|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
961.63 |
USD/Ton |
-0.32% |
1/3/2016 |
|
VSF |
1950.94 |
USD/Ton |
-0.16% |
1/3/2016 |
|
ASF |
1919.40 |
USD/Ton |
0.00% |
1/3/2016 |
|
Polyester POY |
934.70 |
USD/Ton |
-0.08% |
1/3/2016 |
|
Nylon FDY |
2277.13 |
USD/Ton |
0.00% |
1/3/2016 |
|
40D Spandex |
4923.52 |
USD/Ton |
0.00% |
1/3/2016 |
|
Nylon DTY |
1011.63 |
USD/Ton |
0.00% |
1/3/2016 |
|
Viscose Long Filament |
2538.69 |
USD/Ton |
0.00% |
1/3/2016 |
|
Polyester DTY |
5732.82 |
USD/Ton |
0.00% |
1/3/2016 |
|
Nylon POY |
1146.26 |
USD/Ton |
0.00% |
1/3/2016 |
|
Acrylic Top 3D |
2154.04 |
USD/Ton |
0.00% |
1/3/2016 |
|
Polyester FDY |
2104.04 |
USD/Ton |
0.00% |
1/3/2016 |
|
30S Spun Rayon Yarn |
2723.32 |
USD/Ton |
0.00% |
1/3/2016 |
|
32S Polyester Yarn |
1530.91 |
USD/Ton |
0.00% |
1/3/2016 |
|
45S T/C Yarn |
2507.92 |
USD/Ton |
0.00% |
1/3/2016 |
|
45S Polyester Yarn |
1707.85 |
USD/Ton |
0.00% |
1/3/2016 |
|
T/C Yarn 65/35 32S |
2138.65 |
USD/Ton |
0.00% |
1/3/2016 |
|
40S Rayon Yarn |
2877.18 |
USD/Ton |
0.00% |
1/3/2016 |
|
T/R Yarn 65/35 32S |
2492.53 |
USD/Ton |
0.00% |
1/3/2016 |
|
10S Denim Fabric |
1.08 |
USD/Meter |
0.00% |
1/3/2016 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0.00% |
1/3/2016 |
|
40S Combed Poplin |
0.98 |
USD/Meter |
0.00% |
1/3/2016 |
|
30S Rayon Fabric |
0.73 |
USD/Meter |
0.00% |
1/3/2016 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0.00% |
1/3/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15386 USD dtd.3/1/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The supply of man-made fabrics (MMF), including saris and dress materials from the city's wholesale markets, was affected following the indefinite strike call given by the Surat Textile Goods Transporters' Association (STGTA) against sealing of the transporters' godowns by the Surat Municipal Corporation (SMC). Over 400 truck operators supplying textile goods worth over Rs 70 crore every day to various destination across the country are on strike after the civic body sealed the godowns in Bhatena area on Sunday alleging traffic jams and other traffic-related issues. Sources said that dozens of transport godowns were sealed to ease traffic on the main road at Bhatena. The action was taken after municipal commissioner Milind Torawane was stuck in traffic when he was going to attend a public function in Bhatena last week. The STGTA called upon municipal commissioner on Monday urging him to open the sealed warehouses and allow the transporters to continue operations. However, they did not get any positive response from the civic chief.
Textile traders said that the transporters have stopped taking deliveries due to the indefinite strike. The marriage season is on in the northern and southern states and the supply of saris, fabrics and dress materials is very crucial. "Textile traders are still facing the heat from southern markets, especially Chennai and Andhra Pradesh due to the recent devastating floods. In this new year, traders were gearing up for good business from the north. But, the transporters' strike has come at a wrong time," said Devkishan Manghani, chairman textile committee of South Gujarat Chamber of Commerce and Industry (SGCCI). Yuvraj Deshle, president of STGTA said, "We have urged the civic chief to open the transport godowns. But SMC is yet to take any decision. Our strike will continue till our godowns are not opened up."
