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India’s largest knitwear and readymade garment exporters organisation, The Tirupur Exporters’ Association (TEA), has asked for exemption of IGST levy on imports of accessories, early clearance of accumulated input tax credits, permanent deletion of Reverse Charge Mechanism (under Section 9(4) of GST) and incentives for investments made in labour accommodation.
A TEA delegation which met Finance Minister Arun Jaitley recently, and presented him with a memorandum which stated that till June 30, 2017, apparel exporters were importing accessories such as zips and tags without any customs duty, using the Export Promotion Certificate (EPC). But post GST, imports using EPC is being subjected to IGST, however, as most accessories are taxed at 18 per cent, this tax is blocking huge working capital resulting in immense hardship to the trade.
The memo went on to note that similar problems were faced by exporters in import of capital goods under the Export Promotion Capital Goods Scheme and raw materials through the Advance Authorisation Scheme, and the Government had resolved these issues by bringing out a notification, dated October 13, which exempts imports under the two schemes from levy of IGST. TEA noted the EPC scheme which was omitted should be included.
TEA has asked for a separate notification to be issued in line with the notification exempting imports of accessories using Export Promotion Certificate from the purview of IGST. Quick release of refunds due to exporters is another issue before the FM. The original plan under the GST compliance framework was filing of GSTR 1, 2 and 3 by all taxpayers resulting in matching of tax credits, thereby facilitating release of refunds due to exporters within seven days of the claim.
A research team led by faculty at Binghamton University, State University of New York, has developed a textile-based, bacteria-powered biobattery that could someday be integrated into wearable electronics. The team, led by Binghamton University Electrical and Computer Engineering Assistant Professor Seokheun Choi, created an entirely textile-based biobattery that can produce maximum power — the same as that produced by his previous paper-based microbial fuel cells.
These biobatteries are said to exhibit stable electricity-generating capability when tested under repeated stretching and twisting cycles. Seokheun Choi said that this stretchable, twistable power device could establish a standardised platform for textile-based biobatteries and will be potentially integrated into wearable electronics in the future. “There is a clear and pressing need for flexible and stretchable electronics that can be easily integrated with a wide range of surroundings to collect real-time information. Those electronics must perform reliably even while intimately used on substrates with complex and curvilinear shapes like moving body parts or organs. We considered a flexible, stretchable, miniaturised biobattery as a truly useful energy technology because of their sustainable, renewable and eco-friendly capabilities. Compared to traditional batteries and other enzymatic fuel cells, microbial fuel cells can be the most suitable power source for wearable electronics because the whole microbial cells as a biocatalyst provide stable enzymatic reactions and a long lifetime,” Choi noted.
Sweat generated from the human body can be a potential fuel to support bacterial viability, providing the long-term operation of the microbial fuel cells. Choi elaborated, “If we consider humans possess more bacterial cells than human cells in their bodies, the direct use of bacterial cells as a power resource interdependently with the human body is conceivable for wearable electronics.” This work was supported by the National Science Foundation, the Binghamton University Research Foundation and a Binghamton University’s Analytical and Diagnostics Laboratory’s Grant.
The government of Nepal has initiated construction of a Rs 2.5 billion garment processing zone in the Simara Special Economic Zone (SEZ). As production costs in Nepal are relatively high in the region, this project, which is expected to be completed by 2018-19, will lower the cost of production and increase exports. The services offered at the processing zone will make the price of Nepali products competitive in international markets.
The SEZ, located in Bara district, will be spread in over 300 bighas of land and is expected to house at least 30 apparel production units. Chandika Prasad Bhatta, Executive Director, SEZ development committee says garment manufacturers can purchase the plot at Rs 20 per sq. mt. with infrastructure such as electricity, drainage and other such logistics at an affordable price. Firms exporting at least 75 per cent of their production can also benefit from the services.
"Companies with a history of being a large exporter, providing jobs to a large number of people and making large investments will be given priority to operate their production units inside the processing zone," Bhatta disclosed. The garment processing zone is expected to compensate for high transport and shipment costs due to Nepal's landlocked status because the proposed zone is located near the country's only rail-linked dry port in Birgunj.
