The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 1 DEC 2017

NATIONAL

INTERNATIONAL

Pending GST refunds, technical glitches continue to hold up exports

Five months after the roll out of the goods and service tax (GST) regime, exporters have pointed out that last mile, procedural issues continue to plague the sector due to the yet-to-be-updated filing systems and poor on-ground implementation of norms. Difficulties in filing for export refunds and a plethora of new regulations and changing norms which continue to make the process of exports difficult, the Federation of Indian Exports Organisations (FIEO) have informed the Commerce and Industry Minister Suresh Prabhu.

They have also pointed out that most issues still revolved around the unreleased tax refunds under GST-the most pressing issue among exporters. A staggering Rs 50,000 crore worth tax refunds are yet to be released by both the Centre and state governments, FIEO has said. "Exporters are absolutely in dark to know the status of their pending claim. The response given by the customs authorities is also very limited. It is, therefore, essential that a facility to view the status of refund may be provided so that the exporters are aware of the stage of refund and deficiency, if any." FIEO President Ganesh Kumar Gupta said.

He added that the port-wise breakup of pending refunds should also be made available in line with the system in place for pending duty drawbacks. In a recent interaction with Business Standard, Prabhu said that he has taken up the refunds issue with the Finance Ministry also pointing out that a long-term solution needed to be brought out to reduce the time period between the payment of taxes and the starting of the refunds process.

This is expected to bring down India's exports in November as exporters in a number of sectors such as apparel and engineering, among others, have been able to accept significantly fewer orders over the past three months. India's exports dipped for the first time in 15 months in October falling 1.1 per cent. Last month's trade deficit widened the most in three years to $14 billion.

On Wednesday, the Finance Ministry said in a notification that it has received Integrated GST refund claims worth Rs 6,500 crore in the first four months of the GST rollout. "Refund claims of IGST paid for exports made in August, September and October 2017 are being sanctioned seamlessly wherever returns have been accurately filed," it further added. On the other hand, a senior Finance Ministry official pointed out that claims are not being filed with proper forms and matching shipping bills. He added that businesses can upload the final sales return for August in GSTR-1 on the GST Network (GSTN) portal from December 4.

Faced with an acute shortage of funds owing to a lack of working capital, exporters are unable to file claims for the month of August under Table 6A due to technical glitches. "For the month of August, exporters are still not able to file Table 6A as initially. there was an error. Exporters have, however, already filed the GSTR-1 form for July."

In a number of cases, refunds have not flown into traders' accounts as shipping and airline operators did not file the online Export General Manifest properly. FIEO has demanded a system be worked out whereby traders are not penalised for any acts of omission by the logistics firm. “It is certainly good that the government acknowledges the delay in refunds. While the substantial reason for facing problems in the filing of data is not known, the government should look into the matters when the delay is for other reasons, if at all. It is hoped that the issues are addressed pragmatically to bring the export sector back on the growth trajectory,” said Abhishek A Rastogi, Partner at legal firm Khaitan & Co.

This is resulting in the refund settlement and exporters asking for a re-credit, T S Bhasin, Chairman of Engineering Exports Promotion Council said. But in the process, precious time is lost. For instance, for July, the re-credit would be paid along with August claims and thus the refunds keep on accumulating, he added. Also, FIEO President Ajay Sahai pointed out that the process for clearing pending input tax credit hasn't even started yet. Merchandise traders are also unable to file claims in some cases unable to file it as application forms such as the RFD-01A' application form is not available/activated on the GST common portal, FIEO said.

STORY: IN BRIEF

FIEO has pointed out the centre and state governments are yet to release more than Rs. 50,000 crore of GST refunds

Even as the industry faces a crippling liquidity crisis, technical issues have held up the claiming of refunds.

Traders have told the Commerce Ministry that late or filing of Export General Manifesto by shipping or airlines have held up refunds

For claiming input tax credit, application forms such as RFD-01A' is not available/activated on the GST portal.

