INTERNATIONAL
Union minister of textiles Smriti Irani has asked textile commissioner to get a detailed feedback on issues faced by powerloom sector, including yarn price fluctuation, anti-dumping duty on PTA and yarn and dumping of undervalued Chinese fabric and submit a report within 15 days. The Union textiles minister gave the direction to the textile commissioner at the powerloom industry stakeholders meeting held in New Delhi on Monday. A delegation of powerloom weavers from the city, including Dhirubhai Shah, managing director of Fairdeal Filaments; Ashish Gujarati, president of Pandesara Weavers Association and Devesh Patel, president of Katargam Weavers Association, raised these issues and also that of reduction of subsidy in Technology Upgradation Fund (TUF) scheme from 30 per cent to 10 per cent. Ashish Gujarati told TOI, "The powerloom industry stakeholders meeting in New Delhi was a success. Leaders of powerloom sector from different centres had common issues regarding Chinese fabric, anti-dumping duty on PTA, yarn price fluctuation etc. The Union textiles minister heard all of us and directed the textile commissioner to meet the stakeholders again and submit the report within 15 days."
Gujarati said the powerloom sector in the city is passing through a tough phase. Out of 6.25 lakh powerloom machines, only 30 per cent were operational. Around 10 per cent are doing job work, while the rest have shutdown in the last few months. "We have asked the Union textiles minister to conduct an independent inquiry into dumping of undervalued Chinese fabrics in India, which is hurting the domestic powerloom sector. Many powerloom workers have been rendered jobless in the last few months due to closure of units," Dhirubhai Shah said. He said, "Now, we are waiting for an official invitation from the textile commissioner's office to submit our data and raise issues concerning the industry."
SOURCE: The Times of India
“The Kerala government is planning to modernise the khadi sector with an aim to generate employment, in villages and also boost the state's khadi industry,” according to media reports. “Kerala will introduce schemes to partially mechanise the industry and thereby increase the wages of workers and artisans employed in the sector,” media reports quoted a government official as saying. Kerala Khadi and Village Industries Board financial advisor Muhammed Haris said the introduction of the modern charka, has already helped better working conditions of the khadi industry workers. More efforts are now expected to increase production and sales of khadi apparel which will result in enhanced skilled employment in the industry. There are an estimated 12,800 workers involved in spinning and weaving of khadi in Kerala and the government has set a sales target of Rs 154 crore during fiscal 2017.
SOURCE: Fibre2fashion
Dr. A. Sakthivel, President, Tirupur Exporters’ Association (TEA) has lauded the government for considering the long requisitions of the association to refund the state levies like electricity tax etc, Fuel tax etc, and the rebate rate for cotton garments is 3.5%, Blended garments 2.65%, and man made fiber 2.65%. The rebate Cap is Rs.16.1, Rs.11.4 and Rs.11.6 respectively, he said and added this will increase competitiveness and helpful to enhance exports and also employment, he informed. The amount of rebate shall be calculated using the FOB value of the garment exported. This scheme came into effect from 20th September 2016, it may be noted here.
SOURCE: The Tecoya Trend
We are exporting a product in which we have used components imported under advance authorisation and also duty-paid imported materials and indigenously manufactured components. Can we claim drawback on complete exported products or on only the imported duty paid and indigenously manufactured components? How can we make the claim and at which rate?
As per Para 4.15 of FTP, "drawback as per rate determined and fixed by Central Excise authority shall be available for duty paid imported or indigenous inputs (not specified in the norms) used in the export product. For this purpose, applicant shall indicate clearly details of duty paid input in the application for Advance Authorisation." Also, note that as per Para 4.08 of FTP, you must take into account the value of any input used, on which benefit of DBK is claimed or intended to be claimed for value addition calculation. At the time of export, you should file a DEEC-cum-DBK shipping bill. Thereafter, you should file the application for fixation of brand rate with your Central Excise authorities under Rule 6 of the Drawback Rules, 1995. Once you get the brand rate fixation letter, you can approach the Customs for disbursement of the amount. You cannot get All Industry Rate of drawback for exports made in discharge of export obligation against advance authorisation.
We are a search engine optimisation (SEO)/pay per click (PPC) company providing services to our clients in USA. Our clients do not access our website. We check their websites and tell them what's wrong and give recommendations on how to improve, and then monitor their website to see if they have implemented the changes. In the same way, we do PPC analysis of clients' websites and generate reports on how they can improve traffic on their website. Our place of service is India and place of provision of service is USA. We get paid in US dollars. So, as per our understanding, under Rule 6A of Service Tax Rules, 1994, we fulfil all the criteria for export of services. Furthermore, we don't come under online information and database access or retrieval services. Hence, as per our thinking we don't come under the ambit of service tax. We need your opinion on this to finalise our position.