SOURCE: The Times of India
Worried over exports continuing to fall for the 12th straight month in November, the centre is meeting states later this week to urge them to resolve issues on taxation front with regards to export including delay in refund of value added tax and sensitise them about the opportunities presented by the free trade agreements that India has signed with various countries to help exporters take benefit. The Council for Trade Development and Promotion, chaired by Union Commerce and Industry minister and comprising states’ ministers of commerce and central government secretaries, will meet on January 7 to review the trade scenario. This will be the first meeting of the council since it was formed in July 2015. Exports slid 24.43 per cent in November to $20.01 billion, reaching $243.68 billion in the 11 months of 2015 as against $323.2 billion for the entire 2014. “The Centre wants to involve states in promoting exports. The meeting will specifically look at making states aware about the opportunities available due to free trade agreements that India has entered into. Further, the issue of states charging tax on exports in form of electricity duty and octroi and not rebating these taxes will also be taken up. These add to cost of export. Exporters have also been raising the matter of delay in getting VAT refund. It will also be raised,” an official source told The Indian Express. The official said that the states take a lot of time to process refunds while the infrastructure related to exports also need to be revamped in many states. “The connectivity like road to port is not so good in many states. We have zeroed in on those states. Also, it would be beneficial for exporters if states start electronic data interchange. This will improve ease of doing business,” the official added. Among other issues, power supply, law and order and overall governance in states will be taken up.
In the Foreign Trade Policy 2015-20 statement, the department of commerce had said states would be urged to play a significant role in promoting exports and rationalising non-essential imports. Apart from setting up Trade Facilitation Council with representations from states and Union territories to mainstream them in the process of international trade and assist them with their infrastructural needs, the Centre had also said that states would be encouraged to formulate their own state trade policy. So far, 26 states have appointed export commissioners while around 15 states have attempted formulating a trade policy. During the meeting, all industry bodies including federation of Indian export organisations (Fieo), CII, Ficci and Assocham will also be present along with representatives from NITI Aayog.
SOURCE: The Financial Express
According to organisers of textile technology trade fair Itmach Bhiwandi, growing prominence of government policies and the marked growth of the textile industry made way for a positive business platform. “Itmach Bhiwandi 2015 aimed to stand true to its reputation once again and set the stage for investment and newer opportunities right on the first day,” a press release from the organisers said. “The visitors flow peaked by noon of the first day and by the end of the day, it signaled a steady start of the exhibition as exhibitors reported a good amount of queries on day one itself,” the organisers added. “We were not really expecting much considering the venue being Bhiwandi. However, we entertained a series of positive queries," R. Anbazhahan, managing director, Reiniger Welker said. The show was inaugurated by Tushar Chowdhury, mayor, Bhiwandi and Sumit Patil, corporator of Bhiwandi. “The industry here takes an effort to go and fetch improved machinery from the world over, but bringing these machines right at their doorstep and that too solely for a cluster is definitely a commendable work,” Chowdhury said. “Itmach Bhiwandi understands the importance of firsthand experience and our effort has always been to get the international developments of the textile industry closer to home,” said Arvind Semlani, director, Itmach India. “Promoting the development of textile clusters in Western India has always been our priority and Itmach is just a stepping stone of our efforts,” he added. “Uplifting the textile clusters and bringing them face to face with the bigger developments of the industry, proved beneficial the last year and this year, is a renewed effort for the same,” Semlani stated. Visitors came from Malegaon, Surat, Ichalkaranji, Kolhapur, Belgaum, Tarapur, and Bhiwandi and saw the displayed technology on view. “The show is set on a smooth step by step progress and it is certainly an interesting feeling to come and interact with the industry and have such quality business discussions here,” Manchhalal Jain, director, Shree Daksh Jyot Silk Mills said.
SOURCE: Fibre2fashion
The Andhra Pradesh government has announced waiver of loans worth Rs 110.96 crore that had be given to handloom and powerloom weavers. Loan waiver for handloom and powerloom weavers and debt redemption scheme for farmers were two of the main election promises of Telugu Desam Party president N Chandrababu Naidu. After the TDP returned to power in 2014, Chief Minister Chandrababu Naidu constituted an expert committee headed by P Kotaiah, former NABARD Chairman, to examine in detail the implications and to suggest the modalities of implementing the debt waiver scheme to both handloom and powerloom weavers. The committee submitted its report in July 2014 to the Commissioner, Handlooms and Textiles, AP. But it wasn't until several months later that the government managed to arrive at a figure of outstanding availed by weavers. The loan waiver is expected to benefit 24,209 weavers whose total loans amounted to Rs 82.84 crore. Besides this loans of Rs 11.83 crore availed by 674 weaver SHGs, Rs 16.27 crore borrowed by 584 powerlooms would be waived.
