FW
Readymade garment manufacturers in Bangladesh have to pay a higher corporate tax. The tax rate has been raised from 12 to 15 per cent. However, certified green factory owners will enjoy a three per cent rebate and pay 12 per cent, while publicly traded readymade garment manufacturers will have to pay 12.5 per cent. At present a certified green factory pays ten per cent tax, which will be increased to 12 per cent.
The RMG industry in Bangladesh plays an important role in generating employment and fostering economic growth. In the budget the 100 per cent export-oriented textile industry gets duty exemptions on raw material imports. Exemption of import duty is proposed for textile raw materials such as flax fiber and flax tow.
Efforts are on to ensure congenial working environment in the readymade garment industry. Safety evaluation work has been completed in 3,780 factories. In addition, a public accessibility database has been prepared, containing information on 3,743 export-oriented readymade garment factories. Also creating a database with information on another 27,000 factories is under way.
About 65 Leadership in Energy and Environmental Design (LEED)-certified factories have been operating in Bangladesh. Among these, 13 have received platinum status, 20 gold status and 34 silver status.
Taiwan is planning to join CPTPP as soon as the agreement comes into force early next year. Canada this month introduced legislation to ratify the CPTPP. Japan and New Zealand are planning to complete the ratification process by the end of this year. Mexico has already ratified the agreement. The CPTPP will come into force once six countries have completed ratification.
As per John Deng, Taiwan’s trade negotiator and cabinet minister without portfolio, Taiwan would begin to be locked out of the network of trade agreements in the region, which could become a burden for Taiwanese companies and create export diversion. Regional trade pacts involving the Association of Southeast Asian Nations and the European Union’s trade deal with South Korea had already begun to be implemented. Taiwan was planning to continue market liberalisation on its own and touted increased transparency efforts including allowing foreign companies to comment on new regulations.
The Society of Dyers and Colorists (SDC) held a conference in Mumbai to discuss innovations in chemical compliance, certification, fashion and business in the textile supply chain. Over 200 delegates from process houses, brands, retailers, fashion and technical educational institutions participated.
Panel discussions focused on dyes and chemicals compliance, sustainable business strategies and ideas to support the textile computation industry. Stress was laid on innovations, ideas and projects that would help everyone involved in the textile supply chain to take a step forward in creating a greener and happier ecosystem for all its living beings.
A session highlighted the importance of color and helping brands in selecting the right color. The total appearance capture system consists of a camera that can scan the object from every angle, helping in visualizing the product. The Pantone cloud- its tools and concept of 3-D object making-- can reduce the cycle of prototype and sampling in garment industry that can help in reducing waste. For sustainable production 3-D object making can help in reducing the steps of making prototypes and waste of resources.
The conference was based on the theme of a circular economy. The textile industry is struggling to reduce its footprint and one of the promising pathways to this is to embrace the concept of the circular economy.
A port strike in Pakistan threatens to cause cancellation of vital export orders. Export orders running into huge amounts are at stake. Carriers and other freight-loaded ships anchored at the terminal have not been offloaded owing to the strike.
The industry has not been able to meet international commitments and failure to perform will lead to disputes, loss of valued customers, loss of market share as well as damaging Pakistan's reputation as a reliable supplier.
The strike comes at a moment when Pakistan’s industrial production and exports are registering a positive growth. Blockage of export goods would hurt the growth pace. Given the trade deficit and the national debt, the economy can hardly bear such delays in trade activities.
If the situation continues, the industry fears production activities will reduce further. The port strike is not only hurting shipments of export consignments but importers too. They are forced to pay demurrages for not clearing their consignments from the ports. Also industrial units are not receiving raw materials.
If the issue is not resolved, exporters fear facing huge financial losses and also losing their hard earned export contracts. Cancellation of vital export orders would in huge losses not only to exporters but also to the national exchequer.
Options System Limited (OSL) specialises in computer systems for the apparel, footwear and soft goods industries. Its Styleman and Styleprm systems are used by over 100 companies in 35 countries. OSL’s software improves speed in PLM. Styleman PLM software reduces the possibility of errors and drives the development schedule according to the desired timetable. Errors are reduced by both the factory and company looking at the same data, by the accuracy of the tech pack and by quality of feedback from sample fit sessions.
The company’s future plan is to tap into voice interface (Siri, Alexa, Google, etc.), which is gaining traction on home devices but has yet to make it into the office. Robot assembly is starting to make inroads into manufacturing, raising the possibility of micro-factories making to order.
One can visit a shop, browse some garments physically or virtually, adjust the coloring or pattern to suit tastes, and wait a few minutes while the garment is manufactured on the spot. This is more likely to happen in footwear first, since 3D fabric printing/knitting still has a way to go.
