The textile industry has expressed shock and anguish over the withdrawal of four per cent incentive given under the Merchandise Export Incentive Scheme on made-ups and garments, with retrospective effect from March 7, 2019. Further, it was said that all incentives under MEIS that was granted to the exporters of made-ups and garments on exports till July 31, 2019 will be recovered. Expressing deep concern over the announcement, KV Srinivasan, Chairman of the Cotton Textiles Export Promotion Council, said withdrawal of MEIS with retrospective effect has caused deep crisis for exporters and has indeed come as a big shock. Exporters of cotton made-ups are already facing a tough situation financially due to the non-implementation of the Scheme to Rebate State and Central Taxes and Levies (RoSCTL). Nine months after it was first announced, the scheme to refund taxes announced to boost export of made-ups and garments is yet to be operationalised, he said. Further, MEIS of 4 per cent was also freezed for made-ups and garments from last August. Moreover, there are some pending claims under the erstwhile ROSL scheme which was discontinued from March 7, 2019. “Exporters are already facing serious working capital problems affecting their day-to-day operations,” said Srinivasan. While negotiating with the importers, Indian textile companies have factored in the 4 per cent MEIS incentive and RoSCTL scheme which together account for 8.2 per cent of export prices. Export orders have to be executed in the next nine months. With the removal of MEIS benefits, exports at the prices agreed upon will become uneconomical and exporters have to bear huge losses and start defaulting on their bank loans. Many of the exporters have also paid advance tax on their receivables as required under the Income Tax Act, which has further aggravated the problem. Scrapping export benefits with retrospective effect will make the new Textile Policy unrealistic. Any changes or modification of existing benefits should be with prospective effect, he said. Urging the government to restore the benefits, Srinivasan said exporters are already working against tough competition from Bangladesh, Sri Lanka, Vietnam and Pakistan notwithstanding the high import duties levied by the US, EU and China on shipments from India.
Source: The Hindu Business Line
New Delhi could also clinch a trade deal with Australia — an RCEP member – in the next 6-8 months, having revived talks that were stuck, he said. Formal talks with the UK will likely start after the Brexit, which is expected to be over by January 31. Piyush Goyal, Free Trade Agreements, European Union, UK, RCEP, World Economic Forum, Davos, RCEP talks Goyal’s comments assume importance as economic expansion is projected to crash to a 11-year low of 5% in FY20, hemmed in by a collapse in investment growth to just 1%.Commerce and industry minister Piyush Goyal on Thursday said India would hold talks with the EU and the UK to forge free trade agreements (FTAs). He, however, insisted that the China-dominated Regional Comprehensive Economic Partnership (RCEP) pact, in its present form, is an “unbalanced trade agreement which is really not fulfilling the guiding principles on which it started”. New Delhi could also clinch a trade deal with Australia — an RCEP member – in the next 6-8 months, having revived talks that were stuck, he said. Formal talks with the UK will likely start after the Brexit, which is expected to be over by January 31. Speaking at a session of the World Economic Forum (WEF) summit at Davos, Goyal also exuded confidence that the Indian economy is well-poised to take off and there is growing enthusiasm among foreign companies to invest in the country. At least four or five companies – some of them are big names – have said that over a half of their total workforce would operate out of India in the coming years, the minister stressed, without revealing the names of the firms. “Things have once again started showing an uptrend… The economy is well poised to take off from here,” he said. Goyal’s comments assume importance as economic expansion is projected to crash to a 11-year low of 5% in FY20, hemmed in by a collapse in investment growth to just 1%. Analysts are divided over green shoots in the economy, with many predicting a longer-than-usual cycle of slowdown. Also, world trade is witnessing heightened uncertainties. A trade war between the US and China and a collapse of the WTO’s dispute appellate system have only multiplied challenges for India that has been a staunch advocate of the multilateral trading system. Commenting on India’s pull-out of the RCEP talks in November last year, the minister said: “RCEP was effectively becoming an FTA between China and India. I don’t think India is ready to engage unless we see better transparency and a greater market access for Indian goods and services on a reciprocal basis.” India had pulled out of the RCEP talks in Bangkok on November 4 last year on the ground that its key issues, including extra safeguard mechanism to curb irrational spike in imports and tougher rules on the origin of imported products, were not addressed adequately. Of the 16-nation RCEP grouping, India already has FTAs with the 10-member Asean, Japan and South Korea. However, RCEP was supposed to be more ambitious than its existing FTAs. The presence of China in the grouping had reinforced fears of Indian industry about potential dumping. Interestingly, India has got an invitation from RCEP members to address its concern in meetings on February 3 and 4 in Bali, the first credible effort by RCEP nations to get New Delhi back at the negotiating table. The invitation has been extended by the Asean secretariat. On Wednesday, Goyal had said India was working on ways to have fairer and more equitable terms in its trade relationships with various countries. Even without the RCEP, India’s merchandise trade deficit with China stood at $53.6 billion in FY19, or nearly a third of its total deficit. Its deficit with potential RCEP members (including China) was as much as $105 billion in FY19. Indian industry fears trade deficit would only increase further without adequate safeguard tools and meaningful concessions from others.
