image rotation

MARKET WATCH 08 AUGUST, 2018

NATIONAL

INTERNATIONAL

India doubles import tax on textile products, may hit China

NEW DELHI/MUMBAI (Reuters) - India doubled the import tax on more than 300 textile products to 20 percent on Tuesday as the world’s biggest producer of cotton tries to curb rising imports from China. It was the second tax hike on textiles in as many months after an increase on other products including fiber and apparels last month. The moves are expected to provide relief to the domestic textile industry, which has been hit by cheaper imports. India’s total textile imports jumped by 16 percent to a record $7 billion in the fiscal year to March 2018. Of this, about $3 billion were from China. The government did not disclose details of the 328 textile products that will be subject to the duty increase announced on Tuesday. Rising imports sent India’s trade deficit with China in textile products to a record high $1.54 billion in 2017/18, alarming industry officials as India had been until recently a net exporter of textile products to China. Sanjay Jain, president of the Confederation of Indian Textile Industry, told Reuters he did not expect China to retaliate to the Indian duty increases as it still has a trade surplus with India. He said India’s textile product imports could fall to $6 billion in 2018/19 as a result of the tax hike to 20 percent. India’s imports of textile products from Bangladesh, Vietnam and Cambodia also jumped in the last few years as they are not subject to any duty under free trade agreements (FTA) signed by India with these countries. The 20 percent duty will not be applicable to products sourced from those countries due to the FTA, Jain said. Industry officials say in the last few months Chinese fiber has been shipped to Bangladesh and processed and exported to India with zero duty. “Rules of origin need to be implemented for textile products. Otherwise Chinese products will land from other countries,” said a Mumbai-based garment exporter, who declined to be named. Jain said India’s textile and garment exports could rise 8 percent to $40 billion in 2018/19 due to a weak rupee and as the government is expected to introduce incentives to boost overseas sales. India’s trade differences with the United States have also been rising since President Donald Trump took office. India, the world’s biggest buyer of U.S. almonds, in June decided to raise import duties on almonds and some other U.S. imports by 20 percent, joining the European Union and China in retaliating against Trump’s tariff hikes on steel and aluminum. The increased tariff on U.S. goods will be applicable from Sept. 18.

Source: Reuters

Back to top

Government introduces four bills in Lok Sabha to simplify GST forms and hike composition limit

New Delhi: The government Tuesday introduced four bills to amend the Goods and Services Tax (GST) laws which among other things seek to simplify the return forms and raise the turnover threshold for availing composition scheme to Rs 1.5 crore. The Goods and Services Tax (GST) amendment bills are primarily aimed at helping the Ministry of Micro, Small and Medium Enterprises (MSME) sector and small traders, Finance Minister Piyush Goyal said while introducing the bills in the Lok Sabha. The Central GST (Amendment) Bill, Integrated GST (Amendment) Bill, GST (Compensation to States) Amendment Bill and Union Territory GST (Amendment) Bill are likely to be passed in the ongoing session of Parliament. Objecting to the introduction of the bills as part of a second supplementary list of business Tuesday, Congress member Sunil Jakhar said these bills have been "hurriedly brought" and would hurt the interest of MSME sector. He also alleged that Punjab is suffering on account of GST implementation and the Centre should have consulted stakeholders before amending the GST laws. Responding to Jakhar, Goyal said the government has held wide consultation with all stakeholders including Punjab and the changes are intended to help the small traders. He said the threshold for composition scheme is being raised from Rs 1 crore to Rs 1.5 crore and reverse charge mechanism has already been deferred to September 2019. Under the composition scheme, traders and manufacturers pay GST at a flat rate of 1 percent and file returns quarterly. Currently, over 17 lakh businesses have registered for the composition scheme as against over 1.10 crore registered under GST. He said the simplified GST returns forms - Sahaj and Sugam - will be introduced to bring about ease of doing business. The amendments are aimed at addressing the difficulties being faced by the taxpayers, especially MSMEs in filing returns and payment of taxes. "The proposed new return filing system envisages quarterly filing of return and tax payment for small taxpayers along with minimum paper work," he said. The amendments will allow employers to claim input tax credit on facilities like food, transport and insurance provided to employees. It also provides for separate registration of companies having different business verticals, cancellation of registration and issuance of consolidated debit/credit notes covering multiple invoices. As per the amendments, e-commerce companies will not have to seek registration under GST provided their annual turnover is less than Rs 20 lakh and are not required to collect tax at source under section 52.