SOURCE: Fibre2fashion
Welspun Corp today said it has received tax demand notice of Rs 100 crore in respect of a manufacturing unit in Anjar, Gujarat. The demand notices from the Assistant Commissioner of Commercial Tax, Gandhidham, pertains to a period between February 1, 2014 to September 30, 2015, in respect of a manufacturing unit at Anjar (Gujarat), Welspun Corp said in a BSE filing. The demand notice of Rs 100.46 crore includes tax amount of Rs 37.53 crore, and interest and penalty amount of Rs 62.9 crore. "We have been advised that there are many favorable merits in the matter enabling us to contest these demand notices at the appropriate forums," Welspun said. elspun Corp shares today closed 2.87 per cent down at Rs 110 apiece on BSE.
SOURCE: The Economic Times
Government today hiked excise duty on petrol by Rs 0.37 per litre and by Rs 2 a litre on diesel, the second increase in duties in just over two weeks, to mop up a little less than Rs 4,400 crore. However, there will be no increase in retail selling price of petrol and diesel as state-owned oil firms had not passed on the full benefit of a reduction in international oil prices to consumers on January 1. Basic excise duty on unbranded or normal petrol has been increased from Rs 7.36 per litre to Rs 7.73 and the same on unbranded diesel from Rs 5.83 to Rs 7.83 per litre, a notification of the Central Board of Excise and Customs (CBEC) said. The increase in excise duty will fetch the government over Rs 4,300 crore on diesel and about Rs 80 crore on petrol. This is the second time in less than three weeks that excise duty is being hiked to make use of the slump in oil prices to garner resources for the government without burdening consumers. The government had from December 17 raised excise duty on petrol by Rs 0.30 per litre and Rs 1.17 a litre on diesel to garner Rs 2,500 crore.
Taken together with the November 7, 2015 increase in excise duty on petrol of Rs 1.60 per litre and diesel by 30 paise to raise Rs 3,200 crore, this is the third hike in levies this fiscal. In the three increases, the government is expected to mop up over Rs 10,000 crore to meet its budgetary deficit. Prior to these, the government had in four installments raised excise duty on petrol and diesel between November 2014 and January 2015 to lessen the reduction in retail rates, which followed falling international oil rates. The four excise duty hikes during this period totalled Rs 7.75 per litre on petrol and Rs 6.50 a litre on diesel. It led to about Rs 20,000 crore in additional revenue to the government, helping it meet its fiscal deficit target. If the government would not have raised these duties, consumer price of petrol and diesel should have been lower by 10.02 a litre and Rs 9.97 per litre respectively. Petrol currently cost Rs 59.35 per litre in Delhi while diesel costs Rs 45.03 a litre. “The increase in excise duty on petrol by 37 paise and in diesel by Rs 2 per litre will not result in any increase in the current price,” Revenue Secretary Hasmukh Adhia tweeted.
Anticipating an excise duty hike, state-owned oil firms had on January 1 cut petrol price by 63 paise per litre and diesel by Rs 1.06 a litre, much less than what was warranted because of the slide in international rates. He said the duty hike would result in “additional resource mobilisation” of over Rs 4,300 crore in the remaining part of the year. After including additional and special excise duty, the total levy on unbranded petrol will be Rs 19.73 per litre, as against Rs 19.36 currently. Similarly, on unbranded or normal diesel, total excise duty after including special excise will be Rs 13.83 per litre compared with the Rs 11.83 now. The basic excise duty on branded petrol has been raised from Rs 8.54 per litre to Rs 8.91 and the same on branded diesel from Rs 8.19 to Rs 10.19 per litre, the CBEC notification said. The government had collected Rs 99,184 crore in excise collections from the petroleum sector in 2014-15, which stood at Rs 33,042 crore in the first quarter of the current fiscal.