In the next 10 years, 3D printing may develop to a stage that it will disrupt e-commerce, allowing individual garment or footwear personalisation and printing at home.
Of the 145 textile units at Pandesara in Surat, none has adequate provisions for fire safety. No mill has been adequately equipped with fire safety provisions. Notices will be issued to all of them and asking them to comply with fire safety norms. There are about 350 textile mills located in the city and nearby areas of Palsana and Kadodara. These textile mills employ about three lakh workers and their monthly turnover is pegged at about Rs 1,800 crores. The lives of lakhs of workers are at risk due to weak structures and no fire safety provisions.
Major industries spend around eight per cent on corporate social responsibility and also on lavish layout for their own units. However, other textile mills are run under tin-sheds and have concrete walls and temporary supports. These textile mills dump their finished products and raw materials in semi-open shades, which is a recipe for fire disaster.
The recent instruction of the Gujarat Pollution Control Board about chimneys to mills has helped bring down air pollution marginally. In the last few months, notices have been issued to at least 36 textile mills for causing air pollution. They comply with law for a few days and then again turn to their old practices.
Luxury brands are expanding their range in menswear with big fashion houses including French conglomerates LVMH and Kering hiring eye-catching designers and investing in male attire. For example, Louis Vuitton recently launched a collection by its new DJ-turned-designer Virgil Abloh.
There's strong demand for menswear in all its shapes and forms, and which comes in part from a younger clientele. Louis Vuitton recently generated 5 to 7 per cent of its revenue from menswear. Market research firm forecasts men's lines will outperform women's between 2017 and 2022, with sales expanding by a compound annual growth rate of 2 percent. The US department store is also launching newer menswear-focused labels like France's Ami, or Off-White, the streetwear brand founded by Vuitton's Abloh. This is due to men placing a greater emphasis on their appearance, fuelled by the rise of social media, and dress codes for men softening globally.
The Federation of Indian Art Silk Weaving Industry (FIASWI) has sought various duty cuts on man-made filament yarn, fibre and fabric from the government. It seeks imposition of additional customs duty on silk fabrics imported from Vietnam to provide a level-playing field to Indian manufacturers.
It has also sought reduction of customs duty on all man-made fibre and filament yarn which are not manufactured in India. Recently, the FIASWI submitted a memorandum to textile minister Smriti Irani in New Delhi through Surat MP Darshana Jardosh demanding imposition of 10 per cent duty on fabrics imported from Vietnam.
The FIASWI has also raised the issue of input tax credit (ITC) refund with the minister stating that non-refund of accumulated ITC is resulting in losses to the industry and drastic reduction in capital investment for machine modernization. FIASWI says, there is GST of 5 per cent on fabrics manufactured in India, while imported silk fabrics have zero duty. As compared to the fabrics made in India the imported silk fabrics are cheaper by Rs 45 per metre.
Egypt’s readymade garment exports increased 12 per cent in the first five months of the current year compared to the same period in 2017. Exports to the US also went up by 12 per cent. Garment exports to Europe rose by 16 per cent. But as for garment exports to Arab countries, they dropped by 16 per cent.
Egypt’s garment exports are mainly to the US, Turkey, Spain, Britain, North Ireland, Germany, Italy, France, Saudi Arabia, Belgium and the Netherlands. Egypt wants to have stronger trade relations with Africa. Steps include taking part in international exhibitions in the African continent and setting up an Egyptian-African free trade zone.
Egypt’s main exports to Africa are engineering industries, pharmaceuticals, chemical garments, food industries, and construction materials. Egypt wants to increase exports to the African continent by 35 per cent in 2017. The main countries Egypt is interested in are Kenya, Zambia and Ivory Coast. However, working to make Egypt a leading international trade center in the Middle East requires work to increase the capacities of Egyptian ports in order to attract more container ships as well as working on the development of logistics capabilities and infrastructure to support this trend.
Beijing has begun to downplay Made in China 2025, the state-backed industrial policy as it has provoked alarm in the West and is core to Washington's complaints about the country's technological ambitions. The policy, unveiled by China's State Council in 2015, involves China catching up with rivals in sectors including robotics, aerospace, clean-energy cars and advanced basic materials. The strategy helps China to move up the value chain and achieve Xi's vision of urning the country into a global superpower by 2050.
But the policy has provoked the Trump team, including US Trade Representative Robert Lighthizer and trade and manufacturing adviser Peter Navarro, author of the book “Death by China.” Trump's initial list of tariffs on $50 billion in Chinese goods, which will begin taking effect on July 6, specifically targets items related to Made in China 2025. Under the plan, Beijing wants Chinese suppliers to capture 70 percent of market share by 2025 for “basic core components and important basic materials” in strategic industries.
