The government on Friday extended export benefits under the RoDTEP scheme to companies in the special economic zones (SEZs) and export-oriented units (EOUs). The commerce ministry said that amid global economic uncertainties and supply chain disruptions, extending RoDTEP benefits to the uncovered sectors like AA (advance authorisation), EOUs, and SEZ units will help the exporting community in handling the international headwinds. "The government has announced the extension of the RoDTEP scheme support to additional export sectors i.e. Advance Authorisation holders, Export Oriented Units and Special Economic Zones export units," the ministry said. This decision comes in recognition of the significant contribution these sectors make to India's exports, constituting about 25 per cent of the total shipment. The government, in August 2021, announced the rates of tax refunds under the export promotion scheme -- Remission of Duties and Taxes on Exported Products (RoDTEP) -- for 8,555 products like marine goods, yarn and dairy items. As SEZs and EOUs were kept out of the scheme in the list notified at that time. The industry was demanding to include them in the scheme. Under RoDTEP, various central and state duties, taxes, and levies imposed on input products, among others, are refunded to exporters. The current RoDTEP rates are in the range of 0.3 per cent to 4.3 per cent. Since its inception in January 2021, the scheme has already provided support amounting to Rs 42,000 crore to more than 10,500 export items, the ministry said. "In the current financial year, the scheme has a budget of Rs 15,070 crore with an additional increase of 10 per cent in 2024-25," it said adding that "keeping budgetary allocation in view, the extension of the scheme to additional sectors is presently till September 30, 2024". The extension is aimed at enhancing India's export competitiveness in international markets. Key sectors, such as engineering, textiles, chemicals, pharmaceuticals and food processing, stand to benefit from the measure. The primary goal of RoDTEP is to refund taxes and duties that are not rebated under any other scheme. This includes various central, state, and local duties/taxes/ levies that are incurred in the process of manufacturing and distribution of exported products but are not refunded through schemes like GST (Goods and Services Tax) or Duty Drawback scheme.
Source: Business Standard
Commerce and Industry minister Piyush Goyal has exuded confidence that during this fiscal, the country's goods and services export numbers will be at the same level; as it was last year despite slowdown and uncertainties in the global trade. He also said that the government measures such production-linked incentives schemes and focus on high-quality goods and services would help in containing the country's trade deficit. So our trade deficit will be significantly lower than last year. "I am happy to share with you that we close the current year in March at the same level as last year. We have a little bit of an adjustment between goods and services, but collectively we will be at the same level as last year, which will be a very, very significant achievement given that most developing countries and less developed countries are seeing a fall in their international trade," Goyal told PTI in an interview. Cumulatively, the country's merchandise exports in April-January 2023-24 contracted by 4.89 per cent to USD 353.92 billion. The estimated value of services exports during the ten-month period stood at USD 84.45 billion. In 2022-23, India's goods and services exports stood at USD 776 billion. The war between Russia and Ukraine; Israel-Hamas is impacting global supply chains and the Red Sea crisis has led to significant increase in transportation costs and delay as Indian exporters have to send their consignments through the Cape of Good Hope, encircling Africa. The minister said that India saw a scorching pace of growth in its international trade in the years between 2021 and 2023."We grew by 55 per cent over a period of two years, both in goods and in services'. It went up to USD 776 billion in only two years. And with growth on both goods and services, we could clearly see that this year is going to be one where we will have to consolidate the gains," he said. When asked if the government is thinking of extending some kind of support measures to exports to deal with the crisis, he said the approach of being dependent on the government to resolve all the problems is something that now Indian industry also does not really desire. "We have been able to change the thinking to bring the confidence in the Indian exporters that we should stand on our own feet. We should not be dependent on the crutches of the government. And I'm glad to share with you that they do not want the crutches of support anymore. "What we are doing is of course working through the military and the Navy to see that we can give protection to the ships traversing the Red Sea. We are also continuously in dialogue working with the countries in that region and with our own exporters, and very, very mindful and watchful of the situation," he said. When asked about the World Trade Organisation (WTO), the minister said it is "very" relevant and will continue to increase in its relevance as the world needs a rules-based trading system, which is transparent. "The understanding that is gradually creeping in that we will not allow ourselves to make the same mistakes that countries made in the rural ground, for example, in agriculture," he said. Certain quarters of experts are of the view that the WTO is losing its relevance as the member countries are not able to reach consensus on key issues. On March 1, the talks at the WTO's ministerial conference ended with no decision on key issues such as finding a permanent solution to public food stockpile and on curbing fisheries subsidies, but the members agreed to further extend the moratorium on imposing import duties on e-commerce trade for two more years.