SOURCE: The Financial Express
Apparel Export Promotion Council (AEPC) is planning to organise a buyer-seller meet in Uruguay and Chile between March 16 and 22 with 25 exhibitors at each venue. Textiles and Commerce ministries have approved the funding under the Market Access Initiative for the proposed meet, a Council release said. Export of readymade garments to Uruguay increased from $9.5 million in 2013 to $13 million the following year and Chile's import volume of readymade garments from India rose from $45.1 million to $50.7 million during the same period. The meet is being organised after taking into account the huge export potential. AEPC has tied up with the Santiago Chamber of Commerce in Chile for inviting prospective garment buyers to the meet and with a PR agency in Uruguay for the same.
SOURCE: The Hindu Business Line
Union Minister for Micro, Small and Medium Enterprises (MSME) Kalraj Mishra has urged the entrepreneurs here to take advantage of the various schemes and make use of the unutilised funds lying with the ministry. While he did not quantify the unused amount, the Minister maintained that there was no dearth of funds. He had an hour-long interaction with the various association representatives here on Sunday.
Industry demands
President of the Coimbatore District Small Industries Association (Codissia) EK Ponnuswamy drew the attention of Mishra to the association’s plea for establishment of an IPR centre to boost new pattern registrations and in turn the growth of the MSMEs in the region; establishment of technology centre or at least an extension of such a centre in Coimbatore. He also apprised the Minister of the association’s plan to build a world-class convention centre. “We had sought financial assistance from the Ministry in 2014. Such a centre would help boost MSME exports from this region as the facility would help us in market promotion and product launches.”
Procurement policy
The association has suggested amendments in the proposed defence procurement policy to facilitate MSME participation in defence supply. The proposed amendments sought include consideration of a consortium of MSMEs for eligibility of offset benefits that individual units enjoy; making cluster approach permanent to ensure quality supply. S Ravikumar, President of Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association (Cotma), highlighted the plight of the micro and cottage industries. He appealed to the Minister to enhance the mandatory public procurement policy limit to 30 per cent (from 20 per cent), a three-year moratorium on repayment of loans from nationalised banks and setting up of a bank exclusively for cottage industries.
SOURCE: The Hindu Business Line
India’s manufacturing activity shrank for the first time in two years in December as business conditions deteriorated on account of Chennai floods besides the persistently muted domestic demand, a private survey showed on Monday. The sustained weakness in economic growth combined with controlled inflation could prompt the Reserve Bank of India (RBI) to cut policy rates further. Snapping the 25-month growth sequence, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, fell to a 28-month low in December to 49.1 points from 50.3 in the previous month. The rate of contraction was the sharpest in seven years. “India’s manufacturing sector took a turn for the worse at the year-end, with already-gloomy internal demand further hampered by floods in the south of the country. Such was the extent of the decline that the rate of reduction was the sharpest since the financial crisis,” said Pollyanna De Lima, economist at Markit and author of the report. Meanwhile, China’s lower than expected PMI for manufacturing at 48.2 points in December led to a sharp fall in Indian markets and depreciation of rupee against the greenback on Monday. The rupee weakened 0.72 per cent against the dollar to close at 66.62 a dollar, its sharpest fall in nine weeks. The benchmark BSE Sensex slumped 2.05 per cent to close at 25,623 points, the biggest single-day percentage loss since September 22.
Manufacturing PMI slips to 28-month low in December India’s economy expanded by 7.2 per cent in the first half of the current financial year prompting the government to cut the growth forecast to 7-7.5 per cent for the full year against 7.6-8 per cent estimated earlier. The manufacturing sector posted a robust 9.3 per cent growth in the second quarter against 7.2 per cent in the previous three months, signaling improving efficiencies of companies rather than the actual improvement in output. Consumer goods was the only category to see improving business conditions in December as production and new orders rose. Conversely, incoming new work and output fell in both the intermediate and investment goods market groups, said the report based on a survey of 300 industrial companies. Economists dismissed the PMI data as being inconsistent with the actual economic activity. “The extrapolation of the PMI readings to wider gauges of economic activity should be undertaken with caution, given the survey-based nature and the small sample. For instance, production of Coal India Limited has recorded a robust double-digit growth in both year-on-year and month-on-month terms in December 2015, in contrast to the gloomy trend revealed by the PMI,” said Aditi Nayar, senior economist at ICRA.
