Central Board of Indirect Taxes and Customs (CBIC) has issued a notification with a clarification that exporters, entitled to the refund of IGST paid on export of goods, can get it even if they import capital goods under Export Promotion Credit Goods (EPCG) scheme.

Notably, the CBIC had announced last month that the centre has made an amendment to the 96 (10) rule of CGST citing that Advance Authorization holders, EPCG Authorisation holders and EOUs which import their requirements without paying IGST are not eligible for refund of IGST paid on exports of goods.

Although the relaxation has been provided to the exporters who import machinery, the Indian textile and apparel body has urged the central government to extend these benefits to other sectors like fabrics imports.

A high-powered delegation of Pakistan Readymade Garments Manufactures and Exporters Association (PRGMEA) attended the 34th IAF World Fashion Convention, held from Oct 9 to 10 in Maastricht, Netherland. They were looking to open new avenues for the garment industry to collaborate with international buyers and leading brands. The delegation held series of meetings with Centre for the promotion of imports from developing countries.

The delegation also had meetings with House of Denim, Amsterdam Fashion Institute and with HOGIAF, the largest trade organisation of Dutch Entrepreneurs. It also presented a documentary on the potential of Pakistan as a textile and garment production hub. The importance of mega CPEC project was highlighted in the convention aimed at creating awareness about the impacts on development prosperity not only of Pakistan but also in the region.

International Apparel Federation (IAF) represents apparel associations from 60 countries representing over 150,000 companies. The IAF Convention caters to apparel industry leaders from across the supply chain from all countries. The Convention is a unique opportunity to gain the insights necessary to understand where the industry is heading.

China is looking into the possibility of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This is a Pacific-nation trade deal. Ironically, CPTPP started off as the TPP, which was originally meant to be a challenge to China’s trade practices. It excluded China, but then got rechristened after the US pulled out of the deal. The TPP was previously negotiated by the US with Japan, Canada, Mexico, Australia and seven other Pacific countries. It was touted at the time as an alternative framework to the World Trade Organization amid criticisms that the current trade enforcement regime was outdated and failed to address issues related to services, intellectual property and the digital economy properly.

China’s change of attitude has possibly been prompted by the new trade deal reached among the US, Canada and Mexico, which contains provisions aimed at excluding China from future trade deals. Should the US form a similar pact with the CPTPP, whose guiding force is Japan, it could threaten Chinese market access to trading partners.

China, like other emerging countries, follows a primary strategy of promoting economic and social development. The growing spending power of consumers in developing countries injects vitality into the global market.

Synthetic and Rayon Export Promotion Council (SRTEPC) has urged the central government to incentivise the textile sector to raise its competitiveness. The council is worried that the high crude oil prices along with US sanctions on import of fibers, yarns and other textile products from China because could lead to dumping of Chinese textile goods in India.

SRTEPC believes that US sanctions on Chinese fibers, yarns and other textile products will make these items highly prone to their dumping in India. China government is considering to further increase subsidies on textile exports, which may lead to escalation of imports of textile goods in India.

Textile industry leaders have therefore, urged the central government to increase Merchandise Exports from India scheme (MEIS) to reward rates under Foreign Trade Policy of India to 5 per cent on all MMF textile tariff lines.

Kingpins Amsterdam will be held on October 24 and 25, 2018. This is a show for denim and sportswear fabric mills. It features some of the best and most innovative members of the denim supply chain. Ranging from fiber to technology and machinery makers, mills and manufacturers, trim suppliers and laundries, exhibitors at Kingpins Amsterdam will be showing their spring/summer 2020 collections and latest innovations.

A seminar will present Levi Strauss, which 100 years ago created its first garment for women, Freedom-Alls, a one-piece tunic over balloon pants. Since then Levi’s has pioneered the first women’s blue jean and a variety of other denim creations for women. The seminar will review 100 years of Levi’s women’s garments and explore stories of the women who wore them.

Another seminar will explore the history of denim branding and its evolution. There will be a curated selection of garments developed by a trend forecaster and consultant. Kingpins Transformers will be held on October 23. This is a summit that will feature members of the denim supply chain who are disrupting and rewriting the rules for everything from how fibers and dye fabrics are made, to how suppliers are inspected, how waste disposal is done and how garments can be made safer for human bodies and the planet.

The National Jute Manufacturers Corporation will cease operations. Suffering losses for years, NJMC primarily used to manufacture hessian jute bags used for the packaging food grains. Over the years, demand for hessian bags has eroded and it was found no longer commercially viable to run the company. The company was incorporated in 1980 and is based in Kolkata.