Source: Business Standard
Gautam Nair is preparing to ramp up production at his clothing factory in Gurugram, betting on a surge of orders from brands like Marks & Spencer and Next as India pursues more free trade pacts with the rest of the world. Within three years, he expects Matrix Clothing Pvt Ltd.’s exports to the European Union and the UK to more than double from current levels. “The industry is very excited,” Nair, who co-founded the company, said by phone. Prime Minister Narendra Modi’s government is taking advantage of India’s growing appeal as the world’s fastest-growing major economy and an alternative to China for global supply chains to clinch a number of free trade pacts. India expects its deals with countries from the UK to Australia will help boost its manufacturing and soak up the tens of millions of young people entering the workforce in the years ahead. The latest, and among the most ambitious, was a trade and investment pact signed with four European countries, including Switzerland and Norway, on March 10. It signaled India’s readiness to take on commitments in areas such as labour, environment and sustainability and gender — topics it had shied away from in the past. It was also the first time India secured an investment commitment — of $100 billion over 15 years — in such a deal. India has now signed four FTAs in quick succession since 2021 after a gap of about nine years where no agreements were inked. The latest pact with the European bloc of countries, known as the European Free Trade Association, or EFTA, was hailed by Modi and comes just weeks before elections in which he’s seeking to extend his decade in power. Negotiations with the UK and Australia are likely to culminate after the Indian elections in April-May, while talks with Oman have already concluded and an agreement may be signed as soon as this month, people familiar with the matter said, asking not to be identified because the negotiations are private. The hope is that such deals will give a level playing field to India’s textiles sector, which comprise more than 14 per cent of the nation’s annual exports, employs over 45 million people directly, and contributes over 4 per cent to gross domestic product. Marine goods, auto and machine parts, chemicals, leather and footwear and gems and jewelery products are also poised to benefit. In a departure from its protectionist past, India is embracing trade deals in a bid to cash in on shifting global trade alliances. Companies from Apple Inc. to Samsung Electronics Co. have boosted manufacturing in India, taking advantage of production incentives offered by Modi’s government. “This is India’s big historic moment, probably its biggest opportunity on the world stage since India gained its statehood in 1947,” said Alex Capri, a lecturer at the Lee Kuan Yew School of Public Policy in Singapore. To seize that opportunity, the South Asian nation must plug infrastructure gaps and improve the ease of doing business by cutting down on over regulation, taxation and red tape. “Delhi is pulling out all the stops. They know they must fix this,” Capri said. Geopolitically, New Delhi has been forging deeper ties with Group of Seven nations. Now, it’s aiming to align economically as well in order to compete with countries such as Vietnam and Bangladesh that are also positioning themselves as alternative manufacturing destinations to China. The services sector, which makes up more than half of the nation’s GDP, is also expected to get a fillip. The trade deals will help India secure easier access for professionals in sectors including IT, health and accounting. For counterparts, India and its market of 1.4 billion people holds massive appeal. On the sidelines of the 13th World Trade Organization ministerial conference last month, EU Trade Commissioner Valdis Dombrovskis noted the “willingness to move forward when we know that traditionally India has been a relatively closed market.” Tim Ayres, Australia’s assistant trade minister, said early results from the interim trade deal showed strong outcomes for businesses and noted the two nations are working toward phase two. Yet for all that enthusiasm, roadblocks remain. India and the UK still haven’t resolved differences on issues including investment protection, social security agreements and market access for British apples and cheese.