Eighteen per cent of the panellists reported lower levels of new orders, which they commonly linked to heavy rains weighing on domestic demand, the report said. However, new business from abroad increased in December as weaker rupee led to improved pricing power in external markets. The floods in December, too, affected supplier performance, which deteriorated to the worst extent since March 2013. On prices, the report highlighted rising inflationary pressures on account of rupee depreciation even as it remained below the long run average.
SOURCE: The Business Standard
Maharashtra, Gujarat and Odisha emerged as most lucrative investment destinations between 2009 and 2014 accounting for over one-fourth share (26.6 per cent) of the total outstanding investments worth over Rs 154 lakh crore in various sectors from both public and private sources across major 21 states in India. According to a study titled 'A Comparative Analysis of Investment Pattern in States,' conducted by economic research bureau of the Associated Chambers of Commerce and Industry of India (Assocham), Maharashtra bagged 10.2 per cent or Rs 15 lakh crore worth of investments compared to 9.2 per cent share attracted by Gujarat followed by Odisha at 7.2 per cent. Karnataka attracted 6.8 per cent and Tamil Nadu 6.5 per cent of the total investments that grew from Rs 105 lakh crore in 2009 to Rs 154 lakh crore in 2014. Surprisingly, Gujarat recorded the least growth rate of just over two per cent amid the top 21 states, the study noted. “Investment is the key driver of productivity and sustainability that leads to development and growth making most state governments strive to better the investment climate prevailing in their respective states to make them conducive to attract domestic and foreign investors,” said D.S. Rawat, secretary general of Assocham while releasing the report.
With investments worth over Rs 84.5 lakh crore, the private sector accounted for almost 55 per cent share in total investments, it said adding that investments in the public sector grew at a compounded annual growth rate (CAGR) of just over 11 per cent, while those in the private sector grew at just about five per cent during the five year period of December 2009-December 2014. Private sector accounted for highest share of over 81 per cent in the total outstanding investments attracted by Haryana. While in Gujarat private sector accounted for 74 per cent share in total investments attracted by the state as on December 2014. Infrastructure sector accounted for as much as 64 per cent of total investments made by public and private sectors (both foreign and domestic) across India followed by manufacturing (20 per cent), construction (9.5 per cent), mining (3.5 per cent) and irrigation (three per cent).
In Gujarat, infrastructure accounted for highest share of 57 per cent of its investments followed by manufacturing (25 per cent), construction (13 per cent), mining (three per cent) and irrigation (two per cent). At 11.5 per cent and 10 per cent, Gujarat attracted third highest investments in the manufacturing and construction & real estate sector across India, while it attracted fourth highest share of about eight per cent share in infrastructure sector investments. Interestingly, investments in the manufacturing sector increased by five per cent in Gujarat as on December 2009 (20 per cent), while investments in infrastructure and mining sectors increased by about two per cent respectively. However, investments in construction and irrigation sectors declined by six per cent and three per cent respectively, the study highlighted. Projects with investments worth over Rs 86.5 lakh crore i.e. over 56 per cent of the total investments were under implementation or remained non-starter as on December 2014 and private sector accounted for major share (51.5 per cent) in this regard.
Maharashtra had maximum share of over 10 per cent in projects under implementation followed by Karnataka (7.4 per cent), Gujarat (7.4 per cent), Odisha (seven per cent) and Tamil Nadu (6.5 per cent), it said. Public sector accounted for 56 per cent share in projects that remained a non-starter in Gujarat as on December 2014 which had increased from 50 per cent in 2009. Long delays in implementation of investment projects hurts the sentiment of investors and also results in incurring of huge costs as such the government needs to have a strong plan and must prioritize cleaning up delayed projects in the form of effective implementation which would only be possible through an appropriate, target-oriented roadmap for both the clearance authority and the investors, the study said.
