The Union government on Thursday revoked the anti-dumping duty on viscose staple fibre originating in or exported from China and Indonesia. According to a notification issued by the Ministry of Finance, dated August 12, the government revokes anti-dumping duty on viscose staple fibre, excluding bamboo fibre, exported from China or Indonesia. The Directorate General of Trade Remedies (DGTR) recently recommended withdrawal of anti-dumping duty on viscose staple fibre originating in or exported from Indonesia or China and are imported by India. The DGTR had studied the imports from October 1, 2019 to September 30, 2020. The injury analysis period covered 2017-2018, 2018-2019, and 2019-2020. Indian textile industry on Friday welcomed the Government’s decision saying it will have an impact on prices of both, viscose fibre and yarn. While viscose fibre attracts 5% import duty besides anti-dumping duty, viscose yarn attracts only import duty. Import of viscose staple fibre attracted $0.103 to $0.512 of anti-dumping duty per kg for imports from countries such as Indonesia.
Source: The Hindu
On July 14, the Cabinet approved the continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme under which garment exporters will continue to get a rebate on central and state taxes on their outward shipments till March 2024. The government on Friday notified the RoSCTL scheme for textiles exporters and said the duty credit scrips under this support measure would be issued without insisting on realisation of the export proceeds. On July 14, the Cabinet approved the continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme under which garment exporters will continue to get a rebate on central and state taxes on their outward shipments till March 2024. The notification said the adequate safeguard mechanism would be put in place for effective monitoring of realisation of the export proceeds. "While the proposed scheme will be implemented on a revenue foregone basis, a budgetary control would be exercised through appropriate entries in the annual financial statement. "To ensure that expenditure under the scheme does not exceed the allocation amount in a particular financial year, the expenditure and liability shall be reviewed on a quarterly basis," it added. It said that for the purpose of audit and verification, the exporter would be required to keep records to substantiate their claims made under the scheme. And, the Central Board of Indirect Taxes and Customs (CBIC) would put a monitoring and audit mechanism, with an information technology-based risk management system (RMS), in place. The textiles ministry will conduct an annual impact analysis of the scheme. Rebate of state taxes and levies would include VAT on fuel used in transportation, mandi tax, duty of electricity, and stamp duty on export documents. They will also include embedded SGST and CSGT paid on inputs such as pesticides and fertilisers used in production of raw cotton, central excise duty on fuel used in transportation, embedded CGST and compensation cess on coal used in production of electricity. The scrips will be issued electronically on customs system. It will be used for payment of basic customs duty on import of goods. They are freely transferable. "Action under the Customs Act may be taken by the customs authorities for recovery of erroneous or excess paid RoSCTL. Further, the exporter is required to return any overpayment of rebate issued through the scrips arising from miscalculation," it said. Under the RoSCTL scheme, maximum rate of rebate for apparel was 6.05 per cent; while for made-ups, this was up to 8.2 per cent. Garments and made-ups segment such as home textiles products are covered under the scheme. Commenting on the latest decision, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the extension will help exporters get rebate on all embedded taxes and make products globally competitive. Sakthivel, who is also the FIEO president, said this will help exporters effectively compete with countries such as Bangladesh, Vietnam, Myanmar, Cambodia, and Sri Lanka. "The longer stability in the rates till March 31, 2024, will attract further investment in these sectors, as manufacturers can plan their exports on a longer time horizon factoring the RoSCTL rates," he said.
Source: Economic Times
In a move aimed at enhancing global competitiveness of the textile sector, the Centre has notified continuation of a popular scheme for remitting embedded taxes and levies on export of garments and made-ups for about three years, from January 1 2021 to March 31 2024, with the same rates as notified earlier by the Ministry of Textiles subject to periodic review. The decision is in line with the Union Cabinet’s decision last month which approved extension of the scheme, called the Rebate of State and Central Taxes and Levies (RoSCTL), till March 2024. The maximum rate of rebate fixed earlier by the Textile Ministry for the scheme is 6.05 per cent for apparels and 8.2 per cent for made ups. The extension of the scheme, however, is subject to review of the rates periodically. “A mechanism for such revision shall be decided separately by the Ministry of Textiles and Ministry of Finance,” said a notification issued by the Textiles Ministry on Friday.
