INTERNATIONAL
NATIONAL
Exporter status certificate will now be issued based on the available electronic data, and traders will not have to apply to get the recognition, the commerce ministry said on Monday. These certificates provide certain privileges, including simplified procedures under foreign trade policy (FTP) and priority custom clearances on a self-declaration basis, exemption from compulsory negotiation of documents through banks, and exemption from filing bank guarantees for FTP schemes. Upon achieving prescribed export performance, status recognition as one, two, three, four and five-star export houses is accorded to the eligible applicants as per their export performance. The new system-based automatic 'Status Holder' certificates under the FTP 2023 were unveiled in a meeting of Commerce and Industry Minister Piyush Goyal with the Export Promotion Councils here. "Now, the exporter will not be required to apply to the office of Directorate General of Foreign Trade (DGFT) for a Status Certificate and the export recognition will be provided by the IT system based on available Directorate General of Commercial Intelligence and Statistics (DGCIS) merchandise export electronic data and other risk parameters," it said. The move, it said will help in reducing compliance burden and promote ease of doing business. At present, the exporter is required to file an online application along with an export certificate from a chartered accountant for a grant of status. The DGFT Regional Offices are supposed to issue the certificate in three days. The ministry said that the new arrangement will lead to a simplified regime where no applications are invited from exporters and the certification is granted every year in August based on annual export figures available with the partner government agency - DGCIS. Exporters who are eligible for a higher status based on additional export data relating to services export, deemed exports or double weightage to some entities like MSME, which is not getting captured in disaggregated form presently, can apply online for a status modification also at a later date. With the launch of this new system, the ministry will be recognising about 20,000 exporters under FTP as Status Holders, which will be a quantum jump from the earlier number of 12,518 exporters. The biggest increase in status certification is seen in the 1 Star category, which is the lowest category and requires an export performance of at least USD 3 million in the last three preceding financial years plus the three months of the current financial year. "This will enable the government to handhold a larger number of small exporting entities and create a vibrant export ecosystem and help reach our export target of USD 2 trillion by 2030," it said. Commenting on this, the Federation of Indian Export Organisation said that now the certificate will be issued without any application and documents based on the details of shipment and e-BRC (bank realisation certificate) from banks online. "This is a major step toward reducing transaction cost and time and a further step in automation. Over 15,000 exporters will be benefitted from this facility which will get 1 Star to 5 Star recognition on a real-time basis," the organisation said.
Source: Economic times
The next round of negotiations for a trade agreement between India and South American nation Peru will start from October 10, an official statement said on Monday.The agreement is aimed at promoting bilateral trade and investments between the two countries. With the pact, the two trading partners will significantly reduce or eliminate customs duties on maximum number of goods traded between them.”A special round of negotiations for the India – Peru trade agreement is scheduled to be held virtually on 10-11 October,” the commerce ministry said. During the negotiations, the two sides will discuss different issues, including rules of origin, trade in goods, customs procedures and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures.”Discussions on services, movement of natural persons (professionals), trade remedies and investment chapter will be held later in the month based on mutual convenience of the negotiators,” the statement said.Negotiations for the agreement was started in 2017 and the fifth round was concluded in August 2019. The negotiations were paused due to the coronavirus pandemic.”It is anticipated that the agreement will significantly boost trade, investment and enhance cooperation in various sectors. The sixth round is slated to be held in December 2023 at Lima in Peru,” it added.During 2022-23, the bilateral trade between India and Peru stood at USD 3.12 billion. India exported goods worth USD 865.91 million to Peru and imported goods valued at USD 2.25 billion.Key Indian exports to Peru include motor vehicles/cars, cotton yarn and pharmaceuticals while Peru primarily exports gold, copper ores and concentrates.During the negotiations, the Indian track will be led by Chief Negotiator Vipul Bansal, Joint Secretary at the Department of Commerce, and the Peruvian track will be led by Gerardo Antonio Meza Grillo, Director for Asia, Oceania and Africa at the Ministry of Foreign Trade and Tourism.
