New Delhi: The government on Monday released the draft of the goods and services tax (GST) return forms as it looks to make the return filing process simpler for taxpayers. Taxpayers, who are seeking clarity in the tax filing regime, have been eagerly awaiting the tax return forms. The GST return forms are also crucial for tax authorities as they look to verify input tax credit claims and shore up tax revenues. The new tax return forms are likely to be notified for use starting 1 January 2019, though there may be a trial period in December. These return forms replace the complicated tax return system initially envisaged that required the filing of multiple forms adding to the compliance burden of both small and big taxpayers. Taxpayers will have to file a single return form monthly, which will be due for every month on the 20th of the next month. The return filing dates for taxpayers will be staggered based on the turnover of 2017-18 to ensure that the GST Network is not overburdened closer to the due date. Taxpayers who have no purchases, no output tax liability and no input tax credit to avail of in any quarter of the financial year can file one nil return for the entire quarter. As decided by the GST Council, taxpayers having a turnover of up to ₹5 crore in the preceding financial year can file a quarterly tax return though tax payments have to be done monthly. This will significantly reduce the compliance burden for small taxpayers. There will be a facility for continuous uploading of invoices by the supplier any time during the month and this invoice will be continuously visible to the recipient. Only an uploaded invoice would be a valid document for availing input tax credit. In case no invoice is flagged, invoices will be deemed to be accepted by the buyer. There is a process of reconciliation between the buyer and supplier and taxpayers will need to do credit matching to avail input tax credit. Invoices uploaded by the supplier by 10th of the next month will be auto-populated in the return of the supplier. This can also be viewed by the buyer. However, in case an invoice has been uploaded but the return has not been filed, it will be treated as self-admitted liability by the supplier and proceedings will be initiated against him. Archit Gupta, founder and chief executive officer of ClearTax, a tax and compliance software provider, said that since the monthly GSTR will be due on the 20th of next month, it will give taxpayers time to review invoices uploaded by sellers. “Since mismatch in invoices will cause credit blockage, taxpayers will choose to continuously review. While an offline tool for matching invoices has been proposed, taxpayers will need robust reconciliation and superior matching to continuously keep track of invoices uploaded and resolve situations of missing invoices. Credit blockages may be costly and impact working capital needs,” he said. Taxpayers have also been given an option for filing amended returns. Taxpayers can file two amendment returns for each tax period. Further, taxpayers can make payment through the amendment return saving on interest liability. However, invoices once uploaded by the seller and then locked by the buyer cannot be changed. Also, ineligible input tax credit has to be filed in the annual returns only and not in the monthly returns.
Source: Live Mint
New Delhi: The government on Tuesday sought Parliament's approval for additional gross additional expenditure of Rs 11,697.92 crore for the current fiscal. As per the first batch of Supplementary Demands for Grants, 2018-19 tabled in the Lok Sabha, the net cash outgo totals Rs 5,951,22 crore and gross additional expenditure aggregates to Rs 5,745.68 crore. Besides, the government has sought a token provision of Rs 1.02 crore for enabling re-appropriation of savings in cases of new service or new instrument of service. The government is seeking Parliament's nod to spend Rs 1,791.62 crore for the agriculture ministry, Rs 1,500 crore of the textiles ministry and Rs 1,057.84 crore for the defence ministry. The government is also seeking Rs 1,708 crore for the petroleum ministry. The money would be given towards grants for creation of capital assets under various schemes. Under the head 'technical supplementary demands for grants', the government has sought Rs 980 crore for infusion of equity in Air India under the "turn around plan". As per the document tabled in Parliament, the government has sought approval to spend Rs 463.31 crore for the Food and Public Distribution Ministry. Among others the amount would be used for creation of a buffer stock of sugar.
Source: ET Now News
The free trade agreement (FTA) between India and the 10-member ASEAN needs to be upgraded and expanded for the pact to deliver desired results, Vietnamese Ambassador to India Ton Sinh Thanh has said. “The India-ASEAN FTA has not led to as much expansion in trade between the two countries. There is definitely a need to upgrade it and both sides are considering it. There is a need to expand the agreement to include more products,” Thanh said, speaking at an interaction with the media organised by the Indian Women’s Press Corps on Monday. Stressing on the opportunities for an expansion in trade that existed between the two countries, Thanh said if trade was opened up, there was a possibility of bilateral trade expanding from the present $7 billion to $20 billion. Giving an example, the Ambassador said that Vietnam imported about $10 billion of fabric for its textile industry every year. “India has the capacity of meeting our demand for textile inputs. If trade is opened up, we could be importing a lot of this item from India,” he said. The trade deficit between India and the ASEAN has increased after the FTA in goods was implemented in 2009. According to industry figures, trade deficit has worsened account for approximately 75 per cent of India’s exports to ASEAN. Thanh pointed out that Indian investment in Vietnam was low and there was a lot of potential for it to increase. “We know that Indian companies invested about $40 billion outside the country last year. Of that only $100-150 million was made in Vietnam. However, we do expect levels to rise as big Indian companies like Mahindra and Adani are looking for opportunities in Vietnam,” the Ambassador said.