SOURCE: Fibre2fashion
The Indian rupee fell 0.72 per cent on Monday, mirroring weaknesses in other Asian currencies, as the Chinese economy slowed down and instability in the middle-east increased after Saudi Arabia severed diplomatic ties with Iran. The rupee closed at 66.6175 a dollar on Monday, down about 48 paise from its previous close in response to the rise in uncertainty. The local currency opened at 66.27 a dollar and traded in the range of 66.2650 and 66.63 a dollar. The market saw some heavy dollar buying at the end of the market hours. The Indian rupee touched almost 67 a dollar level on December 11, but currency analysts are not very sure if the local currency will test those levels soon. "The movement is more of a risk-off and panic situation. We need to wait for a day more to say with some certainty that the trend has reversed and the rupee will breach 67," said Abhishek Goenka, head of IFA Global, a currency consultant.
According to technical chartists, there is a strong support level at 66.75 level and if this level is breached, rupee may slide to 67 a dollar level. "Most probably, the rupee will trade between 66.10-66.75 a dollar level this week, unless some more global uncertainties hit the market," said a senior currency dealer with a foreign bank. In the offshore non-deliverable market, traders are expecting rupee to reach 66.67 a dollar level and in a month the traders are betting on 66.91 a dollar. Rupee falls sharply on China, West Asia jitters "Rupee should strengthen back; Monday was an oversell," said the currency dealer with the foreign bank.
Exporters were seen selling dollars in the market even as there was strong dollar buying interest from importers. The presence of Reserve Bank of India was not very apparent, said currency dealers. In response to the slowdown in China, South Korean Won fell 1.270 per cent, Taiwan dollar fell 0.675 per cent, Singapore dollar fell 0.863 per cent, and Indonesian Rupiah fell 0.810 per cent. However, Japanese Yen rose 1.499 per cent against the dollar. Overall, the Chinese Offshore Yuan depreciated 0.932 per cent against the dollar, while the onshore Yuan fell 0.668 per cent. The yields on the nine-year benchmark bond closed at 7.733 per cent, flat from its previous close of 7.730 per cent.
SOURCE: The Business Standard
Micro, small and medium enterprises (MSMEs) can improve their revenues and boost their competitive advantage by diversifying across products, customers and geographies, according to a CRISIL study. Diversification boosts MSME revenues: CRISIL study The study found that average sales of MSMEs with a diversified product/service, customer and geography base grew by 18 per cent in 2013-14, far higher than the 10 per cent growth chalked up by players with limited diversification. CRISIL believes that diversification enables an MSME to have a stable revenue stream and, therefore, heightens its competitive advantage vis-à-vis industry peers. The CRISIL analysis involved about 13,000 MSMEs rated on the basis of their 2013-14 (financial year April 1-March 31) financials. The study also revealed that 60 per cent of MSMEs with a diversified profile had a longer track record (more than 10 years) and were backed by their promoters’ extensive experience, compared with only 45 per cent for MSMEs with a non-diversified profile. Thus, track record and promoters’ experience are key factors that enable MSMEs to diversify and, thereby, demonstrate their ability to achieve high scalability and maintain a healthy growth trajectory.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 33.54 per barrel (bbl) on 04.01.2016.
In rupee terms, the price of Indian Basket increased to Rs 2229.47 per bbl on 04.01.2016 as compared to Rs 2177.22 per bbl on 01.01.2016. Rupee closed weaker at Rs 66.46 per US$ on 04.01.2016 as against Rs 66.18 per US$ on 01.01.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 04, 2016 (Previous trading day i.e. 01.01.2016) |
Pricing Fortnight for 01.01.2016 (Dec 12 to Dec 29, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
33.54 (32.90) |
33.58 |
|
(Rs/bbl |
2229.47 (2177.22) |
2234.08 |
|
|
Exchange Rate |
(Rs/$) |
66.46 (66.18) |
66.53 |
SOURCE: PIB
The Federal Board of Revenue (FBR) has withdrawn the sales tax zero-rating facility available to certain textile sector units on the supply of electricity and gas for not meeting the criteria. The board has advised the gas and electricity companies to start charging sales tax on the use of gas and electricity from Master Textile Processing Mills, Ahmad Fabrics and S S Enterprises. Sales tax zero-rating was allowed to the registered manufactures and exporters of five leading sectors including textile, leather, carpets, surgical and sports goods with a view to facilitate exports. Sales tax zero-rating is withdrawn if the beneficiary business is been closed clown, sold out to some other person, the lease of the premises, where the zero-rated energy meters are installed, has expired or the lease of the premises, where the zero rated energy meters are installed has shifted to some other location. The facility is ended where the registered beneficiary is a null, nil, non-filer and not an active taxpayer or the registered person is making supplies to and from suspended/black-listed units or his supplies and corresponding input tax credit are not verified.