Source: Financial express
A planned visit by British Prime Minister Rishi Sunak to India at the end of October is being linked to positive outcomes in ongoing negotiations between the two countries on a free trade agreement (FTA), people with knowledge of the discussions said on Monday.Indian and British negotiators are currently holding the 14th round of talks in New Delhi after having reached a broad understanding on 24 of the 26 chapters in the proposed trade deal, two of the people cited above said on condition of anonymity. If there is further forward movement in the discussions, Sunak is likely to go ahead with the visit, the people said. Neither side has officially confirmed or announced the visit, which is expected to begin on October 28. If Sunak goes ahead with the visit, it will be his second trip to India this year. Sunak, who was in New Delhi last month to attend the G20 Summit, and his Indian counterpart Narendra Modi had agreed at a bilateral meeting that their negotiating teams “would continue to work at pace” towards an FTA. A statement issued at the time by India’s foreign ministry said Sunak accepted Modi’s invitation for a bilateral visit at “an early, mutually convenient date”.If the visit goes ahead, Sunak is also expected to travel to Lucknow to watch the India-England game in the Cricket World Cup on October 29, the people said. While India and the UK have narrowed divergences on many matters in the FTA negotiations since last year, some contentious issues are holding up an agreement, the people said. The British side is seeking greater access to the Indian market for some five items, including dairy products, electric vehicles and Scotch whisky, the people said. On the Indian side, the sticking points include rules of origin for goods and mobility for professionals, the people said. In view of the British side’s reluctance to go beyond the current figure of about 100,000 work visas issued to Indians annually, the Indian side has pointed out that skilled workers in many sectors no longer need long-term visas as they are usually deployed for shorter periods of time, the people said. Besides the issue of business-related mobility, including allowing skilled workers to change jobs, the two sides have been able to reach a broad understanding on the two other clauses related to labour standards and green and sustainable business practices, the people said. “Some of the matters require interventions at the political level, which cannot be ruled out,” one of the people said, hinting at a minister-level intervention. A 30-member British delegation arrived in New Delhi for the talks shortly after the completion of the 13th round of negotiations in the UK. Commerce secretary Sunil Barthwal was in London last week for the talks. “Negotiations are now on in New Delhi,” the person said, adding the 14th round started immediately after the conclusion of the previous round. This was a pointer to the importance being given by the two sides to finalising an FTA so that Sunak’s visit could go ahead, the people said.“Both sides are attempting to close the remaining issues, such as rules of origin. Everything is at the closure level,” a second person said. Besides the FTA on goods and services, the two sides are holding talks on a bilateral investment treaty. “We can’t say the 14th round is the final round. Nothing is final till the FTA is finalised,” a third person said, pointing to how the two sides had missed earlier deadlines to conclude the trade deal by Diwali last year and by Holi earlier this year.