Source: The Hindu Business Line
The simplified tax return forms for the goods and services tax (GST) has done away with many columns asking for information difficult to be provided by small taxpayers, besides extending quarterly-returns facility for over 90% of the taxpayers. Also, nearly 30-40% taxpayers who declare ‘nil’ sales would now be able to file their returns via SMS. To avoid strain on the GST Network, the return-filing dates would now be staggered based on the turnover of the taxpayer. The due date for a large taxpayer (over Rs 5-crore turnover), who are required to file returns on a monthly basis, would be 20th of the subsequent month. The basic procedure for both quarterly and monthly returns is the same, which requires continuous uploading for invoices by suppliers. These invoices would be converted into liabilities for suppliers and be available for recipient as input tax credit (ITC). The new returns will profile the small taxpayers on the basis of a questionnaire upfront to ensure only relevant parts of the form is visible to the assessees. “For example, a small manufacturer or trader, buying and selling locally may need to file a return consisting of only a few lines. Profiling would allow fields like export, supplies to and from SEZ to be blocked from return and make return adequate for his purpose,” it said. Additionally, compliance related to reporting of missing and pending invoices, non-GST supply and ITC details on capital goods would not be required for quarterly return forms, as small taxpayers rarely need this. “This information shall be required to be filled in the annual return. Small taxpayers who would like to facility of missing and pending invoice may file monthly return,” the draft document said. Further, the quarterly forms have been divided into ‘Sahaj’ and ‘Sugam’. While the former would be for businesses making outward supplies only to businesses called B2B transactions and the latter is meant for outward supplies that are a mix of B2B and B2C (business-to-consumers) transaction. Such businesses constitute a very large part of the tax base, and therefore, two simplified quarterly returns are proposed for them. Even small taxpayers who file quarterly returns would need to pay their taxes every month and avail ITC on self-declaration basis. They would need to fill out a payment declaration form on the basis of self-assessed tax liability along with ITC. The draft document said the benefit of simplification would be on the compliance cost for small taxpayers, which would come down as payment declaration form is not a return and minor errors in the same would not lead to initiation of any legal action. “The issue for small taxpayers is the payment of tax has been fixed on monthly basis. Further, to ensure that the large taxpayers get their ITC monthly, the small taxpayers will also have to upload their sales invoices with the same frequency. Hence, the compliance level may reduce but not substantially for small taxpayers,” Parag Mehta, partner, NA Shah Associates, said. “After the due date for the filing of return is over, the recipient shall also be able to see the return filing status of the supplier and thus be aware whether the tax liability on purchases made by him has been discharged by the supplier or not.” the draft said. For both quarterly and monthly returns, the uploaded invoices alone would be considered for ITC. “While an offline tool for matching invoices has been proposed — taxpayers will need robust reconciliation and superior matching to continuously keep track of invoices uploaded and solve for missing invoices,” Archit Gupta, founder & CEO of ClearTax, said.
Source: Financial Express
The demand was made before the state industry commissioner officials in a meeting called to discuss the upcoming Textile Policy of Gujarat- 2018. The Southern Gujarat Chamber of Commerce and Industry (SGCCI) members on Monday demanded 50 per cent reduction in the power tariff rates of Surat textile industry. The demand was made before the state industry commissioner officials in a meeting called to discuss the upcoming Textile Policy of Gujarat- 2018. The SGCCI members shared a chart of the power tariff rates of Maharashtra, where it is between Rs 2 and Rs 2.50 per unit in the textile sector. In Gujarat, it is Rs 7.50 per unit. Head of SGCCI’s representative committee Hemant Desai said that due to less power tariff rates in Maharashtra’s textile sector, clothes woven there are much cheaper than those woven by Surat textile industry. “We have made strong representations to the government officials at Gandhinagar and they have assured us that they will forward it to the government in framing the new textile policy. We don’t want incentive or subsidy in new schemes, our demand is just clear reduction in power tariff rates. The machines used in the textile industry are old and require a lot of maintenance. The factory owners face many financial problems for their survival and even cannot upgrade the machines. If cheaper power tariff rates are provided to the industry, then the owners can spend money for upgradation of the machines,” Desai told The Indian Express. He added, “Power tariff is less in the state’s agricultural sector. The textile industry is also important for the state. So, something should be done to give a boost to the industry.” There are over 6 lakh powerloom machines, more than 350 textile processing houses and 60,000 trading shops in Surat, where around 18 lakh people are directly and indirectly associated with the industry.
