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India considering fast refunds
India is considering boosting exports by introducing fast refunds of central and state taxes and levies. The new scheme would ensure refund of all unrebated central and state levies and taxes imposed on inputs that are consumed in exports of all sectors. State VAT/central excise duty on fuel used in transportation, captive power, farm sector; mandi tax; duty of electricity; stamp duty on export documents, purchases from unregistered dealers; embedded CGST and compensation cess coal used in the production of electricity are some of the major levies. The total compensation under the remission of state levies scheme and a new scheme to reimburse against embedded central taxes (even after the GST rollout) will be raised to 6.05 per cent (of freight-on-board value) for garments and 8.2 per cent for made-ups from the current 1.7 per cent and 2.2 per cent respectively.
So far the Merchandise Exports for India Scheme (MEIS) was the most important export promotion scheme under which exporters were provided duty credit scrip at two per cent, three per cent or five per cent of their export turnover, depending on products and shipment destinations. But the MEIS is being opposed by the US, which alleges that the MEIS is not in sync with global trade norms.
India: Surat textile traders place new demands before state
Textile traders in Surat have placed a new set of demands before the state government. The demands include developing a garment hub near the south Gujarat city as well as redressal of issues related to the goods and services tax (GST). The garment hub would organise the industry and make it competitive not only within the country but also in international markets. Another point that the government needs to consider is GST. The current GST on yarn is 12 per cent. This should be reduced to 5 per cent.
The implementation of GST has badly impacted textile production in India which has plummeted from 4 crore metre per day to 2.5-3 crore. The government should remove GST on units whose turnover is below Rs 5 crore. Another hurdle the textile industry is facing is the limit on cash transactions. Currently, the limit is Rs 10,000 per day which should be at least Rs 25,000, so that traders can manage their expenses in proper manner and also get rid of unnecessary accountancy-related procedures.
Ramadan collections from global brands entices the Muslim world
Global retail behemoths are offering Ramadan collections. Dolce & Gabbana has launched a collection of abayas, or loose robes, and hijabs. Others like Burberry and Uniqlo are also entering the modest fashion market. H&M made its movement in modest fashion by selecting Mariah Idriss as a first hijab-wearing model. The fashion chain Mango promoted Ramadan collections. Designers such as Oscar de la Renta and Tommy Hilfiger are testing the market. Nike released an unprecedented Pro-Hijab marketing campaign in the beginning of 2017 that not only raised awareness of Muslim women athletes but also marked Nike’s shift toward the Middle East for its market expansion. Brands are showing less fear of association with something Islamic and producing more market-right products. In February, London hosted its first-ever Modest Fashion Week, featuring more than 40 labels showcasing styles that ranged from maxi dresses to hijabs.
Ramadan is the holiest month of Islam when Muslims throughout the world fast for 30 days from dawn to evening. The retail spikes begin as early as two weeks before the holy month, which last year saw a 29 per cent increase in southeast Asia and a 36 per cent increase in the Middle East in comparison to non-Ramadan times of the year.
Asia Pacific yet to reach SDG goals
On its current trajectory, Asia and the Pacific will not achieve any of the 17 Sustainable Development Goals (SDGs) by 2030. Though the region has made progress towards ending poverty and ensuring all have access to quality education and lifelong learning and measures are also underway to achieve affordable and clean energy, for more than half the SDGs, progress has stagnated or heading in the wrong direction. The situation is deteriorating when it comes to providing clean water and sanitation, ensuring decent work and economic growth and supporting responsible consumption and production. Many SDG targets related to the environment and natural resources are registering negative trends. Hazardous waste generation, the reduction in forest areas and the permanent water body extent are the three SDG indicators which are predicted to regress the most by 2030.
There are major differences in progress between the sub regions of Asia and the Pacific which have recorded different successes and face different challenges. Each sub region needs to reverse existing trends for at least three goals. For example, East and North-East Asia is regressing in sustainable cities and communities, climate action and life on land. South-East Asia has moved backwards on peace, justice and strong institutions.
Kenya: Kisumu National Polytechnic to create centres of excellence for cotton
Kenya’s Kisumu National Polytechnic will build centres of excellence across the region to offer skills and competencies to support the cotton sector’s growth and sustainability. The company has received Sh1.2 billion funding from the World Bank to these centres for value addition in the cotton industry in the Nyanza region. The project is expected to start next month. The first centre will start at Nyakongo Technical Training in Rarieda sub-county.
These centres will focus on different levels of value addition chain, from production of high quality seeds to fashion industry, said principal secretary in the state department for vocational and technical training.
World Textile Merchandising Conference 2019 to be held in September
The World Textile Merchandising Conference 2019 is scheduled from September 27 to28, 2019 in Keqiao, Shaoxing, Zhejiang Province of China. The theme of the conference is open collaboration, technology driven, fashion transformation. The aim of the conference is to strengthen the in-depth integration and development of the Keqiao textile printing and dyeing industry with the global dyeing and finishing equipment manufacturers and the global textile professional market, strive to lead the "printing and dyeing + market" development via a ‘fashion + exhibition’ model, and build Keqiao into an international textile capital in the new era.