Source: Hindustan times
A 30-member official delegation from the UK will start the next round of negotiations for a free trade agreement with the Indian team here from Monday to close remaining issues so that the two countries conclude the talks soon, an official has said. Both countries have recently concluded the 13th round of negotiations. A team led by Commerce Secretary Sunil Barthwal was in London last week to give an impetus to the talks. The UK team dealing with investment-related matters is already here, and the talks for the proposed bilateral investment treaty (BIT) with finance ministry officials are progressing at a faster pace. “The 30-member team will be here tomorrow, and both sides are attempting to close the remaining issues, such as rules of origin. Everything is at the closure level,” the official said. The ‘rules of origin’ provision prescribes that minimal processing should happen in the FTA country so that the final manufactured product may be referred to as goods originating in that country. Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain the dumping of goods. The investment treaty is being negotiated as a separate agreement between India and the UK. These investment treaties help in promoting and protecting investments in each other’s country. The main point of contention involved in this pact is about the mechanism for the settlement of disputes. The BITs help in promoting and protecting investments in each other’s countries. India has proposed to first utilise all local judicial remedies for settlement of disputes before initiating an international arbitration. To provide duty concessions in the automobile sector, several rounds of consultations have been held with the domestic players in India. According to an expert, UK-based automakers like JLR, Bentley, Rolls-Royce, and Aston Martin cater to the luxury segment, while Indian manufacturers are mostly in the mass segment and are mainly dominated by small and mid-size passenger cars and two-wheelers. The Indian industry is demanding greater access for its skilled professionals from sectors like IT, and healthcare in the UK market, besides market access for several goods at nil customs duties. On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, lamb meat, chocolates and certain confectionary items. Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance).Alcoholic beverage industry body Confederation of Indian Alcoholic Beverage Companies (CIABC) directorgeneral Vinod Giri said that for Scotland Whiskey (bottled), India can consider reducing the import duties to 100 per cent immediately from 150 per cent and then 50 per cent in 10 years. Similarly, for bulk imports, the duties can be cut down to 100 per cent immediately and then 50 per cent in 10 years as the bulk imports are treated as intermediate goods in the domestic market. The Indian alcoholic beverage market is worth USD 52 billion. Replacing France, India became the top buyer of Scotch whisky by volume in 2022, according to the Scotch Whisky Association. The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.
Source: Daily Pioneer
INTERNATIONAL
Americhem Inc. has launched a global campaign called “Americhem, a Sustainability Enabler.” This campaign aims to increase awareness of sustainability and help key business stakeholders achieve their sustainability goals. “At Americhem, sustainability is our driving force. We are dedicated to creating a better tomorrow through our eco-friendly masterbatch and compounding solutions,” said John Richard, Americhem’s CEO. “Our mission is clear: minimize environmental impact, promote social responsibility, and foster innovation.” Americhem is focusing its sustainability efforts in three areas: Process, Product, and People. In the past few decades, the company has achieved many milestones in these areas. One example is Americhem’s Denmark plant which pioneered a Cold Pounding technology that reduces energy usage by up to 85 percent and cuts emissions by up to 20 percent in comparison to conventional compounding processes. The facility is also powered solely by wind and solar energy from RECs Certified suppliers. In the United States, Americhem is recognized as an Operation Clean Sweep® member, with many sites having pledged to achieve zero resin pellet, flake, and powder loss to help keep materials out of the marine environment. In addition, Americhem’s plants embrace recycling-compliant packaging, collaborating with customers for the reuse of packaging materials including plastic drums. On the product front, Americhem has developed numerous technologies that empower customers to attain their sustainability objectives. Solution Dyeing, a technology used in the carpet and textile production processes, eliminates the need for excessive water usage and reduces carbon emissions significantly compared to traditional dyeing processes. Americhem’s flagship additive masterbatch nBalance® allows Post-Consumer Recycled (PCR) materials, which have a yellow tint, to be restored to PET PCR that visually mimics virgin PET. This technology has been widely adopted by the food packaging industry, as it maintains the visual appeal for products like water bottles by ensuring clarity, while enabling recycling and enhancing sustainability. Americhem also offers natural-based color and additive masterbatch for the garment, renewable energy, and consumer goods industries. Americhem recognizes the significance of creating a sustainable environment for both its employees and the communities it serves. The company has been taking significant steps in its dedication to People Sustainability. By encompassing measures to enhance employee wellbeing through safety and health initiatives, fostering higher employee engagement through senior management efforts, contributing to charitable causes, and actively participating in volunteer activities, Americhem has noticed an overall increase in employee satisfaction. Looking ahead, Americhem is committed to making bigger strides in its sustainability journey. In addition to continuous improvement in manufacturing processes, the company plans to further enhance its product portfolio to include sustainability features in most products, develop new product lines for physical and chemical recycling applications, and establish ongoing Life Cycle Assessment (LCA) and Carbon Footprint Analysis on all products. While the campaign unfolds, the company plans to consistently provide updates on its advancements to key stakeholders and the broader public.