Source: Financial Express
Surat: While the devastating fire in the Raghuvir Celeum textile market served as another wake-up call to the administration on fire hazards in textile markets, mill owners seem to be really singed by the loss their fraternity suffered in the recent inferno. More than 40 textile mill owners in the city areas have approached the state government for allotting them land outside the city limits for safe operations. For the purpose, the South Gujarat Textile Processors Association (SGTPA) has also identified about 20 lakh square metre land at Gabheni village outside the city limits for shifting the textile mills out of the city areas. The shifting of the textile mills will not only reduce pollution in the city areas, but also protect residents from fire hazards. President of SGTPA, Jitu Vakharia said, “We have been pursuing with the state government for the land on the outskirts of the city. We have identified government land in Gabheni village, located around 20km away from the city for setting up mills too.” Last year, the government had approved specified shifting zones for the industrial units with the addition of few provisions in the General Development Control Regulation (GDCR). The textile mill owners wanting to develop their factories in the special approved areas will get base floor space index (FSI) of 1.8 free, while 0.9 FSI will be chargeable based on the jantri rates. The textile mill owners are upbeat as the FSI for industrial units in city areas is only 1.2, whereas they will be getting a total of 2.7 FSI in the special nod areas located under the new development plan (DP) of SUDA. Keeping in mind the future development, provisions has been made to construct wider roads. To check the reservations suggested in SUDA DP 2035, a local level consultative committee has been formed under the chairmanship of SUDA president and Municipal Commissioner, M Thennarasan. About 65 textile mills are operating in the city’s residential areas including Khatodara, Udhna, Ashwani Kumar Road, Ved Road, Bombay Market, Puna Kumbharia etc. In these areas, Particulate Matter (PM10) levels is exceedingly high than the national annual average at 184 per micrograms per cubic meter of air (UG/M3) per annum.
Source: Times of India
Surat: The devastating fire at Raghuvir Celeum Textile Market on Puna-Kumbhariya Road a few days ago has brought into focus buildings with glass and aluminium facade, especially those in the textile markets of Saroli. Firefighters had a tough task recently extinguishing the fire at Raghuvir Celeum Textile Market because it had a glass and aluminium facade. Thus, builders, who constructed textile markets in Saroli with facade, have started to make drastic changes in decorative elevations. A few builders have started to change elevation of the markets with non-combustible material and also providing them proper ventilation and lighting. Out of 26 textile markets in Saroli on Puna-Kumbhariya Road, about 18 have façade design to make them look more decorative. Majority of builders had used aluminium sheets and glass in outer elevation. Surat Urban Development Authority (SUDA) has given 30 days to builders to make necessary changes in façade design and get it approved from fire and emergency services department of Surat Municipal Corporation. For the buildings under construction, the builders will be charged premium rate of Rs1,000 per square metre for outer elevation. SUDA chairman Banchhanidhi Pani told TOI, “By putting premium rate of Rs1,000 square metre for façade design, we are discouraging builders in going for outer elevation. Those who have done the facade will have to change the design to make the building safe. From now on, builders will have to specially register themselves for doing outer elevation. The fire and emergency services department will carry out a detailed inspection of the design of the facade.” Experts believe textile markets are vulnerable to fire hazards due to presence of highly inflammable polyester fabric. Design of textile markets must conform to National Building Code (NBC) guidelines and builders should stay away from creating decorative facade using aluminium and glass material, which are highly dangerous when fire breaks out. Dr Atul Desai, professor of civil engineering department of Sardar Vallabhbhai National Institute of Technology (SVNIT), told TOI, “Such elevations are done in western countries using glass due to heavy cold. Take the example of a car parked under the sun. If the temperature outside is 35 degrees Celsius, the actual temperature inside a closed car would be 45 degrees. Same is with buildings having decorative facade. Textile markets are ticking time bombs as they are stuffed with inflammable material in huge quantities. The facade makes matters worse in textile markets in case of fires.”
