FW
The National Tariff Commission (NTC) has slapped provisional countervailing duty on the import of Indian fine cotton yarn for four months. The duty, ranging from Rs 26.89 to Rs 55.8 a kg, will apply on the import of cotton having 55.5 or more counts originating or imported from India. The duty will not be levied on imports of the investigated product that are to be used as inputs in products destined solely for exports and are covered under any scheme exempting customs duty for exports under the Customs Act of 1969.
Last year after a complaint lodged by All Pakistan Textile Mills Association (APTMA) on behalf of the domestic industry, the commission opened a countervailing investigation under Section 11 of the Coun¬tervailing Duties Act of 2015 on April 20. The said duty is an import tax imposed on certain goods to prevent dumping or counter export subsidies.
Under the investigation, three Indian producers of fine cotton yarn (carded or combed) were selected for determining subsidies on the basis of the information provided by them and the government of India. The NTC concluded that the subsidised imports had hurt the domestic industry as they suppressed domestic prices.
The three India exporters that were selected for investigation by the NTC were slapped with Rs 26.89, 50.81 and 48.10 per kg provisional amount of countervailing duty, while a duty of Rs 55.8 per kg has been imposed on other Indian exports of fine cotton yarn.
As the most optimistic market in Asia Pacific, India tops the Mastercard Index of Consumer Confidence rankings with Myanmar, Vietnam, Philippines and Bangladesh rounding off the top five. The overall consumer confidence in Asia Pacific continues to be steady showing stability (within plus or minus five points from the previous survey) in nine out of 17 markets. With an increase of 1.2 points in the overall score from the first half of 2016 to 60.9 points in the second half, Asia Pacific sits just above the 60 point optimistic mark.
However, the overall stability indicates some significant movements across five markets compared to six months ago. Hong Kong, Thailand and Bangladesh saw more than 10 points improvement while Malaysia and Taiwan saw decreases more than 10 points.
Bangladesh recorded the largest gain of 11.2 points to 82.8 points, a significant improvement in the overall consumer confidence compared to the first half of 2016 where it saw a relatively smaller increase of 4.2 points. The country’s increase in score was backed by an improvement in all components, the largest coming from heightened expectations in stock market movements (+24.6 points). Both Thailand and Hong Kong also saw a large improvement of 10.1 points, putting Thailand in optimistic territory and Hong Kong in neutral territory.
On the other hand, eight of the 17 markets saw a fall in confidence levels. The biggest decline in optimism levels was observed in Taiwan, followed by Malaysia, and Myanmar. According to the survey, prospects for the stock market were the key driver of the decline.
Hosiery exporters in Pakistan want the surcharge on export proceeds to be abolished. There is a 0.25 per cent export development surcharge, which is deducted from export proceeds.
Exporters say abolishing surcharge will help them use the cash liquidity for enhancing exports. Stitching units want to be allowed to import raw material under the Duty and Tax Remission for Export (DTRE) scheme. At present, they cannot import raw material under the DTRE system. There are about 13,372 circular knitting machines, 10,646 flat knitting and 23,241 socks knitting machines in the country. Capacity utilization is around 70 per cent.
The readymade garment segment has emerged as an important small-scale industry in Pakistan as products have strong demand both at home and abroad. The garment industry is a good source of employment to a large number of people and it mainly uses locally produced raw materials. The machines used by the industry are imported or locally made and assembled. Production of garments by units depends on export orders directly or indirectly and these orders have somewhat risen in terms of value, but they have fluctuated widely in terms of quantity.
HanesBrands, a leading global marketer of everyday basic apparel under world-class brands, has earned above-average scores for water management and supply chain after voluntarily disclosing data for the CDP 2016 Climate Change Report. CDP, formerly known as the Carbon Disclosure Project, is a global disclosure system that enables companies and other entities to measure and manage environmental impacts.
Hanes’ A- water score was higher than the apparel industry and S&P 500 averages in the following categories: context, governance and strategy, direct risks and response and indirect risks and response. The company’s B supply chain score was ahead of the supply chain average in all reporting categories: governance and strategy, risk and opportunity management and emissions management.