Exports fell for the first time in 15 months in October, going down 1.1 per cent.

Source: Business Standard

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GST returns: Exporters claim Rs 6,500 cr refund of IGST, ITC for July-Oct

Exporters have claimed refunds of Rs 6,500 crore in the first four months of GST rollout, the government said on Wednesday, while asking them to file claims in proper form with matching shipping bills to facilitate early settlements. It also said that businesses can upload the final sales return for August in GSTR-1 on GST Network (GSTN) portal from December 4.

In a statement, the finance ministry said: "It is clarified that the quantum of IGST refund claims as filed through Shipping Bills during the period July to October, is approximately Rs 6,500 crore and the quantum of refund of unutilised credit on inputs or input services, as per the RFD-01A applications filed on GSTN portal, is to the tune of Rs 30 crore." The CBEC had last month started refunds for exporters of goods who have paid Integrated GST (IGST) and have claimed the refund based on shipping bill by filling up Table 6A.

Earlier this month, it allowed businesses making zero-rated supplies or those who have paid IGST on exports or those want to claim input credit to fill Form RFD-01A. It asked them to approach Chief Commissioner of Central Tax and the Commissioner of State Tax for the refund claim. The ministry said that of the IGST paid on goods exported, a majority of refund claims for exports made in July have been sanctioned. "Refund claims of IGST paid for exports made in August, September and October 2017 are being sanctioned seamlessly wherever returns have been accurately filed," it said. Exporters should file GSTR-3B, Table 6A of GSTR-1 on the GSTN portal and Shipping Bills on Customs EDI System, it said.

However, the statement said, the instance of errors are noticed in Shipping Bill number in GSTR-1, mismatch of invoice number and IGST amount paid and wrong bank account, which is delaying the refund process. "These errors are the sole reason for the delay in grant of refunds, or rejection thereof. While information has been made available to Exporters on the ICEGATE portal if they are registered, they may also contact jurisdictional Customs authorities to check the errors they have committed to furnishing information in GST returns and Shipping Bill, and rectify them at the earliest," the ministry said.

It asked exporters to ensure that there is no discrepancy in the information furnished in Table 6A of GSTR-1 and the Shipping Bill. It said that since Customs system automatically grants refunds without the involvement of any officer by matching information that is furnished on GSTN portal and Customs system, the onus is on the exporters to fill in all the details accurately. "Exporters may, therefore, take due precaution to ensure that no errors creep in while filing Table 6A of GSTR 1 of August 2017 and onwards," the ministry added.


In case exporters have committed errors in filling up July claim forms, they can make changes by filling up Table-9 of GSTR-1 of August returns, it said. For claiming Input Tax Credit (ITC), the ministry said exporters will have to ensure that all the necessary documents are submitted along with the Form RFD-01A for timely sanction of refund. "Exporters are advised to immediately file Table 6A and GSTR-3B, for processing of IGST refund; RFD-01A on GSTN portal for the refund of the unutilised ITC on inputs or input services used in making exports; and GSTR-1 for August 2017 for amending details provided in July GSTR-1," the ministry said. The government has taken various measures to alleviate the difficulty of exporters and is fully committed to provide speedy disbursal of refunds due to them, it added.

Source: Business Standard

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Adverse impact of GST on Apparel sector, MSMEs holds press conference raising concerns

New Delhi, Nov 29 (KNN) Apparels & Manufacturers Association (AEMA),Garments Exporters Association (GEA) and Textile Cluster (OGTC and Noida Apparel Export Cluster (NAEC) on Tuesday jointly organized a press conference on the adverse impact of GST on the Apparel Sector consisting primarily of Micro Small and Medium Enterprises (MSMEs) due to reduction in drawback and RoSL (Rebate of State Levies)in New Delhi.