Source: Textile world
The American Circular Textiles Coalition (ACT) is calling on the Biden Administration to incorporate textiles into its plan to maximise federal purchases of sustainable products and services. As part of Biden’s Investing in America Agenda, the proposed Sustainable Products and Services procurement rule, unveiled on 1st August, aims to achieve net-zero emissions from federal procurement by 2050. It updates purchasing standards to prioritise sustainably made goods from US companies. Proposed through the Federal Acquisition Regulation (FAR) Council, this rule would reinforce directives for federal buyers to prioritise sustainability. It would also align federal purchasers with the Environmental Protection Agency’s recommendations for sustainable products and services across 34 categories and avoid purchasing products containing PFAS chemicals. ACT, a coalition comprising circularity-focused companies and brands like H&M and Reformation, submitted public comments to emphasise the inclusion of textile circularity in the rule. US textile waste has grown by 80 per cent since 2004, making it the fastest-growing waste stream. ACT believes integrating textiles into the rule can significantly reduce waste and greenhouse gas emissions while creating jobs and boosting the economy.
Source: Apparel resources
The sector is firmly focused on exports and, in 2022, these jumped by a fifth year-onyear to reach a record 44bn Moroccan dirhams ($4.25bn). Despite fierce international competition, the country is now Europe’s eighth-largest textile and clothing supplier. Even after the pandemic disrupted manufacturing and global demand, Morocco’s textiles industry still accounted for 15 per cent of industrial GDP in 2021 and 11 per cent of its exports, according to a recent report by the International Finance Corporation, part of the World Bank. So-called “fast fashion” accounts for 52 per cent of production. Predominantly, this involves the assembly of designs provided by wholesale and retail customers using fabrics, yarn and other accessories imported from countries led by Turkey — although there is increasing diversification. “Its proximity to southern Europe — specifically Spain — is a huge advantage given the speed of supply in fast fashion,” says Martin Stone, partner at Zenobia Intelligence, a business consultancy focused on the Middle East and north Africa. “Moroccan textiles make up most of brands like Zara and Mango’s garment supplies.” However, EU rules on what counts as “substantive stages of production” — depending on the sourcing of materials — constrain what can be exported free of duties in the Pan-Euro-Med trading zone. As well as its proximity and its logistical links to European end markets, the Moroccan textile industry also offers competitive labour costs, short lead times, and flexibility for small and medium orders, through its dedicated textile technology parks and industrial zones. It has had some significant ups and downs in past decades, though. In the 1990s, trade boomed when cheap labour was plentiful. But, then, with the rise of trade with post-Soviet eastern Europe, Romania’s textile industry — in particular — took much of the export market from the Kingdom. When customers such as the British retailer M&S left Morocco in the 2000s, factories closed. However, Morocco’s fortunes as a centre of clothing manufacturing changed again when Romania entered the EU as a full member. Many of that country’s workers gradually switched to other, better-paying industries, helping restore the cost competitiveness of Morocco’s More recently, the Covid pandemic has severely disrupted Morocco’s gradual fightback. Exports from the sector fell from Dh37bn ($3.6bn) in 2019 to under Dh30bn ($2.9bn) in 2020. They then clawed their way back to near pre-pandemic levels before a surge in 2022 to the record Dh44bn. Today, the textile sector today has 1,600 companies registered and, last year, they reached a turnover of Dh60bn ($5.6bn), according to the Moroccan government. Exports accounted for Dh40bn ($3.9bn) of this total, compared with Dh36bn ($3.5bn) in 2018. In July 2023, Ryad Mezzour, Morocco’s minister of industry and trade, told the country’s House of Representatives that there were 173 investment projects in the sector under way and that Morocco’s ambition was to boost exports further to Dh50bn a year. For the country, the textile sector is an essential source of foreign exchange, as well as a key employment provider. Figures differ but, according to the Moroccan Association of the Textile and Apparel Industries (AMITH), the industry employs around 160,000 workers, most of whom are women. Registered factories are frequently inspected by the government and also audited by buyers to ensure acceptable working conditions