Hanes scored high because it owns the significant majority of its manufacturing and supply chain operations, achieved its CDP scores for implementing a range of best practices to reduce water use and mitigate water risk, along with a holistic program to reduce energy consumption in its supply chain. The company has set 2020 goals of 40 per cent reduction in energy use and carbon emissions, 50 per cent reduction in water use, and sourcing renewable energy for 40 per cent of the company’s needs.
Bangladesh is hosting Gapexpo from January 18 to 21. Some 400 exhibitors from 24 countries are participating in the ongoing expo. On display are latest collections of garment accessories, packaging including labels, zippers, tags, tapes, thread, ribbon, buttons, rivets, laces, hooks, transfer film, paper, ink etc.
Gapexpo provides a platform for members to display their collections to readymade garment exporters and buying houses. The Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association was set up in 1989. It represents more than 1,500 garment accessories and packaging industries in the country. This sector earned $6.12 billion during 2014-2015. This figure is likely to touch $12 billion by the end of financial year 2018 and $18 billion by the end of 2025.
The garment accessories and packaging sector is an important component of backward linkages, which is critical for the growth of the readymade garment sector in the country. By way of support to the sector Bangladesh is thinking of cash incentives for exporters of garment accessories and low interest bank loans for infrastructure development, which can boost the sector and create more jobs. The country has already established an international standard accessories sector, which contributes to value addition and reduces lead time.
Fast Retailing has established a Denim Innovation Centre in Los Angeles, a city known as the home of denim. This is the group’s first facility to focus on research and development of denim fabric, in Los Angeles, California. The facility aims to bring specialists in jeans development from premium denim brand J Brand and other companies affiliated to the Fast Retailing Group. The Centre has been established to develop jeans utilising innovative technologies and materials based on the established tradition of jeans.
In fact, its first project would be to conduct research on Uniqlo and J Brand jeans. Products developed for both brands will be available from Autumn/Winter 2017. By establishing the Denim Innovation Centre, the global hub for information on denim, Fast Retailing will be able to quickly incorporate the essence of current trends in its designs.
Moreover, the centre has a full range of in-house equipments for product development, to produce higher quality jeans. Previously, Fast Retailing outsourced production of samples and other operations to external manufacturers. But now with the Denim Innovation Centre, the company will be able to manage the entire process in-house. By using the latest equipment, the centre will be able to quickly create and evaluate sample products, enhancing the speed and quality of product development considerably.
The Centre can also be used by contracted producers as a research centre, which will increase the integrity of the finished product during actual production. In addition, the facility will focus on environmentally friendly processing and production methods, conducting R&D on chemicals and techniques used for fading and distressing of jeans.
Cotton yarn manufacturers in India may not add much to capacity in the next five years. Reason: a decline in exports to China and slowing purchases from local fabric makers, who prefer to use manmade fiber than yarn; demonetisation-induced cash crunch has forced the closure of smaller spinning mills.
By the end of financial year 2016, India had 50 million spindles. There is overcapacity and so the cotton yarn industry is expected to add only about three million new spindles between 2016 and 2021. Since 2014, China has preferred to use its internal resources rather than rely on imports. So its cotton yarn imports from India have declined consistently.
India’s cotton yarn production is estimated to fall by about five to seven per cent in financial year 2017. High cotton prices and easy availability of manmade fibers at competitive rates have led to the slower growth of production of cotton yarn. Though yarn exports to China are likely to remain low, demand for yarn in other export markets including Vietnam, Bangladesh and Pakistan is likely to remain healthy. India’s cotton yarn exports are likely to be at 1,250 million kg for financial year 2017 as against 1,309 million kg in financial year 2016.