Source: The Indian Express
The Centre has approved setting up of eight centres of excellence for enhancement of competitiveness in the Indian capital goods sector at a cost of Rs 169 crore. Union Minister of State for Heavy Industries Babul Supriyo said in Lok Sabha that Rs 86.5 crore has already been released by the central government to these eight centres of excellence. Supriyo said under the scheme, the IIT Madras will develop 11 advanced technologies for machine tools and production technology, the Central Manufacturing Technology Institute, Bangalore will develop high speed shuttle-less rapier looms and PSG College of Technology, Coimbatore will develop three welding technologies. The minister said during Question Hour that the IIT Kharagpur will develop seven manufacturing technologies, Heavy Engineering Corporation, Ranchi will develop five cubic metre hydraulic excavator and SiTare, Coimbatore will develop smart submersible pumps. The Indian Institute of Science, Bangalore will developadditive manufacturing for high performance metallic alloys and the IIT Delhi will develop textile machinery under the scheme, he said.
Source: Business Standard
Erode: Members of Association of All Textile Processors (AATP) on Tuesday petitioned the chief minister, Edappadi K Palaniswami, seeking common treatment plant (CTP) in Erode district. Erode East MLA K S Thennarasu, who is also president of AATP, told TOI that it was a long pending demandThere are more than 1,000 textile processing (dyeing) units across the district. Of them, 380 had recently registered with AATP. Many dyeing units were found to be discharging untreated effluents in the drainage or in the Cauvery. Tamil Nadu Pollution Control Board (TNPCB) officials usually take stern action against such erring units. It is in this wake textile processors have sought the state government to set up a CTP, similar like the one in Tirupur. Office-bearers of AATP had taken up the issue with ministers K A Sengottaiyan, P Thangamani and K C Karuppannan, recently. The ministers invited them to Chennai to meet the chief minister on Tuesday. The officebearers explained the issues faced by the industry and stressed on the importance of setting up CTP in the district. “We told the chief minister that the processing industry will flourish if CTP were to be set up in the district,” Thennarasu said. After receiving the petition, Palaniswami directed TNPCB officials to prepare a project report. The AATP members hoped TNPCB officials would form an expert team to prepare the project report. “The fund will be allocated by the state government after the project report is ready,” Thennarasu told TOI.
Source: Times News Network
Surat: Southern Gujarat Chamber of Commerce and Industry (SGCCI) has urged the Central Government to release the lapsed input tax credit to the textile sector. The SGCCI has stated in a letter that the textile Industry has imported latest upgraded machineries of huge value by paying, inter alia, IGST. Due to inverted rate structure, it was not possible to absorb the ITC of even inputs. So absorption of ITC of capital goods is too remote a thing to be considered. The SGCCI in its representation to the Central Government has stated that the issue of ITC of closing stock on July 31 appears to have escaped the attention. This is because there will be an output tax liability for the supplies made after July 31. Besides the units, which were unable to absorb the ITC in full, have not been able to even pass on the same to their customers. The writing off of such ITC balance will result in unbearable loss to them and a big setback for the industry. Denial of ITC will amount to discrimination between the units which have been able to absorb the ITC fully and those which could not. There are apprehensions that if in future any tax liability arises, an assessee will be compelled to make the payment again in cash in spite of having huge ITC balance, the SGCCI says in its letter
Source: Times News Network
NEW DELHI: Buoyed by an expansion in output of cement, refinery and coal, infrastructure industries grew to a seven-month high of 6.7% in June, official data showed on Tuesday. Core sector had grown 4.3% in May 2018 and 1% in June last year. The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, constitute 40.27% of the total industrial production. The higher growth could provide a lift to industrial production that had slowed to seven-month low of 3.2% in May. “The pickup in the growth of the core sector industries, automobile production and non-oil merchandise exports is likely to boost the pace of industrial expansion to around 6% in June, led by manufacturing and electricity,” said Aditi Nayar, principal economist at ICRA. Madan Sabnavis, chief economist at CARE Ratings attributed the growth to a low base effect as the goods and services tax was rolled out on July 1 last year and overall industrial activity was slow. Sabnavis expects factory output to rise above 5% for June. The core sector growth for May 2018 was revised up to 4.3% from 3.6% and is also expected to lift the overall IIP growth for that month as well from 3.2% estimated initially. Cement, refinery products and coal output rose 13.2%, 12% and 11.5%, respectively, on-year. Production of crude oil and natural gas declined 3.4% and 2.7%, respectively, in June.The expansion in the electricity generation was 4% in June compared with 2.2% in the same month of the last fiscal. Steel output, however witnessed a slower growth of 4.4% compared to 6% in June 2017. Fertiliser production slowed to 1% from 8.4% in May but showed a marked rise from a 2.7% decline in June 2017.
