NEW CLOTH MARKET (JULY 2014)

NEW CLOTH MARKET THE COMPLETE TEXTILE MAGAZINE FROM TEXTILE TECHNOLOGISTS Monthly published by :

I NDIAN INDUSTRIAL AND MANAGEMENT SERVICES (IIMS) 39/1, Pankaj Society, Bhatha, Paldi, AHMEDABAD-380007. INDIA Mobile : 9824356125 Ph : 40059438 Telefax : 91-79-26632831 (Editor Mobile :987926 0064)

www.newclothmarketonline.com E-mail : iimsad1@gmail.com EDITORIAL BOARD Dr. Anandjiwala R. : Business Area Manager, CSIR, South Africa

JULY 2014 (VOL. 28, NO. 7)

CONTENTS

Bhatia Kailash

: CEO-IMG, Pantaloon Retail (I) Ltd.

Jasuja G.D.

: IIMS, Ahmedabad

07 EDITORIAL: NEW FIRST SALE RULE FOR US IMPORTERS

Dr. Mittal R.M.

: President (Technology & Strategy) Morarjee Goculdas Spg. & Wvg. Co. Ltd., Mumbai

08 EXECUTIVE PAGES

Dr. Oza K.I.

: Textile Consultant, Ahmedabad

Prof. Patel M.R.

: Principal, Vishwakarma Govt. Engg.

College, Ahmedabad

Dr. Paul Roshan

: Head, Research, Function & Care Dept., Hohenstein Institute, Germany

* Kunal Recipe for Interlining Finish * Neschen AG Offers Concrete-look Cotton for Digital Print Media * Non-slip Finishes for Apparel Textiles * True story of a corporation that knew it's product was dangerous and deadly : Second Chance Body Armor Bulletproof Vests

Dr. Rajan V.S.

: Technical Advisor, Filter Fabrics

Sadhu M.C.

: Textile Consultant, Ahmedabad

Dr. Saxena Y.K.

: Consultant, Industrial Environment

* A Market Overview of Smart Textile Wearable Technologies

Somani Sampat

: G.M.-Fibre Dyeing, Bhilwara Processors Ltd., Bhilwara

* Colourtex Recipe for Polyester Poonam Saree

Dr. Shroff J.J.

: Advisor (R&D), Arvind Mills Ltd.

Edited and Published by G. D. Jasuja on behalf of the owners Indian Industrial and Management Services, Ahmedabad.

Typesetting and Design lay out by :

Indian Industrial and Management Services Printed at : Maruti Printers, Dudheshwar Rd., Ahmedabad - 380 004.

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"INDIAN INDUSTRIAL & MANAGEMENT SERVICES" 39/1, Pankaj Society, Bhatha, Paldi, AHMEDABAD-380007. INDIA Mobile : 9824356125 Ph : 26632831

33 GARMENT ZONE * Hazards in Garment Factories 42 ASSESSING DENIM QUALITY : A STUDY OF THE DENIM VALUE CHAIN AND CRITICAL ASPECTS OF DENIM QUALITY

55 INTERNATIONAL BUSINESS PAGES * Pakistani Textile Sector in International Arena : Brief Report on Roundtable Jointly organized by The Royal Netherlands Embassy in Islamabad & ILO * Understanding the Safety Requirements for the U.S. Apparel Market * “Yarn-Forward” Free Trade Agreements * An Overview of Textiles Industry in Hong Kong * US (CBP) Proposes Changes to First Sale Program * International News & Technical Developments

Managing Editor and Publisher : G.D. JASUJA

87 NEWS BRIEFS

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NCM-JULY 2014 NEW CLOTH MARKET, JULY 2014

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NEW CLOTH MARKET

The Complete Monthly Textile Magazine from Textile Technologists With FASHION FABRIC SAMPLES

Published by

IIMS AHMEDABAD

ADVISORY BOARD Mr. Amin K.D. Dr. Bhat Prabhakar Dr. Deo H.T. Dr. Gandhi R.S. Mr. Garde A.R. Mr. Jain K.C. Mr. Kamdar P.T. Mr. Lekhadia Atul Dr. Patel B.B. Mr. Shah H.K.

: : : : : : : : : :

Ex. Regional Manager, Colourtex Pvt. Ltd., Ahmedabad Head - Textile Dept., Shri Vaishnav Institute of Technology & Science, Indore.

Ex Professor (Fibre Chemistry), U.D.C.T., Bombay.

Ex-Director, MANTRA, SURAT Ex-Director, ATIRA Processing Manager, Bhilwara Suitings, Bhilwara Technical Consultant, Rajkot Managing Director, Kunal Organics Pvt. Ltd. Professor of Economics, Gandhi Labour Institute, Ahmedabad Financial Adviser, ANZ Exports (India), Ahmedabad

TECHNICAL COMMITTEE Mr. Ahmed H. Mr. Bhagat A.D. Mr. Dalal C.R. Mr. Gupta P.K. Dr. Jamdagni Rishi Mr. Kapoor Ajay Dr. Mahapatra N.N. Mr. Mehta A.K. Mr. Patel Kiritkumar V. Mr. Ramesh Shah Mr. Sanghvi Lalit Mr. Shukla K.S. Mr. Shukla Pankaj Mr. Thukral P.S. Mr. Vasudva K.N. Mr. Vijay Dhar Prof. (Dr.) Wasif A. I.

: : : : : : : : : : : : : : : : :

Retd. Officer Incharge, Textile Committee, Govt. of India, Ministry of Textiles, Ahmedabad Textile Consultant, Ahmedabad Technical Consultant, Ahmedabad Director, Anant Polyesters Pvt. Ltd., Ahmedabad Director, Technological Institute of Textiles (TIT), Bhiwani Technical Manager, Reliance Textile Industries, Ahmedabad Vice-President (Business Development), Colorant Limited, Ahmedabad General Manager (Fabric Processing) Bhilwara Processors Ltd., Bhilwara Executive Director, CTM Textile Mills, Ahmedabad Director, Adman Forex & Services Pvt. Ltd., Ahmedabad Textile Processing Consultant, Ahmedabad Textile Consultant, Ahmedabad President (Marketing), Comet Chemicals, Ahmedabad Design & Development Consultant (Thukral Consultex), Ahmedabad Textile Consultant, Modern Terry Towels, Ahmedabad Technical Director, Omkar Textile Mills, Ahmedabad Ex-Principal, D.K.T.E. Society's Textile & Engg. Institute, Ichalkarnji

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WHAT ARE YOU WAITING FOR?

New "First Sale" Rule For US Importers U.S. Customs and Border Protection (CBP) has issued a draft copy of a revised version of the Informed Compliance Publication on Bona Fide Sales & Sales for Exportation to the United States notifying changes to what is called 'First Sale' Program.

According to various leading law firms, this publication along with the related reference materials should be on the ‘must read’ list for importers entering goods subject to a multi-tier transaction at the foreign manufacturer’s or so-called “first-sale” price.

The primary method of appraising imported merchandise is transaction value which is the price actually paid or payable for imported merchandise when sold for exportation to the US plus certain statutory additions. This draft notice clarifies that CBP will consider that merchandise is clearly destined for exportation to the US in a multitiered transaction when the evidence establishes that at the time the middleman purchased or contracted to purchase the imported merchandise from the foreign manufacturer, the only possible destination for the merchandise was the US (i.e., at the time of sale, the imported merchandise was irrevocably destined for the US).

CBP is of the view that "while formal sales contracts and other types of memorialized agreements (such as distribution or production agreements) generally are most revealing in this regard, other documentation (such as purchase orders, invoices, and proof of payment) evincing or establishing the structure of the transaction are crucial, especially in the absence of any written agreements. The terminology used in such agreements and documentation (i.e., “buyer,” “seller,” “principal,” or “agent”), although indicative, is not dispositive of the role played by each of the parties in the transactions under consideration."

Importers have to provide all the documentary evidence in support of the transaction value to claim that such a sale is a sale for exportation to the US. In situations where more than one sale has occurred involving the imported merchandise and the importer wants to base transaction value on the price actually paid or payable in a sale to which it is not the buyer (e.g., the price paid for the merchandise in a sale between the foreign manufacturer and a foreign middleman), the importer must be able to establish by documentary evidence that such a sale is a sale for exportation to the US. CBP shall evaluate the relationship of the parties involved in the transaction by an overall view of the entire situation of the individual case - and not by the labels that the parties may attach to the relationship.

In order to establish that merchandise is clearly destined for exportation to the US in a multi-tiered transaction, there must be a complete paper trail relating to the imported merchandise that shows the structure of the entire multi-tiered transaction. This would include invoices, sales contracts, purchase orders, proof of payment, shipping contracts or other documentation for each individual transaction involved in the multitiered transaction with consistent prices, dates, parties and merchandise. Other evidence would include manufacture, design, and other unique specifications or characteristics of the merchandise (often manifest in samples) made in conformity with the U.S. buyer's or importer’s standards; labels, logos, stock numbers, bar codes and other unique marks; and markings, visas, warranties or other types of certification or characteristics required for the entry into and sale or operation of the imported merchandise in the US. All this evidence must show that the only possible destination for the imported merchandise was the US at the time the middleman purchased or contracted to purchase the merchandise from the foreign manufacturer.

An importer who declares a value to CBP without the necessary supporting documentation would not be exercising reasonable care and may be subject to a penalty or other enforcement compliance action.

G.D. JASUJA Managing Editor

NCM-JULY 2014 7

EXECUTIVE PAGES

WRINKLE RESISTANT FINISH Fabrics made from synthetic fibres have excellent crease resistance that can be obtained without application of finishes. To impart crease resistance to cotton textiles, cotton fibers and blends with synthetic fibers, however, effective crease resistant finishes have been developed for all cotton textiles fabric e.g. bed sheets, shirts, trousers etc.

A variety of finishing techniques and crosslinking agents and resins have been used to impart dry and/or wet crease recovery to cellulosic fabric. For imparting dry crease recovery, the reaction is acid catalyzed and involves the application of formaldehyde or cyclic urea melamine (containing N-CH2OH or NCH2OR groups) to the fabric by pad-dry-cure-wash process. This produces smooth drying fabrics with crease recovery angles of 2300-2500. The catalysts normally used include magnesium chloride as well as organic acids.

Finishing Recipes BOTTOM WEIGHT FABRICS : (1) 1.

2.

3.

4.

5.

6.

7.

8.

(2)

Unimine - ECVS (Resin) 200 Unimine - KAD (Resin) X Magnesium Chloride X Citric Acid 0.5 Acetic Acid 1 Softwhite HC-40 30 Kunaltex - MP 10 Penetrol - WW 1 (Caustic stable wetting agent; wetting time less than 2 seconds)

X 70 25 0.5 1 30 10 1

SHIRTING FABRICS : 1.

2.

3.

4.

5.

6.

7.

8.

Unimine - ECVS Unimine - KAD Magnesium Chloride Citric Acid Acetic Acid Softwhite HC-40 Kunaltex - MP Penetrol - WW

100 X X 0.5 1 30 10 1

X 70 18 0.5 1 30 10 1

APPLICATION METHOD Pad-Dry-Cure at 150oC for 4 to 5 minutes.