"The 58th edition of the India International Garment Fair (IIGF) got underway yesterday. The three-day Fair, organised by the Apparel Export Promotion Council (AEPC), India, will cater to Autumn-/Winter 2017/ 18. The Fair was inaugurated by Union textile minister Smriti Irani. Also present on the occasion were Ajay Tamta, Minister of State for Textiles, Rashmi Verma, Secretary (Textiles), Ministry Of Textiles and Subrata Gupta, Joint Secretary, Ministry of Textiles amongst many others."
The 58th edition of the India International Garment Fair (IIGF) got underway yesterday. The three-day Fair, organised by the Apparel Export Promotion Council (AEPC), India, will cater to Autumn-/Winter 2017/ 18. The Fair was inaugurated by Union textile minister Smriti Irani. Also present on the occasion were Ajay Tamta, Minister of State for Textiles, Rashmi Verma, Secretary (Textiles), Ministry Of Textiles and Subrata Gupta, Joint Secretary, Ministry of Textiles amongst many others.
Speaking at the inauguration, Irani said festivity in terms of trade had begun under the aegis of AEPC which is organising its 58th Fair. She congratulated the Fair participants for presenting their talent to the rest of the world. She hoped that through these endeavours, AEPC would go from strength-to-strength and small and medium enterprises that are new in the world of exports use these platforms that are comparatively cost effective.
Speaking at the inauguration Verma said, from next week apparel and garment exporters will be reimbursed for the state levies paid by them, with the Textiles Ministry securing Rs 500 crores from the Finance Ministry in this regard. In June last year, the government had approved a Rs 6,000 crores special package for textiles and apparel sector to create one crore new jobs in three years, attracting investments of $11 billion and generating $30 billion in exports. She said "Many of the exporters have already given their claims to the Customs department. Very soon these reimbursements will start, in fact from next week, you will start getting your money." Verma hoped We hope garment manufacturers will use this package to augment capacity to set up new units so that more investment comes and more jobs are generated and India emerges as a key player in the international market. "China currently is ceding space, it is a huge opportunity and I implore upon all our exporters to take advantage of this opportunity," Verma said.
Speaking on the occasion, Ashok G Rajani, Chairman, AEPC said India’s RMG export during April-December 2016-17 declined 0.2 per cent compared to the same period last financial year. Market sentiment were affected due to delays in roll out of special package announced for the apparel sector in June 2016 and stagnation in the Europe and US markets.
Around 1,081 buyers from 94 countries from across the world are the Fair Fourteen states are participating. A total of 312 participants are showcasing women’s wear, accessories, kid’s wear and men’s wear. The Fair aims to be one of the largest platforms in Asia where overseas garment buyers can source and forge the business relationship with India’s finest in Apparel and Fashion Accessories domain.
"Global apparel fabrics and accessories industry is looking forward to its key spring summit from March 14 to 16, 2018. It is one of the biggest trade platform where the entire sector gathers to do business, discover latest fashion trends, find new innovations and discuss what’s in store for the year ahead. The 2017 spring fair was the most international yet, with over 71,000 trade buyers from 103 countries and regions doing business with more than 3,300 exhibitors from 26 countries and regions."
Global apparel fabrics and accessories industry is looking forward to its key spring summit from March 14 to 16, 2018. It is one of the biggest trade platform where the entire sector gathers to do business, discover latest fashion trends, find new innovations and discuss what’s in store for the year ahead. The 2017 spring fair was the most international yet, with over 71,000 trade buyers from 103 countries and regions doing business with more than 3,300 exhibitors from 26 countries and regions.
With the focus turning now to the first trade fairs of 2018, Wendy Wen, Senior General Manager, Messe Frankfurt (HK), put forward the case for why Intertextile Shanghai Apparel Fabrics is at the forefront of the industry. “As a sourcing platform, Intertextile is unrivalled in the industry. With this many exhibitors under one roof covering the entire apparel fabrics and accessories product spectrum, and across all price and quality points, the fair is the most efficient and effective way to discover new suppliers and make purchasing decisions. For these suppliers, the internationality, relevance and quality of the buyers, which is boosted by concurrent events such as Chic, China’s premier garment fair, is what keeps them coming back year after year.”