Claiming inadmissible input tax credits, failure in paying outstanding recoverable demand despite recovery notices as well as sharing zero-rated energy meter with others also results in withdrawal of the exemption. If a person is found to have obtained zero-rating facility on the basis of misrepresentation, or supplying zero-rated electricity or gas to any other person, or uses it for any purpose other than for the manufacture of goods specified in SRO 1125(1)/2011, the zero-rating shall forthwith be withdrawn and action will be taken to recover the amount of sales tax chargeable on such zero-rated electricity and gas along with penalty and default surcharge. The FBR has directed all formations concerned that the procedure and requirements must be observed for the purpose of uniform and expeditious processing and disposal of cases for the grant, rejection or withdrawal of zero-rating on supply of electricity and gas to the registered manufactures and exporters of the five sectors.
SOURCE: The News
Vietnam local authorities have stop encouraging investments in the textile industry because textile factories cause big environmental problems. Therefore, Chinese to expand their production in Vietnam are taking over operating enterprises. Nguyen Van Hoan, former president of the Hanoi College of Textile, Garment Industry & Fashion, noted that Chinese have taken over existing Vietnamese companies because this method allows them to avoid strict regulations. Hoan is worried as Chinese are trying to poach Vietnamese skillful workers from Vietnamese enterprises while not having to pay for training cost. Thai Tri Dung from the HCM City Economics University also noted that a series of merger and acquisition (M&A) deals have been made recently between Vietnamese and Chinese in the textile and garment industry. The actual goal of Chinese is to set up a network which can provide workers to them. It is reasonable to think that Chinese would attract skilled workers from Vietnamese enterprises, he said, adding that Vietnamese enterprises should think carefully about whether to become satellite companies in Chinese chains. More and more Vietnamese textile producers to become Chinese satellite companies have sold their companies to Chinese investors.
Dung pointed out that the Chinese move of taking over Vietnamese companies would influence human resource development and export. Therefore, recommends remaining very cautious about deals with Chinese businesses. As, once Vietnamese companies become Chinese subsidiaries, Vietnam’s export markets would become China’s markets. In theory, Vietnam exports products, but China pockets money, he explained. In the long term, this will create uncertainties in the national economy as Vietnam’s textile and garment export would be entirely controlled by Chinese enterprises. According to Dung, the risk is very high. Textile and garment is Vietnam’s key industry which makes products for export. If Chinese can control the industry, they would also control the other business fields such as agriculture and seafood. Vietnamese experts do not highly appreciate Chinese FDI as they believe Chinese investors mostly bring outdated technologies to Vietnam which causes environmental pollution.
SOURCE: Yarns&Fibers
At a workshop held in Ho Chi Minh City last week. Dr Nguyen Tien Dung, principal of the Law-Economics University, during his speech said that Vietnam has the lowest level of development in the 12 Trans Pacific Partnership (TPP) nations but Vietnam is seen as the country that will benefit the most to get the biggest benefits from the TPP, compared with other participating nations, and this will be a great chance for the country to boost its exports and join the global supply chain. TTP will help Vietnam complete its market-orientation targets, improve its business environment and competitive ability. Ngo Chung Khanh, deputy head of the Ministry of Industry and Trade's Multilateral Trade Policy Department, said that TPP is the new model of regional economic cooperation with the aim of solving problems emerging in the 21st century like labour, state-owned enterprises and environmental protection, he said. TPP is expected to create favourable conditions for promoting trade and investment by cutting nearly 100 per cent of tax. The TPP's benefits would be even greater than Vietnam's membership in the World Trade Organisation (WTO).