RESULTS ACHIEVED : Tensile Strength/Kg

Monsanto Method

Durable Press Rate

BOTTOM WEIGHT FABRICS : Original 1.

2.

80.9 55.2 58.7

3.2 3.2

3.5 3.5

3.0 3.0

3.5 3.5

SHIRTING FABRICS : Original 1.

2.

33.8 27.7 28.5

This page is sponsored by :

Kunal Organics Pvt. Ltd. : Leaders in New Generation Textile Processing Chemicals Address : 34, Madhuvan Towers, Madalpur, Ellis Bridge, Ahmedabad-380 006.

Fax : 91-79-26409677 Email : mail@kunal.com NCM-JULY 2014 8

Sarabloom-SL-A blooming agent to achieve jet black effect with soft handle. With Sarabloom-SL one can obtained deepest black, flaming red and dark navy. ‘”Excellence in technical competence, international quality testing with consistency and environment friendly product towards customer satisfaction” is the core business strategy for Sarex.

We have developed and launched sensational concepts in finishing like Blooming effect, Supersoft bouncy finish, Liquid cotton finish, Tear strength improver, Wet rubbing fastness improver, Mosquito repellent finish, Antimicrobial finish and many more to meet new customers changing needs and requirements.

So, if you have any special finishes to develop, Sarex will give you the right chemistry.

Certificate No. T-2718

GOTS

REACH

NABL

M&S

ISO ISO OHSAS 9001:2008 14000 : 2008 18000 : 2007

EXPORT HOUSE

EXECUTIVE PAGES

Neschen AG Offers Concrete-look Cotton for Digital Print Media Bückeburg (Germany) based Neschen AG develops, produces and markets innovative coated self-adhesive and digital print media worldwide, together with their processing machines and presentation systems. The graphics product portfolio ranges from finishing, protection and mounting films to print media which can be used with modern digital printing technology for avant-garde architecture, decoration and advertising. The Bückeburg supplier is the first address for printing service providers, architects, designers, photographers, interior decorators and advertising agencies. The business unit Graphics also includes powerful laminating machines and high quality display systems.

Neschen's documents sector comprises self-adhesive films and papers for the protection, repair and care of books. Libraries, archives and museums can also obtain the necessary working materials and processing equipment from Neschen.

Based on more than 40 years experience with special coating methods, Neschen Technical Coatings also offers industrial customers in all branches fully customized solutions. These range from surface finishes in the automotive industry to different coating technologies up to 2050 mm on a wide range of substrates such as films (PVC/PET/PP/PE/PU/PMMA etc.); paper, non woven; foams, and fabrics. Neschen AG has production facilities in Germany and the US. One of Neschen’s specialist areas is the pattern coating of adhesives, functional varnishes and other high-quality functional coatings. These coatings are not just available in the form of the usual complete-surface applications, but can also be applied in various structures or patterns. By using this special type of coating, users may be able to reduce material or processing costs, cut down on working time and save resources. An example for Pattern Coating is illustrated here.

A typical example of a pattern coating

Last year an exhibition themed "CREDO - Christianization of Europe in the Middle Ages" was held at Diocesan Museum · Imperial Palace · Municipal Gallery in Paderborn, Germany from 26 July to 3 November. The exhibition depicted "How did Europe become Christian?" in great details. The accompanying text was provided on suspended banners made of Neschen’s “solvotex cotton premium light S”, a 100% cotton fabric with a premium inkjet coating.

The organisers wanted a white A perfect illustration : the suspended banners with the explanatory surface resembling concrete notes and maps accompanying the exhibition. (Photo: Wolfgang as a background to the texts. Noltenhans) NCM-JULY 2014 13

EXECUTIVE PAGES

Neschen AG Offers : Coatings : Water-based dispersion adhesives (permanent and reversible), clear, pigmented, functional coatings made from aqueous solutions (e.g. also heat-activated). Also, contract work for complete surface applications or for specific zones as defined by the customer e.g. circles or other geometric shapes, lettering or logos.

Application weights : from under 5 g/m² to over 80 g/m² Materials: PE, PP, PU, PVC, paper, PET, textiles, fleece fabric.

Thickness : 10 – 500 µm Widths : up to 2000 mm.

Manufacture : narrow reels and short reels, delivery of master reels on 3” and 6” cores.

Covering : single-colour print backing paper, release behaviour geared to the adhesive system.

Contact details : Neschen AG Hans-Neschen-Str. 1 D-31675 Bückeburg, Germany Tel.: ++49 (0) 57 22 20 7-333 Fax: ++49 (0) 57 22 20 7-167 E-Mail: your.solution@neschen.de Website : www.neschen.com For this, the fabric banners were printed across their entire width. The printing job was carried out by RLS jakobsmeyer GmbH in Paderborn. The visible white tone was produced with the HP latex ink.

The printed Neschen media at the Diocesan Museum were suspended from the ceiling using Velcro. The cotton banners were cut along the sides, so to ensure they retained their shape an aluminium rail was inserted into the hemstitch to weigh them down.

The white fabric solvotex cotton premium light S consists of 100% cotton and weighs approximately 230 g/m², including premium inkjet coating. Competitively priced, it offers very good print quality and exceptional colour reproduction and brightness. solvotex cotton premium light S is suitable for (Eco-) solventand UV-curable as well as latex inks and can be printed with individual motives by means of the inkjet method. It is available in widths of 310 cm and 505 cm and a length of 50 m. A B1 test certificate according to DIN 4102-1 has been issued for indoor applications.

Processing Instructions for Textiles : Textile fibres Natural fibres : cotton, silk (viscose) and linen Synthetic fibres : polyester (modified polyester Trevira® CS) and polyamide) The thickness of the textiles, and the way in which they are spun, determine the strength and weight of the material. Cotton textiles are made of natural fibers and have a slightly rough surface. Various weaving defects are sorted out in the manufacturing process and, generally, fuzz is eliminated by singeing. Despite these quality control methods, small weaving defects and individual fuzz spots cannot be completely eliminated and do not constitute grounds for complaint. Synthetic textiles have a smooth, slightly shiny surface. Rough defects are sorted out during product inspection. Small defects are normally flagged.

The German textile industry has unilaterally set a tolerance for defects. This tolerance allows for a maximum of 10 defects per 100 meters (328 feet). These defects must however also be differentiated.

For example, some defects are very small stains or slight discolorations which are unnoticeable after printing and do not represent a defect which counts. Others are knitting defects or larger stains. In general, single defects should not be longer than 1 meter.

Defect tolerances : Defects in textile manufacturing cannot be avoided. All defects, which fall outside of the agreed upon normal range, are sorted out during the material control. Complaints are not accepted for knobs, yarn breakage, thick and thin areas, fuzz and hanging threads from 5 to 10 cm in size.

The following tolerances are to be accepted according to §7, number 3, German Unit Conditions : NCM-JULY 2014 14

EXECUTIVE PAGES

-

differences in length + / - 3 % differences in weight + / - 3 % differences in width + / - 1 - 2,5 % tolerance at bias + / - 1,5 % at the fabric width post-treatment shrinkage + / - 3 - 5 % after washing fabric can shrink + / - 1 - 3 % difference in fibre composition + / - 5 - 10 % difference in colours, e.g. degree of whiteness

Material should always be closely observed during printing to avoid any eventual damage to the printing head. To eliminate the possibility of a material jam, the printing head should not be set too close to the material. Hemmed material is printed on at your own risk as the thicker edges represent a jamming risk.

Weaving and knitting Weaving : 2-thread system (warp / weft) Knitting : 1-thread system (only warp) The surface of the material is characterised by the way of weaving or knitting. Depending on the arrangement of warp and weft the certain surfaces can be achieved. The most popular surface structures/bonds are : Satin : a shiny, smooth textile; Nettle : a straight canvas bond (1 thread up / 1 thread down - warp / werft) with a symmetrical surface; Canvas : a heavy nettle fabric (e.g. painting); Twill : a tight canvas bond with diagonal lines (e.g. jeans).

Ennobling Further processing steps give the material its final characteristics. The final features are achieved through a variety of ennobling steps. The most important of these steps for digital printers are the following : -

surface handling: shiny/matt appearance flame resistant treatment coating to optimise the printing characters improvement of run feature in the printer airtight coating for vacuum tables

Processing The following should be considered when processing printed textiles : Cutting : Cotton textiles can be cut very well with commercial textile scissors. Can be torn very easily after an initial cut. Synthetic textiles (out of polyester or polyamide), e.g. Trevira® CS – can be best cut with a hot cutting machine. The edges melt neatly without loose threads. These materials cannot be, or are very difficult to tear. Textile glass should only be cut by specially equipped companies as splintering of small glass particles occurs which can cause skin irritation.

Sewing/hemming : The quality of the yarn should match the quality of the textile to be processed : cotton textile = cotton yarn synthetic textile, like Trevira, polyester, polyamide = polyester yarn silk = silk or cotton yarn cotton/viscose = cotton yarn textile glass = polyester yarn/glass yarn If a cotton textile is sewn with a polyester yarn and the finished product is washed, the cotton material will shrink by approximately 3% while the polyester yarn will not shrink at all. This will result in crinkling at the seams. Furthermore, the strength of the yarn should correspond to the thickness of the material and the area of application. For outdoor use, such as a flag, “Gore” yarn should be used. This yarn is very sturdy and also heat-resistant.

The folding properties of the material should not be ignored when sewing. Thick coated textiles, such as canvas, should not be hemmed as the coating will tear. Furthermore, the thick, coated material has relative sturdy edges.

Interlining fleece : This is a self-adhesive fleece material which is ironed onto the hem to strengthen the edges. A white fleece is recommended for light prints and a black fleece for dark prints. Larger surfaces NCM-JULY 2014 15

EXECUTIVE PAGES

should be seamed which is quicker and more economical than interlining.

Eyeletts + webbing : A webbing needs to be sewn into the hem before punching holes for eyelets. This is necessary to avoid ripping out the eyelet. The webbing material has to match the textile material, i.e. cotton material = cotton webbing, polyester textile = polyester webbing, thick textile = strong webbing etc… Most webbing material has a width of 4cm. Please note : eyelets should always be placed in the middle of the webbing.

Ironing : When ironing, textiles should be treated the same as clothes, i.e. higher temperatures for cotton (2 to 3 points) and lower temperatures (1 point) for polyester. To reduce the chance of polyester material melting, we recommend that you lay a cloth over the material before ironing. Some creases can be removed from cotton with steam alone. If the creases are not to pronounced then they can be steamed and then left to dry. Canvas and other synthetic coated material, such as Solvotex, may not be ironed due to their coating.

Washing/cleaning : Flame-retardant textiles lose their flame-retardant properties when washed or cleaned thus voiding their guarantee. Cotton materials may also shrink when washed. All textiles may washed only with water (without chemicals).

1. Trevira® CS textiles retain their flame-retardance after washing.

2. Canvas can not be washed due to its coating 3. Solvotex all Products can be washed chemical- free at 30 °C, when the colors are bonded with the textile (scratch resistance). Polyester and Trevira® CS products can be shrink a little bit. Cotton shrink more than them. If you wash Polyester and Cotton products the flame resistance could be lost, colors can bleach and cotton can lose its from.