Addressing the conference, PMS Uppal, President, Okhla Garment and Textile Cluster said that the textiles exports had declined for the period of July-October by 6% due to sharp reductions in the effective drawback and RoSL rates.

On the employment front he said that the apparel sector employs women in large numbers and further losses would force the sector to shed jobs in large number.

Vinod Dhawan, President, Apparel Exporters & Manufacturer Association (AEMA) said that the govt should incentivize the sector to boost the production and to counter the dwindling exports due to fierce competition from Vietnam and Bangladesh who have various cost advantages due to competitive wages. (KNN/AG)

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Cotton industry plans stir against GST on Dec 15

The Cotton Association of India (CAI) plans to go on a token strike on December 15 protesting against what they called the strain caused by GST and the reverse charge mechanism, in particular. In a statement on Thursday, the Association said that if the issue is not addressed at the next GST Council meeting, scheduled for December 21, it will go on an indefinite strike from the next day.

The action follows a recent joint meeting of the industry convened by the association, which has about 70 ginners as members. The meeting deliberated on the issue of Reverse Charge Mechanism which makes ginners responsible for the GST to be paid by farmers. This apart, the meeting also discussed the pending refunds from government to exporters since July after the GST roll-out, besides dwelling on the plight of the entire cotton industry.

Manjeet Singh Chawla, President, Madhyanchal Cotton Ginners and Traders Association, said ginners have to bear the GST of farmers as they do not pay the tax while selling cotton and this has led to blockage of ginners’ funds. Requesting the association to take up the matter with the government, he said the reverse charge mechanism on cotton has spoilt the relationship between spinners and ginners.

Omprakash Jain, President, Karnataka Cotton Association, said the ginners will be left with no option but to shut their operations if the issue is not resolved soon. BS Rajpal, President of the Maharashtra Cotton Ginners’ Association, said that RCM has been imposed only on cotton and not on other agriculture commodities which is totally unjust.

Manish Daga, Director, Cotton Association of India, said about 2,700 farmers are switching from cotton to other cash crops. This year, he said, cotton farmers have already suffered huge losses due to climatic conditions and pink bollworm problems. If the RCM continues, the cotton farming will substantially reduce in India and affect the whole textile sector, he added.

Ravinder Reddy, President, Telangana Cotton Millers & Traders Welfare Association, said cotton growers were badly affected by the pink bollworm attack, and the uncertain rain in Telangana.

Source: Business Line

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Cotton mills go slow on using Kochi port for trade

The increased prices for imported cotton seem to have prompted the Southern India Mills’ Association to go slow on its plan to facilitate import and re-export of containerised cotton through the Kochi Port.

High prices

“Right now the market is not conducive due to high international prices vis-a-vis domestic. It is expected to achieve a price stability in the next 3-4 months and imports will happen at this point of time,” G Radhakrishna, President, Coimbatore Cotton Association, said.

“Either local prices have to go up to match international prices, or global rates should come down to match Indian prices. We believe that the price balance will be achieved by April-May for the imports to be concentrated,” he told BusinessLine.

Coastal container route

The international cotton prices are now at ₹42,500 per candy delivered at Indian port, while the domestic price is around ₹38,200, he said.

However, he added that the association has started bringing cotton to Kochi through coastal container route from Gujarat utilising the facilities at ICTT Vallarpadam. “We are moving some containers to Kochi meant for the spinning mills located in Tirupur, Coimbatore, Salem, etc., from the western part of the country along with Tuticorin Port that caters to the mills in Southern Tamil Nadu,” he said adding that the first consignment of 50 containers of cotton bales have been brought from Mundra and Pipavav last week and more such shipments are lined up for the coming months.

Given the proximity of the Kochi Port to spinning mills in Coimbatore, SIMA and Indian Cotton Federation is toying up with the idea of importing and re-exporting of cotton through Kochi. Besides offering cost advantage, the closing down of Walayar check post after GST will also be an added advantage to them in ensuring faster movement of the raw material to the production units in the region.