Source: First Post

Back to top

Govt working out various initiatives for handloom weavers: Min

Union Minister of State for Textiles Ajay Tamta today said that the government is working out various initiatives so that handloom weavers can fetch due value for their produce. Various initiatives have been taken by the government for welfare of weavers, including Hathkargha Samvardhan Sahayata Scheme, under which the government assists them by bearing 90% of the cost of new looms, Tamta said, addressing the fourth National Handloom Day here. He said that weavers can avail MUDRA loan at 6% interest rate, under which margin money of Rs 10,000 is also provided. The ministry has entered into MoUs with Indira Gandhi National Open University (IGNOU) and National Institute of Open Schooling (NIOS) whereby children of weavers shall be able to avail school and university education, with 75% of fees being borne by the government. 21 e-commerce entities have been engaged for providing online marketing platform for handloom products, he added. Rajasthan Industries Minister Rajpal Singh Shekhawat said that handloom represents the old age culture of the country and the state government is implementing various schemes for development of handlooms. On the occasion, Sant Kabir Awards and National Awards for the year 2016 were conferred to the handloom weavers for their outstanding craftsmanship. State Awards of Rajasthan for the year 2017 were also presented. Commemorative Postage Stamps on five registered Handloom products -- Baluchari Saree, Bhagalpur Silk, Kashmir Pashmina, PochampallyIkat and Tangaliya Shawl -- were also released during the event.

Source: Business Standard

Back to top

Anti-dumping duty likely on nylon filament yarn from European Union, Vietnam

India may impose an anti-dumping duty of up to USD 719 per tonne for five years on imports of nylon filament yarn from the European Union and Vietnam following recommendations by the commerce ministry's investigation arm Directorate General of Anti dumping and Allied Duties (DGAD). Imposition of duty aims at guarding domestic manufacturers of this yarn from cheap imports coming from European Union and Vietnam Following complaints by five domestic players, the DGAD initiated a probe against alleged dumping of nylon filament yarn from the two regions. In its final findings of the probe, the directorate has concluded that the product has been exported to India from these countries below normal values and that the domestic industry has suffered material injury on account of such dumped imports. "The Authority recommends imposition of definitive anti-dumping duty so as to remove the injury to the domestic industry," the DGAD has said in a notification. The final view to impose the duty would be taken by the Finance Ministry soon. The suggested duty ranges between USD 128.06 per tonne to USD 719.44 per tonne. Import of this yarn from EU and Vietnam has increased to 13,799 tonnes during October 2015 – March 2017 (which was the period of investigation) from 7,201 tonnes in 2013-14. Five domestic firms including JCT Ltd, Gujarat Polyfilms Pvt Ltd and AYM Syntex had filed an application for initiation of the investigations. The major uses of this yarn are in home furnishing and industrial application such as curtains, sewing and embroidery thread and fishnets. To recommend duties, the DGAD in its probe would have to establish that dumping has caused material injury to domestic players. Anti-dumping duties are levied to provide a level playing field to the local industry by guarding against below-cost import. Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. Both India and China are members of the Geneva-based body. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters. They are not a measure to restrict import or cause an unjustified increase in cost of products.

Source: Money Control

Back to top

GST: Centre extends suspension of reverse charge mechanism by one year

New Delhi : In a business-friendly move, the Centre has extended the suspension of the reverse charge mechanism on purchase of goods or services by registered dealers from unregistered dealers within the state till September 30. The suspension was earlier valid till September 30 this year. However, this has been extended by one year. The suspension would now be valid till September 30, 2019, the Central Board of Indirect Taxes and Customs (CBIC) has said. This is not the first time such dispensation is being extended. This suspension was earlier available till March 31, 2018, and then extended to June 2018 and then to September 30, 2018. It has now been extended to September 30, 2019. With this, any registered dealer can purchase goods or services from unregistered dealers without forking out GST under reverse charge till September 30 next year, tax experts said. This move will bring significant compliance relief to large businesses and encourage them to buy from unregistered dealers, they added.