Source: Economic Times
Small units, big contributors
TN has developed a vibrant MSME presence across several key industriesMicro, Small and Medium Enterprises (MSMEs) are the backbone of any country, driving employment generation and GDP growth. In India, MSMEs manufacture over 6,000 products and contribute about 45 per cent to manufacturing and about 40 per cent to exports. This sector can help realise the National Manufacturing Policy target of raising the share of the sector in GDP from the current 16 per cent to 25 per cent by the end of 2022. Tamil Nadu has a strong and vibrant MSME segment across all the major industries, including textiles and garments, engineering products, auto-ancillaries, leather products and plastics. According to State government data, around 18 lakh entrepreneurs provide employment opportunities to about 114 lakh persons with a total investment of ₹1,93,704 crore. The State government has also announced a slew of initiatives to reinvigorate MSMEs. The most important is the Single Window Clearance Committee for the sector, at www.easybusiness.tn.gov.in/msme, launched in May this year. Entrepreneurs planning to set up a unit can get licences/approvals from various departments via this single window. These include the Directorate of Town and Country Planning, the Tamil Nadu Pollution Control Board and the Directorate of Industrial Safety and Health. The second most important initiative of the State government to help MSMEs is the Business Facilitation Act/Rules, 2018. This ensures the single-point receipt of applications to secure clearances required to establish or expand an enterprise, and in normal course of business, including renewals, in a time-bound manner. The Act also provides for an effective grievance redress mechanism and penalties in case the competent authority fails to act within a time frame.
Proactive steps
The Act covers 54 clearances, including pre-establishment, pre-operation, renewals and incentives. It provides for a three-tier institutional structure — District MSME Single Window Committee, State MSME Single Window Committee and MSME Investment Promotion and Monitoring Board — to monitor and review the progress of the single-window mechanism. At the Global Investors Meet in September 2015, an investment of ₹16,532 crore by 10,073 MSMEs was announced. As on March 31, 2018, 5,358 enterprises that had signed MoUs had commenced production with an investment of ₹6,182.03 crore, creating employment for 71,691 persons.
Source: The Hindu Business Line
Currently, CTIL has exposure to the cement, textiles, pulp and paper and real estate businesses Century Textiles and Industries' decision to demerge the cement business into UltraTech Cement and transfer the viscose filament yarn business to Grasim will help it reduce the debt and focus on textiles, pulp and paper and real estate businesses, a top company official said. Century Textiles and Industries (CTIL) in May this year announced plans to demerge its cement business into Aditya Birla group firm UltraTech Cement. The company last year also entered into a deal with Grasim Industries to manage and operate its viscose filament yarn (VFY) business for a period of 15 years. The agreement would provide Grasim the right to use the relevant assets of CTIL, however, the ownership of assets to remain with CTIL. Grasim would be paying Rs 6 billion royalty and a refundable security deposit of Rs 2 billion, to be done through internal accruals. "This will help the company in reducing its debt," CTIL vice chairman Kumar Managalam Birla told shareholders at the annual general meeting today. The company's debt is estimated at around Rs 41 billion at present. Currently, CTIL has exposure to the cement, textiles, pulp and paper and real estate businesses. Its VFY plant is located at Shahad, Thane, having a capacity of 25,000 tonne, which includes 19,000 tonne of VFY and 6,000 tonne in rayon tyre yarn. "CTIL has also decided to demerge 13.4 million tonne cement capacity to UltraTech Cement which will enable transfer of debt of around Rs 30 billion," Birla said, adding UltraTech is in a growth phase and the acquisition will give the company ready capacities in growing markets. Shareholders of CTIL will receive one share of UltraTech for every eight shares held. "This transaction will help the firm in deleveraging balance sheet and creating an opportunity for its growth in the remaining businesses especially in unlocking the value in the real estate portfolio," he said. Currently the company has around 30 acre in Worli area in the city, besides around 100 acres in Kalyan. It also has land parcel in Pune, which will be developed at a later stage, the company said. The company yesterday reported a net profit of Rs 1.62 billion for the three months to June, against Rs 1.20 billion in the year-ago period.