Source: Times of India
Indian minister for textiles and women and child development Smriti Irani recently said a textile unit would be set up in Jammu and Kashmir's Reasi district because of public demand. The unit would be set up after the district administration sends a request to the central government, she said while holding public outreach programme meetings in the district. Appreciating the enthusiasm of people towards Panchayati Raj (local self governance) and other democratic institutions, the minister said everything is possible with dialogue and public participation, according to a news agency report.
Source: Fibre2fashion
The rupee depreciated by 7 paise to close at 71.26 against the US dollar on Thursday as the spread of a deadly new virus from China spooked investors. However, softening crude prices and strong domestic equity market restricted the rupee's fall, forex dealer said. At the interbank foreign exchange market, the local currency opened on a weak note at 71.21. During the day, it swung between a high of 71.16 and a low of 71.35. The Indian currency finally settled at 71.26, registering a 7 paise decline over its previous close. "USD/INR Pair traded in range of 71.20–71.30, as markets looks out for new triggers rupee keeps trading in range but with weak bias due to corona virus being spread in China, which can dampen investment infusion. Rupee can be range of 71.20-71.35 in coming sessions," Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities said.
Source: Money Control
Bhubaneswar: Odisha Holds Apparel Investors Meet at Bengaluru. Odisha has created ample investment opportunities in the textile sector. To attract investments in this sector, State Govt had organised an Investment Meet at Bengaluru. Minister Capt DS Mishra interacted with entrepreneurs.
Source: Orissa Diary
The Clothing Manufacturers Association of India (CMAI) and IMG Reliance hosted the first Sustainable Resolution (SU.RE) B2B workshop on sustainable supply chain in Mumbai. The workshop was a step towards SU.RE initiative launched with 16 of Indian fashion retail brands at Lakmé Fashion Week in August 2019 supported by Ministry of Textiles & United Nations. Project SU.RE is a commitment by India’s apparel industry to set a sustainable pathway for the Indian fashion industry. The day-long workshop was exclusively conducted for senior supply chain and sustainability representatives from each of the 16 signatory brands. The workshop was driven by the objectives of discovering trends and innovations for sustainability in the apparel value chain globally and in India, connecting and forging new relationships with innovative stakeholders in the sustainability sector and creating a roadmap for SU.RE with short term to long-term sustainability goals and success metrics. The sessions focused on building a responsible and viable supply chain in terms of sustainable raw materials, chemical management, sustainable consumption and production, reduction of carbon footprint and technology; the sessions concluded with a discussion of fashion brand case studies. The United Nations Development Programme (UNDP) addressed building a responsible and viable supply chain. They focused on the restorative and regenerative role of circular economy in fashion and addressed the social, economic, and environmental aspects of the 17 SDGs. C&A Foundation spoke about their initiatives towards ensuring sustainability across the apparel value chain. C&A Foundation works with change-makers all over the world and gives them financial support, expertise, and networks that help accelerate their impact. Global Organic Textile Standard (GOTS) addressed issue of sustainability and chemical management in textile processing. Setting the roadmap for the future Circular Apparel Innovation Factory (CAIF) shared their inputs on goal setting and future course of action for SU.RE. India’s first study on sustainability is underway by The Voice of Fashion, the online fashion and design magazine. The Positive Fashion Survey will study and document consumer awareness, communication, commitment and clarity on sustainability issues as well as Indian fashion brand’s commitment, choices, solutions, and challenges in the implementation of sustainability. The 16 signatory brands were a part of this survey. “The agenda of the first SU.RE workshop was to persuade some of the top brands to partner together and create a resolution to shift the industry to a more sustainable supply chain. This would be a very crucial first step in making the world slightly cleaner and slightly better for the future generations,” said Rahul Mehta, chief advisor, CMAI. “Sustainability has always been at the centre of all our objectives and it is a matter