Eligibility criteria
The eligibility criteria under RoSCTL shall remain unchanged and the scheme will be available for only export of garments and made-ups (which include items such as bed sheets, curtains, pillow-covers and towels. “The other textiles products which are not covered under the RoSCTL shall be eligible to avail the benefits, if any, under the RoDTEP, as to be finalised by Department Commerce from the dates which may be notified in this regard,” the notification added. The decision adds to the stability of the export policy of textiles. We now look forward to being a stronger global player with this continued RoSCTL support. The scheme will promote start-ups and entrepreneurs to start exporting their products. It will rejuvenate the textiles sector and, in three years, the Indian textile value chain can attain annual exports of $100 billion,” said A Sakthivel from the Apparel Export Promotion Council. Many export bodies, including the Apparel Export Promotion Council, are of the view that the continuation of the scheme would help Indian exporters compete against countries like Vietnam, Bangladesh and Cambodia, that have tariff advantage on account of LDC status or owing to effective free trade agreements. Despite the growing challenge in the global market, garments and made-ups are among the top export items from the country.
Source: The Hindu Businessline
India will soon launch a genuine single window system in partnership with the industry, Piyush Goyal, minister of commerce & industry, textiles, consumer affairs, and food & public distribution, told a session on ‘Synergy Between the Government and Businesses for Sustainable Growth’ as part of the Confederation of Indian Industry (CII) Annual Meeting 2021 organised virtually recently. “Today the world is looking at India to play a much bigger role and to find the right balance between various trading nations in terms of supply chain and in terms of dependence on certain geographies”, said Goyal. The government has been working towards further improvements in business processes, he added. On setting an agenda for positioning a New India beyond 2022, external affairs minister S Jaishankar emphasised that the country needs to invest in building capacities and supply chains within India and the Atmanirbhar Bharat is the kind of holistic approach that provides the platform for it. On free trade agreements (FTAs), Jaishankar said India is seriously pursuing talks on that issue with the United Kingdom and the European Union, while it has reservations on Regional Comprehensive Economic Partnership (RCEP) due to weak ‘rules of origin’ and many participating economies not being transparent market economies. In another session on ‘India's Development Transition and Climate Change’, Amitabh Kant, chief executive officer of NITI Aayog, said the twin crises of the COVID-19 pandemic and the severe impact of climate change are also an opportunity for the Indian industry to become sustainable and competitive and to transition to ‘green measures’ that can plug into the climate goals of India. To accomplish this, organisations have to ‘restructure, resize and redesign’, he said. CII’s role, according to him, is to prepare and guide its membership to adapt to the new environment. The pandemic has presented the industry with an opportunity to be globally competitive by developing quality products and becoming a part of global supply chains, Kant said. To that effect, the Indian industry has to adopt a three-pronged approach of ‘Go Green, Go Digital and Skill-your-Workers,” he added.
Source: Fibre2 Fashion
Tirupur Exporters’ Association welcomed the government’s announcement to form a separate department for textiles, stating it would help focus more on the sector’s overall growth. Ashwin Chandran, chairman, Southern India Mills’ Association (SIMA) said the textile sector had recorded an impressive growth in the past decade and given the business size, it was the right move to announce the separate directorate of textiles. The government has also resolved to complete works on the three integrated textile parks in Tirupur, Kanchipuram and Erode at the earliest. Chandran said the textile parks and SIPCOT facilities would attract huge investments across the value chain of the industry. He said this would create a win-win situation for the government and the industry, while lauding the move to set up new common effluent treatment plants for the processing units in Erode and Namakkal districts.