In my opinion, you are providing consultancy service to clients abroad. Therefore, I agree with your understanding that you export your services and so, you don't have to pay service tax on your activity.
Our domestic turnover is about Rs 60 lakh. We also export about Rs 80 lakh. Do we have to take excise registration when our turnover crosses Rs 1.50 crore?
You need to take registration only when your domestic turnover exceeds Rs 1.50 crore. But, when you reach Rs 90 lakh domestic turnover, you have to file the declaration prescribed under notification 36/2001-CE (NT) dated June 26, 2001. Hopefully, you have followed the simplified export procedure for exempted units to ensure that your export turnover is separately accounted for.
SOURCE: The Business Standard
The United Kingdom will continue to strengthen trade, business and tourism relations with India even during post Brexit period, British Deputy High Commissioner in Chennai Bharat Joshi said. “We are the largest investor in India and we want to continue to strengthen the trade and industrial relationship with the country,” Joshi told reporters here while detailing the various scholarship programmes offered by Britain. “India is the second largest investor in London and India is on the top of the list for the partnership with UK. Our relation with India is already firm and we will continue to strengthen it,” he said. Asked whether there would be any problem for Indians working in UK during post Brexit, He said “They do not have anything to worry about.”
Joshi said the UK wants to encourage more British tourists to visit India. “A large number of British tourists visit India every year and many of them come to Kerala also,” he said adding “we want more British tourists to visit the Gods Own country.” On the Scholarship programme, Joshi said the UK offers largest scholarship programme anywhere in the world. Among them, flagship programme is Chevening, the UK’s International Award Scheme aimed at developing global leaders, he said. “The Chevening India programme is the largest in the world offering up to 65 fully paid scholarship and 65 fully paid fellowships every year”, he said. “Chevening Fellowships are awarded to talented professionals who are potential future leaders, decision-makers, and opinion formers”, he said. “The fellowships offer financial support to mid-career professionals already in positions of leadership and influence”, he said. Joshi also said there were only few persons applying for the scholarship from Kerala. He wanted more people from the state to utilise the schemes offered by UK. “Many Scholarship has already opened and others would open in the coming days,” he added.
SOURCE: The Financial Express
The Vietnam Textile and Apparel Association (VITAS) wants the master zoning plan for textile and garment industry development plan revised as it has become outdated. The industry’s shipments amounted to US$27.5 billion last year and are expected to soar to US$31 billion this year. Therefore, it is necessary to adjust the master zoning plan for textile and garment industry development until 2020 with a vision toward 2030, Deputy Minister of Industry and Trade Ho Thi Kim Thoa said. Thoa said that Vietnam’s textile and garment sector is projected to grow strongly in the next decade owing to more bilateral and multilateral trade agreements the country has signed, especially the Trans-Pacific Partnership (TPP). Also apparel importers are shifting orders to markets with abundant low-cost labor. According to VITAS chairman Vu Duc Giang, there is a big gap between the master zoning plan and reality, so the association has called for the Government and relevant ministries and agencies to review and revise it. The textile and garment industry is in a good position to grow stronger and that the Government needs to have a long-term strategy to develop the industry and enable it to bank on opportunities from the country’s deeper international integration. Vitas proposed the ministries of industry-trade and planning-investment work out viable plans to develop central industrial parks (IPs) for textile and garment firms to better manage wastewater treatment and ensure sustainable growth for the industry. The industry needs large-scale IPs for domestic and foreign-invested producers of fiber and cloth and dyeing enterprises. Some such IPs have gone up in Hung Yen, Thai Binh, Nam Dinh, Dong Nai and Binh Duong provinces but they are smaller than required, such as Pho Noi B covering only 121.8 hectares in the northern province of Hung Yen and Nguyen Duc Canh having an area of 102 hectares in the northern province of Thai Binh.
Vitas requested the Government to consider establishing industrial parks measuring 500-1,000 hectares for textile and garment enterprises and providing loan interest support for enterprises to invest in integrated wastewater treatment facilities. The association wanted improved waterway and road connectivity between large-scale IPs for apparel firms and ports and logistics centers to help enterprises in the sector lower costs. Giang pointed out large-scale IPs, better traffic infrastructure, effective management of wastewater treatment and environmental issues, and stable policies for taxes, fees and wages, and streamlined customs procedures as important factors for sustainable development of the industry. IPs with good wastewater treatment facilities will help attract fiber, textile and dyeing firms, especially foreign-invested ones, producing more materials for the industry. Than Duc Viet, deputy general director of Garment Corporation No. 10, said that as most of the firms in the industry are small and medium and have limited finances. The Government should finance construction of textile and garment IPs and wastewater treatment facilities to help enterprises reduce costs.