of great privilege for us that an initiative of this magnitude was pioneered at Lakmé Fashion Week. The first SU.RE workshop is an organic extension of the resolution and we look forward to continued engagement with brands to help them achieve their SU.RE goals by 2025,” said Jaspreet Chandok, head - lifestyle businesses, IMG Reliance Ltd. The closing remarks were given by Mehta and Chandok who addressed the forum and workshop as a beginning of immense work that will be done in the field of sustainable fashion in the years to come and expressed belief in the participating SU.RE members to be the torchbearers for the other industry stakeholders. The 16 signatories of India’s top fashion and retail brands are Aditya Birla Fashion & Retail, Arvind Fashions, Bestseller, Biba, Future Group, House of Anita Dongre, 109F, Lifestyle, Levis, Max, Raymond, Shopper’s Stop, Spykar, Trends, W and Westside. Lakmé Fashion Week is jointly organised by Lakmé, the cosmetics and beauty services brand in India and IMG Reliance Pvt Ltd, leaders in sports, fashion and entertainment marketing and management. Lakmé Fashion Week has been conceived and created with a vision to ‘Redefine the future of fashion and Integrate India into the global fashion world’. Lakmé Fashion Week is organised twice every year. IMG Reliance Pvt Ltd is an equal joint venture between Reliance Industries Limited (RIL), India's largest and most recognised private sector company, and IMG Worldwide (IMG), global leaders in sports, events, media and fashion. The joint venture company develops, markets and manages sports, fashion and entertainment in India.
Source: Fibre2fashion
Turkish textile exporters recently organised a fair, ‘I Of The World’, in the United States to promote the country's textile products. Thirty two firms participated in this first-ever two-day event organised by the Istanbul Textile and Raw Materials Exporters’ Association (ITHIB). Turkey is the sixth-largest textile supplier in the world and the 10th in the US market. Turkish deputy trade minister Riza Tuna Turagay stressed that the United States is a significant and major market for Turkeys’ textile industry. While annual US textile and apparel imports are worth around $100 billion, Turkey has its share with nearly $1 billion worth exports to the United States in these sectors, he was quoted as saying by a Turkish newspaper. The figure does not reflect the potential of Turkey, of which textile and apparel exports are around $29.5 billion yearly, he added.
Source: Fibre2fashion
ISLAMABAD: The draft of Pakistan Textile Policy for 2020-25 with four tier strategy and 21 recommendations is all set to be pitched any time before the ECC (Economic Coordination Committee) for approval. It will try to increase the country’s textile exports target by 2025 to $25.3 billion and $50 billion by 2030. It was $13.33 billion in 2018. The Pakistan Textile Policy draft, available with The News, also narrates a clear roadmap to achieve the textile export targets along with vision to fully utilize the potential of home-grown cotton augmented by Manmade Fibre/Filament to boost value added exports and become a major player in the global textiles supply chain. The draft of Textile Policy also spells out its the objectives which include 1) Restoring profitability of cotton farmers by increasing cotton yield, improving quality of cotton and decreasing cost of production for the farmers; 2) Strengthening manmade fiber/filament sector to make this chain internationally competitive and export oriented; 3) Regionally competitive energy pricing fixed for five years; 4) Prompt Sales Tax Refund System; 5) Abolition of Zero- Rating has created serious liquidity crisis for exporting sectors as the current refund system is soaking up market liquidity and is not working; 6) Long Term Financing Facility for the entire textile value chain; 7) Revival of impaired textile capacity and introduction of bankruptcy law. 8) Establishment of Textile clusters and Export Processing Zones with plug and play facilities. It says that the global textile trade that stands at $837 billion had an average growth rate of 0.1% over the last decade. When it comes to the global market for textile sector exports, it is dominated by China, which accounts for over 32pc of textile sector exports, valued at $266 billion. Presently, Pakistan’s share is 1.6pc in the world textile trade, which will be increased to 3 percent by 2025. The world textile export that stands at $837 billion will reach $843.35. The textile export growth comparison of Pakistan and regional peer countries shows that our regional competitors have surpassed Pakistan manifold. Pakistan was once a leading player in textile trade but over the last