Us extends Chinas medical mask tariff exemption period to the end of 2020

 Us extends Chinas medical mask tariff exemption period to the end of 2020

The U.S. trade representatives office issued a document on Tuesday that the exemption period for some Chinese goods, including smart watches and some medical masks, will be extended for another four months to the end of 2020, the previous years exemption period expired on September 1.

Last year, the trump administration announced a 15% tariff increase on Chinese goods worth about US $125 billion, and then reduced the tariff rate to 7.5% in the first phase trade agreement signed between China and the United States in January this year, but some of them were temporarily exempted from tariffs.

The goods, which are temporarily exempt from tariffs, include many Bluetooth and wearable data transmission devices, including products imported from China by apple, Fitbit, SONOS and other technology companies.

The extended list also includes medical equipment such as masks, respirators, stethoscope covers, gauze sponges and blood pressure sleeves. Vertical piano, LCD module, stainless steel case and other products were also postponed.

The U.S. trade representatives office previously granted these products a one-year tariff exemption period. The latest announcement did not specify the specific reason for extending the exemption period for only another four months.

Liu he talks with us representatives: promoting the implementation of the first phase of Sino US economic and trade agreement

On the morning of August 25, Liu He, member of the Political Bureau of the CPC Central Committee, vice premier of the State Council, and Chinese leader of the China US comprehensive economic dialogue, spoke with us trade representative lethizer and finance minister manuchin.

In early August, the tariff exemption period for these commodities was also extended

To this end, the day before the expiration of the exemption period, the office of the United States trade representative announced the decision to extend the exemption period for certain imported goods.

Related news:

Played by Americans! Chinas 7 billion face masks failed and buyers become mystery

A large bill of nearly 7 billion masks from the United States has gone yellow.

On the evening of August 9, Jinfa technology announced that the US $975 million kn95 mask order signed with an American company (hereinafter referred to as the buyer) did not receive the 40% payment previously agreed, and the buyer did not respond to the contract effectively. The company believed that the contract order had actually been terminated.

According to the announcement of Jinfa technology on May 18, the subsidiary Guangdong Jinfa Technology Co., Ltd. (hereinafter referred to as Guangdong Jinfa) and a company in the United States (hereinafter referred to as the buyer) signed a goods sales contract, among which, the object of the goods is kn95 mask, with an order amount of US $975 million.

On June 10, Jinfa technology announced that due to the fund collection and large amount payment process, the advance payment of 40% of the order amount will be slightly delayed.

As for when the payment can be received, golden development technology only said in its announcement on June 10 that it has always maintained communication with the buyer and discussed specific issues such as the fund collection and large amount payment process proposed by the buyer, so as to achieve the goal of payment as soon as possible.

In June this year, AI financial service called the Securities Department of golden development technology, and the staff of its securities department told AI finance and Economics: there is no specific time. It is difficult for both parties to determine the time. The other party is an American company, which involves foreign exchange and other issues.

In addition, according to the latest response of golden hair technology quoted by the media, because the other party has not paid the down payment, the order has not yet started production.

A billion dollars

In 2020, the outbreak of the new coronavirus will have a huge impact on sales. Many offline stores are shut down and have no turnover for several months.

The downstream of Jinfa technology is undoubtedly the worst hit area under this epidemic situation.

According to the financial report in 2019, the downstream application fields of Jinfa technology are mainly automobile, household appliances, electronic appliances, communications, containers, etc.

From the product side, the modified plastics are the main force contributing to the business income of Jinfa technology, with an operating revenue of 16.954 billion yuan in 2019, accounting for 57.89% of the revenue. Before the mask list was disclosed on May 18, Goldilocks also took advantage of the momentum of helmet concept stocks.

The main downstream application fields of modified plastics are automobiles, household appliances, electronic appliances, etc. In addition, the downstream application fields of environmental protection and high performance recycled plastics, high-performance carbon fiber and composite materials, special engineering plastics and other products of Jinfa technology also involve household appliances, automotive electronics and electronics.

To some extent, under the epidemic situation, the demand side of golden hair technology products is seriously depressed, which will undoubtedly impact the performance of golden hair technology in 2020.

According to the performance report of Jinfa technology in the first quarter of 2020, the operating revenue in the first quarter was 5.536 billion yuan, a year-on-year decrease of 6.15%; the net profit attributable to shareholders of listed companies was 142 million yuan, a year-on-year decrease of 36.91%.

In terms of amount, 6.9 billion yuan of mask orders play an important role in boosting the performance of Jinfa technology in 2020.

In 2019, Jinfa technology will achieve an annual revenue of 29.29 billion yuan, including 5.899 billion yuan in the first quarter, 6.443 billion yuan in the second quarter, 8.034 billion yuan in the third quarter and 8.910 billion yuan in the fourth quarter.

The equivalent of 6.916 billion yuan of mask orders can make up for the lost performance of golden hair technology in a quarter.

Is it possible to do 7 billion business with strangers?

Golden hair technology is undoubtedly lucky, less than half a year after the mask business, it received a large amount of 6.9 billion yuan for masks.

Stimulated by the news, on May 18, Jinfa technology had a turnover of 888 million yuan, up or down 9.98%, and closed at 13.34 yuan / share. As of the end of August 7, Jinfa technology reported 17.38 yuan / share, up 0.34% from the previous trading day. In the three months after receiving orders from the United States, Jinfa technology has increased by 44.35% and its market value has increased by 13.745 billion yuan.

According to the announcement on May 18, both parties of the contract agree that Guangdong Jinfa will deliver the goods to the buyer in weekly batches after the buyer pays the pre payment of the proportion specified in the order, and complete the delivery of the goods agreed in this purchase order within 3 months.

It is worth noting that in the announcement of goldfard, the buyer of the $975 million order didnt disclose his real name and replaced it with a company in the United States. There was no other information.

Interestingly, the $975 million mask bill is the first time golden hair technology has cooperated with the buyer.

After the first cooperation, the buyer had a large order of $975 million, but he refused to pay. It makes people wonder whether the buyer has the ability to pay $975 million? And will this $975 million order contract end up an own dragon?

Give a deposit on production, there is no impact on blonde hair. The above-mentioned staff also said, we used to produce melt blown materials, but we started to extend upstream and downstream due to the epidemic situation. In February and March this year, we purchased some equipment for the production of masks.

According to the announcement of half year performance pre increase disclosed by Jinfa technology in July this year, thanks to the operation of epidemic prevention products, the company is expected to realize net profit of 2.345 billion yuan to 2.446 billion yuan in the first half of this year, an increase of 1.835 billion yuan to 1.936 billion yuan compared with the same period of last year, which is more than three times higher.

However, it is still a mystery what kind of influence will be shown in the semi annual report when nearly 7 billion yuan of masks are sold out this time. (source: AI financial services)

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Us extends Chinas mask tariff exemption period