Source: Business Line

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Skill India to train 20,000 youth in textile sector

About 20,000 youth across the country would be skilled by 2020 in apparel, made-ups and home furnishing sectors in collaboration with textile major Arvind Ltd, said Skill Development and Entrepreneurship Minister Ananthkumar Hegde on Thursday.

"We have started skill training of about 1,000 youth as the first batch in Bengaluru and will soon extend it in other cities through the National Skill Development Corporation under the Pradhan Mantri Kaushal Vikas Yojana," he said.

Arvind Ltd (formerly Arvind Mills) is the flagship company of the Ahmedabad-based Lalbhai Group and manufactures cotton shirting, denim, knits and fabrics.

As the second largest employment generator in the country, the textile sector has huge demand for skilled candidates.

The job roles, aligned to the National Skills Qualifications Framework, encompass training of candidates for three to six months. The skills are being provided at Arvind's nine training centres across the state.

"The youth will be trained to become specialised sewing machine operator, quality check executive in sewing line, packer, pressman and washing machine operator," said Hegde.

The training is open to all skill seekers, especially the unemployed youth in 18-35 years age group.

"Corporate India can be a major contributor to this nation-building exercise. The industry can utilise its expertise and provide relevant training to the youth in accordance with the demands," he said.

The training will enhance productivity and employability opportunities for the youth and provide ready talent pool to the industry.

"As inclusive approach is key to sustainable skill development,Acorporates can play pivotal role in bridging the demand-supply gap of skilled workforce," said NSDC Chief Executive Manish Kumar.

Source: Business Standard

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FICCI welcomes the draft textile policy of Uttar Pradesh

Welcoming the Uttar Pradesh government’s draft textile policy, the Federation of Indian Chambers of Commerce and Industry (FICCI) has said the draft includes many of the chamber’s suggestions, such as open access for existing as well as new units, capital subsidy for new and existing units over and above the technology upgradation fund scheme (TUFS).
All this would help in attracting investments in the sector in value added segments and generate employment, according to LK Jhunjhunwala, chairman of FICCI UP State Council.
Jhunjhunwala and SK Khandelia, co-chairman, FICCI textiles committee recently attended a meeting called by the state chief minister Yogi Adityanath to discuss the draft textile policy, said a press release from the industry chamber.
Some of the other suggestions by FICCI which the state government may like to consider include higher subsidy on electricity tariff, Rs 20 crore subsidy for each cluster or park in addition to the central government’s subsidy of Rs 40 crore, making raw materials like cotton available to the sector at competitive rates by setting off the high freight cost, a detailed plan for revival of sick textile units and a dedicated scheme for supporting skill development in garment making, processing and technical textiles, the press release added. (DS)

Source: Fibre2Fashion

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Global Textile Raw Material Price 2017-11-30