Source: Business Standard
Smitha Srinath always had a passion for handloom saris. “I was initiated into textiles by my parents, who loved handlooms. My mother and grandmother would always buy such saris and have discussions about the style it was weaved in or designed. So, subconsciously, I inculcated a love for handlooms and also learnt about Korvais, Madurai Sungadis and so on,” explains Smitha. Soon, she started receiving her own collection of Kanjeevaram or pochampallis. “I have an eye for design and colour,” adds the lady, who started curating handloom saris and had her first trunk sale nine years ago. She then started Maya, which sells only handloom saris in cottons and silks. “My first sale was with just a few saris. Later, as it grew in numbers, I started dabbling in silks and discovered that some of the designs, weaves and colour combinations were dying. That is when I started travelling to meet weavers in the South, working with them and reviving some of the traditional combinations and weaves,” adds Smitha. Showing us a silk sari, she says, “This one has a Ganga-Jamuna border. It comes with a double-sided pallu. Hence, the sari can be worn on both sides. We have revived these saris.” Then she shows us a dark blue sari saying, “It is called MS-Blue (dedicated to MS Subbulakshmi). It has a Korvai border in pure zari and has half diamond designs.” In a time of modern designs and colours, bringing out saris in traditional weaves and colours came with their sets of challenges. “Initially, when people came to Maya, they would ask for contemporary saris. I would be shocked as all I had were old designs in ancient colours and nothing modern. Now, they know what they get from Maya,” smiles Smitha, who adds that she is seeing a revival in handlooms as many women aged 20 years and above pick up such saris. She works with weavers in Arni, Rasipuram and Kanchipuram to name a few. “I visit them often and we work together to bring out saris in cottons, silk cottons and silks. “The trend in colours too has changed to bright yellows, pinks and oranges. So, when I ask the weavers for a midnight blue or a snuff colour, they look at me in disbelief saying that such colours have long been buried. Persuade them a bit and they are game for it.” Smitha studies the history of handlooms and updates herself about our past heritage. “We have a rich history in textiles and handlooms. People feel that they are expensive. But I feel that if the demand grows, so will the production and that will surely bring down the pricing.” To propagate handlooms, Smitha organises various exhibitions. Her next will be at Raintree on August 3 and 4. The cottons start at ₹600.
Source: The Hindu
Mumbai: Making a spirited comeback ahead of the RBI's policy announcement, the rupee gained 13 paise to close at a fresh two-week high of 68.54 against the dollar on expectations that the US Fed is likely to keep rates unchanged. Notwithstanding initial listlessness, the home currency staged a smart recovery towards the tail-end trade despite heavy month-end dollar demand from importers and corporates. The Reserve Bank of India's Monetary Policy Committee (MPC) for the third bi-monthly monetary policy statement will be unveiled tomorrow. A bearish dollar overseas also influenced the trading sentiment. The dollar index was down 0.10 per cent at 94.17. The US Fed was set to start its two-day policy meeting tonight but was widely expected to keep benchmark interest rate unchanged, experts said. On the energy front, crude prices softened over supply concerns after survey showed that OPEC production increased in July to its highest for 2018. The benchmark Brent was trading at USD 74.90 a barrel in early Asian trade. Earlier, the Indian unit opened lower at 68.70 from overnight level of 68.67 at the Interbank Foreign Exchange market. After trading within a narrowing wedge, the local unit bounced back to sharply and ended at the session's high of 68.54, showing a sharp gain of 13 paise, or 0.19 per cent. Yesterday, the rupee had settled lower by 2 paise. The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 68.6068 and for the euro at 80.3687. The bond market also rebounded and the 10-year benchmark yield ended lower at 7.77 per cent. In the cross currency trade, the rupee dropped further against the pound sterling to end at 90.21 per pound from 90.05 and also drifted against the euro to settle at 80.47 as compared to 80.22 yesterday. The local currency, however bounced back against the Japanese yen to finish at 61.50 per 100 yens from 61.84 earlier. The Bank of Japan today announced minor changes to its inflation projections. In forward market today, premium for dollar declined due to mild receiving from exporters. The benchmark six-month forward premium payable in November moved down to 97.50-99.50 paise from 100-102 paise and the far-forward May 2019 contract edged lower to 248.50-250.50 paise from 251-253 paise previously.