Matching market demand
While one of Intertextile’s biggest strengths is that the entire apparel fabrics and accessories sector gathers at one place for three intense days of business, the fair is also conveniently categorised to ensure sourcing efficiency. A number of country & region pavilions as well as group pavilions will demonstrate their capabilities to the audience, while the product zones will maximise the opportunities for the Chinese and Asian markets.
In the last two Spring editions, the number of exhibitors in the Accessories Vision zone grew nearly 70 per cent. This demand comes from the fact that more than 21 per cent of buyers attend the fair to source accessories. With the Chinese Government implementing ever stricter pollution control measures on the one side, and increasingly eco-conscious domestic consumers and higher requirements from export customers on the other, demand from the local textile industry for sustainability products & services continues to grow. The sustainability zone remains the key sustainability event in China for the wider industry.
China produces more than 2.5 billion denim garments per annum, with much of this output then exported to the US and Europe, ensuring demand for imports of quality denim fabrics is high. Around 18 per cent of buyers at the 2017 Spring Edition were interested in sourcing denim, making Beyond Denim pavilion a huge success. Digital Printing Zone in China is amplified due to increasingly stringent national environmental protection policies. With Chinese consumers moving to the athleisure segment, Functional Lab has been gaining tremendous boost. This is evident in Intertextile’s buyer profile also, with 27 per cent of buyers stating functional wear and sportswear as their main area of interest at the 2017 edition.
Growth in the domestic consumption of high-end overseas wool fabrics remains strong, particularly for suiting as Chinese men increasingly adopt Western-style office attire and that’s where the importance of Premium Wool Zone lies. Overseas participants in this zone such as Huddersfield Fine Worsteds, regularly confirm that satisfactory numbers of their target buyers, including tailors and menswear specialty stores, visit this zone.
Penchant for design
While the original pattern design market in China has matured since its fast-growing early days, sales during the fair in this zone remain strong. Around 8-9 per cent of buyers at the fair are in design roles or looking for design & styling products, representing a relatively large buyer base for this niche market. In addition to the sourcing event, four other textile fairs also take place at the National Exhibition and Convention Center: Yarn Expo Spring, Intertextile Shanghai Home Textiles – Spring Edition, Chic and PH Value. Participants of these fairs will also look to source from exhibitors of Intertextile Shanghai Apparel Fabrics, ensuring extra business opportunities are provided by the entire textile supply chain gathering under one roof. Intertextile Shanghai Apparel Fabrics – Spring Edition 2018 is co-organised by Messe Frankfurt (HK); the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre.
Vietnam Textile and Garment Group (Vinatex) has signed a strategic co-operation agreement with Itochu, a Japanese firm where Itochu is expected to help Vinatex make a change in textiles and garment production and business method from cut—make-trim to ‘Free on Board’ to develop a sustainable retail distribution network to enjoy long-term benefit.
Under the agreement, Itochu will assume the role of a consulting partner for Vinatex and its member companies in developing the textiles and garment supply chain from fibre to thread, fabric and sewing, retail distribution, co-operation and introduce domestic and foreign partners. Shuichi Koseki, Senior Managing Executive Officer and representative director said since Vietnam’s textiles and garment were an important part of Itochu, therefore, it wanted to develop this area with Vietnam, so that Vinatex could become its number one partner.
The two sides would discuss in detail the co-operation plan and implement actions immediately to make a change in Vinatex’s textiles and garment production and business method from cut—make—trim to Free on Board, developing a sustainable retail distribution network to enjoy long-term benefits. Itochu, is Japan’s leading economic group operating in areas like textiles and garment, has aligned with some 100 textiles and garment companies of Vietnam.
The trading company has signed a framework agreement to support several projects in dyeing and materials production in Vietnam, training in the country's dyeing sector and utilizing the capacity of Vinatex's dyeing factories in the central region in 2015. At that time, Itochu owned five per cent stake in Vinatex through a subsidiary company. In the near future, Itochu would boost co-operation between the two sides to develop textiles and garment products and supply them globally.
