Plastic bag export industry profit margin between 3% -5%

At present, the profit rate of the plastic bag export industry is between 3% and 5%. In addition to China, plastic bag products in Asian countries such as India, Malaysia, and Vietnam also have a large share in the market. The reason why the EU imposed anti-dumping duties on plastic bags exported by China in 2006 was that China is a non-market economy country. However, anti-dumping duties have not been imposed on plastic bag products in countries such as India, Vietnam and Malaysia.

In addition, China’s product tariffs are also higher than other Asian countries. The EU’s tax on plastic bag products exported to China is 11%-12% higher than the average of other Asian countries. In 2006, after the EU imposed 8.4%-28.8% anti-dumping duties on China's export of plastic bag products, a large number of enterprises in China had to re-select new export areas.

Lin Xing, head of Xingxia Company, said that due to the active anti-dumping lawsuit against the EU plastic bag products in 2006, Xingxing Company became one of the 100 enterprises with a lower anti-dumping rate of 8.4%. At that time, a large number of manufacturing enterprises in Zhejiang and other places were ruled to impose anti-dumping duties of up to 28.8% because they did not respond. This led to the direct loss of EU customers. As a result, the number of orders for the Xingsha company from the EU countries increased directly. In order to complete a large number of orders, Xingsha Company has outsourced some of its operations including plastic bag printing to other factories.

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