Source: Times of India
Reacting to the trade data for July 2021-22, Dr A Sakthivel, President, FIEO said that the sustained growth in exports of about 50 percent with USD 35.43 billion over FY’ 2020-21 and by 35 percent over FY’ 2019-20 yet again demonstrated the strength and resilience of the exports sector. This is the highest-ever exports recorded at least in the previous 9 years as per the data readily available with FIEO. It also is a sign that global trade is recovering fast, added Sakthivel. FIEO Chief reiterated that the global demand during this period has also remained buoyant as the order booking positions of the exporters have still been impressive. Sakthivel complimented the government under the able and dynamic leadership of Prime Minister Narendra Modi and also the Union Finance Minister, Union Commerce & Textiles Minister for showing confidence and trust on the exporters during these difficult times, who have not only continuously performed impressively but have also been able to showcase that the government’s vision of Atma Nirbhar Bharat has given a boost to the sector. The FIEO President said that the top sectors, which performed impressively during the month compared to both July of 2020 and 2019 were Petroleum, Engineering Goods, Gem & Jewellery and Organic & Inorganic Chemicals. Sakthivel emphasised that many labour-intensive sectors were the main contributors, which itself is a good sign, further helping job creation in the country. FIEO President is of the view that though the government has announced a slew of measures to support exports including the announcement of RoSCTL, the need of the hour is to soon notify the RoDTEP rates to remove uncertainty from the minds of the trade and industry, besides addressing some of the key issues including priority status to exports sector, release of the necessary funds for MEIS and clarity on SEIS benefits, resolving risky exporters issues, augmenting the flow of empty containers and establishing a regulatory authority to seek justification of freight hike and imposition of various charges by the shipping lines.
Source: SME Times
"Goyal deliberated with the members of the advisory council & experts on how the initiative will democratise digital commerce and move it from platform-centric model to an open-network model," commerce and industry ministry said in a statement after Goyal chaired a meeting of the advisory council. Commerce & Industry minister Piyush Goyal on Friday said the proposed Open Network for Digital Commerce (ONDC) will end monopolistic practices in digital commerce in India and insisted on ensuring security, and data privacy and confidentiality. "Goyal deliberated with the members of the advisory council & experts on how the initiative will democratise digital commerce and move it from platform-centric model to an open network.
Source: Economic Times
Outbound shipments grew by nearly 50 per cent over July 2020, which can be partly attributed to a favourable base India exported goods worth $35.43 billion in July, the highest first time ever in a month, due to recovery in key global markets and robust demand, according to the data released by the commerce and industry ministry on Friday. Outbound shipments grew by nearly 50 per cent over July 2020, which can be partly attributed to a favourable base. As compared to pre-Covid level, the growth was 35 per cent from July 2019. Merchandise exports and imports had plummeted in the first few months of 2020-21, with the imposition of lockdown measures to curb the spread of Covid-19. On a sequential basis, outbound shipments grew at their fastest this fiscal year, witnessing an 9-per cent jump. The growth was led by higher demand for engineering goods, gems and jewelry, textiles and apparels, chemicals and electronic goods. “The higher value of petroleum products accounted for more than one-third of the YoY rise in merchandise exports in July 2021. The merchandise trade deficit in July 2021 was almost entirely contributed by petroleum products and precious metals and stones, with the net deficit of the balance items limited to a muted $0.6 billion, shrinking from an average of $2.2 billion in the previous quarter,” Aditi Nayar, Chief Economist at Icra said. Merchandise imports widened to $46.4 billion in July, up 63 per cent on-year, resulting in a trade deficit of $10.97 billion. Non-oil imports were estimated at $33.51 billion, up 52.73 per cent on year, while oil imports in July were $12.89 billion up 97.45 per cent in July. Non-petroleum and non-gems and jewellery exports were $26.12 billion in July, up 28.18 per cent on year. As compared to July 2019, non-petroleum and non-gems and jewellery exports registered a growth of 32.26 per cent. “An interesting trend witnessed is the growth in export of non-petroleum and non-gems and jewellery items in the month of July 2021. The exports of non-petroleum and non-gems and jewellery items have grown at 32.3% over the pre-covid level (July 2019), much greater than the growth of 28.2 per cent over the July 2020 level,” Prahalathan Iyer, Chief General Manager, Research & Analysis, India Exim Bank said. India culmulatively exported goods worth $130.82 billion this year, up 74 per cent yearon-year. This accounts for close to a third of its annual export target of $400 billion. Goods worth $172.55 were imported, up 94 per cent year-on-year.