4. Printex all Printex products are non-washable 5. DYEtex all DYEtex products are washable and suitable for outdoor use, but loose their flame-retardent characteristics Storage 1. Rolls should always be stored lying flat to avoid damage to the ends. The complete length of the roll should have floor contact. This prevents pressure marks and hanging of the product. Textiles must be packed and stored in a dry, climate-controlled environment to prevent the absorption of moisture.

2. All textiles should stored packed in climate-controlled and dry rooms, to avoid moisture absorbtion from the ambient air. The ideal room temperature is between 18 and 22°C, the ideal air humidity between 30 – 60%.

3. In case the material is stored or processed outside the prescribed temperature and humidity conditions it is necessary to remove the film packaging and let the material acclimatize for 8-24 hours before processing.

4. In case the material is exposed for a prolonged period ( about 2 weeks or more) to low humidity and temperatures below 10°C, we recommend to acclimatize the unpacked material for 48-72 hrs before processing.

5. Final convert prints should stored and shipped rolled if possible, to avoid breaks and cracking. They should stored packed in climate-controlled, dry rooms also.

Textiles and clothing are among the most important sectors of the Turkish economy and foreign trade.

Accounting for about 7% of the GDP together, these two sectors are the core of Turkish economy in terms of GDP contribution, share in manufacturing, employment, investments and macroeconomic indicators. These sectors had a 18,3% share in total export volume in 2013. According to Social Security Institution statistics, there are more than 52,000 textile and clothing companies in Turkey with more than 918,000 employees.

Turkey is one of the main actors in the world clothing industry. Turkey ranks 8th in world cotton production and 4th in world cotton consumption. Turkey also ranks 3rd in organic cotton production after India and Syria. The Turkish clothing industry with a share of 3,4% is the 7th largest supplier in the world, and the 3rd largest supplier to the EU. It has a share of 4% in knitted clothing exports and it ranks 5th among the exporting countries. With a share of 2,8%, Turkey ranks 9th among the woven clothing exporters in the world. The Turkish textile industry, which is listed in the world’s top ten exporters, is the 2nd largest supplier to the EU.

NCM-JULY 2014 16

EXECUTIVE PAGES

Non-slip Finishes for Apparel Textiles Non-slip finishes are easy to understand. Their practical importance is much greater than one might suppose from first looking at these few pages. Since the main effect of non-slip finishes is to increase the adhesion between fibres and yarns regardless of fabric construction, the generic term for these finishes would be fibre and yarn bonding finishes. Other terms that can be used include anti-slip, non-shift and slip-proofing finishes.

Adhesion between yarns is especially important in woven fabrics at the seams and in highly stretched areas like the elbows of shirts, blouses and jackets. Slippage of warp and fill yarns can also be a problem during preparation, dyeing, printing and finishing. This shifting generates an unequal appearance of woven fabrics, but the yarns are not damaged as in similar knitwear defects. Fabric elongation, moiré and crack marks can be caused by a too low yarn density, under-constructed fabrics and by very smooth fibres.

Smooth fibres, such as filaments of synthetic yarn, can cause similar problems in knitted fabrics. Runs, dropped stitches and snags are fabric defects that can be attributed to lack of fibre adhesion. Common terms for these interrelated problems are picking and snagging. The chemical products that reduce or eliminate these defects (anti-picking and antisnagging finishes) are quite similar to non-slip finishes. Among the factors that can affect yarn slippage are fibre type, yarn size, fabric weave, yarn count (ends and picks per square inch or centimeter), fabric weight and type of finishing process.

Non-slip finishes are often used with under-constructed fabrics to compensate for the reduced yarn count and to achieve acceptable physical properties. Lining and pocketing fabrics made with smooth synthetic filaments are finished with friction enhancers combined with durable press agents, water repellents or hand modifiers to prevent seam slippage. Umbrella fabrics made from nylon or polyester filament yarns are treated with friction enhancers and water repellents. The properties of any woven fabric with long floats can usually be improved with nonslip finishes. In particular, Jacquard upholstery fabrics with long floats are stabilised by backcoating with film-forming polymers. A special variation of the non-slip finishes, often combined with the incorporation of metal filaments, is the staband stitch-resistant finish, used for protective clothing & furniture, like in trains and buses.

Mechanisms of non-slip finishes The primary mechanism for the effectiveness of non-slip finishes is increased adhesion between fibres, filaments and yarns. This increased adhesion is accomplished by two approaches. The first is the addition of inorganic solids to the surface of the fibres to increase frictional forces. The second is to use filmforming polymers to hold the yarns physically in place. Often commercial non-slip products contain both friction enhancers and film formers.

Chemistry of non-slip finishes The most common friction enhancing agents are based on dispersions of silicic acid called ‘sols’ (Fig. 1).

About two-thirds of the commercial non-slip finishing products, listed in the International Textile Auxiliary Buyers’ Guide, are based on silicic acid sols; only a few are aluminium oxide dispersions. These products can be formed in a variety of particle sizes from 5 to 150 µm and yield dispersions that range from clear to milky white. When the sols are deposited on the fibre surface, the surface becomes much rougher and frictional forces between fibres become much larger. The polymeric film formers used as non-slip finishes are typically copolymers of vinyl, acrylic and methacrylic monomers. These materials are similar in structure to the copolymers used as hand builders Application methods and combinability Non-slip finishes are mostly applied by the pad– dry process, combined as needed with hand builders, repellents or cellulose crosslinkers (easy-care finish). The combination of silicic acid sols with softeners or silicone-based water repellents is crucial – their effects are contrasting. Performance problems can occur when non-slip finishes are NCM-JULY 2014 17

Fig. 1 : Silicic acid structure

EXECUTIVE PAGES

Table 1 : Test methods for non-slip finished woven fabrics Test method

Examples and comment

1. Resistance to yarn slippage within the fabric system

Determination of the sliding resistance of woven fabrics to displacement, for example DIN 53934

2. Resistance to yarn slippage near a seam

AATCC Test Method 88B

2.1 Determination of the extent of slippage after the effect of a defined force

Low priced small devices for rough orientation, for example H채rdi device, H채rdi AG, CH-5036 Oberentfelden, Switzerland

2.2 Determination of the force that is necessary for a defined seam opening

Need for an expensive tear strength tester with registration of tear strength/length alternation, for example ASTM D 434, DIN 53868, Marks & Spencer TM P12

combined with repellent finishes. Polymeric non-slip products, more than silicic acid sols, can reduce repellency performance. One solution is to apply the non-slip finish, dry the fabric, then apply the repellent finish. Enhanced performance of anti-pilling and handbuilding finishes can be seen when these are combined with a non-slip finish.

Furniture fabrics are back-coated with non-slip finishes, often with polymerbased ones. The formulation may include thickeners and flame retardants. Back-coating is mostly achieved by nip-padding or using a doctor (squeegee) or by foam application or spray techniques (for a lower add-on). Another one-side application is rotary printing (screens with regular perforation).

Evaluation of non-slip finishes Generally the slipping of woven fabrics is tested by two different methods, those that imitate yarn shifting within the fabric system and those that cover yarn shifting near a seam sewn into the treated fabric (Table 1 above). The latter are more important in the textile industry.

Seam slippage tests register the force that is necessary for a defined seam opening or they record the yarn shifting after the effect of a defined force. The last type of test provides a rough differentiation of fabrics according to their usage. The AATCC Test Method 88B provides a qualitative rating based on seam appearance after laundering and photographic standards, while ASTM D 434 yields more quantitative results.

Seam slippage test is conducted to evaluate condition of fabric when pulled apart at a sewn seam. A seam is sewn in the fabric, which is then clamped at one end and pulled by weights at the other end.

(Performed in both warp and filling directions.) The weight is increased until seam separates a specified distance. The number of pounds required to cause this separation determines the rating. The acceptable values are : 25 lbs. minimum = upholstery and also for panel and vertical surface fabrics.

Conclusion : The anti-slipping finishing is carried out for improving seam resistance and resistance to thread slippage of all slippage-prone fabrics, particularly for apparel fabrics like blouses and shirts. This finish improves resistance to thread slippage and seam strength which helps in avoiding seam damage on the garments during wearing. Synthetic warp and weft threads in loosely woven fabrics are particularly prone to slip because of their surface smoothness when the structure of fabric is disturbed and appearance is no longer attractive. To avoid this attempts are made to give the filaments a rougher surface. Silica-gel dispersions or silicic acid colloidal solutions are quite useful and they are used with advantage in combination with latex polymer or acrylates dispersions to get more permanent effect along with simultaneous improvement in resistance to pilling or snagging. These polymer finishes are also capable of imparting a soft and smooth handle to synthetic fabric without imparting water repellency. Some potential difficulties with conventional non-slip finishes include less flexibility and a harsher fabric hand (sometimes dry or fatty), dusting during cutting and sewing and delustering of fibres.

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THEY KNEW AND FAILED TO… True story of a corporation that knew it's product was dangerous and deadly Every day there is another recall or warning of a product that turned out to have design flaws or unexpected problems - a drug with an unanticipated side effect, a toy with a sharp piece that can injure a child, a piece of garment having banned chemicals or a popular food product that may have been contaminated in production. These recalls and warnings are so frequent that consumers are no longer surprised.

What would surprise consumers is the fact that sometimes those who are responsible for these dangers know about the problem and do nothing about it. People find it hard to believe that anybody would cover up a product's danger and then market that product to the very people it is likely to kill or injure.

Yet, that is exactly what happens time and time again. The following is a true story of a company that discovers its bulletproof vests are defective... and then sells them anyway to be worn by law enforcement, the military, and the President of the United States. This is one of the stories that is being reproduced here through the courtesy of the American Association of Justice.

Second Chance Body Armor Bulletproof Vests In June of 2003, 27-year-old Oceanside, California, police officer Tony Zeppetella got up early to spend a few precious hours with his six-month-old son Jakob before leaving for work. He would never return home from his shift. Zeppetella pulled over a car during a routine traffic stop later that day. When he stepped to the car’s window, a gang member inside shot him with a stolen Ruger handgun. The bullet penetrated Zeppetella’s bullet proof vest and hit him in the chest, severing an artery. Zeppetella returned fire but eventually died from his wounds. Soon after his death it would come to light that the manufacturer of the bullet proof vest had known for years that its products were defective, but the company had decided not to warn its customers.

Tony Zeppetella

Executives at Second Chance Body Armor knew as early as 1998 that the Zylon material in its vests that was supposed to be durable enough to stop a bullet was suffering from degradation problems that could render the vests penetrable. In a 2001 memo, written before Zeppetella’s vest had even been manufactured, a Second Chance executive recommended the company “immediately notify our customers of the degradation problems,” and went on, “lives and our credibility are at stake.” In another memo dated 2002, company president Richard Davis outlined one of the company’s “options,” which included “operating as though nothing is wrong until one of our customers is killed or wounded.”

Second Chance did not warn its customers until September 2003, when it recalled 130,000 vests. In 2005, Second Chance recalled a further 98,000 vests, but even then did not recall all of its Zylon products because it claimed it did not have enough money to replace them.