decade, our textile sector growth has remained dismal owing to several policy limitations and lack of enabling environment necessary for industries to flourish. Two decades back, Pakistan’s textile exports were ahead of its regional peers like Bangladesh, Vietnam and Cambodia. In 2003, when Pakistan’s textile exports were $8.3 billion, Vietnam’s textile exports were $3.87 billion, Bangladesh’s were at $5.5 billion. Now Vietnam is $36.68 billion and Bangladesh is at $40.96 billion. The textile policy draft argues saying that the essence is that if these countries were able to achieve record growths in this short time period, the goal of reaching $50 billion of textile exports in next 10 years for Pakistan is attainable, subject to strict implementation of Long-term Textile Policy. Mentioning about the roadmap to export growth, it mentions that the ultimate goal of export-led growth is poverty reduction and enhanced welfare of Pakistan’s citizens. Rapidly growing exports and millions of new jobs created, along with skill upgrading, will increase productivity and wages, which over the long term is the only sustainable way to improve living standards. Furthermore, an ambitious strategy has been formulated to move from low value added semi-processed textile exports to high value-added garments and fashion articles. A growth rate target has been set starting from 10pc in the first year of FY20 and gradually adding up to 13pc in fifth year would achieve almost $25 billion exports in the first phase of five years and for the second phase of six years 2025-30, growth rate of 15pc to 16pc on compounding basis be taken to achieve the target of $50 billion exports. The graphs and tables mentioned in the Textile Policy show that growth in textile exports in FY20 will be at $14.66 billion, in FY21 $16.13 billion, in FY22 $17.90 billion, in FY23 $20.05 billion, in FY24 $22.46 billion and FY25 the textile exports will be at $25.38 billion. And summarily in the next five years, from 2025 onward to 2030, the textile exports will be at $50.15 billion. It also highlighted the investment required to achieve the export growth target, saying that Pakistan’s investment-to-Gross Domestic Product (GDP) ratio has been hovering around 15pc while countries like China, India and South Korea have maintained the ratio above 30pc to put their respective economies on a sustainable path. And to improve job creation, productivity and exports, investment-to-GDP ratio, the Pakistan Textile Policy draft says, should be raised to at around 20pc. To achieve the targeted exports, business friendly policies should be ensured for the industry to grow and further achieve the increased targets. "Our industry cannot achieve any ambitious target within a short period of time since there are various complicated issues, including development of infrastructure which hamper growth," it says. The draft also comes up with 21 recommendations to achieve the textile export of $25.3 billion by 2025 and $50 billion by 2030. It asks for the continuation of the provision of RLNG at $6.5 per MMBTU and electricity at 7.5 cents per unit, which is at par with energy cost of exporters of regional competitors such as Bangladesh, Vietnam and India for growth in exports. The provision of energy at the said cost would ensure Pakistan’s products in international market at competitive rates. It advocates for the regionally competitive pricing for the whole textile chain with removal of implementation hurdles. On the front of better cotton availability, it also urges the government to ensure acquisition of high-yielding seed technology from international sources with restructuring of R&D on modern lines. It also recommends the removal of non-tariff barrier and duties stressing facilitation of land routes. And to avoid the contaminated cotton, it also suggests to the government to place ban on use of Polyethylene film cotton picking bags. "Bags made of cotton should be provided to cotton pickers and specialized targeted outreach programs should be designed to educate women cotton pickers." To encourage the value added sector, it also asks for favorable rebate rates. The Textile Policy draft also recommends reduction of corporate tax rate for exporters with upper cap to be fixed at 25pc and subsequently reduced to 15pc; it also asks for reduction in turnover tax to 1pc. It also advocates for reduction in sales tax rate, simplification of refunds system and asks for a specially-designated FBR cell to deal with complaints. It recommends no sales tax on machinery imports and demanded that 90pc claim should be paid on “A” classification of companies' past performance on submission of sales tax return and 80pc of “B”, 50pc on “C” and nil on “D”.