World Textile Merchandising Conference 2019 is jointly sponsored and hosted by China National Textile and Apparel Council, China General Chamber of Commerce, China Chamber of Commerce for Import and Export of Textile and Apparel, Department of Commerce of Zhejiang Province, and People’s Government of Shaoxing Municipal, and co-organized by China Textile Information Center, China General Chamber of Commerce Foreign Liaison Committee, Apparel Branch & Fabric Branch of China Chamber of Commerce for Import and Export of Textile and Apparel, China Textile International Exchange Center, China Textile Engineering Society, China Dyeing and Printing Association, and People’s Government of Keqiao District, Shaoxing.
The conference will implement in full the guiding principles embodied in General Secretary Xi Jinping’s speech at the Second Belt and Road Forum for International Cooperation, uphold the principle of "mutual consultancy, joint construction and shared benefits" to demonstrate the responsibility of Keqiao, Shaoxing.
Apparel waste is big business in Bangladesh
Apparel waste is a growing business in Bangladesh. There are two categories of waste, one from woven fabric, another from knit fabric. One factory, Simco Spinning and Textiles, has the capacity to produce 15 tons of yarn a day from cotton clips that are cut out during the garment stitching process.
The idea is to turn the scraps into materials demanded in the fashion world. And simultaneously, dealing with two purposes: business growth and the hazardous issue of waste management. These wastes are recycled for making new yarns or re-manufacturing garments. Around 50 lakh people have their livelihood in this business, with more women workers than men. They annually produce 18 crore to 20 crore pieces of garments, mostly T-shirts, which are exported to India, Malaysia, and Bhutan.
The key source of raw material in the entire business comes from leftover fabrics and other accessories of export-oriented garment factories. The regenerated yarn has a good market in developed parts of the world, with people becoming more sensitive to environmental impacts caused by industrial pollution. Waste factories have to face some challenges also. One of those is the increasing prices of waste resulting from a monopoly on the business by a syndicate. Also, small hosiery traders do not get soft loans or cash credit loans and have to borrow money from other sources at high-interest rates.
India: ITF urges brands to source garments locally
Indian Texpreneurs Federation (ITF) has appealed to all brands and retail chains operating in India to source their requirements from within the country instead of importing. ITF’s appeal comes in the wake of a huge jump in import of readymade garments from Bangladesh. The government is making best possible efforts to promote ‘Make in India’, ‘Skill India’ and incentivising job creation. Indian textile clusters can serve better, source the needs of both western and Indian brands both in terms of quality and competitive pricing. Products sourced from within were far better than those sourced from Bangladesh, Sri Lanka or Indonesia.
Retailers and brands should explore possibilities to partner with garmenting hubs in Coimbatore, Tirupur, Karur, Erode, Surat and Ludhiana, among others, and focus on local sourcing. Export Promotion Bureau (EPB) data has revealed that Bangladesh exports touched a high of $1.07 billion between July and April of 2018-19 fiscal compared to $701.56 million earned during the corresponding period of the previous fiscal That's not all. The resultant impact is far more in terms of job loss across the textile value chain.
Textile Exchange, Reblend supports Circle Economy’s Cotton Recycling Pilot
Textile Exchange and Reblend have joined Circle Economy’s Cotton Recycling Pilot as knowledge partners. The duo will join forces with Circle Economy to add their respective insights in order to improve and accelerate the uptake of post-consumer recycled cotton in the apparel sector.
Cotton Recycling Pilot is a project seeking to remedy the issues currently encountered by firms looking to incorporate post-consumer recycled cotton into their product ranges. The initiative aims at identifying brand and retailer requirements for recycled textiles, addressing available raw materials supply and performance barriers, creating reference documents to facilitate faster scaling, and enabling the production of real products through supply chain engagement.
Having now joined the project, Textile Exchange and Reblend will support the work of Cotton Recycling Pilot through sharing data and insights from past projects and ongoing work. Textile Exchange, based in the US, is a global non-profit that works closely with its members to drive industry transformation in preferred fibers, integrity and standards and responsible supply networks. It identifies and shares best practices regarding farming, materials, processing, traceability and product end-of-life in order to reduce the textile industry’s impact on the world’s water, soil and air, and the human population. Reblend is an Amsterdam-based textiles label and change agency for fabrics and fashion with a positive impact.
Pakistan textile exports up 19 per cent
Pakistan’s textile exports in the first nine months of the current fiscal year grew 19 per cent in quantity and three per cent in value. Pakistan will provide incentives to the textile sector to boost value-added exports. The aim is to boost value-added textile exports to $30 billion over the next five years. The special energy package will continue for the five zero-rated sectors. The drawback of local taxes and levies scheme will continue for the five zero-rated sectors. This scheme was announced in the outgoing textile policy for exporters of textile products on free-on-board value of their enhanced exports on an incremental basis if exports increased more than ten per cent over the previous year’s exports.
Financing under the subsidised export finance scheme and long-term financing facility will be increased. A five per cent customs duty will be applied on raw cotton imports from July 2019. Support price will also be announced for raw cotton based on export parity.
The Federal Board of Revenue (FBR) will issue promissory notes for sales tax refunds for exporters. Sales tax refunds stand cleared till November 30, 2018. The FBR will also issue promissory notes of a three-year tenure with an interest rate of ten per cent.