SOURCE: Yarns&Fibers
China has long been a top textile manufacturer for the world market. Xinjiang produces China’s best cotton, and more of it than any other region. Textile and garment exports via ports in Xinjiang Uygur Autonomous Region to Central Asia and Russia have increased by more than 60 percent from the same period last year. According to the latest statistics released by Urumqi Customs, China has exported 16.57 billion yuan (about 2.5 billion U.S. dollars) worth of textiles and garments through ports in Xinjiang. The data show that 70 percent of exports went to Kyrgyzstan and Kazakhstan, with the former ranking first. Following the China-proposed Belt and Road initiative and regional economic development, Xinjiang, which borders eight countries and boasts 29 national ports, has grown into a trading hub for garments, shoes, and daily necessities. In 2015, Xinjiang’s cotton harvest had reached 3.5 million tons, about 60 percent of China’s total output.
SOURCE: Yarns&Fibers
TWD Fibres GmbH offers antimony free polyester yarns, with the same properties of polyester yarns like high abrasion resistance and which are very easy to clean and handle for mattress application. According to the company, antimony oxide is worldwide used as catalyst in polyester fibre and filament yarn production processes and therefore, is often part of textile materials. Partial quantities of these antimony compounds can dissolve out of the textiles through sweat and be absorbed via respiratory tract or skin, which can cause irritation of eyes, skin and lungs, especially for sensitive people. In case of the Diolen Hypoallergenic yarns made by TWD, the commonly used antimony oxide is replaced by non-toxic substitutes. “Also in every further auxiliary material and processing step, avoiding antimony contamination is given great importance,” the German yarn producer said. “As a result of these efforts, the final packaged yarn has got an antimony content that lies beyond the detection level of 0.5 ppm, which has been verified by a testing laboratory Indikator GmbH,” TWD informed. Further tests at Hohenstein Laboratories verified that Diolen Hypoallergenic is especially skin friendly and hypoallergenic and that there is no hazard potential for allergenic reactions.
SOURCE: Fibre2fashion
Pakistan despite being the fourth largest cotton producer remains at the bottom ladder of productivity. Its average per hectare yield of 560 kilogrammes is better than Indian yield of 516 kg. However, a caveat remains here that says India grows bulk of its cotton from rain-fed areas as opposed to irrigated land that reduces its production cost. In contrast, Pakistan grows most of its cotton in the irrigated land of southern Punjab and Sindh. If the cotton yield is compared with China, then the productivity picture appears bleaker. With a 1,460kg yield, China is extracting 2.6 times more cotton from the same piece of land than Pakistan. With the exception of Australia, all major cotton producing regions have recorded a decline in production in 2015-16. In terms of the fall in percentage, Pakistan remains the worst hit. Numerous factors such as pest attack, insufficient inputs and limitation of varieties contributes to the drastic decrease in Pakistan’s production. However, China remains to be the cotton powerhouse still that holds 62% of world’s cotton stocks of 104.1 million bales. But it is expected to lose its position as the largest producer of cotton to India due to unfavourable weather conditions and reduced government support that contributes to this Chinese downgrading. The Chinese government is taking a mix of policy measures to cater for the cotton requirement of its large textile industry, which has a 37% share in world’s textile exports of $766 billion. It remains cautious enough for price stability in cotton markets in order to ensure that its growers are not hurt. For the purpose, it is releasing targeted quantities from its cotton reserves and allowing limited cotton imports.
China with smaller landholdings per farmer and with substantial rain-fed areas reaches the highs of cotton productivity only due to adoption and application of technology and related innovations. China remains a fervent follower of intensive cotton farming technologies. Local agricultural research institutes have developed hybrid Bt cotton seeds that now cover 45% of cotton growing areas in China. These varieties have proved themselves more resilient to pest attacks than local varieties. On the negative side, China is facing higher soil pollution due to excessive plastic and chemical usage and shortage of labour. However, these problems are being overcome with more rational usage and greater mechanisation. Also by using short-season cotton varieties, farmers are alleviating plant diseases and pests. Seedling transplantation facilitates double-cropping through better plant management and reduces risks for the farmers. Plastic mulching for cotton crop in China was introduced in 1979. At present, over 70% of cotton field is covered with plastic film each year. Seedling transplantation is used in combination with plastic mulching, whereby cotton seedlings are transplanted to plastic-mulched field rather than planted in open field. It helped in improved water usage and temperature maintenance. These two techniques have resulted on average in over 30% improvement in lint yield. Plant training is another intensive cotton farming technique which includes removal of vegetative branches, old leaves, empty fruit branches and plant toppings. It reduces the nutrient consumption by surplus organs, hence enhancing cotton yield and fibre quality. The point to ponder is to explore the mechanism for improving the learning of Pakistani farmers through Chinese collaboration.