Non-tariff barriers
At home, there’s pockets of resistance too. For instance, the confederation of Indian alcoholic beverage companies has expressed concern over opening up the market without getting reciprocal treatment. Vinod Giri, director general of the association, said while most of the focus of trade talks has been duty concessions, non-tariff barriers such as maturity requirements for whiskey in the UK and Europe have made Indian beverages uncompetitive. Giri said the UK law requires whiskey be matured for a minimum of three years, whereas in warm climates like India’s, whiskey matures 3-5 times faster than in the colder climates of the UK and EU. “Most of our whiskey is unable to hit those markets due to these barriers and we want them removed,” Giri said, adding that the longer maturation condition pushes up production costs by as much as 35 per cent. “As long as FTAs are fair and equitable, we have no problem.” And many are still finding it difficult to do business in India. While there’s a rise in the number of corporates mentioning India or Indian investment on earnings calls, that doesn’t always translate into commitments, said Deborah Elms, head of trade policy at the Singapore-based Hinrich Foundation. “In many cases, the obstacles to investment or development on the ground in India remain significant,” she said. “These gaps are creating problems for businesses, which means that the positive story around Indian prospects might not be delivered.” India’s government is aware of the challenge. It’s helping states simplify rules, decriminalising minor offences and repealing redundant laws. The government has also come out with a single window system to speed up the process of getting approvals and clearances needed by investors while cutting compliance burdens.
For Matrix’s Nair, he’s also tempering his optimism. Companies are wary, “because we have been waiting for a long time for the deals to happen,” he said.
Source: Business Standard
The Directorate General of Foreign Trade (DGFT) has granted an exemption to the import of certain goods, including viscose staple fibre and numerous steel items, from quality control orders (QCOs) under the advance authorisation scheme, which allows the duty free import of input goods that are physically incorporated in an export product. In other words, exemption from specified QCOs on the import of input goods has been granted only for use of those goods in exports and not in products manufactured for the domestic market. According to a notification issued last week, the exemption was first granted from QCOs published by the Ministry of Steel and the Department for Promotion of Industry and Internal Trade (DPIIT). On Monday, DGFT expanded the list to include QCOs published by the Ministry of Textiles.
The notification came almost two months after the Ministry of Commerce and Industry decided against a blanket exemption from QCOs for import of input goods under advance authorization in a meeting with industry representatives on January 10, as per documents accessed by The Indian Express through the RTI. The meeting was held to address issues faced by exporters regarding the availability of input goods subject to QCOs and “the requirement of foreign buyers who do not want Indian QCO products,” reveal file notings obtained through the RTI. During the meeting, DGFT, which is under the commerce ministry, also shared a draft amendment notification addressing the concerns of industry representatives, including those from export promotion councils. However, the ministry concluded that a “blanket exemption for imports against advance authorization from QCOs may not be appropriate”. Instead, he noted that “sector wise analysis of exports and share of exports made under advance authorization needs to be done before granting such exemptions,” and that line ministries examine “issues highlighted by user industry and try to resolve them w.r.t. availability of inputs for the industry”. The ministry also directed DGFT to make small sectoral committees to give recommendations in the matter, documents show. In a first such instance since the January 10 meeting, the recent notification exempts the import of input goods from QCOs, specifically those published by the steel ministry, DPITT, and the textiles ministry, only if imported under the advance authorisation scheme. In other words, the exemption is granted on a pre-import condition, which requires the imported input goods to be used only for the manufacturing of products that are exported. Additionally, exemption is also granted to export oriented units (EOUs) and units in Special Economic Zones (SEZ) under the same pre-import condition. The exemption is set to provide relief to exporters who were earlier facing issues with the availability of inputs from specific suppliers. “In many of the export shipments, the buyers also prescribe from where you have to import the material. For example, if you want to export a shirt, the buyer will sometimes tell you to source the fabric from a specific supplier. In that case, the exporter hardly has a choice. From the perspective of the supplier, if they are not regularly supplying to India on a large scale, they are not interested in going through the QCO process because it can take time. As a result, exporters were losing