Source: The Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1348.90 |
USD/Ton |
3.14% |
7/31/2018 |
|
VSF |
2052.68 |
USD/Ton |
-0.71% |
7/31/2018 |
|
ASF |
3049.70 |
USD/Ton |
0% |
7/31/2018 |
|
Polyester POY |
1469.13 |
USD/Ton |
1.06% |
7/31/2018 |
|
Nylon FDY |
3416.25 |
USD/Ton |
0% |
7/31/2018 |
|
40D Spandex |
5131.70 |
USD/Ton |
0% |
7/31/2018 |
|
Nylon POY |
5534.91 |
USD/Ton |
0% |
7/31/2018 |
|
Acrylic Top 3D |
1689.80 |
USD/Ton |
0.88% |
7/31/2018 |
|
Polyester FDY |
3093.68 |
USD/Ton |
0.24% |
7/31/2018 |
|
Nylon DTY |
3152.33 |
USD/Ton |
0% |
7/31/2018 |
|
Viscose Long Filament |
1664.14 |
USD/Ton |
0.89% |
7/31/2018 |
|
Polyester DTY |
3518.88 |
USD/Ton |
0% |
7/31/2018 |
|
30S Spun Rayon Yarn |
2771.12 |
USD/Ton |
0% |
7/31/2018 |
|
32S Polyester Yarn |
2111.33 |
USD/Ton |
0.70% |
7/31/2018 |
|
45S T/C Yarn |
2859.09 |
USD/Ton |
0% |
7/31/2018 |
|
40S Rayon Yarn |
2932.40 |
USD/Ton |
0% |
7/31/2018 |
|
T/R Yarn 65/35 32S |
2507.20 |
USD/Ton |
0% |
7/31/2018 |
|
45S Polyester Yarn |
2243.29 |
USD/Ton |
0.66% |
7/31/2018 |
|
T/C Yarn 65/35 32S |
2448.55 |
USD/Ton |
0.60% |
7/31/2018 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
7/31/2018 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
7/31/2018 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
7/31/2018 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
7/31/2018 |
|
45S T/C Fabric |
0.70 |
USD/Meter |
0% |
7/31/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14662 USD dtd. 31/7/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
A delegation of the Embassy of Vietnam in Algeria, led by Ambassador Pham Quoc Tru, paid a working visit to Medea province, Algeria, on July 30. On the occasion, the Vietnamese Embassy also coordinated with the Chamber of Commerce and Industry of Medea to hold a seminar to introduce the potential of cooperation, trade and investment between the two counties. The event was attended by over 50 local businesses in various fields such as trade, industry, agriculture and tourism. Speaking at the seminar, Ambassador Tru emphasised that the two sides had great potential for cooperation in many fields from agriculture and industry to tourism, and expressed his belief that the two sides would strengthen their cooperation to contribute to raising the two-way trade in the future. Businesses in the province expressed their wish to learn more about the Vietnamese market, especially investment procedures and Vietnam’s policies on import tax. They stated that they expect to strengthen their cooperation with Vietnamese businesses to export key products, such as agricultural products (grapes, apples, olives, wine, and meat), pottery, textiles and footwear. President of the Medea Chamber of Commerce and Industry, Benrekia Mohamed, called on Vietnamese businesses to increase their cooperation and investment in such fields as mining and the processing of agricultural products.
Source: Vietnam News Agency
KARACHI: Federal government has notified guidelines for the textile and leather sector willing to avail the benefit of reduced rates of sales tax on import of finished goods effective October 1, 2018. According to the guidelines, traders of textile and leather goods will have certified electronic fiscal devices and specify the location of the business premises to prevent the misuse of the facility. The beneficiaries of the reduced rates will not start any business activity without obtaining an electronic fiscal device at the point of sale. Moreover, the traders are required to issue every customer invoices generated by the electronic device containing details of the transaction along with the tax payable and mode of payment. The users of the certified electronic devices will ensure to maintain the proper record that can be displayed printed and reproduced in an intelligible manner. These records must be stored in such a manner as to make them readily accessible for subsequent reference, the guidelines said. Every electronic fiscal device will have the feature to receive and transmit data to and from the Federal Board of Revenue (FBR) and the devices cannot reverse entered sales data or any other information.
Source: The International News
Sri Lanka is a key component of China's 21st Century Maritime Silk Road, with Hambantota Port and Colombo Port City as the two flagship projects of cooperation between the two countries under the Belt and Road Initiative (BRI), Chinese Ambassador Cheng Xueyuan s In a signed article released by the Chinese Embassy in Colombo on Friday, Cheng said the BRI was a major initiative proposed by the Chinese government and was aimed at upholding the global free trade system and an open world economy, Xinhua news agency reported. He said that leaders from the two countries reached a consensus on injecting new vigour to Sri Lanka's economic and social development, enabling development achievements to better benefit its peoples and letting ordinary people get more sense of the gain. Cheng further said that in November, China will hold its first China International Import Expo (CIIE) in Shanghai, which is the world's first import-themed expo and a major measure of China to further open its market to the world. The Ambassador said that Sri Lanka attaches great importance to this event and will send a high-level delegation to China. "Sri Lanka's black tea, rubber, gems textiles and other featured products will come to Shanghai, exhibiting the charm of Sri Lanka to the huge Chinese market. We believe that China-Sri Lanka traditional friendship will continue to deepen on this new platform," he said.
Source: SME Times
There is a huge potential for further collaboration between Bangladesh and India in the textile and apparel sector that can offer opportunities to both the countries, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) M Siddiqur Rahman recently said. He was speaking at a meeting of business leaders from both the countries in Dhaka. A 25-member delegation of Indian exporters of yarn and fabric led by chairman of the Cotton Textiles Export Promotion Council of India (TEXPROCIL) Ujwal Lahoti attended the meeting with Bangladeshi apparel exporters to strengthen trade relationship, according to a news agency report. Due to duty-free export of readymade garments (RMG), export to India last year was $279 million compared to $96 million five years ago, he said. He identified some challenges, including lack of capacity at the land customs ports, especially in Petrapole, and non-payment issues.