Between the time the company discovered the vests’ problems and the recall Second Chance sold vests to hundreds of thousands of law enforcement and military personnel.

The vests were even worn by President George W. Bush and Mrs. Bush. Zeppetella had originally been issued a different vest but paid $313 of his own money to “upgrade” to the Zylon vest.

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- - Second Chance internal email Dr. Aaron Westrick, research director of Second Chance Body Armor, Inc. (SCBA) was the first official to oppose the sale of Zylon bulletproof vests. Back in 2001 he asked that police departments be warned that the Zylon vests they were selling were degrading. He was ignored, threatened, harassed and eventually fired. He then filed a whistleblower case.

More details reported in the US media : Second Chance Body Armor, Inc. (SCBA) - America’s largest body armor company - manufactures bulletproof vests. In 1998, SCBA began using a material called Zylon in its vests after Zylon’s maker, Toyobo Co., promised that it had twice the strength of the polymer fibers commonly used in soft body armor and was resistant to heat, light, and moisture. Incidentally, Second Chance claims on its website to be the "world leader" and "the most successful manufacturer" of wearable, concealable, soft body armor.

In November 2001, Toyobo told SCBA that new tests showed Zylon lost 15 percent of its strength when exposed to 40 percent humidity and temperatures over 40-degrees Celsius for longer than 100 days. A month later, however, Toyobo said the test was faulty and the product lost less than 10 percent of its strength over 10 years of use. SCBA did not inform the public of the inconsistent tests but did begin conducting its own tests. SCBA stopped using Zylon in August 2003 after concluding that its performance was inconsistent. Not until September 2003 did Second Chance warn its customers that the vests might not be up to par. The company at that time offered "free upgrades," which involved inserting non-Zylon ballistic pads in front of the Zylon material. But Second Chance did not offer refunds on the vests, which were sold with five-year warranties.

SCBA filed for bankruptcy in October 2004. The bankruptcy court certified a class of all U.S. purchasers or users of SCBA bulletproof vests containing Zylon. The class made a claim for about $113.21 million in the SCBA bankruptcy. The commonwealth of Pennsylvania made its own claim for about $18.04 million.

The bankruptcy trustee agreed to pay the class claim, which amounts to $750 per vest, with deductions for class members who received part of the Toyobo settlement. Notice has been sent to potential class members.

Second Chance failed to warn customers of the defective vests for over three years after obtaining multimillion dollar "rebates" from Toyobo. Dr. Aaron Westrick, research director of SCBA filed the suit under the Federal False Claims Act in 2004, and the U.S. government formally joined the suit in 2005. The suit alleges that Toyobo conspired with Second Chance Body Armor, Inc. to sell defective body armor made of Toyobo's Zylon material. Toyobo is a large, Japanese manufacturing company, which is publicly traded on the Tokyo Stock Exchange.

Dr. Aaron Westrick, who was fired from Second Chance after he gave deposition testimony in the Zeppetella case, provided unrebutted testimony that Second Chance and Toyobo managers had detailed knowledge of the vests’ problems. The US Department of Justice already civilly sued Second Chance and Toyobo in federal court based on the fraudulent sale of defective bullet proof vests. Toyobo was a named defendant because it manufactured the defective material (Zylon) which was used to construct the Second Chance vests.

Toyobo settled with the class for $29 million in 2005.

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White Paper On Smart Textile Garments & Devices : A Market Overview of Smart Textile Wearable Technologies Christian Dalsgaard (Director and Founder) and Rachael Sterrett (Marketing Coordinator : Marketing Activities & Business Development) Ohmatex ApS, Brendstrupgaardsvej 102, 8200 Aarhus N, Denmak (Smart Textile Consultancy) Introduction It is an interesting time in smart textiles development. As the industry matures and develops there is an increasing drive to turn research results into commercial opportunities. The surge in wearable technology is acting as a spur to the smart textile industry and smart garments are being perceived as a niche market within the fast growing wearable technology industry. The Smart Fabrics Conference 2014 has been renamed Smart Fabrics and Wearable Technology, Intel has launched a “Wearable” challenge and “wearable tech” has never been more talked about in the media.

This third Ohmatex White Paper on smart textile garments and devices, focuses on the intersection between smart textile technology and “wearable tech” – wearable technology on a textile platform. For those who have been working in the industry for almost 10 years we want to highlight what is new and where development is happening. For those in traditional textiles or wearable textiles who wish to begin to exploit the potential of smart textile garments and devices we aim to observe trends, track changes and highlight successes and opportunities in the field of smart textile technology.

Definitions Smart textiles

Textiles with the ability to react to different physical stimuli; mechanical, electrical, thermal and chemical etc.

SFIT

Smart Fabrics and Interactive Textiles (also defined as smart textiles).

Wearable Technology

Any electronic device small enough to be worn on the body.

Interactive Textiles

Wearable technology that is integrated into a garment or controlled by an integrated panel or button.

E-textiles

Textile with electronic properties included in the textile fibres.

Market overview A new study by Grand View Research, January 2014, confirms that the global market for smart textiles is continuing to see strong growth in a number of key markets. The overall size of the global smart textile market was estimated to be USD 289.5 million in 2012 and expected to exceed USD 1,500 million by 2020. The main growth sector in the last 3 years has been in the protection and military clothing sector and it is estimated to remain the largest market segment in the next six years. Sport and fitness applications are predicted to see the fastest growth along with health and medical applications.

Cath Rogan, of Smart Garment People, UK, observed in her conference review of Smart Fabrics Europe 2013 that “in strong contrast to previous conferences, there was almost no mention of textile based wearable physiological monitoring” and instead there was a much stronger bias towards “lighted textiles”.

However the programme for the Smart Fabrics and Wearable Technology 2014 conference in San Francisco shows a healthy number of presenters in the field of smart textile physiological monitoring devices and several presentations featuring of non-textile wearable monitoring devices.

This may indicate differences in smart textile priorities and interests between Europe and the U.S, however the last 3 years have seen smart textile technologies coming to market in all of the above mentioned growth sectors: Military protective clothing, physiological monitoring for medical and sports applications, and lighted textiles.

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Within the larger wearable technology sector smart texiles is clearly positioned as a segment within this market. An ABI Research report on Global Wearable Computing Devices, includes smart garments as a niche segment in the larger wearable technology industry.

Wearable Technology consulting company, Vandrico, Canada is actively maintaining a Wearable Tech database, which is updated on an almost daily basis. At the time of writing there are currently 164 wearable devices listed. The majority are listed in the “lifestyle” and “sports” sector with an average cost of $378 (USD). Of these devices the following smart textile devices/garments are listed: Owlet Baby Monitor (sock monitor), Tjacket (simulating hugs for ADHD application), Beartek Bluetooth Gloves, Moticon (motion analysis insole), ElectricFoxy Move (movement sensing garment with stretch sensors), Xybermind Achillex (monitoring insole and running vest), Heapsylon Sensoria smart sock (sock monitor for fitness), 4iiii Viiiva Heart rate monitor (conductive textile strap). OMSignal and Hexoskin (smart biometrics t-shirts). This list is by no means exhaustive, but it gives some indication of the smart textile wearable devices currently being developed and coming to market.

Together with a growing smart textile market and an increased number of products moving from R&D to commercialisation, there has also been an increasing focus on the need for standardisation as a prerequisite for market exploitation and commercialisation of smart textile research.

Smart textile networks and conferences The smart textile industry has seen growing membership of online communities, networks, social media and conferences supporting the industry.

Networks Innovationintextile is an online smart textiles hub created by UK based textile specialists Orange Zero Ltd in 2009, and has enjoyed phenomenal growth. It is now established and highly regarded internationally in the field of technical textiles. It provides a daily updates email service which can be filtered to your areas of interest.

European Technology Platform for the future of textiles and clothing is an industry-led initiative launched in 2004 and formed as a legal entity/membership organization to provide a network for the European textile industry. It is now the largest network for textile research and innovation in Europe, with 750 members.

COLAE : Commercialisation clusters of Organic and Large Area Electronics – promotes the commercial exploitation of large screen electronics.

SustaSmart promotes the standardisation of smart textiles for various applications including personal protective equipment.

ArchInTex Network : For interaction between architecture and textiles and interactive design.

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Smart Fabrics (& Wearable Technology) Energy Harvesting and Storage Europe 3F Talks – Functional Fibres and Films (Germany) Flexible and Stretchable Electronics Ambience 2014

LinkedIn Groups 1. Smart Fabrics – Formed Dec 2009, 680 members (Smart Fabrics conference group) 2. Smart Textiles – Formed Feb 2011, 1010 members (Lina Rambausek) 3. Smart Textiles (Smart Fabrics and Interactive Textiles, SFIT) – Formed Dec 2009, 2332 members Segmentation and Stakeholders Personal Protective Equipment & Military According to the study by Grand View Research Inc, Protection and military accounted for 27% of the overall market share of smart textiles in 2012, and is expected to remain the largest segment in the next 6 years.

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Personal Protective Equipment Research and development is beginning to result in commercialisation of smart textile solutions for firefighters, allthough there is still a gap between prototype development and commercialisation.

In the US, Globe Firefighters “WASP” systems was made available for select training academies in 2013. This shirt includes a wireless firefighting tracking system which measures firefighter location and a physiological monitoring system.

In 2012 a number of EU funded projects resulted in various prototypes for smart textile PPE garments. Prospie (completed 2012) completed the development of a PPE with inbuilt cooling mechanism and physiological sensors to measure relevant, such as skin temperature, heat flux and heart rate, to assess the thermal status of the worker. Safe@Sea (completed 2012) developed advanced personal protective suit for the fishing industry. This includes the integration of sensors into protective outer garments to detect falling overboard in a fully waterproof smart textile garment.

Enprotex, a European foundation formed to provide a link between EU publically funded R&D PPE projects and public procurement organisations, acknowledges that despite the significant public funding in this area there have been very few direct commercial spin-offs. They are working on a new EU initiative Smart@fire to bridge the gap between prototypes and commercialisation. The outcome of this project aims to be a smart PPE suit to be procured by EU fire and rescue services by 2015. The 3rd Enprotex conference will be held in Brussels on 18-19 November, 2014 and will specifically address issues of regulation, standardisation and public procurement in the PPE industry.

Military and defence applications A number of development projects are continuing to exploit opportunities for integration of electronics and communications equipment in military uniforms. Since 2011, Sagem’s FELIN system has started volume production and is currently supplying the French Army.

The Sagem FELIN system developed for the French Soldier modernisation programme is now in volume production for the French Army and is the first of its kind in Europe. Delivery of the suits began in 2012, equipping 4 regiments per year and 10 regiments have now been equipped. FELIN is a dramatically modernised combat suit with integrated rechargeable battery technology and the possibility to attach and run a range of electronics devices including weapon sights and radios. The weight is ergonomically positioned and the integrated communications reduces the burden of additional equipment as well as providing direct information to command staff. Based on feedback on the FELIN system and on-going development Sagem has now developed a Smart Vest with integrated wireless technology.