and production standards prevail. However, the sector has been embarrassed by the operation of illegal factories, based primarily around Tangier. In 2021, a factory owner was jailed after 28 workers died in the flooding of an illegal clothes factory concealed in a villa basement. It had been operating in the city for more than 20 years. For textile business owner Jorgin Poli — whose company supplies retailers including River Island and Monsoon, and who has been working in Morocco for 25 years — the long-established skill of the workforce is essential to the sector’s success. “They have a heart for the business,” he says. “The Moroccan workforce is very flexible: 95 per cent of our workers are women, and a lot of them are mothers but, even so, they will stay and work late to make sure the orders go out.” Even so, labour shortages are an issue for the factory owners, as better wages in other sectors make some workers look elsewhere. Other industries have become more popular among the young. For example, jobs in the expanding car industry are sought after as foreign investment comes in and salaries are raised. Morocco’s average textile factory wage is between Dh2,000 ($195) and Dh4,000 ($390) per month. This compares with an average of Dh7,200 ($700) per month for a car factory worker. Textile industry leaders remain concerned about its future and its rivals. China dominates world production, but Turkey is the rival that Morocco is targeting. The manufacturing of clothing for both local and export markets in Morocco uses large quantities of textiles sourced from Turkey. Fabrics, yarns and other raw material exports to Morocco increased by 30 per cent in the first six months of 2022. Also, in terms of local consumer sales, it is Turkish rather than domestic products that are omnipresent in Moroccan shops and markets. Factory owners want to be able to use more local Moroccan materials and accessories. Recently, the government has been investing in developing weavers and other raw material producers in the supply chain, but there is still some way to go. There are also new markets to be developed. “The industry is going to grow,” says Zakarraya Boukhari, managing director of BMS Clothing, which supplies retailers including Bravissimo, Evans, Bon Marche, M&S, Mothercare, John Lewis and River Island. “[But] we need to invest more in new technology, and we need government help to access new research and textiles and to participate in trade fairs like London and Paris,” he says. The sector also needs to search out new sales territories, Boukhari argues. “We should look to Africa. It is a new market, and it is the future market.”
Source: The ft.com
Traditional recycled leather is produced by combining shredded scraps and residual fibers of real leather with synthetic, non-biodegradable binders like PU and PVC. In contrast, the reProLeather project has pioneered a new approach. The technology developed by The Hong Kong Research Institute of Textiles and Apparel (HKRITA) with the support of H&M Foundation, employs bio-based binders and ecofriendly chemicals. As many industries are looking to minimize waste and save resources, the demand for recycled materials in the fashion industry has increased. However, recycling certain materials can sometimes be a tricky process, especially leather waste can be difficult to recycle. Much of the recycled leather contains harmful chemical residues, such as chromium VI, which result from the tanning process. These chemical residuals are carried through in the conventional recycling process. In an effort to enable a planet positive industry, by accelerating vital research and supporting breakthrough innovation to scale, H&M Foundation is collaborating with HKRITA in the program Planet First. One of the research projects, reProLeather, has resulted in a new technology to separate the chromium VI from the shredded leather fibers and create a bio-based, alternative to the PU and PVC binders, thereby creating a new form of recycled leather that is biodegradable and recyclable. The reProLeather successfully restructured post-consumer leather fibers into leather sheets in its research stage. HKRITA is now seeking industry partners to optimize production properties and enhance functions, paving the way for improved industry applicability in the future. Christiane Dolva, Strategy Lead at H&M Foundation, said: “As a philanthropic change agent for the entire industry, we take risks to unlock needed solutions with the ambition to find technologies that can contribute to a planet positive fashion future. I’m always open to share our findings openly with others, to find industry actors ready to adopt bold innovations and reProLeather could be one of these solutions. I hope to see it scale soon.”
Source: Textile world