EXPERT TAKE

M S Mani, Partner, Deloitte India, said the decision to defer reverse charge on transactions with unregistered dealers to September 2019 would reduce the compliance burden for businesses. It could also lead to lower collections as it was a key anti-evasion measure within the original GST architecture, he said.

Source: The Hindu Business

Back to top

Rupee rebounds 20 paise vs dollar

The rupee made a spirited recovery from a two-week lowto end higher by 20 paise at 68.68 against the US currency on fresh bouts of dollar selling by exporters and banks. The rupee opened lower at 68.91 against 68.88 previously at the interbank forex market. It slipped further to hit a low of 68.93 in early deals before witnessing a strong trend reversal. It touched a session-high of 68.66 before ending at 68.68, revealing a gain of 20 paise, or 0.29 per cent.

Source: Financial Express

Back to top

Textiles minister meets IDT students, faculty at conclave

Union textiles minister Smriti Irani interacted with more than 125 students and faculty of the Institute of Design & Technology (IDT) at the first edition of Yarn Expo organised by the Southern Gujarat Chambers of Commerce & Industry. The students presented their token of respect, friendship bands made from yarn to the minister during the conclave. The design institutions in the country should work in synchronisation with the textiles industry, said the minister at the inaugural ceremony, adding that this conjunction will provide future opportunities to the market and unemployed sectors as well.

Source: Fibre2Fashion

Global Textile Raw Material Price 08-08-2018

Item

Price

Unit

Fluctuation

Date

PSF

1431.00

USD/Ton

3.16%

8/7/2018

VSF

2058.88

USD/Ton

0.14%

8/7/2018

ASF

3110.23

USD/Ton

0%

8/7/2018

Polyester POY

1533.21

USD/Ton

0.48%

8/7/2018

Nylon FDY

3402.27

USD/Ton

0%

8/7/2018

40D Spandex

5037.69

USD/Ton

0%

8/7/2018

Nylon POY

5512.26

USD/Ton

0%

8/7/2018

Acrylic Top 3D

1752.24

USD/Ton

0.42%

8/7/2018

Polyester FDY

3081.02

USD/Ton

0%

8/7/2018

Nylon DTY

3212.44

USD/Ton

0%

8/7/2018

Viscose Long Filament

1737.64

USD/Ton

0.42%

8/7/2018

Polyester DTY

3504.48

USD/Ton

0%

8/7/2018

30S Spun Rayon Yarn

2745.18

USD/Ton

0%

8/7/2018

32S Polyester Yarn

2234.11

USD/Ton

4.08%

8/7/2018

45S T/C Yarn

2905.80

USD/Ton

0%

8/7/2018

40S Rayon Yarn

2307.12

USD/Ton

0.64%

8/7/2018

T/R Yarn 65/35 32S

2453.14

USD/Ton

0%

8/7/2018

45S Polyester Yarn

2920.40

USD/Ton

0%

8/7/2018

T/C Yarn 65/35 32S

2511.54

USD/Ton

0.58%

8/7/2018

10S Denim Fabric

1.36

USD/Meter

0%

8/7/2018

32S Twill Fabric

0.84

USD/Meter

0%

8/7/2018

40S Combed Poplin

1.17

USD/Meter

0%

8/7/2018

30S Rayon Fabric

0.65

USD/Meter

0%

8/7/2018

45S T/C Fabric

0.70

USD/Meter

0.42%

8/7/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14602 USD dtd. 6/8/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

Trade Ministry Anti-Textile Piracy Committee ‘Dead’ – GTP

Print and textiles brand, GTP has taken a swipe at the Ministry of Trade and Industry describing the ministry's vetting committee as a 'dead' one. GTP said the vetting committee has failed in executing its core mandate of checking the importation of pirated textiles in the country. In May 2018, the Ministry of Trade and Industry set up a 12-member vetting committee to assist the Anti-Textile Piracy Task-force to check textiles piracy in Ghana. But according to Rev. Stephen Badu, Marketing Manager of GTP, the committee has failed as the smuggling and piracy of designs continues to be a disadvantage to local producers. “Anybody who wants to import textiles into the country is supposed to send the design to this vetting panel which meets periodically to be able to vet them”, he intimated. When asked how effective the committee is, Rev. Badu said “unfortunately no, I think perhaps we as GTP go there. So it's virtually a dead committee”.