The US military has been exploring opportunities for exploitation of smart textile technologies at the US Army Natick Soldier Research, Development and Engineering Center (NRSDEC) since NCM-JULY 2014 23

The Prospie (‘Protective Responsive Outer Shell for People in Industrial Environments’) project aims to a new generation of better personal protective clothing and equipment. The development of new cooling systems in the clothing is a key component.

Physical effort produces heat and, therefore, perspiration. That’s a natural form of cooling: when water evaporates, cooling results. If, for instance, you wear polypropylene underwear that is only able to hold very little moisture, the moisture is thus transported to the outermost layer of clothing where it evaporates: this layer then cools but the skin does not. According to Professor Hein Daanen, the skin does cool well if you wear cotton underwear. ‘But if you then wear insular clothing over it, then there is very little difference between wearing polypropylene and cotton underwear.’

Intense exertion can result in people producing over a thousand watts of heat. Underwear which has ice water running through it can cool off a quarter of that heat, which is sufficient for light exertion, such as writing or computer work. For athletes that take part in endurance sport of at least ten minutes precooling – cooling down before exertion – has become normal practice.

What scientists are not yet able to do well is cool people in the field during their work like soldiers in Afghanistan or blast furnace employees. They have successfully developed cooling system for people that are seated in their jobs, like helicopter pilots, but for moving around the weight of a cooling system could prove problematic – just think of a pump and a fan. There are systems for soldiers and these are currently being evaluated by the American armed forces. So far all the advantages of cooling are being negated by the additional weight of the cooling system.’

Sixteen companies and institutes from seven European countries (Belgium, Denmark, Great Britain, Italy, Switzerland, Lithuania and the Netherlands) are participating in the Prospie project.

They are all trying to combine various methods to get a step closer for people on the move on the work. These include special salts that cool once they come into contact with water (read: perspiration) and phase change materials. A third method involves the development of new ventilation systems in clothing.

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Safe@Sea // An emergency distress signal

Fishing is a dangerous occupation, but new intelligent protective garments developed in the Safe@ Sea project can significantly improve conditions for those who work at sea.

Emergency call from suit The aim of the Safe @ Sea project was to develop a new generation of suits with improved buoyancy, tear resistance, shock protection for the head and not least with integrated sensors that emit an emergency distress signal, if the person wearing the suit falls into the water.

The project was coordinated by SINTEF in Norway and led by Helly Hansen Pro Workwear. There were a total of 13 partners in the project which started on 1/10 2009 and finished on 30/9 2012 (3 years), the EU supported the project with 23 million DKK. Ohmatex was responsible for the integration of the emergency electronics into the developed garment– and led a workpackage for these tasks. Ohmatex received EU support for 1.8 million DKK. at least 2006, and this work is ongoing in collaboration with Infoscitex Corp. Currently their focus is on wearable power to reduce weight from batteries and cabling for electronic devices. The main focus of the research is on two types of energy harvesting technologies – kinetic energy, generated by the soldiers movements and photovoltaic flexible solar cells which can be integrated onto external fabric surfaces to harvest solar energy. The aim is to integrate this technology into Army combat uniforms and tactical vests.

In the UK a light weight military uniform with a reduction in battery and cable weight is under development with conductive fabric integrated into the shirt, helmet, backpack, gloves and weapons platform. The Centre for Defense Enterprise (CDE) has awarded £234,000 to Intelligent Textiles, to find smart textile solutions for reducing the weight load for soldiers. Intelligent Textiles have patented a number of techniques for weaving conductive fabrics, but work still has to be done on the connectors used within the garment to prevent them from rusting and short circuiting. Intelligent Textiles is also working with BAE systems to integrate other equipment into the uniform. The uniform is expected to be available by 2015.

The Canadian Government is currently evaluating bids for the “Integrated Soldier System Project” which will supply a suite of equipment including electronic devices and sensors. They intend to acquire up to 6,000 integrated suites of equipment and the contract is expected to be awarded some time in December 2014.

Space The European Space Agency (ESA) continues to invest in smart textile technology for astronaut space missions. The technology they are developing is designed to help counteract some of the health problems encountered by astronauts as a result of the effects of reduced gravitational forces in space.

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Smart Sock : ESA // Measuring astronauts muscular activity

The European Space Agency, ESA has a contract with Ohmatex for development of a sock that measures astronauts muscular activity during longer durations in space. Further development and extensive testing at ESA’s technology centre, ESTEC in Holland will be needed before the sock is sent into space. In microgravity, muscles degenerate fast. ESA are currently planning even longer missions and are therefore looking for technologies that can be used to measure muscular activity during exercise in space.

Smart sock ESA have invested in the development of a smart sock that can monitor the efficacy of astronaut training exercises in space, to help to reduce muscle degeneration experienced through loss of gravity in Space. The result is a sock with built-in sensors that record the electrical activity of muscle (EMG) and use light to detect oxygen content in and around the muscle (NIRS).They contracted Ohmatex to develop this in 2009 and the first phase and delivery of a prototype was completed in October 2012. The initial contract with ESA was for Euros 200.000 over a duration of 18 months.

Smart T-shirt Astroskin is T-shirt which has the potential to monitors astronaut’s vital signs in real time and wirelessly transmits them to medical teams on Earth, who can interpret the data to evaluate how a crew is responding to their tasks and environment. It has been developed by Carré Technologies, featuring their Hexoskin technology and is currently being trialed by an Antarctica expedition team, who are being monitored remotely by researchers at the University of Quebec. The results from this trial will be shared with the Canadian Space Agency for possible use on future space missions.

Telemedicine and sports health We previously observed that despite the strong predictions for the growth of telemedicine, the number of smart garment medical devices to assist with this was developing more slowly than might be expected. To some extent this is still the case however there are a number of devices due to come to market in 2014.

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Hexoskin biometric shirt is a very precise portable lab. Light & comfortable, it's good enough for space research, designed to fit the body. It includes 3 heart sensors. Features : Comfortable fabricbased stretchable sensors; No more shaving, sticky electrodes or hard plastic strap discomfort; Train in your optimal heart rate zone; Measure your recovery, and Track your resting heart rate.

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Multi-sensor garments which have been underway for several years are now becoming commercially available. Some have launched their products through successful pre-order crowdfunding campaigns in 2013 designed to support their first production runs.

Currently the main garments being developed for physiological monitoring with medical and sports applications are T-shirts and socks/stockings and insoles. The main biometrics being monitored are heart rate, temperature, movement and respiration, and muscle activity. All of the devices being developed have potential for both medical/telemonitoring and sports applications, however there has been a shift towards marketing them more agressively at the sports and fitness markets to encourage early adoption of the technology, and an increasing focus on fashion and design elements in the finished garments.

We will track the progress that has been made from what is now considered the standard basic heart rate, monitor to more complex multi-sensor smart textile garments and platforms currently being developed.

1. The heart rate monitor One of the most successful smart textile developments in healthcare devices, has been the medical heart rate sensor, mounted on a textile conductive strap, developed by Clothing + in Finland. They developed the first heart rate sensor in cooperation with Polar Elektro and they now mass produced in high volume in China, supplying Suunto, Adidas, Garmin, Philips and Timex. They currenty manufacture more than 3 million belts each year, which is half of the total global heart rate monitor market for both health and sport. These currently retail at around $80 for both strap and electronics. Today heart rate monitors typically allow for measurement of heart rate, acceleration, deceleration, speed and distance.

The next generation of heart rate monitors are those where the sensors are integrated into T-shirts as a more comfortable alternative to wearing a strap whilst exercising, with data captured and transmitted wirelessly in a removable electronic device attached to the shirt. T-shirts and sports bras with a sensor woven into the fabric of the garment are available as part of the Adidas miCoach range (via Numetrex).

The transmitter and compatible electronics are sold separately. Similar products are available from Heapsylon’s Sensoria fitness range. Both brands are currently retailing for between $60.00 - $80 and are machine washable. GOW Trainer produced by Weartech (Spain) is another system which includes the full package of T-shirt/bra with sensors (hand washable), plus the electronics/communication device and associated apps. It is retailing at Euros120.

Adidas have also entered the professional sports market with their miCoach Elite soccer system launched in 2012. It consists of Adidas heart rate monitor t-shirts, relaying information in real time to coaches during training. It has currently been adopted by Major League Soccer in North America, costing $100,000 USD per team.

However for the average non-professional consumer there is still a big difference between the cost of a running shirt, and the cost of a shirt with an integrated sensor. Kim Scheffler, responsible for product development and commercialisation of the Adidas miCoach brand is aware that it is necessary to educate consumers that “it is not a Garment with Sensors in it .....it’s a garment built around the sensors”.This is echoed by Davide Vigano, CEO of Heapsylon (Sensoria Fitness) who’s company mission statement is “The Garment is the computer”.

2. Multi-sensor physiological monitoring : heart rate, respiration, temperature, oxygenation, plantar pressure Developments in multi-sensor garments which have been underway for several years are now becoming commercially available. A number are now accepting pre-orders for release later this year. These are significantly more expensive than heart rate sensoring devices, and are being priced between $200 $400. The products can be differentiated by the biometrics that they measure, their smart phone and blue tooth compatability (i.e. which smart phones) and the quality of the data monitoring platforms supporting them (apps and software).

Heapsylon has developed an e-textile smart sock (Sensoria Smart Sock) for medical and sports applications. This is based on their e-textile sensor technology which is also used in their heart rate T-shirt range. The textile plantar pressure sensors allow measurements which can be valuable information for preventing falls, weight monitoring and monitoring for patients with diabetic foot ulcers. Sensoria raised $115,000 in pre-orders in a two month crowdfunding campaign in 2013. They are currently available for pre-order (socks plus electronic anklet) for $199.00, with an expected release date of 31 March 2014.

Heapsylon is currently interested in attracting investors to further their e-textile developments.

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The OMsignal shirt tracks deep bio-signal including:Heart rate, Breathing rate, Breathing depth, Activity intensity, Steps walked, Calories burned, Heart Rate Variability. The OMsignal shirt - made from the latex-free polyester and elastane blend - is machine washable and lightweight with increased comfort and breathability.. The shirt needs to be worn directly on the skin to give the best readings. The longsleeved shirt is perfect for those who want to take their training from the treadmill to the streets. The built-in smartphone pocket makes it great for training outside the gym, while performance-grade compression increases blood-flow, delivering more oxygen to your muscles, enhancing both workout performance levels and post-workout recovery.

Made with unique software controlled precision-engineered technology, OMsignal seamless compression shirt fits like a second skin to optimize the biomechanics of the entire body. Improved muscle stability and increased blood flow through compression aids post-exercise recovery, leaving you less sore after your workout. It is designed with flat seams and seamless knit for extra comfort and durability using a blend of moisture wicking fibers that keep the wearer comfortably dry. Every fiber is treated with an anti-microbial, silver-based solution to destroy odor-causing bacteria. An extra little Black Box is needed to transmit the data from the smart shirt to your iOS device. One Little Black Box works with all shirt styles in the Biometric Smartwear collection.

Carré Technologies (Canada) are curently launching Hexoskin, a smart textile garment with 3 integrated sensors: heart rate, respiration and activity sensors. Their full pack of machine washable shirt and electronics is avaliable for $399.00. Hexoskin raised $165,000 USD in pre-orders in a crowdfunding campaign in Sept 2013, and their first orders are expected to be ready for delivery in March 2014.