The garment processing zone went full steam ahead post the US extending zero tariff preference for 66 products, including apparels, into its market through the 'Trade Facilitation and Trade Enforcement Act'.
The Myanmar’s National Tripartite Committee on the Minimum Wage has announced a 33 per cent hike in minimum wage for the country’s garment workers. The new minimum wage will now be 4,800 kyats/day, effective March 2018.
Garment factory owners are of the view that a 33 per cent increase in the minimum wage would be difficult for them to ensure. Further, Myanmar’s law requires 200 per cent wages for working overtime, the highest when compared to any other manufacturing country in the Southeast Asian region. However, in spite of the hike, the new minimum wage is still lower than 55 per cent increase demanded by many unions. SMART Myanmar, that promotes and supports the sustainable production of garments in Myanmar, will be updating the content in its app ‘Shwe Job’ by February this year to reflect these changes in the wages.
Shwe Job is a Myanmar language educational app that was launched to teach factory workers and managers about occupational safety and health and information on the country’s labour laws. Myanmar reported a strong year for the garment export sector during the seven-month period from April-November in 2017. During this period, Myanmar exported garment products valued at US $ 1.5 billion.
Mumbai is ready to get its first textile museum to document, archive and showcase Mumbai’s textile legacy. The Brihanmumbai Municipal Corporation (BMC) will start constructing the textile museum in February this year. The building will include a live, functioning mini-textile mill and a representation of the old world chawl life. In addition, landscaping is planned around a lake inside the compound, an amphitheatre and a musical fountain.
The entire complex will be spread across 16.3 acres of land at the shuttered United Mill compound in the Kalachowki area in Mumbai’s Eastern suburbs, of which 14 acres will be used for construction and the remaining for beautification. Mumbai’s Municipal commissioner, Ajoy Mehta said the planning committee is to make the museum interactive for the public and accessible to all. Mehta said he has asked the committee to restore the mills, the water body in the compound. The BMC has also appointed JJ School of Arts, Mumbai's premier art institute established in 1857, to prepare a vision document for the museum and to design its architecture.
Part of the United Mills compound are three ring and spinning structures, a chimney, a semi-automatic loom and a pond, all of which are protected by varying heritage status levels. Restoration work on some of the structures has already begun. All the heritage structures will be restored to its past glory.
The new museum will include fashion galleries that display traditional Indian textiles as well as the life and culture of the mill worker communities over the ages and education about India's and specifically Mumbai's once thriving textile industry.
Indonesia’s textile sector reached 3.65 per cent in Q2 of 2017. This figure is significantly higher than the previous quarter which was only 0.16 per cent. Chairman of the Indonesian Textile Association Ade Sudrajat said growth is due to several factors. First, many factories have relocated to Central Java and this has helped increase productivity. "So production can grow better, investment in this year is also quite big growth upstream."
Further, the increase in textile factory investment realisation contributed to the growth of the textile industry. "Investment growth is quite large, especially those who play in the upstream sector," he revealed.
The government needs to support the sales performance of domestic manufacturers by halting the rate of imports to enhance domestic productivity. "If the government consistently curb imported textile goods from China, we are optimistic that domestic production will increase and textile growth performance could be better," he concluded.
Topshop, the British multinational fashion retailer of clothing, shoes, make-up and accessories, will set foot in Shanghai. The Arcadia-owned labels’ first Chinese flagship store will be on Huaihai Middle Road in the country’s premier shopping city and will cover a 3,400 sq m space over three floors. Work has already started on the premises with the store expected to open this September.
The brand is only directly available via its webstore in mainland China at the moment, although it has been sold in the Galeries Lafayette department store in Beijing and it has two Hong Kong stores. This move into mainland China makes it a relatively latecomer to the country and is way behind some of its biggest fast fashion rivals in entering what is potentially the world’s biggest fashion market.
Definite news of its Shanghai opening comes after it said in late 2016 that it had signed a deal with e-tail giant Shangpin.com to open physical stores in China. The brand did not fare well in its international business last year, some of which including the failure of its franchised Australia and New Zealand operations and also its closure of its Spanish store.
Key takeaways are that it’s important to get the product right for the market rather than just depend on the power of the brand name to help you sail through. Opening in China makes good commercial sense. Last year an AT Kearney report had said the country was second only to India in terms of retail investment due to the sheer size of its consumer market that makes it highly attractive to international businesses. Topshop has around 500 shops worldwide – of which some 300 are in the UK.