orders as they were not able to import materials from specific suppliers,” explained Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO). Exemption to QCOs is done in consultation with the concerned line Ministry & Bureau of Indian Standards (BIS) with clear safeguards like mandatory pre-import condition, non-diversion to domestic tariff area (DTA), heavy penalties in case of default etc.,” DGFT said in response to an email query sent by The Indian Express. “Any future coverage will depend on industry requirements and line Ministry views,” it added. Earlier this month, The Indian Express had reported on concerns raised by small- and medium-sized mills regarding lack of availability and uncompetitive pricing in the domestic viscose staple fibre (VSF) market as a result of the VSF QCO, which was published by the textiles ministry and implemented from March, 2023 onwards. Between April and December, 2023, India’s VSF imports fell by 65 per cent to Rs 582 crore compared to the previous year. VSF is a manmade cellulosic fibre widely used in the textile industry as an alternative to cotton. The textiles ministry has also published other QCOs, which cover various goods under the technical textiles segment. The South India Mills’ Association (SIMA), which is among various industry associations that have been advocating for QCO exemption under the advance authorisation scheme, said that the recent notification will help in boosting textile exports. “I thank the textiles ministry for considering the industry plea and permitting the import of BIS QCO mandated Viscose Staple Fibre under the Advance Authorization Scheme, in addition to allowing the imports by EOU/SEZ units, so as to enable them to meet the requirements of overseas buyers,” SK Sundararaman, Chairman of SIMA, said in a press release. “A similar notification for Polyester Fibre and its raw material products, for which QCO has been issued by Ministry of Chemicals and Fertilizer, is essential to enable the growth of the synthetic fibre sector, as the polyester is the future growth engine for the Indian textiles and clothing industry,” Sundararaman added. The DPITT has published multiple QCOs since 2020, covering products like safety glass, retro reflective devices, flat transparent sheet glass, footwear made from leather, rubber, and other materials, sewing machines, and specialised iron pipes. The steel ministry published a QCO on February 5 that covers 145 steel items of various kinds and technical specifications. The rationale behind QCOs is to regulate the import of inferior quality goods from all countries, but specifically from China and ASEAN countries, by mandating overseas manufacturing units to obtain a licence from BIS to export goods covered by QCOs into India. The obligation under the advance authorisation scheme to export input goods incorporated in manufactured products is within 18 months from the date of issue of the authorisation, as per the Foreign Trade Policy’s Handbook of Procedures. According to the recent notification, input goods that stand unutilised beyond 18 months are required to be destroyed by GST or customs authorities. Moreover, the advance authorisation holder is also required to pay “duties/taxes/cesses exempted along with interest on the unutilised exempted material plus composition fee of an amount equivalent to 10 per cent of the cost, insurance, and freight (CIF) value of unutilized imported inputs to DGFT”.
Source: Indian Express
The free trade agreement between India and the four European nation bloc EFTA will help boost trade and investments in the country in sectors such as engineering, pharma, food processing, and apparel, says the industry. India on Sunday signed a Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) under which New Delhi received a USD 100 billion investment commitment from these four European countries. The investment commitment by the companies of the grouping - Switzerland, Norway, Iceland and Liechtenstein - would be executed over a period of 15 years and facilitate creation of one million direct jobs in India. Industrialist and Tirupur Exporters Association President A Sakthivel said that the pact would help promote two-way commerce and help Indian apparel exporters increase their shipments. "The investment commitment will boost domestic manufacturing," Sakthivel said. Industry body CII President R Dinesh said that the "unique" pledge by EFTA members on USD 100 billion investment will help sectors such as engineering, pharmaceuticals, food processing, apparel and others to grow. "It will also help both sides to address third markets together," Dinesh said in a statement. Sharing similar views, trade expert and Hi-Tech Gears Chairman Deep Kapuria said that EFTA is an important trading block as it is amongst the top ten in the world in trade in goods and services. "EFTA also has an extensive network of FTAs. Currently, it has trade agreements outside the EU with more than 30 countries, which covers 41 countries worldwide. India's FTA with EFTA would help it in integrating with the wider world market," Kapuria said. He added that the EFTA countries are also a major source of outward investment, particularly in pharma, energy and medical devices. "Hence the FTA would also help India attract FDI from EFTA members," Kapuria added.