OMSignal is also developing a shirt using Hexoskin technology. They have attracted investment from several seed stage venture capital funds. They have started accepting pre-orders. (Their product is described above.)

Owlet baby monitor – smart sock measuring heart rate, oxygen levels, skin temperature and sleep quality. The sensor is waterproof, but is removed from the sock for washing. $130,000 in pre-orders was raised in a 3 week crowd funding campaign in September 2013. Their first batch is now sold out and orders for a second production run are now being taken. The current retail price is $250.

The German Moticon insole measures plantar foot pressure for motion analysis, accelaration and temperature and is aimed at athletes during rehabilition following injuries/surgery. It is possible to order the product, although no price is currently given.

The MYWEAR EU FP7 development project is due to be completed in November 2014. The project has developed a textile based integrated data monitoring platform which allows data from several wearable sensors (Heart rate, respiration and plantar pressure) to be displayed on smart phones and retransmitted to medical professionals or caretakers to follow and oversee the user’s data. This development is aimed at four target groups: elderly, obese, diabetic and disabled, enabling wearers to carry on their daily life while being comfortably monitored by health professionals.

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3. Stretch sense sensors: monitoring volume and muscle activity Textile strain gauge or stretch sensors measure increases or decreases in a fabric as it is stretched.

These can be used to measure muscle activity during exercise or changes in volume as a result of increased fluid in a part of the body (plethysmography).

A number of stretch sensors using DEAP (Dielectric Electro Active Polymers) sensing technology are currently available for inclusion in sports or medical garments: Danfoss Polypower, Denmark and Stretchsense in New Zealand, which won two science awards for innovative technology in 2013.

The Edema stocking developed by Ohmatex, Denmark, uses a strain gauge sensor to measure changes in leg volume, as excess fluid accumlation is a symptom of edema. It is a telemedicine monitoring device for patients with congestive heart failure or pre-eclampsia in pregnancy. The stocking is now available for purchase by medical researchers.

Fashion A number of designers are continuing to make their mark within wearable technology fashion, using LED light and colour to enhance garments for many stage performances and high profile events and occasions. The special effects for these performances are becoming increasingly advanced as the LED lights are being programmed with increasing sophistication. LED fashion garments which have now become commercially available and also other applications of smart textiles within fashion lines are being designed which incorporate inbuilt solar panels for charging technology on-the-go.

Rainbow Winters uses interactive textiles in her garments which allow for changes in colour and pattern in response to sound, sunlight, water and stretch. Her sound reactive Thunderstorm dress was featured at the Made in Future Exhibition in Milan in 2012. As volume increases the dress illuminates.

Pauline van Dongen merges traditional textiles with smart textile technology in her creations. In 2013 she created a wearable solar dress as part of the Wearable Solar project, incorporating solar cells into a dress which would be capable of charging a typical smart phone up to 50%.

Moritz Waldemeyer demonstrated some fantastic lighted garment displays at the closing ceremonies of the London 2012 Oympics and Paraympics. For the Olympic closing ceremony 140 LED-encrusted carnival outfits were created which were programmed to pulse to the beat Brazilian drummers. Other innovations by Waldemeyer have been LED video jackets worn on tours by Take That and Will.i.am (Blackeyed Peas) in 2011. Both jackets included video capable full colour LED pixels, especially designed by Waldemeyer for the display of animation at video speed on fabric surfaces, transmitted from a built in SD card.

London based Cute Circuit continues to design combine fashion and smart textile technology. In 2013 they again designed a number of haute couture lighted dresses for Katy Perry, and a “space” dress for Sarah Brightman’s international tour. They now have a range of technology enhanced dresses available on their website, some of which include embedded LED lights, averaging around £300.00. They also have a K-Dress available commercially, based on the dress she wore at MET Gala New York in 2010. The dress retails at £1500.00.

Light Emitting Textiles In addition to fashion, other applications for light emitting textiles are also emerging as wearable devices for phototherapy, safety lighting in garments, and lighting on various thin conductive substrates (textile, flexible and foil). Research is continuing to solve issues of robustness, seamless integration and washability.

The EU funded FP7 PLACE-it project (Platform for Large Area Conformable Electronics by InTegration), led by Dutch electronics giant Philips, focused on true integration of LED technology with flexible, stretchable and textile substrates. It resulted in the development and launch of the Philips BlueTouch Pain Relief Patch in 2012 and the Ohmatex washable connector.

The BlueTouch device incorporates special blue LED lights within a flexible substrate and is designed to offer non-invasive pain relief for muscular back pain. It is currently retailing at Euros 250.00. The Ohmatex connector is the first fully washable connector, designed specfically to provide connectivity for smart textile products currently in development. The connector can be attached to a textile or thin conductive material. It greatly helps in enhancing the washability and robustness of connection in smart garments for sports, fashion, medical and military application. The connector consists of a male and female part (both NCM-JULY 2014 28

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PLACE-it // Flexible textile materials : Philips Blue Touch Pain Relief Patch

The BlueTouch Pain Relief Patch is an innovative new product from Philips, designed to offer noninvasive on-demand pain relief for people with (mild to moderate chronic) muscular back pain in a discrete, wearable device. It uses special blue LED light to induce production of nitric oxide (NO) in the skin, which is proven to trigger a number of protective and preventive processes in the body. It relaxes muscles through a mechanism centered on improved blood circulation, which results in pain relief.

At least 37% of adults around the world suffer from muscle and joint pain (acute and chronic), and Philips is responding to insights that sufferers are looking for more natural effective and safe solutions beyond pain killers. The BlueTouch Pain Relief Patch offers non-invasive, drug-/chemical-free pain relief with just two sessions of 15 to 30 minutes. fully washable) which snap easily together to provide a strong electrical connection. The connector has no mechanical moving parts and can be fixed to a thin fabric or conductive material with minimal physical stress. It has built in strain relief and varying transition zones between the flexible substrates.is fully washable and provides robust connectivity on textile and thin flexible substrates.

In 2013 Badger Gear launched their 360 LED Jacket, a sportswear jacket with LED lights incorporated, designed for high visibility at night.

It is currently retailing at $149.99 and is hand washable.

Foster Rohner and Danish design company Diffus are continuing to collaborate on research projects in the fields of embroidered optical fibres and integration of LED lights in embroidery. In 2012-13 they worked on Hollowlight which combines two lampshades in one installation, one has surface embroidered LED lights and the other has embroidered optical fibres.

Diffus is also a partner in Light.Touch.Matters, an EU funded project which for the first time engages both designers and engineers in the development of smart materials that can sense touch and movement and respond with light.

Ohmatex washable connector One of the main challenges for integration of lights/electronics into textiles is the transition from the electronics integrated in the substrate to external components (power supply, control electronics etc.). Ohmatex role in the PLACE-it project was to develop a generic and customizable connector which enables a robust and stable electrical contact between a chosen substrate (textile, foil or stretchable substrate) and external units via textile bus cabling.

The measuring electronics are detachable from the textile, and can also be re-used in other wearable devices whilst the textile itself can be readily washed.

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360 LED Jacket : A New Type of Sport Apparel for Running & Cycling @ $149.99

Forster Rohner Textile Innovations - the leading global supplier of technical embroideries - develops and produces technical textiles based on the highly sophisticated capabilities of modern embroidery techniques. Forster Rohner's core competencies lie in the robust textile interconnection of electronic components on fabrics, the development of miniaturized electronic components and their textile integration as well as the combination of functional and aesthetic embroideries. Examples are the integration of LEDs and solar cells into textiles as well as the formation of textile sensor or heating and antenna structures. From prototyping to serial production, Forster Rohner supports customers in all stages.

Audio Entertainment While smart garments with integrated controls for iPod and Mp3 players previously attracted media attention, such solutions are no longer newsworthy. As a result, standard type solutions are beginning to emerge that existing brands can integrate as a feature in their own products.

What is new is that developments in textile cabling are introduing new light weight, noise reducing, fashion cabling options to headset manufacturers. Currently several braided fabric options are on the market (House of Marley headphones and One Good earbuds). Ohmatex will be the first to offer textile conductive ribbon as head set audio cabling with the ability to integrate audio controls and fashion elements (colour, patterns, logo print).

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Market drivers

Within the world of sport, there is an infinite need for improved athletic performance. Technological developments in physiological monitoring and motion supervision are starting to be exploited to facilitate new training tools allowing athletes and trainers to evaluate the efficiency of training programmes and fine tune them to optimise performance. As the amateur health and fitness market adopts monitoring devices to improve their personal fitness levels, the professional sports market is beginning to adopt the technology on a much larger scale (e.g. North American Major League Soccer adopting Adidas miCoach Elite sensing shirts), particularly where team sports are concerned, with the potential to collect and optimise data for every player. In this market it is the coaches and trainers who are the purchasers and managers of the data. For them it is not about the garment, but about the data that the garment can produce.

Ageing population/ healthcare trends According to an IHS report, “World Market for Telehealth- 2014 Edition�, the number of patients using telehealth services will rise to 7 million in 2018, increasing dramatically from the current 350,000 patients. This will involve a corresponding increasing in medical devices and public spending to support this trend.

Global forecast of Telehealth Patients and Device and Service Revenue (Thousands of Patents and Revenue in Millions of US Dollars 8000

5000 One of the biggest driver of 4500 7000 market growth in this field 4000 6000 is the need to reduce health 3500 care costs, in particular 5000 3000 hospital re-admissions of 4000 2500 patients. This is a global 2000 3000 trend and governments in 1500 2000 the U.K., France, China and 1000 Denmark are also support1000 500 ing telemedicine progra0 0 2012 2013 2014 2015 2016 2017 2018 mmes to help address the cost of hospital admisDevice & Service (in Mn $) Total Patents (in Thousands) sions. According to the report, telemonitoring is most often prescribed to patients with congestive heart failure because of the need to reduce readmissions of this group of patients, and because of strong evidence that telemonitoring is effective in monitoring this condition remotely. The Whole System Demonstrator programme was conducted in the UK (2008 -10) to explore the impact of adopting telehealth. The results published at the end of 2011 reported a 20% reduction in emergency admissions, a 15% reduction in A&E visits and a 14% reduction in bed days in the patients studied. As a result the NHS launched an initiative in 2012 with the aim that by 2017, 3 million people with long-term health conditions would be receiving telehealth care.

Thousands of patents

Millions of US Dollars

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Professional sports

Publically (EU, NASA/ESA) funded research and development A number of SFIT research projects have already been funded within the EU FP6 and FP7 programmes with the aim of revitalising the European textile industry and increasing competitiveness through hightech innovation. These have focused on the major growth areas for Smart Textiles: Health care solutions (physiological monitoring), Advanced thin, organic and Large Area Electronics (lighted textiles), innovation in protective clothing, and energy harvesting and storage in fibre form. NASA, and its European counterpart ESA, are also extensively involved in exploiting and maturing the latest wearable technologies. A new round of EU funding (Horizon2020) is now underway where there will be an increasing focus on the commercialisation of research results in these areas.

