policies can really benefit enterprises.