Source: Business Standard
Its objective is to incentivise and supplement the ef orts of industry in creating jobs in the organized textile and related sectors, covering the entire value chain of textiles, excluding spinning and weaving Samarth • Textiles Min carries out scheme
• Expenditure Dept under FinMin approved extension of scheme • It’s a demand-driven, placement-oriented umbrella skilling scheme The central government has decided to extend ‘Samarth’scheme for capacity building in textiles sector by another year. The scheme, carried out by the Ministry of Textiles, is now operational till March 31, 2024, official sources told Bizz Buzz, adding that it will be implemented within the original outlay of Rs390 crore. The Department of Expenditure under the Ministry of Finance has approved the extension of the scheme. Samarth is a demand-driven and placement-oriented umbrella skilling scheme, which was formulated under the broad skilling policy framework of the Ministry of Skill Development & Entrepreneurship. Its objective is to incentivize and supplement the efforts of industry in creating jobs in the organised textile and related sectors, covering the entire value chain of textiles, excluding spinning and weaving. The training programme and course curriculum were rationalised keeping in view the technological and market demand of the domestic and international economies, said officials. In addition to the entry-level skilling, a special provision for upskilling and re-skilling programme has also been operationalized under the scheme towards improving the productivity of the existing workers in apparel and garmenting segments. Samarth also caters to the upskilling and re-skilling requirement of traditional textile sector such as handloom, handicraft, silk, and jute. The scheme is implemented through implementing partners (IPs) comprising textile industry and other industry associations, State government agencies, and sectoral organisations of the Ministry of Textiles. The scheme is under implementation in most states and Union Territories. Samarth has been formulated with advanced features such as Aadhaar Enabled Biometric Attendance System, Training of Trainers, CCTV recording of training programmes, dedicated call centres with helpline numbers, mobile apps, Web-based management information system or MIS, and online monitoring of the training process. The State, district, and training centre-wise information and data in the dashboard are available in the public domain.
Source: Bizzbuzz
Due to various attractive schemes in the textile policy of Maharashtra, several textile units have relocated to Navapur in that state for power subsidy and other benefits, highlighted SGCCI former president and textile committee representative Ashish Gujarati With an eye on growth and sustainability, the new textile policy of Gujarat should be brought into force before the model code of conduct kicks in ahead of the upcoming Lok Sabha elections, industry leaders urged the state government Monday. S J Haider, Additional Chief Secretary of the Industries and Mines Department, and J P Gupta, Additional Chief Secretary of the Finance Department, held the meeting with a delegation of 20 representatives at Udhyog Bhavan in Gandhinagar on Monday. Representatives from various textile bodies across the state and the Southern Gujarat Chamber of Commerce and Industry, among others, attended the meeting. The state’s old textile policy, which was brought in 2019, expired on December 31, 2023, said people in the know. There has been a growing demand to bring in a new policy since then. Federation of Indian Art Silk Weaving Industry (FIASWI) chairman Bharat Gandhi said, “We have demanded a capital subsidy of 20 per cent, to be disbursed in five equal installments over five years. Investments in renewable energy for captive consumption should be included in the eligible fixed capital investment. Investments in the modernisation and expansion of weaving infrastructure will help the industry to adopt sustainability and ethical practices aligning with global consumer trends. It will also help to compete with the neighbouring state weavers who are getting substantial benefits from the respective state government.” He added, “We have also asked for interest subsidy of 6 per cent, with a clause stipulating a minimum of 2 per cent to be paid by unit. This will help to elevate the financial burden on the industry enterprises. We have also demanded power tariff reimbursement which should be Rs 3 per unit for low tension connection and Rs. 2 per unit for high tension connection. This will enhance the sector’s long-term viability and resilience and promote environmental responsibility. We have requested for the removal of caps on the subsidy amounts to ensure equitable benefits across all sectors.” Due to various attractive schemes in the textile policy of Maharashtra, several textile units have relocated to Navapur in that state for power subsidy and other benefits, highlighted SGCCI former president and textile committee representative Ashish Gujarati. He added, “We have demanded that after the new textile policy of Gujarat is announced, it should be implemented from January 2024. We have come to know that the government of Gujarat has made a draft of textile policy and after this meeting with the stakeholders, they will come up with a final policy.”