The global cooling fabrics market is forecast to reach $3.24 billion by 2025, driven largely by growing attention on fitness, sports, and leisure activities along with increasing health consciousness, says a new report by San Francisco-based market research and consulting company Grand View Research, Inc. Increasing R&D and government incentives are expected to accelerate production of such fabrics.
The market for such fabrics is expected to record a compound annual growth rate (CAGR) of 11.1 per cent from 2017 to 2025, the report disclosed. Value addition offered by cooling garments such as moisture wicking, sweat evaporation, breathability, and ventilation have enhanced the use of such fabrics among athletes.
The demand for such fabrics in military and industrial applications is increasing because of their benefits like temperature regulation, resistance from harmful UV rays and pollutants and protection from excessive heat. The above along with an increased demand from the healthcare and fashion industries is expected to propel market growth.
Sports apparel segment is expected to denote a CAGR of 11.8 per cent from 2017 to 2025 owing to high product demand from developed as well as emerging nations and is expected to account for 44.5 per cent of the international cooling fabrics market in 2025.
These fabrics also address sustainability issues by saving energy required to heat or cool the environment around the wearer. North America is the leading market for cooling fabrics owing to the early adoption and augmenting sports and outdoor activities in the region. Key market players included in the report are Coolcore LLC, Kraton Corporation, Invista, Ahlstrom Corporation, Nilit, Polartec LLC, Nan Ya Plastics Corporation, Tex-Ray Industrial, Formosa Taffeta Co Ltd., HexArmor, Adidas AG and Nike.
Atulbhai Ganatra, President, Cotton Association of India announced that he and his team of directors had met the Maharashtra CM and urged him to remove the cess levied by various marketing committees that range from 0.5 per cent to 1.1 per cent.
Ganatra exults the CM had agreed to their request and had assured them that the ‘mandi’ tax on Kapas will be removed. Also, Maharashtra government will shortly come out with favourable Textile Policy, which will attract the investors to locate cotton spinning mills in Maharashtra.
He further noted, ginners are facing problems in the new GST regime under RCM across the country. CAI has taken up this issue with the GST Council and the FM in New Delhi and there was a protest against this by the all India ginners strike which was held on 15th December in the majority of cotton growing states in India. CAI has 70 ginners as members in the Association and this is the first time CAI has taken up the matter of resolving issues of the ginners.
The president and CAIs directors met the CMD and other directors of Cotton Corporation of India and requested them to utilise CAIs 13 cotton testing laboratories which are in almost all cotton growing states and also to use the CAI arbitration facilities. This will boost CAI's income, he mentioned.
As per CAI, arrival of cotton in India up to 31st December, 2017, had crossed 147.75 lakh bales in this season. During the same period last year arrivals were about 108 lakh bales. These arrival figures were collected from each state, by consulting four big ginners to arrive the correct figures.
Since cotton rates have gone up in India by 10 per cent in the last one month, the earlier set target of cotton export of 63 lakh bales looks difficult now, hence cotton export figures have been reduced and revised from the earlier 63 lakh bales to 55 lakh bales.
Due to reduction in export and increase in import, CAI’s carry forward has increased from 39 lakh bales to 50 lakh bales on 30th September 2018, which is a very comfortable position for Indian spinning mills. The CAI President said that our Association is ready to join hands and work together hand in hand with all other state associations.
Britain is interested in joining the Trans-Pacific Partnership (TPP) trade bloc after it leaves the EU. Britain has started informal talks about joining the bloc to enhance post-Brexit exports. Although the United States pulled out of the talks, other TPP countries have pledged to move forward with plans for a trade group. The TPP has so far involved only countries such as Japan, Canada and Mexico.
Junior Trade Minister Greg Hands averred that there was no geographical restriction that would prevent Britain’s participation. “Nothing is excluded in all of this. With these kind of plurilateral relationships, there doesn’t have to be any geographical restriction.”
EU rules state Britain cannot agree new trade deals before it leaves the bloc in March 2019. An official from a TPP country was reported to have said it was too soon to discuss UK accession before a Brexit agreement.