Item

Price

Unit

Fluctuation

Date

PSF

1347.28

USD/Ton

-0.56%

11/30/2017

VSF

2210.15

USD/Ton

0%

11/30/2017

ASF

2664.29

USD/Ton

0%

11/30/2017

Polyester POY

1332.14

USD/Ton

-0.56%

11/30/2017

Nylon FDY

3421.19

USD/Ton

0%

11/30/2017

40D Spandex

5979.51

USD/Ton

0%

11/30/2017

Polyester DTY

1665.18

USD/Ton

-0.45%

11/30/2017

Nylon POY

3633.12

USD/Ton

0%

11/30/2017

Acrylic Top 3D

5722.16

USD/Ton

0%

11/30/2017

Polyester FDY

1581.92

USD/Ton

0%

11/30/2017

Nylon DTY

3224.39

USD/Ton

0%

11/30/2017

Viscose Long Filament

2800.53

USD/Ton

0%

11/30/2017

30S Spun Rayon Yarn

2876.22

USD/Ton

-0.26%

11/30/2017

32S Polyester Yarn

2070.88

USD/Ton

0%

11/30/2017

45S T/C Yarn

2891.36

USD/Ton

0%

11/30/2017

40S Rayon Yarn

2210.15

USD/Ton

0%

11/30/2017

T/R Yarn 65/35 32S

2452.36

USD/Ton

0%

11/30/2017

45S Polyester Yarn

3042.74

USD/Ton

0%

11/30/2017

T/C Yarn 65/35 32S

2497.77

USD/Ton

0%

11/30/2017

10S Denim Fabric

1.42

USD/Meter

0%

11/30/2017

32S Twill Fabric

0.87

USD/Meter

0%

11/30/2017

40S Combed Poplin

1.22

USD/Meter

0%

11/30/2017

30S Rayon Fabric

0.67

USD/Meter

0%

11/30/2017

45S T/C Fabric

0.72

USD/Meter

0%

11/30/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15138 USD dtd 28/11/2017). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Global Crude oil price of Indian Basket was US$ 61.60 per bbl on 29.11.2017

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$ 61.60 per barrel (bbl) on 29.11.2017. This was lower than the price of US$ 61.92 per bbl on previous publishing day of 28.11.2017. In rupee terms, the price of Indian Basket decreased to Rs 3967.18 per bbl on 29.11.2017 as compared to Rs. 3988.73 per bbl on 28.11.2017. Rupee closed stronger at Rs. 64.41 per US$ on 29.11.2017 as compared to 64.42 per US$ on 28.11.2017. The table below gives details in this regard:

Particulars

Unit

Price on November 29, 2017 (Previous trading day i.e. 28.11.2017)

Crude Oil (Indian Basket)

($/bbl)

   61.60                       (61.92)

(Rs/bbl)

  3967.18                   (3988.73)

Exchange Rate

(Rs/$)

   64.41                       (64.42)

Source : PIB

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Pakistan : Government allows cotton import from India, but sets tougher rules

Government allowed cotton imports from India to meet the growing appetite of key textile industry, though it slapped tough set of rules for consignments from the neighboring country, officials said on Thursday.

“Pakistan is likely to start issuing permit for import of cotton from India through land route in a next few days under new tough conditions that may not fully ease already imposed restrictions on trade,” an official said. Pakistan, which is the world’s fourth largest cotton producing country, falls short of around four million bales a year to meet the local demand of nearly 16 million bales.

Officials said a permit from the Department of Plant Protection of Pakistan’s food ministry is mandatory, under the new phytosanitary conditions, for import of unprocessed cotton, including raw or seed cotton, cotton lint, linters, cotton waste and cotton stuffing from India.

The National Plant Protection Organisation would inspect and test the consignments according to appropriate procedures and to ensure the goods are free from biosecurity pests. “The goods must be clean and free of contaminant seed, soil and plant debris and other bio-security risk material prior to arrival in Pakistan,” the department said in a letter.

Pakistan used to import 0.5 to 2.8 million bales from India in the past, but the government suspended the import last year because of some objection of the Department of Plant Protection.  Naseem Usman, chairman of Karachi Cotton Brokers Association expected an import of around 0.7 million bales from India this year. Usman said textile mills have signed import contracts of 1.8 million bales from countries, including US, Brazil, South Africa and Middle East. Ihsanul Haq, chairman of Pakistan Cotton Ginners Forum, however, said the new conditions would not help in fully restoring cotton trade between the two countries. A senior textile ministry’s official, defending the government’s move, said tough conditions are indispensable to protect any threat to local cotton crop. “Due to flawed cotton ginning process in India, it has been observed that cotton seed was also found in the imported consignments,” he said, requesting anonymity. “This seed may contain diseases and also carry eggs of various insects and pests. So, it is important to allow import of cotton after going through all phytosanitary requirements.”