Source : Indian Express
Kolhapur: Ahead of the Lok Sabha election, state govt has decided to further subsidise the electricity bills for 13 lakh powerloom units across Maharashtra. The total amount of additional subsidy to be given towards the power bills will be around Rs 600 crore. The subsidy will be in place till 2028. The power supplied to the textile sector is already heavily subsidised. Powerlooms running on less than 27 horsepower (hp) motors will get additional subsidy of Re 1 per unit. Already, such powerlooms, which are also called simple powerlooms, get a subsidy of Rs 3.77 per unit. Now, the operators of simple powerlooms will have to pay only Rs 3.5 per unit after deducting the subsidy amount. For advanced powerlooms, which are run on more than 27hp motors, the additional subsidy amount is Rs 0.75 per unit. Stakeholders claim the subsidy has come at the right time as the textile sector has become more competitive. “The cloth we sell still costs more. Therefore, there is low demand across India as well as in the global markets. With the power being subsidised, textile operators will be able to make cloth at a lower rate. This would increase the sales. Almost 55% of the country’s textile industry is in Maharashtra. At the same time, it also provides the highest employment,” said Ichalkaranji powerloom association president Vinay Mahajan. hough textile operators are pleased with the decision, state govt has made it mandatory for powerloom operators to register themselves, something the operators have been opposing for many years. Govt is of the view that registration will avoid subsidising the wrong industries. “Registration is not necessary. It is in no way related to the subsidy issue. We have been opposing registration for a long time because of the possibility of unnecessary harassment by bureaucrats,” he said.
Source : Times of India
India’s retail inflation based on the Consumer Price Index (CPI) stood at 5.09% in February, roughly the same level as in January. The easing of price pressures in manufactured goods, however, has been steeper, with “core” inflation falling to 3.3% — the lowest in the current CPI series with base year 2012. The easing of headline inflation to a four-month low was helped by the statistical effect of a high base, as price pressures rose sequentially due to costlier food, data released by the National Statistical Office (NSO) showed Tuesday. In February 2023, CPI inflation was at 6.44%. Separate data released by the NSO showed factory output growth, measured by the Index of Industrial Production (IIP), easing to 3.8% in January from 4.2% in December, thanks to a high base effect. In January 2023, IIP had grown 5.8% y-o-y. The latest inflation print is largely in line with the consensus estimate. An FE poll of 17 economists last week projected the headline figure to come in at 5%. Despite easing price pressures, economists do not expect policy repo rate cuts in the nearterm, with many expecting the rate cut cycle to begin with the August policy review. The repo rate currently stands at 6.5% and has remained unchanged since February 2023. The average CPI inflation in January-February was 5.1%, and in order to be in line with the 5% rate for Q4FY24, projected by the Reserve Bank of India, the headline figure will have to ease further to 4.9% during March. But economists expect the March figure to come in at 5.1-5.2%. Food inflation increased to 8.66% in February from 8.30% in January. It remains the main driver of the headline figure, and is expected to do so in future. Meanwhile, within IIP, manufacturing output growth eased to 3.2% in January from 4.5% in December, while mining’s production growth rose to 5.9% from 5.2%. Electricity’s output growth came in at 5.6% in January as against 1.2% in December. On a month-on-month basis, manufacturing output declined 0.9% in January.