SOURCE: Yarns&Fibers
Myanmar-based Olympus Asia Group and Korean company Panko Corporation joint venture for building free-on-board (FOB) garment factories on 500 acres of land, for which they are looking for land in Yangon, Bago or Ayeywarwady regions. The project will start within one year and it will take three years to build the required infrastructure. According to the Myanmar Garment Manufacturers Association, vast majority of Myanmar’s garment factories operate under the cut-make-pack system. Under the CMP model, a foreign buyer with financial backing and technical expertise will contract a garment factory, usually in an emerging market, to carry out their labour-intensive work. Under the FOB system, on the other hand, foreign retailers place orders from well-financed factories with technical expertise. Most factories in Myanmar lack access to financing and do not have enough skilled workers to operate under the more profitable FOB model. Olympus Asia Group CEO U Okkar Zaw Naing said that the factories would operate under the FOB model, and would focus on creating jobs for local people. The project will include an international-standard wastewater treatment plant; generate its own electricity; and include dormitories for employees. The companies will produce their own cotton and buttons in Myanmar, as well as producing clothes for export. U Okkar Zaw Naing believes the integrated factories will create between 40,000 to 60,000 job opportunities for Myanmar people. The company will also offer training and competitive salaries. They are looking at three places for the project, in Yangon, Bago and Ayeyarwady regions, but have not yet made a decision. It will depend on which place is best in terms of electricity, employees and logistics costs, he said. U Okkar Zaw Naing said that their partner company has asked them to build their own substation for electricity, because power here is not reliable.hoi Yung Joo, chair of Panko Corporation, said that Myanmar has the potential to develop its textile industry and they are sure this project will contribute to development. Myanmar’s garments industry has great potential, but its development requires foreign investment, but without good local businesspeople, foreign companies cannot invest. However, for foreign companies sourcing from Myanmar, there are a host of challenges including underage workers, unsafe factories and high logistics costs. For companies building new factories in Myanmar, infrastructure is a major challenge. The Myanmar garment industry is growing fast, and is a priority sector for the government.
SOURCE: Yarns&Fibers
Cotton growing area in China has reduced by nearly 50 per cent over the last eight years, and this dip is likely to become permanent as cotton acreage is unlikely to increase, a speaker said at the annual Cotton Roundtable. Cotton acreage has decreased from over 15.3 million acres about eight years ago to an estimated 7.2 million acres this year. Most of this drop is in the interior provinces where farmers have switched to growing less intensive crops, said Joe Nicosia, senior head of cotton and merchandising for Louis Dreyfus commodities in Memphis at the roundtable held in New York Stock Exchange in New York City recently. Currently, China has a huge cotton stock of more than 50 million bales. Once this stock is exhausted, China will become a big cotton importer, according to Nicosia. China is the world's largest consumer of cotton. China's cotton stocks are being depleted at a rapid pace due to decrease in production. “In two or three years, we could see China become an importer of 15 million bales again per year,” said Nicosia.
SOURCE: Fibre2fashion
The first fortnight of August 2016 witnessed a decline in Brazilian cotton quotes, following the sharp drop in international cotton prices. “Brazilian cotton purchasers taking advantage of the movement, bought new batches for prompt delivery, which in turn hiked the pace of cotton trades,” CEPEA said. However, cotton growers continued to stay firm on their asking prices, keeping in mind the low cotton production amid urge to accomplish contracts by sellers. Quoting data from the Brazilian Commodity Exchange, CEPEA added that 73.4 per cent crop of the 2014/15 season, estimated at 1.563 million tons might have already been traded until August 15. Of this total, 50.6 per cent was sold in the domestic market and the rest in the international market. Between July 29 and August 15, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, dropped 3.07 per cent, closing at BRL 2.5687 or $0.81 per pound on August 15. However, the average for the reporting fortnight at BRL 2.6301 or $0.82 per pound was still 1.26 per cent higher than that seen for July 2016.