Usman argued that Indian cotton is good in quality, “while it would be convenient for us to buy from India, as delivery time is short and price is feasible.” Haq agreed that the cotton prices would also fall in the local market following the import from the neighboring country.  Textile mills have been long demanding restoration of cotton import from India, the world’s second biggest cotton producer, to meet shortfall in local production. All Pakistan Textile Mills Association (Aptma) also urged the government to immediately notify withdrawal of four percent customs duty and five percent sales tax and other non-tariff restrictions on import of cotton to enable the industry to meet its export commitments.

An Aptma official said the government should remove phytosanitary restrictions. The official said the government pledged to withdraw the import restrictions in the Prime Minister Trade Enhancement package in January. The department further said an Indian consignment arrived without valid import permit and phytosanitary certificate would be destroyed or deported. “The department reserves the right, if considered necessary to cancel the import permit even after issuance on detection of bio-security pests/risks or any other violation of import conditions,” it said. The department further said non-commodity concerns must be assessed, including container cleanliness, packaging and destination concerns, “and may be subject to inspection and treatment on arrival.”

Source: The News

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Sri lanka : Apparel industry lowers export target over delays in regaining GSP Plus

The apparel industry has set its sights lower for the medium term with a US $ 8 billion annual export target to be reached by 2022 over the delays in regaining the duty free access to the European Union (EU) via GSP Plus and due to the economic and political uncertainties in key Sri Lankan export markets.

Over the past two years, the Sri Lanka Apparel Exporters’ Association (SLAEA) had had a target of achieving US $ 8.5 billion exports by 2020. “Actually, we were expecting GSP Plus to come earlier and we needed to revise the target based on the changes in economic conditions,” SLAEA Chairman Felix Fernando told Mirror Business. There had been some delay in applying for re-entry into GSP Plus. The government had faced domestic unrest and criticism over recommitting to implement human rights conventions that Sri Lanka had signed in the past, to become eligible for the facility.

The unilateral duty waiver from the EU was reinstated this May after losing the trade benefits in 2010 over allegations of human rights abuses during the latter stages of the civil war.

Economists have pointed out that there would be challenges for Sri Lanka to regain the lost businesses due to the competitors with GSP Plus and other preferential benefits stepping in over the past six years. Also, weighing on is the uncertainty of retaining the GSP Plus facility, as during a recent visit to Sri Lanka to observe the progress of the reforms, an EU delegation noted that progress was slow and Sri Lanka cannot afford to sit back and relax after regaining GSP Plus.

The EU absorbed over 40 percent of Sri Lankan garment and textile exports and the loss of the GSP Plus facility had stricken a hard blow to the local apparel industry. According to the Central Bank, Sri Lanka’s apparel exports grew from US $ 2.5 billion in 2001 to US $ 4.2 billion in 2011 but from then till 2016, during the period of having no preferential access to the EU, apparel exports grew at a slow pace, reaching just US $ 4.9 billion. Fernando said that with regaining GSP Plus, the industry would surpass the US $ 5 billion mark for the first time in 2017. According to the Central Bank data, Sri Lanka’s apparel export earnings stood at US $ 3.7 billion for the first nine months of the year. However, over the first eight months of this year, apparel exports had fallen by 2 percent to US $ 3.1 billion, according to the Joint Apparel Association Forum (JAAF) data. Exports to the EU too had fallen by one percent to US $ 1.3 billion, although there was a double-digit growth in exports in July and August, due to the GSP Plus benefits.

Nevertheless, the effect of the UK leaving the EU by 2019 will have a negative impact on Sri Lankan exports, according to Fernando, if Sri Lanka and the UK could not enter a trade pact. “Of the exports to the EU, 43 percent goes to the UK. With the uncertainties around Brexit, the Sri Lankan authorities need to talk to the UK counterparts and we are not certain if both the countries will continue to offer the same trade facilities. Due to these uncertainties, it is imperative that we consider the other EU countries and especially Germany, where our presence is limited,” he said.The government in the past had indicated its interest in pursuing a trade agreement with the UK, although there has been no further indication of progress.