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Processing & Finishing of Polyester Russian Fabric Construction of the fabric - Warp Weft Width Weave

: : : :

The lot size for processing Dyeing machine / liquor volume -

2400 mtr. - (8.5 kgs. / 100 mtr.)

U - Jet Dyeing machine / 400 ltr. Capacity

84/36/1200-ST SD Crimp 84/36/1200-ST SD Crimp 52.5�

Plain

Reed Pick Beam Border

: : : :

84/2 64 4800 22 dent/6beam

The Process sequence of Russian Fabric from grey to the finished stage Drumming :

Pre wash with Sodium Hydro Sulphite (1.0gpl) and Levocol NID (0.2gpl) Then treat with Levocol SWL Levocol SCR Pressure Temperature

-

500 to 1000 gms.

200 to 500 gms.

2 2.5 kgs/cm for 60-90mins. o 0 120 C./125 C mins.

Weight Reduction

Sodium Hydro Sulphite Caustic Soda Levocol SCR Levocol SWL Defoamer Temperature

-

500 gms.

1000 to 5000 gms. (If required) 1500 gms.

1000gms.

100 gms. (If required) 1300C/20 mins.

Hot Wash & Neutralisation

Acetic Acid Oxalic Acid Temperature

-

1000 to 1500 gms.

500 gms.

800C - 900C/15 mins.

Drain Optical Whitening White R Levocol DFT Levocol PB Temperature

-

OR X% OWF 1-2 gpl 0.5 gpl 1300C/30 mins.

Dyeing Coralene Dyes Levocol PB Levocol WS Levocol DFT Temperature

Setting for Printing Pad in Levocol PB 0.3% - 0.5% and Levocol SWL - 0.5%

: : : : :

X% 1.0 gpl 1.0 gpl 0.25 gpl 1300C/30 mins.

(PH-4, MLR-1:5) Then, Heat set @ 1800C / 30 sec.

(Shrinkage 18-20%)

Printing Recipe Coralene Dyes X% Levocol PB 1.0 % Levocol KBI 0.5 % Levocol HTS 0.75 % Soft Water Y% Printex CT-50 (8% Stock Paste) Finishing at 1750C

Print - Dry - High Temp. Steaming at 1700C./8 mins Cold Wash - R. C. - Cold Rinse - Neutralization - Dry

Silicon Softener(12%-14%) Soln Epoxy base / Carboxyl base Softener (45%) Shrinkage - Approx Final width

-

2-3% 0.25 % 18%-20% 107 to 112cms.

This process may be modified to suit customer requirement of fabric body and feel.

This information is provided in good faith, to the best of our knowledge and without liabilities This page is sponsored by : Colourtex Pvt. Ltd.

Email : pradeep.mistry@colourtex.co.in NCM-JULY 2014 32

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Hazards in Garment Factories Garment workers dye, cut, sew, clean and package clothing. At every stage in the process, workers face ergonomic hazards, chemical hazards, and machine hazards. The most deadly threat to garment workers is fire. Hundreds of garment workers die in factory fires every year, even though fire deaths are completely preventable.

Workers in garment factories also face the same harmful working conditions as workers in other export factories: long hours on too-fast production lines, very low wages, sexual harassment, anti-union violence, few rest breaks, and little job security.

Treating cloth with dyes and chemicals Cloth is dipped in different chemical baths. Chemicals are chosen to give the fabric a color, fire resistance, water resistance, or other qualities. Bleach makes the fabric white and easier to dye. Dyes give the fabric specific colors.

Mordants improve how color sticks to the fabric. Sealers and fixers prevent dyes from washing off with water or sweat. Many fabric treatments happen before the material is shipped to the garment factory for sewing. The chemicals remain on and in the fabric.

So many chemicals are used to dye fabric that it might diffcult to know which ones you are working with.

It is important to learn where to find information about chemicals, how to read and understand the information you find, and how to take action to protect your health and the health of your coworkers, family, and community.

Hazards of dyes Some dyes and chemicals, such as alum and copper sulfate, can irritate your skin and cause rashes, allergies, or breathing problems. Others are more dangerous, such as potassium dichromate and tanning acid, and can cause cancer as well as other health problems. Many people clean dye off their hands with solvents. It is easy and it removes the dye quickly. But solvents can hurt your skin. Stay away from

A worker in Haiti gets paid $3.05 an hour to make 20 jackets that will each sell for $550 in the US. She would have to work 180 hours, a little over a month, to buy that jacket. But $3.05 an hour barely covers a little bit of rice and vegetables, a floor to sleep on, and transportation to and from the factory, so she will not be able to save any money to buy anything.

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benzene or chemicals that smell sweet or pleasant. These chemicals, called aromatic hydrocarbons, are absorbed through the skin or by breathing the fumes. They can cause cancer. Alcohols (such as IPA) are less dangerous but they still irritate your skin. Even though it may take longer, wash your hands with water and soap instead.

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Some azo dyes are banned in many countries because they can cause cancer and are very harmful to your health.

Hazards of permanent press and waterproofing Formaldehyde is added to fabric to make it smooth and less likely to wrinkle or crease. Workers dip the fabric in formaldehyde baths, or put fabric in large chambers filled with formaldehyde gas. Workers in this part of the process are exposed to more formaldehyde, although without good ventilation, all workers in the shop will be exposed to an unhealthy amount.

Formaldehyde irritates the skin, making it red and itchy. Breathing the fumes harms the nose, throat, and lungs. Formaldehyde causes cancer.

Keep chemicals out of your body To reduce the amount of chemicals that get on and inside your body : •

Wash your hands often, especially before eating, drinking or smoking. This can stop chemicals from going into your mouth.

•

Wash your hands only with water and soap. Try not to use solvents to clean your hands.

•

Use lotion or cream on your hands after washing to prevent the skin from drying. Healthy skin can keep chemicals out better than cracked, red skin.

•

Wear long sleeves to protect your arms.

•

Wear rubber gloves, especially if you add chemicals to the fabric.

Hazards of fire resistant chemicals

•

Fire resistant chemicals, such as brominated flame retardants, make clothing less likely to burn. However, these chemicals can harm the reproductive system and cause cancer.

Wear a mask if you are exposed to chemical fumes, powder, mists, or dust. If you can see, smell, or feel the effects of a chemical, the ventilation is probably not working or not strong enough to keep these chemicals away from your nose and mouth.

•

Work with your coworkers to tell your employer about the fabrics that cause health problems like rashes or breathing problems.You might be able to convince your boss to change the fabric or fabric treatment to one that does not cause rashes or other health problems.

Hazards of antibacterial treatments Garments are dipped in baths containing silver, triclosan, or trichlocarban. These keep bacteria from growing in the garments and make them less likely to smell. Workers add the chemicals in liquid, powder, or pellet form into baths which are then heated. Antibacterial chemi-

Materials used in other parts of the factory can cause allergies and rashes similar to fabrics. For instance, many rivet machine operators develop skin problems from allergic reactions to the nickel in rivets. If you do get a rash, look for information on how to reduce the discomforts of a rash and watch for signs of other health problems. Keep information about your rashes or breathing problems in a health notebook.

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cals gradually wash out when the clothing is washed at home. Silver is particularly dangerous because it does not break down. It accumulates in and poisons people, animals, water, and land.

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Hazards of nanoparticles Some chemicals are used in a form called nanoparticles, which means they have been made to be very, very small. Nanoparticles can be spun into fibers or coated on them after the cloth is made. Cloth is treated with a variety of chemical nanoparticles to make it sturdier, to fight bacteria, to resist stains and repel water, to protect against the sun’s rays and against fire, and other uses.

Nanoparticles are so tiny that they can easily pass through skin and into our blood and internal organs.

Workers should be extremely careful working with nanoparticles and demand that all safety systems – enclosures, ventilation, and others – be in good working order. If you handle nanoparticles, wearing a double set of nitrile gloves is recommended, but no one really knows if they protect enough.

Cutting the fabric

Lifting too heavy rolls of fabric without help can hurt your upper body and back.

Powerful cutting tools with no guards can cause severe injury.

Bending over low work tables and reaching for tools can hurt your back.

Cutting chemically treated fabrics exposes workers to dangerous fumes and dusts.

Standing all day on a hard floor without padding can hurt legs, feet, and back.

Cutters face many hazards.

Cutting the Fabric Before using machines to cut fabric, cutters must be trained how to use the machines safely – especially how to turn them off quickly!

To protect workers from getting cut or injured when cutting fabric : •

Machines should have guards that surround the blade.

•

Workers should wear metal mesh gloves so they don’t cut their hands.

•

Factories should have a First Aid plan and supplies for treating cuts and injuries.

Factories should have a health plan to care for and provide rehabilitation to injured workers. It should include compensation to injured workers and their families for temporary or permanent disability that stops them from working.

Hazards from dusty factories Dust is created when workers cut, trim, and sew fabric. Fabric dust is dangerous by itself, and dust from fabrics treated with chemicals is even more dangerous.

Inhaling dust from cotton and other fabrics can cause breathing problems such as : NCM-JULY 2014 35

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• • • •

dry, itchy nose cough that does not go away mucus (phlegm) the same color as the fabric trouble breathing

Breathing cotton dust day after day can also cause a more serious lung disease called brown lung or byssinosis. Signs of byssinosis are : • • • •

chest tightness wheezing bronchitis that keeps coming back cold or allergy signs

If you have these signs, see a health worker who can perform tests to see if you have byssinosis or another lung disease.

Use a vacuum to clean floors and machines or clean your machine with a wet cloth.

If dust is a problem in your factory : •

Your employer should improve ventilation.

•

Ask your boss to provide vacuums to clean your work area.

•

Wear respirators and other protective equipment to protect you from dust.

•

Stop smoking and try not to be around people who are smoking.

•

Try home remedies including physical exercise, breathing exercises, and inhaling steam.

•

Asthma medications might lessen the signs of byssinosis but do not cure it. A person with advanced byssinosis might need an oxygen machine to help her breathe.

Thailand : We fought for 15 years to get compensation We formed the Council of Work and Environment Related Patients’ Network of Thailand (WEPT) because our work in a garment factory in Thailand was making us sick. We had trouble breathing from cotton dust, hearing loss from noisy machines, and damaged eyesight from poor lighting.

A doctor diagnosed a number of us with byssinosis, an occupational disease. This diagnosis enabled us to make a case against our employer. He knew there was a lot of dust but didn’t protect us. We told him we had trouble breathing but he didn’t do anything. The result was we got sicker and sicker until we got byssinosis. 200 of us joined together to fight for our lives. The court told our employer he needed to compensate us for making us sick. But the employer did not want to pay. He made us go through more than 100 different court cases and appeals.

After more than 10 years, we got a little compensation, but only a pittance. We couldn’t live on that!

So 37 of us decided to continue fighting.

After 15 years, in 2010, the Supreme Court on Labor Affairs said our employer had to pay an adequate amount of compensation. This money could never give us back our health or make up for all that we suffered fighting for justice while trying to earn a living. But it was a big win for us. Many workers have byssinosis but never get it diagnosed and often their employer refuses to take responsibility. This win, our win, proves it is possible to fight for justice and be successful.