Source: The News
ISLAMABAD -he government Thursday said the textile sector would be liable to quarterly adjustments and other chargeable rates which is not covered by subsidies, however the provision of electricity at the concessional rate of 7.5 cents per unit will continue. Spokesperson of Power Division, while referring to the content of letter by APTMA regarding textile sector, in a statement said that the federal government, vide S.R.O. No. 12(I)/2019 dated January 01, 2019 provided an incentive to a specific category of consumers, namely, zero rated industrial consumers, to the effect that, in respect of electricity base tariff for XWDISCOs recommended by NEPRA and notified by the federal government vide S.R.O. Nos. 01 to 10(I)/2019 dated January 01, 2019 and S.R.O Nos. 11(I)/2010 dated January 01, 2010 for K-Electric, such category of consumers shall make payment up to the rate of 7.5 cents/kWh (the “Concessionary Rate”). The difference between the base tariff and the concessionary rate was to be plugged in/contributed by the federal government per the notific ation for rationalization of process of payment of subsidy. This aspect is clearly spelt out from a bare reading of S.R.O. No. 12(I)/2019 dated January 01, 2019. At present, approximately benefit of Rs. 7.30/kWh is being given in lieu of the peak units and Rs. 1.50/kWh is being given in lieu of off-peak units to all such consumers, strictly in terms of S.R.O. No. 12/(I)/2019. This subsidized regime is continuing and not been withdrawn. For completeness, it is pointed out that upon issuance of the S.R.O. No. 12/(I)/2019, APTMA made various representation to the federal government with respect to further subsidy by way of capping of the concessionary rate as the only tariff payable by zero rated industrial consumers. The representations made by APTMA and the financial implications of the matter were discussed with the Finance Division and other concerned divisions, including, Ministry of Commerce and Textile. On account of no budgetary allocation for the purposes of the demanded relief in FY 2018-2019 or in the current financial year, the Finance Division communicated that, being pass-through items, the same should be duly recovered as per tariff notifications from industrial consumers, as the subsidy is only meant for furtherance of pro-poor Government policy. Accordingly, after due deliberations between various government division, and approval from the federal government, it was declared that the erstwhile zero rated sectors would be notified as “Export Oriented Sectors”, which will continue to remain entitled to the above subsidized package. However, further additional subsidy claimed in the context of all remaining components of cost/price of electricity would be recoverable from such consumers per the notified tariffs, after incentivizing the base rate through the concessionary rate as explained above, which differential is already being provided by the federal government from the allocated subsidy. In additional, this sector is also getting commercial rate of gas supply. It is quite clear that base tariff of 7.5 ¢ is being maintained for the “export oriented sectors” and to maintain the base tariff, an element of subsidy to cross subsidy has been introduced. The additional costs reflected periodic adjustment are not covered by such subsidies and if they are not charged to the “industry”, the burden would have to be shared by the domestic, agricultural and commercial consumers. While the GoP is fully committed to promote export for which the base tariff is being maintained, it is important to protect the aforementioned sector from the burden of future x-subsidies.
Source: Nation
ISLAMABAD: Exports of ready-made garments during first half of current financial year witnessed an increase of 12.08pc as compared to the exports of the commodity during the corresponding period of last year. During the period from July-December, 2019-20 about 31,534 thousand dozens of ready-made garments worth $1.411 billion exported as compared to the exports of 23,832 thousand dozens valuing $1.259 billion of same period of last year. According the data released by the Pakistan Bureau of Statistics, during the period under review textile group exports from the country recorded 3.94pc growth as textile products worth $6.905 billion exported as against $6.644 million of same period of last year. Meanwhile, the textile exports on month on month basis also grew by 0.36pc in month of December, 2019, as textile products worth $1.142 billion exported as compared to the exports of $1.138 billion of same month of last year, it added. During the first two quarters of current financial year, country also managed to exports about 62,593 thousand dozens of knitwear worth $1.587 billion as compared to the exports of 59,189 thousand dozens valuing $1.475 billion of same period of last year. In last six months about 240,939 metric tons bed wear valuing $1.197 billion exported as against the exports of 215,724 metric tons costing $1.116 billion of same period of last year. The exports of towels during the period under review also grew by 0.22pc as 91,120 metric tons of towels worth $378.846 million exported as against the exports of 89,406 metric tons valuing $378.017 million of same period of last year. It is worth mentioning here that exports in rupee term surged by 24.82 percent during last six months of current fiscal year as compared to the corresponding period of last year. The exports of the country during July-December (2019-20) were recorded at Rs. 1,805,074 million against the exports of Rs. 1,446,166 million during July-December (2018-19), showing growth of 24.82 percent, according to the provisional figures released by the bureau. Meanwhile, on year-on-year basis, the exports of the country increased by 7.63 percent during the month of December 2019, and amounted to Rs. 308,697 million as compared to the exports of Rs. 286,802 million in December 2018.