SOURCE: Fibre2fashion
Asia’s trade event for the home textiles industry, Intertextile Shanghai Home Textiles – Autumn Edition, is just around the corner. The show, which commences this Wednesday, will run for four days instead of three until 27 August. “Given the relatively robust conditions in the domestic home textiles sector as well as steady demand for overseas brands, we expect that this year’s fair will be another success,” Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd explained before the fair’s opening. “The strong international nature of the fair shows that overseas brands are still seeking out opportunities in China and Asia, and that Intertextile Shanghai is their preferred platform to do so.”
Brands from 30 countries and regions feature under the same roof
Occupying 160,000 sqm across six halls in the National Exhibition and Convention Center, the fair will feature around 1,150 exhibitors from 30 countries & regions. International exhibitors will be located in hall 4.1 and hall 5.1 this year. Hall 5.1 features a number of editors representing over 30 brands such as Armonia di Interni, Boeme, Designers Guild, LaCanTouch and Zimmer + Rohde, while exhibitors promoting products in the Whole-Home concept will also feature in the same hall. In hall 4.1, seven overseas country & region pavilions from Belgium, India, Morocco, Pakistan, Portugal, Taiwan and Turkey feature. In the same hall, some of the leading suppliers participating this year include upholstery brands such as Ateja, Celesta, Culp and Enzo Degli Angiuoni; bedding & towelling brands such as Advansa, Brinkhaus and Cotton Council International; design studios like Antoinette et Freddy, Atelier Mineeda and Cosmo Kumagaias; as well as companies specialising in digital printing such as Atexco, d.gen, DIGITEX and Epson. Apart from the international exhibitors, four Chinese regional pavilions also feature throughout the domestic halls, as do themed halls to facilitate buyers’ sourcing. Some of China’s leading home textile brands will feature in the Emerging Players Hall (4.2), Glamorous Brands Hall (5.1), Colourful Haining Hall (5.2), Fashionable Yuhang Hall (6.1) and the Premium Two-City Hall (6.2).
Enhanced fringe program provides more insights to participants
Continuing on from last year’s successful revamped design and trend programme, the InterDesign programme will enrich the four-day show by providing trend forecasting, conceptual designs, product demonstrations and seminars to show participants. This year’s programme includes three parts, namely a Trend Area, Trend Concept Exhibition and Forum Space, with an intention to provide participants with the latest design & trend direction. Four trend themes will be brought to life by a series of product demonstrations throughout the Trend Area, which has been designed by a committee led by the NellyRodiTM Agency, the internationally renowned specialists on consumer lifestyle demand. In addition, 11 famous domestic designers have utilised the products of six renowned editor brands to interpret the trend theme ’Far Away’ in the Trend Concept Exhibition. Last but not least, a series of seminars will be held in the Forum Space, with designers and trend experts sharing their views on interior decorations, market trends and the latest technology.
Apart from the InterDesign program, Messe Frankfurt has also cooperated with Lenzing to feature eco-friendly home textile products in the Green Zone. A number of Lenzing’s partner mills will showcase their green products including mattresses, bed linen, duvets, towels and carpets which focus on the TENCEL® fibre. There will also be seminars in the digital printing seminar area in which industry players share the latest industry updates and market information. Intertextile Shanghai Home Textiles – Autumn Edition is organized by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA).
SOURCE: The Furniture World
The sixth edition of Denimsandjeans.com Bangladesh show with the theme VINTAGE RECALL, Denim Goes Back To Its Root is all set to take place this October. This semiannual denim show provides a platform where the global denim community comes together with an objective to share, interact and to establish future transactions with this very important supplier nation Bangladesh. Mr Sandeep Agarwal, Founder of Denimsandjeans.com Bangladesh said that their objective has been always to show the world the immense opportunity in Bangladesh through their denim shows. The current production of denim involves high technology in spinning, weaving and finishing and the industry works on possibilities of giving the vintage character on the outside while using the high technology inside the fabric. VINTAGE RECALL celebrates this aspect of the denim trend direction. Not limiting itself to an exhibition format; the event has many activities running on the sidelines. The show this time will have couple of seminars by international denim experts and veterans where they will share their ideas on the different prospects of denim. The show is Invite-only with invitations. The global market size of denim industries is expected to be over USD 78 billion by 2020, out of which more than 70% could come from Asia. Bangladesh has a huge potential in the textile, especially in denim and is already the top supplier of denim products to EU with exports over $1.1 billion. Denimsandjeans.com also holds shows in Vietnam and the 2nd edition of this show will be held on March 8-9, 2017 at HCMC with the first edition held in June this year. The site also brings buyers and suppliers together at one place through the first Global Online Denim Show launched recently. The sixth edition of Denimsandjeans.com Bangladesh show will be held on October 5-6 at Hotel Radisson, Dhaka.
SOURCE: Yarns&Fibers