The government set up Anti-Textile Piracy Taskforce

The government, through the Ministry of Trade and Industry (MOTI,) set up a task-force to check entry of fake textiles into the country. It subsequently inaugurated a twelve-member vetting committee to facilitate the work of the Anti-Textile Piracy Taskforce. The committee was to among things determine the authenticity of textiles impounded by the task force. The move came barely a month after the textile workers union hit the street to demonstrate against the inflow of counterfeit textiles. Textiles Piracy in Ghana The textile industry in Ghana is increasingly facing competition from cheap copies smuggled in from abroad, especially from China. Manufacturers complain bitterly about the invasion of pirated textiles due to what they describe as government's failure to eliminate the practice. The government instituted several interventions such as tasking Ghana Revenue Authority to bring all textile companies under the tax stamp programme to fish out the smuggled textiles and a single corridor policy for textile imports but to no avail. In some instances, the pirated products have been confiscated and destroyed.

Source: Modern Ghana

Back to top

China retaliation could impact U.S. down

Industry gets more time to comment on proposed Trump tariffs. As a result of the President’s decision to consider stepping up tariff increases, China announced additional retaliation lists of $60 billion worth of U.S. products that would face additional tariffs of 25%, 20%, 10% and 5%.Down material (HS 05051000) is listed as the first item on list of two facing a 20% additional tariff, according to HPFA legal counsel Robert Leo. Finished products in HTS Chapters 63 and 94 also face retaliation. “The lists are in Chinese, but the HS numbers are listed. HFPA members who export these products or any other products to China should be aware that these additional tariffs can become effective with little or no notice,” wrote Leo, a partner at Meeks, Sheppard, Leo & Pillsbury in New York. Leo also noted that the U.S. Trade Representative (USTR) has announced a new set of deadlines for public comments on the latest round of proposed Trump tariffs on Chinese imports. Late last week, the president instructed the USTR to “consider” increasing the third round of retaliatory tariffs from 10% to 25%. Because of the announcement, the USTR has extended the deadlines for the third round period for public comments.

The new 2018 deadlines are:

• August 13: Due date for filing requests to appear with a summary of expected testimony at the public hearing (extended from July 27).

• August 20-23: The scheduled start date of the Section 301 hearings (no change).

• September 5: Due date for submission of written comments (extended from August 17).

• September 5: Due date for submission of post-hearing rebuttal comments (extended from August 30).

HFPA members may submit their comments either directly to the USTR or through the HFPA.

Source: Home Textiles Today

Back to top

Waste reduction: Reusing and recycling textiles

It might surprise you to know that textiles make up a significant portion of the waste stream. “Textiles” refers to any type of fabric, including clothing, shoes, accessories, and linens such as sheets, blankets, pillows, towels and curtains. According to the U.S. EPA, 16.2 million tons of textiles were disposed of in 2014, or about 6.5 percent of total municipal solid waste. In Massachusetts, about 230,000 tons of textiles are disposed of each year. Almost ALL of this material could be reused or recycled instead, preventing it from ending up in landfills, and also reducing the amount of natural resources and pesticides used for growing cotton and producing synthetic materials. What can be donated/recycled: Textiles cannot go in your recycling bin, but they can be brought to retail and drop-off locations, in good or bad condition, to be either reused or recycled. Almost all kinds of textiles can be reused or recycled — clothing (including outerwear and undergarments), shoes, handbags, bedding, table linens, stuffed animals, pet beds, holiday costumes and more. See the full list at www.smartasn.org. Many retail and drop off locations will take textiles in ANY condition (worn, torn, stained) — anything not reused will be recycled. All items should be clean and dry, however. Where to donate/recycle textiles: Goodwill, Salvation Army, Savers, and Big Brothers Big Sisters (Hartspring Foundation) take textiles in any condition (they will recycle what can’t be reused), although they should be clean and dry. Salvation Army and Hartspring Foundation pick up donations if you call to schedule. The Northampton and Amherst Survival Centers, The Hospice Shop in Northampton, The Hospice Shop of the Fisher Home, and The Cancer Connection Thrift Shop accept donations of clothing in good condition — call first to make sure they have space. Textiles in any condition can also be left in donation boxes such as Planet Aid or Bay State Textiles. ALL Amherst Regional Public Schools now have textile donation boxes in front of the schools, sponsored by Bay State Textiles, so donation is fast and easy, and it also supports the schools! What happens to donated and recycled textiles? Generally, 45 percent of donated textiles are reused, 30 percent are cut up to use as industrial rags and polishers, 20 percent are recycled into fiber to use as furniture stuffing, carpet padding, home insulation and other uses, and 5 percent are unusable and discarded. Most stores and organizations sell reused clothing, although a few organizations actually donate it. Some reused clothing is sold locally or regionally, and some clothing is sold in developing countries, particularly in Africa. The next time you are going through old clothes, don’t throw away those dirty socks, ripped jeans, or stained shirts! Bag them instead and donate/recycle them. Same for old ripped or stained towels, tablecloths, sheets, and yes, even stuffed animals! Give them a second life as a rag or furniture stuffing rather than adding them to the landfill. Mimi Kaplan is the Waste Reduction Enforcement Coordinator for the town of Amherst.