Vietnam should be focused on garments and textiles, and on labour and intellectual-property protection. Need to focus on garments and textiles as they are the core benefit for Vietnam. At present with a tax level of 17-25 percent, Vietnamese textiles and garments will strengthen their foothold in the US market with 20-percent market share and ranking second. If taxes were zero, the turnover and volume of the Vietnamese textile and garment industry would rocket. But to take full advantage of the TPP, Vietnam must improve the situation where US$15 billion of the total of $19 billion in export revenue has to be spent on imported materials, he said.
As for the labour field, the TPP will apply economic sanctions if Vietnam violates the International Labour Organisation's regulations. These have already been applied in the country under the WTO, but only for reference. Within the TPP, labourers will have the right to set up their own organisations that protect their rights, and the organisations would not be able to join the Vietnam Labour Federation, he said. TPP will bring great opportunities for Vietnam's economy by promoting trade between Vietnam and the EU, [and with] the US and other TPP member nations; diversifying export markets; improving the investment environment and attracting high-quality investment; and opportunities to join the global supply chain, he said. Khanh also warned that TPP will increase the speed of economic growth, create more jobs, improve incomes and eradicate hunger but increase competitiveness. It could cause local enterprises to collapse and go bankrupt. He also pointed out that the state budget would be affected but not as much as feared, as the portion of the budget from import taxes has been falling year on year. The TPP will promote the market economy but high standards in administrative management will create challenges for state management. A series of laws will be released to implement TPP commitments.
SOURCE: Yarns&Fibers
The 13th Dhaka International Textile and Garment Machinery Exhibition (DTG 2016) will be held in Bangabandhu International Conference Centre from Jan 28 to 31. DTG 2016, called the 'mini ITMA of South Asia', is the largest exhibition of Bangladesh’s textile and garment industry machinery. Bangladesh Textile Mills Association (BTMA), Chan Chao International, and Yorkers Trade and Marketing Service are jointly organising the event. DTG 2016 will represent more than 1,000 world class leading brands from 32 countries and regions, a media release from the organisers said.
Among the countries are Austria, Bangladesh, China, Denmark, France, Germany, Hong Kong, India, Italy, Japan, Malaysia, Singapore, Spain, Taiwan, Thailand, Turkey, UK, US, and Vietnam. They will exhibit machinery covering all processes in whole textile and garment industry supply chain, including spinning, weaving, knitting, dyeing, printing, finishing, testing, washing, embroidery, sewing and other related equipment in 1,160 booths. Well-known brands such as Mayer & Cie, Pai Lung, Santoni, Shima Seiki, Stoll, Terrot, Picanol, M&R, CTMTC, Fong's, Groz-Beckert, Karl Mayer, LMW, Rieter, Saurer, Tajima and Toyota will take part in the exhibition.
IPF 2016
From Jan 20 to 23, the 2016 Dhaka International Plastic, Packaging, and Printing Industrial Fair or IPF 2016 will be held at BICC. Bangladesh International Foodtech and Bakery Tech Industrial Fair will be incorporated with IPF 2016, said a media release from organisers Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), Yorkers Trade and Marketing Service, and Chan Chao International. This year 260 exhibitors from 11 countries such as Austria, Bangladesh, China, Hong Kong, India, Indonesia, Korea, Malaysia, Singapore, Taiwan, and Thailand will participate in the IPF. The organisers expect more than 11,200 professional buyers to visit the show. IPF 2016 features some of the most renowned corporations in the industry, such as Starlinger, Cheso Machinery, Haitian Plastics Machinery, KungHsing Plastic Machinery, and Venus Plastic. The government of Bangladesh plans to build an industrial zone on a 100-acre area for plastic goods manufacturers beside the Dhaka-Mawa road in Munshiganj, the release said. The Executive Committee of the National Economic Council (ECNEC) approved the Tk 1.33 billion project, which will be completed by 2018, according to the release. Quoting Planning Minister AHM Mustafa Kamal, the release said 360 industrial units would be set up.
SOURCE: The BD News24