Source: Fibre2Fashion
Vietnam’s garment-textile export turnover is expected to hit 18.5 billion USD in the second half of 2018, bringing the year’s export value to 35 billion USD, 1 billion USD higher than the target set for the year, heard a press conference in Hanoi on July 30. According to CEO of the Vietnam National Textile and Garment Group (Vinatex) Cao Huy Hieu, enterprises need to build production and business strategies, focusing on using technologies in production, calling for investment and improving the quality of labourers. Garment firms were also advised to increase investment for design, and fostering original design manufacturing to increase added value for their products. They should also make great efforts to increase labour productivity, Hieu added. To reach double-digit growth in the year, Vietnamese garment-textile firms should adapt to the market situation in tandem with expanding sales domestically and diversifying products, he stressed. The country’s garment-textile export turnover hit 16.5 billion USD in the first six months of 2018, up 16.49 percent compared to the same period last year. Notably, garment items contributed 12.86 billion USD to the total, up 15.27 percent year-on-year. Meanwhile, the revenue from fabric overseas shipments reached 787 million USD, a yearly rise of 31.83 percent. Strong export growth was reported in most traditional markets for Vietnam’s textiles, including the US, the EU, the Republic of Korea (RoK), China, ASEAN and member nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Items with good growth in the period were fabrics, T-shirts, jackets and dresses. Vietnam is among the world’s five biggest garment-textile exporters and producers. Experts said Vietnam has many opportunities to expand in the field thanks to free trade agreements. The signing of the European Union - Vietnam Free Trade Agreement in 2018 is hoped to help Vietnam's textile and garment industry make deeper inroads into this market. In 2017, the garment-textile sector raked in 31.2 billion USD from exports, a year-on-year rise of 10.23 percent.
Source: Vietnam News Agency
Several years after textile industries in the country had gone moribund, the Federal Government has concluded plans to resuscitate the sector by supplying the needed raw materials -cotton to all industries across the country. Acting Director-General of National Biotechnology Development Agency (NABDA), Alex Akpa, who disclosed this to newsmen, during a press briefing, in Abuja, said Genetically-Modified cottons have been distributed to no fewer than 1000 large scale farmers across the nation. Akpan also explained that the National Committee on Naming, Registration and Release of Crop Materials at its 26th meeting in Ibadan approved the official registration of 2Bt Cotton varieties known as MRC 7377 BG 11 and MRC7361 BG11. Said he, “All textile mills have collapsed and there is no room to produce cotton. But presently, we have given 1000 GM cottons to farmers after it had undergone thorough verification by the Biosafety agency.” When asked if 1000 GM cottons shared to farmers is not too small, Akpan reiterated that the cottons were given to large scale farmers who can employ nothing less 150-500 workers, adding that ‘this is just the beginning and government is committed to increasing it soon. He continued, “It is just for a start and understand that 1000 farmers are large scale not small scale farmers. It is given to the major farmers who can employ 100 to 500 staffs not those who are down the line. “I think it is a good number to start with because it will be handled by massive industrial farmers who are fully mechanized and understand the process and if there is need to increase the numbers, we will.
Source: The Sun
The US has suspended duty-free benefits for apparel from Rwanda due to tariffs imposed by the East African country on used clothing and footwear imports it blames for harming the local textile industry. The proclamation by US President Donald Trump "suspends the application of duty-free treatment for all apparel products from Rwanda," the office of the US trade representative said in a statement yesterday. The now-suspended duty-free benefits came under the African Growth and Opportunity Act (AGOA), but "Rwanda remains eligible to receive non-apparel benefits available under" the measure, deputy US trade representative CJ Mahoney said in the statement. Affected products accounted for around three percent of Rwandan exports to the US in 2017, valued at USD 1.5 million, meaning that "the president's action does not affect the vast majority of Rwanda's exports to the United States," he said. Rwanda blames used clothing -- which mainly comes from the US -- for undermining the development of its local textile industry. In 2016, Kigali raised tariffs on the importation of second-hand clothes, disrupting a multi-million dollar industry and setting it on a collision course with the United States. Initially, the East African Community regional bloc was united in its battle against used clothes, but the alliance cracked as Kenya, Tanzania and Uganda balked at the prospect of retaliatory loss of access to US markets via AGOA. Rwanda alone did not capitulate and in 2016 its imports of used clothing dropped by a third.