The proposal will aid the center to shutter loss-making companies and making a sure release of valuable assets for productive use, or for generating financial resources for development. NJMC’s subsidiary Birds Jute and Exporters Ltd (BJEL) will also be shut.

Much like NJMC, BJEL has no staff and as the factory is not in operation these closures do not affect any individual. Sale of fixed assets and current assets will be done in line with the guidelines of Department of Public Enterprises (DPE) and the proceeds from the sale of assets, after handling liabilities, will be submitted to the Consolidated Fund of India.

A land management agency will be given the charge for the disposal of assets. It will be authorised to conduct a complete verification of the assets before undertaking their disposal under DPE guidelines.

Gerber Technology, the leading software solution provider to the apparel industry has launched a fashion platform. The new package includes software, equipment, and consulting to set up a purchase-activated fashion model with digitally integrated e-commerce and on-demand design to print, cut, and sew a micro-factory operation..

The new platform re-defines the just-in-time manufacturing concept with the production happening according to the demand in the market, eliminating the extra cost involved in inventory. Also this allows the product to be sold at retail price without any heavy clearance discounting. All this is possible with the help of OnPoint manufacturing that has expertise in digitizing process and on demand work flow.

This also includes an e-commerce virtual try-on application by Avametric, along with other Gerber Digital tools like YuniquePLM, a cloud based product lifecycle management software; AccuMark, pattern design, grading, marker making and production planning software and AccuMark 3D.

Data will be directly transmitted to the micro factory environment, AccuMark will deliver the optimised marker files to the digital printer to print. These finished printed textiles will be continuously fed to a Gerber cutter Z1 with Contour Vision. Then the combination of robotic and lean loop sewing operations will be deployed, depending upon apparel finishing requirements.

India is under some pressure to sign the Regional Comprehensive Economic Partnership (RCEP) pact. The country has issues in goods and services. It is of the view that there are many issues that are yet to be resolved, including the extent of commitment India would take in opening up its goods market and what it would get from other members in terms of increase in mobility of professionals.

India does not want to be pushed into taking up commitments it might not be comfortable with and get nothing worthwhile in services. This is a pact India is negotiating with 15 countries, including China. Other members of the RCEP include Japan, South Korea, Australia and New Zealand. Once concluded, the RCEP is likely to result in the largest free trade bloc in the world covering about 3.5 billion people and 30 per cent of the world’s Gross Domestic Product.

Giving substantial concessions to members, especially China, could lead to protests from a large section of the Indian industry which fears competition from cheap imports. The package of deliverables, tentatively agreed to by trade ministers in their last meeting in August in Singapore, comprises four components — markets for goods, services, investment and intellectual property rights.

The EU had recently warned Cambodia that it will lose duty-free access to the world’s biggest market within 12 months for its “blatant disregard” of human and labor rights standards attached to trade preferences it is granted as a developing nation. The Union has warned that unless the government takes significant actions to redress an autocratic backslide including reinstating the country’s banned opposition in the next six months; the “Everything But Arms” (EBA) preferences will be withdrawn.

The country’s biggest industry, garment manufacturing in Cambodia accounts for about 40 per cent of the gross domestic product and some 800,000 jobs, while the EU is by far its largest export market, absorbing almost $6 billion worth of goods last year according to its own figures. The US has also initiated concrete punitive action against Hun Sen’s regime, sanctioning one of his top commanders in June. Many more members of his inner circle could also be tried under the Cambodia Democracy Act of 2018.

US apparel imports from sub-Saharan countries increased 17.97 per cent year-to-date through July compared to the same period in 2017. Kenya’s shipments to the US rose 16.44 per cent and Lesotho’s shipments increased 8.05 per cent. Madagascar’s shipments were up 27.74 per cent and Morocco’s rose 3.65 per cent. On a smaller scale, Tanzania’s shipments rose 1.58 per cent.

Companies are trying to develop broader sourcing strategies and moving production and supply chains out of China into other locations. And Africa is emerging as a viable sourcing option. While African manufacturing is still nascent in many ways, there are clusters in various countries that have begun to establish themselves.

In terms of size and experience, Egypt leads the way as a continental supplier, with US apparel imports from the North African country increasing 16.33 per cent. In potential and pace of growth, Ethiopia is the star, with imports by the United States growing 106.69 per cent.

Ethiopia in the past decade has implemented an aggressive investment promotion program targeting Asian investors in apparel and textiles. This promotion has been matched with concurrent development of large industrial parks with requisite infrastructure for textile and apparel production, along with strong policy support to develop a competitive cotton based textile industry.