Source: Daily Hampshire Gazette

Back to top

NC State named academic partner for Techtextil NA

Techtextil North America 2019, in Raleigh, NC, in February, will be the first edition to name an official academic partner – North Carolina State University’s College of Textiles serves as a hub for textile research and development and as a primary supplier to the industry talent pipeline nationwide. The College is internationally renowned as a leader in the field of textile education and innovation, and through industry collaboration, aims to be the global leader in textile public-private partnerships. “We are thrilled about this new endeavour and our first ever official academic partnership with North Carolina State University’s College of Textiles,” said Kristy Meade, Show Director, Technical Shows: Textiles, Sewn Products, Equipment and Technology at Messe Frankfurt North America. “Our goal has always been to create a unique experience for all who visit, and Techtextil North America is where professionals from across industries come to cultivate business relationships and learn about the latest developments, technologies and trends hitting the textile industry. Through our collaboration, Techtextil North America 2019 will serve as a direct link between innovators of industry and the next generation of textile professionals, and we hope to create an engaging environment that sparks new ideas, partnerships, and industry growth.”

Multi-faceted partnership

The partnership aims to benefit the university, the city of Raleigh, and the North American textile industry in a number of ways:

  • Utilise expertise from the College’s faculty and staff to provide top of the line educational opportunities for all Techtextil North America attendees
  • Provide exhibiting and visiting companies with direct access to the latest research coming from the world’s leading textile institution
  • Gain exposure for the College’s undergraduate and graduate research programmes and their industry contributions through special feature areas on the Techtextil North America show floor
  • Facilitate future careers and strategic partnerships through collaboration with the College’s Career Fair and show attendees
  • Shine a spotlight on the high level of global innovation and industry development coming from all levels of the North American Textile Industry

“The College of Textiles at NC State University is proud to be the first academic partner for Techtextil North America,” said David Hinks, PhD, Dean and Cone Mills Professor of Textile Chemistry, College of Textiles at NC State University. “Throughout our 119-year journey our College has been committed to catalysing growth and innovation across the entire textiles enterprise. Our world-renowned faculty and staff recruit and prepare the future leaders of our industry, conduct applied research and development, inspire entrepreneurs and provide comprehensive professional education and workforce development that attracts new investment locally and nationally. We are also committed to knowledge transfer and inspiring collaboration. Our partnership with Techtextil North America is an ideal way to achieve our joint goal of advancing the textile industry.”

Driving force of economic development

The College of Textiles offers hands-on, science-based textile education through two departments, Textile and Apparel, Technology and Management and Textile Engineering, Chemistry and Science. Textiles faculty have established interdisciplinary centres and institutes: The Nonwovens Institute and the Textile Protection and Comfort Center. The Zeis Textiles Extension department meets a high-demand for professional training and fabrication and testing services by offering programs for entrepreneurs and start-up companies as well as multinational corporations. The Nonwovens Institute (NWI), also located on the NC State campus, has experienced remarkable growth, opening a new 40,000-sq.ft. facility in 2017 for SpunMelt and Hydroentangling. While NC State continues to be a driving force of economic development in North Carolina, the state leads the nation in manufacturing of textile yarns and fabrics. In the past two years, companies from around the world have begun or expanded operations in rural North Carolina, bringing hundreds of new jobs and investing more than US$ 100 million.

Source: Innovation in Textiles

Back to top

Subscribe to SRTEPC mailing list

Exchange Rates