However, Fernando added that the silver lining is in the fact that all competitors will lose preferential access to the UK at the same time, ensuring a level playing field for Sri Lanka to compete.

He noted that the other key market, the US, is not doing well for apparel. “What we see is the US retail sector is not doing so well. There was a boost in exports but that was temporary,” he said.

This temporary phenomenon was seen in July and August 2017, though over the first eight months of this year, apparel exports to the US fell by 4.3 percent to US $ 1.4 billion, according to the JAAF. Fernando said that the industry has to expand its presence in non-traditional markets as well and that the Sri Lanka-China free trade agreement may help in this regard to enter into the Chinese market.

He noted that despite the export target falling, the industry will be attempting to exceed these expectations. Apparel makers seek GSP Plus entry for goods produced using ASEAN fabrics. The Sri Lankan apparel exporters are hoping for the EU to grant permission to source high-quality fabrics from the Association of South East Asian Nations (ASEAN) and export the goods produced using such under the GSP Plus scheme.

“To maximize the use of GSP Plus, the SLAEA, with our apex body, the JAAF, requested the Commerce Department to explore the possibilities of undertaking a joint request to the EU, between Sri Lanka and selected ASEAN countries to agree on cross regional accumulation for fabric,” Fernando said. Speaking to Mirror Business, he said that currently only the fabric sourced from South Asia or Europe are eligible for GSP Plus, although fabric sourced from the ASEAN is competitive, in both price and quality.

A sizable portion of high-quality apparel exports to the EU are therefore not eligible for GSP Plus, since these garments are made using fabrics sourced from China and Southeast Asia, Fernando said. He noted that to take advantage of an EU clause, which allows for applications for exemptions, discussions have taken place between Thailand, Indonesia and Malaysia to source fabrics. He noted that most of the fabric sourced from South Asia or even from within Sri Lanka, is of lower quality.

“Most of our top exporters don’t purchase fabric from this region. Sometimes, if we can, we buy from Hayleys or Textured Jersey, who have high-quality fabrics but they are for use in things like jerseys. For denim fabrics and undergarments, we don’t have a proper fabric producer,” Fernando said. European fabrics are of high quality but are expensive and incur higher logistical costs, he noted. He said that the EU has tentatively agreed to the arrangement between Sri Lanka and the three ASEAN countries but that it is now the responsibility of the Commerce Department to finalise and gain the facility for the exporters.

Source: Yarnsandfibre

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Dressmann set to become largest fashion retailer of Fairtrade certified cotton

Dressmann, Norwegian menswear fashion chains is set to become the world’s largest fashion retailer of Fairtrade certified cotton due to its commitment to source 100 percent sustainable cotton and launch of new range of T-shirts, boxer shorts and socks line made from Fairtrade certified cotton, making them the biggest player in the sector.

The company in an effort to improve social and environmental conditions across its entire supply chain is committed to source 100% sustainable cotton by 2025.

Chessa Nilsen, Sustainability Lead at Dressmann said that they are proud to be able to launch a range of clothing. The Fairtrade label will initially launch on basic garments that are always in store, but this is just the beginning of their journey with Fairtrade, and they plan to introduce more clothing lines in Fairtrade certified cotton by 2018.

The move will see the Norwegian apparel chain launch its new range of T-shirts, boxers and socks made from Fairtrade certified cotton in up to 500 stores across Europe in Norway, Sweden, Finland, Denmark, Iceland, Austria and Germany, making them the largest global buyer of Fairtrade certified cotton in the apparel sector.

Subindu Garkhel, Fairtrade’s Global Cotton Manager said that when big volumes such as these are traded on Fairtrade terms that Fairtrade can have a truly transformative impact on cotton farming communities and their environment across Africa, Asia and Latin America. They hope that Dressmann’s Fairtrade commitment will inspire other major fashion brands and retailers to follow suit and scale up.