Source: Business Standard
“Our primary ambition for this revised budget is to lay the strongest foundation for the full budget for the financial year 2022-23 which the government will present in about six months,” he said. A total provision of Rs 19,873 crore has been made in the revised budget estimates 2021- 22 towards subsidies to free supply of agricultural power, domestic supply and for take over of losses of TANGEDCO. The Tamil Nadu government on Friday presented a revised budget for 2021-22, pegging the fiscal deficit at 4.33% of GSDP, as against 3.94% estimated in the interim budget presented by the previous government in February this year. Finance minister Palanivel Thiaga Rajan, presenting the budget, said the revised budget for 2021-22 will only impact the remaining six months of this financial year. The sheer magnitude of the second wave of Covid over the past few months, and its health and economic consequences have further constrained the government’s flexibility in what was already a precarious fiscal position. “Our primary ambition for this revised budget is to lay the strongest foundation for the full budget for the financial year 2022-23 which the government will present in about six months,” he said. Detailing measures taken for improving the governance, the finance minister said the government will establish an advisory council to develop a federal fiscal model with renowned experts on legislation involving revenue and taxation (including GST). There has been a proposal for a cross-departmental initiative to link all available government data sources to better understand the true economic status of all citizens and households. He announced a major initiative for smart metering for all public utilities in the state and e-procurement will be mandatorily adopted across all procuring entities. A separate eprocurement portal will be created for the Tamil Nadu government to enhance transparency in government procurement. The entire workflow process of all engineering departments including, updated standard data book and schedule of rates, planning and design, estimate preparation, tendering, measurement of works, payment of bills and recording completion will be fully electronically enabled to increase efficiency and transparency. A total provision of Rs 19,873 crore has been made in the revised budget estimates 2021- 22 towards subsidies to free supply of agricultural power, domestic supply and for take over of losses of TANGEDCO. On the industries front, Rajan said the single window system will be effectively implemented and 100 more services have been brought under the single window portal by July 2021 and a further 110 services by March, 2022. The Tamil Nadu Business Facilitation Act, 2018 will be amended to enable new industrial units including MSMEs to establish and operate based on self certification without inspections and obtaining clearances under various state laws for the initial three years. An industrial database with more detailed and accurate information about the whole state will be prepared to enable better planning and to support investment decisions by prospective investors.
Source: Financial Express
They are seeking to ‘set the record straight’ and strongly encourage the world to consume used clothing and textiles. Four associations involved in the global used clothing industry have teamed up to “dispel myths” and “set the record straight” about textile recycling. They say the industry is working towards a circular economy by offering sustainable solutions for used textiles that will help reduce the environmental impacts caused by the global fashion industry. The associations – including the Secondary Materials and Recycled Textiles Association (SMART), the European Recycling Industries’ Confederation (EuRIC) – Textiles, Textile Recycling Association (TRA) and the Bureau of International Recycling (BIR) – Textile Division – believe there is a “common misconception” that secondhand clothing exported to developing countries partially ends up being discarded right away. They add the clothing not sold directly in the market gets passed down the supply chain and ends up selling in other smaller markets throughout the region, suggesting that no profitable business will spend money on packing, shipping and distributing a product only to have it end up in landfill. The associations say the used clothing industry is growing right now “in response to the increasing demand” for affordable products and environmentally-conscious consumers and add in many cases, the used garments are also “higher quality and last longer” than cheaper new products. Jackie King, Executive Director of SMART said: “Textile reuse and recycling is the solution, not the problem. Secondhand clothing exported to countries is sorted and graded for customer needs or preferences. “Suppliers do not ship waste; it is not cost-effective. Customers demand quality clothing for resale, not waste; the semantics of ‘waste’ really means what they couldn’t sell. The reality is if clothing doesn’t sell, it is often shipped to other worldwide markets for resale or recycling – not thrown away.” The associations cite an extensive study conducted by the Institute of Economic Affairs in Kenya in April 2021 on the used clothing industry and its contributions to the Kenyan economy. It found the used clothing industry directly employs around two million people, in addition to thousands of jobs created and supported in ancillary sectors, such as the transportation industry. In addition, 91.5% of households in Kenya are said to purchase secondhand clothes – for every 100 used garments bought, it means 60 – 85 new garments are displaced, which results in a significant reduction in greenhouse gas emissions and the use of toxins that would have been caused by the production of new textiles. According to the Kenya National Bureau of Statistics (KNBS) Manpower Survey, mitumba traders fall under the secondhand clothes and footwear industry and make up an estimated 10% of the extended labour force, which helps improve standards of living for two million people and reduces poverty levels. Alan Wheeler, Chief Executive Officer at the UK’s Textile Recycling Association adds: “The used clothing industry will continue to underpin the viability of circular business models for decades to come and supplying used clothing to markets and people wherever they are in the world will be fundamental to achieving the maximum environmental benefits as well as social and economic benefits.”