Source: B Recorder
Ghana’s high commissioner to the United Kingdom Papa Owusu-Ankomah recently urged Ghanaian garment and textile manufacturers to take advantage of the opportunities in the UK and European markets following Brexit. He said this at an event hosted by the high commission to introduce Ghanaian garment manufacturers to potential buyers in the region. The event was organised by Ethical Apparel Africa, a UK-based garment sourcing and development organisation in collaboration with Ghana’s Ministry of Trade and Industry through their UK office and supported by the UK Department for International Development (DFID), according to a report in Ghanaian newspaper. Meanwhile, Prime Minister Boris Johnson met 16 African leaders early this week at the first UK-Africa Investment Summit in London. Johnson told the African leaders and top company executives that he wants to make the United Kingdom their investment partner of choice. The British government's export agency reports providing $2.6 billion in financing for UK company exports to Africa in the past two years.
Source: Fibre2fashion
SARS Commissioner Edward Kieswetter has committed the revenue collector to work closely with other government agencies to stamp out illicit trading plaguing various sectors. "The losses in tax revenue and the negative impact on our domestic economy affect industries, erodes employment opportunities and generally denies the most vulnerable in society the social and economic wellbeing they deserve," said Kieswetter on Thursday. SARS, he said, has found that importers and exporters in these sectors are using various ways to avoid paying the import/export duties. The traders are also employing tactics to avoid paying value-added tax (VAT) that applies to the goods, which in turn impacts on the amount of revenue that SARS is able to collect for the growth and development of the country. "Another negative impact of illicit trade is the erosion of productive capacity in the country, as goods are imported rather than produced locally. This, in turn, leads to job losses, which aggravates already high levels of poverty and inequality. "That is why the clothing and textile industry, in particular, is a key focus area for SARS," the Commissioner said. Under-declaration of customs value in this sector has increased from R5.2 billion in 2014 to R8.52 billion in 2018, with the under-declared customs value in 2017 and 2018 representing 34% and 35% of the declared customs value respectively. The revenue collector said some of the cases of non-compliance that customs have come across recently in this area include declaring complete garments at values as low as 0.02 US cents; excess cargo; fictitious importers' addresses and misclassification of goods. In one instance, more than 80% of a container was not declared. SARS forms part of an inter-agency working group with the Department of Trade and Industry (dti) and National Treasury, focusing on the clothing, textile, leather, and footwear industry. The working group is already seeing a number of successes since it was established last year. Within the first month of the group's establishment, Customs issued 20 letters of intent to seize goods from traders, who were found to be non-compliant in terms of value, quantity, classification, licensing and registration. The potential loss to the fiscus of these intended seizures amounts to about R20 million. The Deputy Minister of Finance, who will attend the International Customs Day (ICD) event on Friday, has pledged his full support for the important work of SARS in this regard. A media statement with more information will be released on Friday following the event to be held by SARS to celebrate International Customs Day. SARS will this weekend celebrate International Customs Day this weekend by honoring the men and women in its Customs division. "Whilst the core focus of Customs offices is to manage ports of entries and facilitate travelers and traders, sadly there is a proliferation of illicit and criminal activity that requires Customs to remain vigilant in combatting this scourge," said SARS. It is estimated that illicit trade results in losses to the fiscus of billions of rands every year.
Source: Devdiscourse