Source: Business Standard
For now, at least, fallout from Sino-US hostilities has been limited because Chinese manufacturers have ways to get around added duties. Beijing’s retaliatory tariffs on US cotton will accelerate the offshoring of cotton spinning and lower-end textile and apparel manufacturing to South and Southeast Asia, and Chinese businesses are bracing for possible US tariffs on their finished goods if the trade war intensifies, industry executives have said. But for now, at least, fallout from Sino-US hostilities has been limited because Chinese manufacturers have ways to get around the added duties, said Stanley Szeto, chairman of the Hong Kong Textile Council. “So far the cotton tariff has had a very small impact on the Chinese textile industry because there are various ways to avoid it,” Szeto said, referring to the 25 per cent additional tariff on US products, including cotton that took effect on July 6. The Trump administration’s tentative 10 per cent tariff – pending a public hearing next month – on US$200 billion of Chinese merchandise has so far not touched the vast majority of China-made textiles and garments, except for fur and leather apparel and accessories like hats, gloves and handbags. “But the tit-for-tat trade war and possible coverage expansion of trade barriers will, however, see Chinese firms look more closely at relocating their manufacturing capacity across the supply chain to countries like Vietnam and Bangladesh … basically if the same product quality and delivery reliability can be attained in these nations at a 10 per cent cost advantage, they would have moved,” he said. Szeto – chairman of 62-year-old Hong Kong-based fashion producer Lever Style, which works with designer brands such as Paul Smith and J Crew – said his firm made only about half its output in China, down from 100 per cent eight years ago. Before the recently added 25 per cent duty, most US cotton sent to China had been exempt from import tariffs, which range from 1 to 40 per cent, depending on volume and prices. This so-called “processing trade” – where cotton is imported by factories, some of which is located in “bonded supervision areas”, and used to make products that are exported from China – is exempt from tariffs. According to the China Cotton Association, normal imports that did not fall under the processing trade, bonded supervision areas and other special customs categories – which are tariff-exempt provided no imported cotton is consumed in China – accounted for only 21 per cent of total imports last year. This is despite the processing trades being subject to supervision and quotas set by local governments, which are reducing low-value-adding and pollution-prone manufacturing to drive the creation of more skilled jobs and improve the environment. There is uncertainty about whether Chinese authorities will allow more processing trade quotas even as Beijing announced a substantial increase in cotton imports last month, said Bosco Law Ching-kit of Lawsgroup, a Hong Kong-based textile manufacturer with more than 20,000 workers in China, Bangladesh, Vietnam and Myanmar. “In view of the Sino-US trade war, whether [more] processing trade is acceptable by the Chinese government is in doubt,” said Law, the firm’s chief executive. Meanwhile, industry executives expect the tariffs to accelerate the relocation of Chinese cotton-spinning operations to Southeast Asia. Law said that regardless of tariffs, supply-chain adjustments were an ongoing exercise for Chinese producers given rising costs. “We are facing cost pressure all the time, not just because of tariffs but also labour and logistics costs,” he said. “Keeping operations efficient, sourcing materials with competitive pricing around the globe is the norm for all industrialists.”
Source: South China Morning Post
The Government is exploring ways of reducing the cost of production for the struggling textile industry. To this end, the State Department of Technical and Vocational Education and Training (TVET) is spearheading roundtable discussions with industry stakeholders to establish how to embed the sector into President Uhuru Kenyatta’s Big Four agenda. TVET Principal Secretary Kevit Desai said yesterday the meetings would explore the seed-to-shop challenges that limit growth in the sector, including the high cost of energy as well as lack of markets for industry players. “What needs to happen is that institutions such as the Kisumu Polytechnic, with its training and incubation hub, need to create the requisite skills to improve productivity,” he said during a roundtable discussion at the Kisumu Polytechnic. He said the Government was working on modalities of lowering the cost of production. Skills and competencies, he said, had been the bane of the industry, which was once one of the country’s top revenue earners. “The more capacities that exist within competencies, the more we are able to ensure that the right production techniques are utilised and this extends to marketing and value chains in terms of market systems and entrepreneurship models,” said the PS. The Sh1.5 billion World Bank-sponsored African Centre of Excellence in Textile housed at Kisumu Polytechnic, which is set to admit students from East Africa from next year, is seen as key in the drive by the East African Community countries to phase out second-hand clothes beginning next year. PS Desai said the centre would also help in research and innovation promotion. The textile and apparel sector is one the 25 intervention areas the Government is leveraging to realise the Big Four agenda by 2022. The plans to revive the textile industry coincide with a breakthrough in biotechnology cotton whose seeds are set to hit the market after successful trials in Kisumu. Indian firm Lakshmi Machine Works has modernised Eldoret-based Rivatex to enable the firm to compete globally.
Source: The Standard Digital