In India, over 2,400 cotton farmers from Fairtrade certified cooperative Noble Ecotech have already benefitted from Fairtrade cotton sales. They have been able to purchase farm equipment, water tanks and school equipment for local children, and installed drainage in all fields, reducing their water consumption by approximately 40%, the company reports.

Farmers from Noble Ecotech plan to invest money earned from Fairtrade sales in establishing a centre for agricultural training, where they can learn about efficient farming and cultivation of other crops, as well as how best to produce natural fertilisers and pesticides.

Now, members of the Fairtrade-certified cooperative buys cotton seed in large quantities which they sell to farmers for a reasonable price. The cooperative buys all the cotton they grow and sells it for them. This means that individual farmers no longer have to chase buyers single-handedly. Before, they had to buy seeds and other farm inputs from local merchants each year and found themselves in spiralling debt to them.

Fairtrade cotton farmers in India will benefit from increased Fairtrade sales and plan to invest in education projects and increasing environmentally friendly production, the company reports. The farmers who grew their cotton have met Fairtrade’s rigorous social, economic and environmental standards.

Source: YarnsandFibers

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Canada's PSPC seeks apparel supplier's inputs on ethics

Public Services and Procurement Canada (PSPC) has sought inputs from apparel suppliers to develop guidelines for ethical procurement. As part of the proposal, suppliers selling apparel to the government will self-certify that they and their direct Canadian and foreign suppliers comply with local laws and international standards on labour and human rights.

The rights include freedom from child labour, forced labour, discrimination and abuse, and access to fair wages and safe working conditions, according to a press release from PSPC, the Canadian Government department responsible for internal servicing and administration. PSPC will meet with suppliers, industry associations and non-governmental organizations to discuss the self-certification requirement and current practices on ethical manufacturing and sourcing of goods throughout their supply chains. PSPC currently requires suppliers to provide information about the apparel's country of origin. Annual apparel contracts awarded by PSPC are worth $127 million. (DS)

Source: Fibre2Fashion

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ShanghaiTex 2017 focuses on smart textile solutions

Focusing on smart textile solutions, ShanghaiTex 2017, the 18th international exhibition of textile machinery, organised a series of technical seminars, product displays and design competitions. Consolidating the traditional textile manufacturing industry with the innovative technology, the ongoing fair is also a platform to grasp new business opportunities.

Experts from various countries discussed the latest smart solutions for the textile industry on the first day of the fair. Another show highlight was the 'Smart Factory & C2M Experience Zone' where visitors experienced the fast 3D body scanning technology, it only a few seconds to measure their body sizes for producing a perfect fitting business shirt.

Notes Luk, a visiting lecturer from the Hong Kong Polytechnic University, shared his views on the sports bra-ology. He gave constructive advices on comfort, support, shoulder strap design and function, indicating the broad prospects of the lingerie market. Focus group discussions were also held on sports bra.

At the fair, over 1,200 exhibitors from 26 countries and regions have kept on display world-class textile machinery and the latest technologies. One of the exhibitors, Xin Gang Textile Machinery, has showcased its innovative R&D product -- double needle bed wrap knitting machine, which is 2-3 times faster and more efficient than other congeneric machinery.

As the digital printing competence centre of the Bobst Group -- Mouvent made its first public appearance at ShanghaiTex 2017, showcasing groundbreaking digital textile printing solutions. Mouvent is dedicated to exploring, creating and delivering the future of digital printing.

As many as 21 young international designers from various backgrounds including textile, fashion, electronics and engineering participated in the Wearable Technology X Textile Design Competition. The competition was organised in association with the Hong Kong Polytechnic University, Shanghai University of Engineering Science, Zhejiang Sci-tech University and wearable technology company, Antelope.

The four-day trade fair will conclude on November 30. (RR)

Source: Fibre2Fashion

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