Source: Financial Express
Chinese companies exporting goods to European markets face higher shipping costs resulting from the ongoing Red Sea crisis, as per Fitch Ratings. This supply-chain disruption has less overall impact on Chinese exporters than in the pandemic years of 2021-2022, because of reduced external demand for Chinese goods and growing container shipping capacity, which is likely to expand further this year. Around 60 per cent of Chinese trade with Europe typically transits through the Suez Canal. Some vessels now face detours and heightened costs as they have to re-route via the Cape of Good Hope, lengthening the transit by 10 to 15 days. Shipping freight rates have increased, particularly for container shipping. Some smaller-volume goods have been shifted to rail, notably on the China-Europe railway line, where utilised capacity for goods transport from China to Europe has increased significantly from the pre-crisis level, as per the report. China-flagged ships, however, may have been less affected by the crisis, with press reports suggesting some vessels from Chinese shipping lines still travel via the Suez Canal. Major Chinese seaport operators have not experienced significant congestions or loss of volume at their ports. In addition, bulk cargo ports are less affected than container ports. Shipping costs are also significant for other major products Chinese companies sell to the European market, such as furniture, but Fitch Ratings expect exporters to pass through some additional expenses to customers, therefore mitigating the negative impact on profit margins.
Source : Fibre2fashion
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) – founded in 1977 -- stands as a cornerstone of the nation's economy, driving significant export revenue and providing employment opportunities for millions. However, amidst its successes, the industry faces many challenges that necessitate strategic resolutions from the upcoming new board. Efficient customs procedures are vital for the seamless flow of goods, reducing lead times, and enhancing competitiveness. Harassment by customs officials is a big issue for garments exporters. The new BGMEA board must have any policy for the modernization of customs facilities, leveraging technology to streamline processes and reduce bureaucratic hurdles. This entails implementing electronic data interchange (EDI) systems for paperless transactions, establishing dedicated clearance lanes for apparel shipments, and deploying risk-based inspections to expedite clearance for compliant businesses. Collaboration with relevant stakeholders, including customs authorities and trade bodies, is imperative to enact these reforms swiftly and effectively. A robust port infrastructure is indispensable for timely exports, yet Bangladesh grapples with congestion and inefficiencies at its major ports. A few months ago BGMEA urged port authority to enhance the port efficiency to handle export-import cargoes within the shortest possible time to reduce lead times. The BGMEA board should highlight more on investing in port expansion projects, upgrading cargo handling equipment, and implementing advanced logistics management systems. Moreover, the establishment of dedicated garment terminals can cater specifically to the needs of the apparel industry, offering priority berthing and expedited handling of garment shipments. By collaborating with port authorities and private stakeholders, the BGMEA can spearhead efforts to transform Bangladesh's ports into world-class trade gateways. The fluctuating availability of dollars for LC (Letter of Credit) settlements poses a significant challenge for garment exporters, affecting their ability to procure raw materials and meet international payment obligations. To mitigate this risk, the new BGMEA board should advocate for policy interventions to stabilize the availability of foreign exchange. This may involve negotiating with the central bank to ensure timely allocation of foreign currency for LC settlements, exploring hedging mechanisms to manage exchange rate risks, and fostering dialogue with financial institutions to facilitate easier access to dollar denominated financing for garment exporters. Encouraging new investments is essential for sustaining the growth momentum of the garment industry and fostering innovation and competitiveness. The BGMEA can play a catalytic role providing advisory services to potential investors, facilitating access to finance through partnerships with financial institutions, etc. Furthermore, fostering collaboration with research institutions and technology providers can stimulate innovation in product design, manufacturing processes, and sustainability practices, positioning Bangladesh as a leader in the global apparel industry.
Source: Textile Today
China has witnessed a notable 8.7 per cent increase in its goods trade during the initial two months of 2024, according to the latest figures released by the General Administration of Customs. Between January and February, China's international trade in goods achieved a new milestone, reaching 6.61 trillion yuan (approximately $930.96 billion). The country’s exports surged by 10.3 per cent to 3.75 trillion yuan (approximately $522 billion), with imports also showing a robust increase of 6.7 per cent to 2.86 trillion yuan (approximately $397.8 billion) compared to the same period last year. This period marks the fifth consecutive month of year-on-year growth, continuing the positive trend observed in the last quarter of the previous year, according to Chinese media reports.
Source : Fibre2fashion