Source: Energy live News
ZIMTRADE, the country’s exports promotion agency, says clothing and textile manufacturers were inching closer to a dramatic rebound this year, as it unlocks fresh opportunities in five African markets following decades of protracted carnage highlighted by plummeting output and loss of jobs. The agency said last week it was scouring for fresh opportunities in Botswana, Zambia, Malawi, the Democratic Republic of Congo and Mozambique, giving impetus to a recovery registered during the first half of 2021, when sector exports firmed by 76,62%. Shipments from the industry earned Zimbabwe US$20 million between January and May this year, compared to US$11,3 million during the same period last year, ZimTrade said in the July edition of Trading Post, a foreign trade journal. Under an aggressive Sadc campaign to improve trade with regional economies, crucial deals had been inked around the exportation of suits, trousers, children’s wear and other products, ZimTrade said. “Although the main export contributors are minerals and alloys and unmanufactured tobacco, there are some sectors that have made significant growth,” the Trading Post said. “For example, clothing, footwear and textiles exports increased by 76,62% to US$19,95 million between January-May 2021 from US$11,3 million during the same period in 2020. Major exported products in the sector were cotton not carded or combed (US$10,6) million and men’s or boys’ suits, ensembles, jackets, blazers, trousers worth US$2,8 million,” the journal said. It said the rebound followed an invitation to key buyers from Zambia to meet Zimbabwean manufacturers. “ZimTrade has also been facilitating improved engagements between local clothing manufacturers with buyers in regional markets, such as Botswana, Zambia, Malawi, Democratic Republic of Congo and Mozambique. Already, buyers in these markets have noted that Zimbabwean clothing and textile products are of high quality, and strong, which is expected to sustain export growth if local manufacturers get it right on the pricing,” the Trading Post added. Reserve Bank of Zimbabwe (RBZ) data indicated last week that the country’s external sector position had remained strong since 2019. A strong external sector position is supportive of exchange rate stability, which helps the central bank’s disinflation strategy. The RBZ said Zimbabwe’s strengthening external position had also been bolstered by global recovery, which has unlocked opportunities for commodities exports. “Reflecting the strong external sector performance, foreign currency receipts amounted to US$4,02 billion in the first half of the year, compared to US$3,12 billion received over the same period in 2020, representing a 29,1% increase in foreign currency supply,” RBZ governor John Mangudya said in the midterm monetary policy statement released on Thursday last week. “Reflecting this positive global and domestic economic outlook, merchandise exports are expected to maintain strong growth. The projected export performance is reflective of the export shipments for the first half of the year. Precisely, cumulative export receipts as at 30 June 2021 were US$2,31 billion compared to US$1,91 billion received during the same period in 2020. This represents an increase of 20,8% in 2021,” Mangudya noted.
Source: The Independent
Recycling carbon is a fundamental element of the circular economy, which will keep fossil carbon in the ground, reducing pollution and fossil fuel usage when used to make polyester. With a lower carbon footprint, this innovation could transform lululemon’s products and the apparel industry. “We must radically change how we source, utilise and dispose of carbon,” said LanzaTech CEO Jennifer Holmgren. “Carbon recycling enables companies like lululemon to continue to move away from virgin fossil resources, bring circularity to their products, and achieve their climate change goals around carbon reduction. We call this being carbon smart.” LanzaTech’s process sources carbon from different types of feedstocks, from industrial emissions to syngas from gasified agricultural or household waste (including textile waste) and atmospheric CO2. The gas stream is fermented by LanzaTech’s special microorganisms into ethanol or other chemicals. The process is like traditional fermentation, except instead of sugars and yeast, it uses the carbon contained in waste gases and the microorganisms. If these chemicals are made into new products such as textiles, once these products reach the end of their useful life and become waste, they can be gasified and fermented by LanzaTech’s process. In this sense, the pathway promotes circularity, keeping the carbon in the material cycle.
Source: Genetic Literacy Project