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Sewing

Without guards, machines and broken needles can injure hands and other body parts.

High quotas increase stress and overwork.

Noisy sewing machines harm hearing.

Repeating the same movements over and over harms the back, arms, wrists, and hands.

Sitting many hours on a hard stool with no support harms the back.

Many machines are used for sewing, but sewing workers share many of the same problems.

Sewing Machine injury : Needles in the machine can cut your fingers and hands and can break and fly into your eyes. Moving parts can catch hair and pull it out or pull a person into the machine.

•

Machine guards can protect workers from getting cut, stabbed or injured by needles.

•

Enclose drive shafts and moving belts (above and under the table!) and drive shafts to keep hair, clothing or anything else away from moving parts.

Strain and injury : Sewing machine operators do the same movements over and over, all day. You can reduce overuse injuries caused by repeating the same movements by : •

taking breaks, rotating among jobs, and stretching and strengthening different muscles.

•

improving your workstation to support your body, reduce the reaching, strain and strength needed to operate your machine.

Noise : Sewing machines and riveting machines are very loud. When many are running at the same time, the noise level can be very high. Too much noise can permanently damage your hearing.

•

Measure how much noise you are being exposed to.

•

If noise levels are too high, wear ear protection.

Light : Good lighting helps you see your work without straining your eyes. Not enough light makes you squint or get too close to the work which weakens the eye muscles and can lead to blurry vision.

•

Have the boss install better lighting.

•

Do exercises to strengthen and stretch the muscles around your eyes.

Fires : Many things can start a fire — bad electrical connections, chemical spills, dust, or smoking cigarettes. But fires in garment factories quickly turn deadly when factory owners do not provide fire extinguishers or sprinklers and do not maintain safe and clear exits.

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Pakistan : Trapped behind locked doors and windows The fire in the Ali Enterprises factory in Karachi, Pakistan in Sept. 2012 was one of the deadliest fires in history, killing 289 people. A boiler exploded and the chemicals stored near it caught fire. The factory owner had locked all the exit doors “to stop theft” and there were no emergency systems to stop the fire. Workers on the top floors of the 5-story building tried to jump out of windows. Others found no escape and were suffocated by smoke or burned to death.

The factory had passed an audit just a few weeks before the fire. Safety inspectors either missed or ignored unsafe conditions, or were misled by the owners. But even without corruption, an occasional audit cannot compare to an active, joint worker-management safety committee, present in the factory all day, every day.

In response to this tragic fire, 70 Pakistani trade unions and community groups formed the Workers’ Rights Movement. They are demanding compensation for injured workers and families, the arrest of the factory owners, and for enforcement of safety laws in factories.

Finishing the garments After the garment is sewn, it will be processed again to add certain qualities or colors. End-of-the-line workers correct mistakes and wash and spot clean the garment. Then it will be dried, pressed, and pleated before the final counting, sorting, and packaging.

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Hazards of acid-washing One of the final steps of making some jeans is to put them in a large washing machine filled with pumice stones. The stones rub against the cotton of the jeans to make it softer and lighter. Some jeans are then acid-washed. Workers sponge or spray potassium permanganate bleach, chlorine bleach, or other bleaches on the garment to make it look worn. Or they soak pumice stones in the bleaches and put them in the washing machine where the jeans are washed. Sometimes jeans are tied or twisted to create different patterns. (The job of tying or twisting garments is often done by homeworkers.)

The bleaches used in acid-washing can burn your skin and irritate your eyes, nose and throat. Potassium permanganate bleach can also cause other health problems, including decreased fertility for men and women, and liver and kidney problems. It may cause cancer.

If you work in an area that uses bleaches to wash jeans : • • • •

Make sure there is good ventilation.

Wear acid-resistant gloves, clothing, and face shields.

Wash stations and First Aid must be nearby.

Pressure your boss to stop using acid-washing.

Hazards from sandblasting Another way to lighten and soften denim is for workers to use a highpressure machine to spray the jeans with sand. This method is so dangerous to workers’ lungs it has been banned in many countries. Sometimes brands prefer jeans sanded by hand. Sandblasting is more powerful than sanding by hand, and uses more sand. But sanding by hand creates many of the same health hazards and can be worse when workstations do not have strong ventilation to remove the sand.

Unsafe sanding and sandblasting expose workers to sand dust, also called silica dust. When silica dust gets in the lungs, it cannot be breathed out. Silica dust causes an illness called silicosis. Silicosis makes breathing diffcult and can cause lung cancer and death. There is no cure for silicosis and a person who continues to be exposed to silica dust will continue to get worse. People exposed to silica or who have silicosis are also more likely to get TB (tuberculosis). Smoking tobacco makes silicosis damage worse.

For sanding and sandblasting workstations to be safer, workers need : • • • • •

Enclosed workstations to keep sand from spreading.

Strong vacuum extractors to remove the sand.

Good ventilation to move sand away from workers.

Properly fitting respirator masks. Loose-fitting cloth masks will not protect workers from inhaling sand.

Work areas designed to stop sand from spreading in the factory.

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Sandblasting

Respirators only keep sand away from workers’ lungs if they fit well and are replaced often.

Extractors have to be very powerful and cleaned often to remove all the sand.

Sanding by hand uses less sand than sandblasting, but workers are still exposed to sand.

Workers nearby should be protected , too.

Sand spreads easily and quickly. All workers who can be exposed to the sand need to be protected.

Turkey : Workers should not die for fashion!

We came from other countries and got jobs sandblasting jeans in Turkey. We worked and lived in the workshop. We used machines to blast sand on the jeans to create a special look. The sandblasting was very strong.

Our boss gave us nothing to protect ourselves. We used bandanas or whatever cloth we could find to cover our mouths and noses. But our eyes and hands were not protected. After work we would go upstairs from the workshop and that’s where we would sleep.

Soon, many of us starting having breathing problems. And as time went on, we got bad coughs that did not go away. It became harder to breathe. Many of us started losing weight. Some people became so sick they went back home to their families. We never heard from them again.

A few of us went to the occupational clinic and were diagnosed with silicosis. We discovered we would never be able to work again, or walk, or run because our lungs were so damaged. But we were the lucky ones. Dozens of workers died from silicosis. And those were just the ones we knew about.

The workers disabled from silicosis were very angry. Why did the bosses do this to us? Jobs should not kill people! We began organizing with other workers in Turkey. Soon we connected with organizations around the world, such as the Clean Clothes Campaign. They helped us put pressure not only on the factory owners but on the brands whose products we made. The factory owners had to take responsibility for making workers sick. But nothing was going to change if we didn’t get the brands to stop demanding that factories sandblast jeans. We also needed to make sure no more people got that horrible disease. We organized rallies, conferences, and talks and, finally, the government of Turkey agreed to outlaw sandblasting in the country.

Then we turned our attention to the brands. With pressure from the people, labor unions, organizations, and even some governments, we got several brands to ban sandblasting. The campaign grew bigger and is still growing. As long as companies sandblast jeans, workers in one country or another are going to get sick and die. We believe workers should not die for fashion. We are will keep fighting until there is no more sandblasting.

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Hazards from screen printing Sometimes workers screen print pictures or designs on garments, especially T-shirts. For many years, the inks used in printing, and the solvents used to clean up, were all petroleum-based and toxic for workers. Much of the industry now uses vegetable- or water-based inks and solvents, which are much safer for workers and the environment.

After the image is printed on the garment, it is put in an oven-type dryer. This machine gets very hot.

•

Vent machines out of the workplace.

•

Install machine guards against burns and injuries.

•

Train workers in the safe use of machines.

•

Turn off and tag out all machines before cleaning.

Fire is a danger because of the chemicals used in screen-printing.

•

Make fire extinguishers available and train workers to use them.

•

Store chemicals in closed metal containers.

•

Dispose of rags used for clean-up in tightly closed metal garbage cans.

Quality control Workers inspect the garments and correct small mistakes by undoing and hand-sewing to fix the problem. They also cut and pull any remaining threads. They make sure the garment looks clean and neat. If the garment is dirty, workers usually clean it with solvents. But many solvents used for cleaning are toxic. Ask your employer to use less toxic solvents, wear gloves, and make sure you have good ventilation at your workspace.

Chemicals used for spot cleaning These chemicals cause serious health problems : •

Methylene chloride causes lung, liver, and pancreas cancers.

•

Perchloroethylene (PERC) causes liver and kidney damage and may cause cancer.

•

Trichloroethylene (TCE) causes liver damage and might cause cancer.

•

Toluene causes birth defects, kidney and liver damage, and catches fire easily.

•

Trichloroethane (TCA, or methyl chloroform) causes nerve damage.

These solvents are less dangerous, but can catch fire easily : •

Acetone irritates eyes and nose.

•

Ethanol (or ethyl alcohol) irritates eyes and nose.

•

Isopropyl alcohol (or isopropanol) irritates eyes and nose.

A good solution for cleaning is pressurized water. It often works as well as chemicals and is not toxic.

Drying and Pressing The garments are washed and dried in dryers, heaters, and ovens. Workers press or steam garments to make pleats or smooth them for packaging and shipping. When heated, fabric releases fumes from chemicals used earlier.

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The hot machines and steam can burn workers.

Working in high heat can exhaust and dehydrate workers.

Chemical fumes that come off the heated fabric harm your throat and lungs.

Standing for hours, and pushing down on the press can hurt your back and muscles.

Heated chemicals can be more dangerous to your health

Pollution from garment factories Garment factories are often built in areas where there are few industrial services available. So garbage from the factory is burned or dumped on the land, and chemicals are released into the air and water.

Lesotho : Our water turned bright blue!

Our government in Lesotho, Africa invited big brand names to set up factories here. Gap and Levi’s opened factories and many people were happy to have jobs.

Making jeans produced a lot of waste. Many materials could not be recycled. Water used to treat, rinse, and wash the fabric was polluted. And there was a lot of waste from machine maintenance and all the paper and plastic from the offce.

The companies said they had systems to collect and take care of the waste. But the factories in Lesotho didn’t have a system. They just dumped solid waste onto the land and polluted water into our streams.

The dumps filled with fabric, needles, chemical containers, and many other things the factories threw away. People from the community went to the dump to collect what they could use or sell. Children would carry chemical containers back to their homes for storing water. They would pick up needles and tools. Some women began burning fabric scraps in their cooking fires. They didn’t know the fabric was treated with chemicals and that as the scraps burned they poisoned their air and food.

The streams turned blue. Bright blue! This water irrigated our fields. All those dyes and other chemicals went straight into the food we ate.

One of our community leaders asked a photographer to take pictures of the waste. After they were put on the internet we got more visitors. People came from newspapers and magazines to show the world what was happening here. Gap and Levi’s came too. They said they didn’t know this was happening and that it shouldn’t have happened. They made the factories clean up. But we are still waiting to see how they will stop making so much waste and what they will do with the waste they have already thrown away.

This article is part the of "Workers’ Guide to Health and Safety" to be brought out by Hesperian Health Guides in 2014. The Not-for-Profit organisation is located at Berkeley, California in USA. Workers’ Guide is intended to help workers and their advocates improve the physical and social conditions in factories and achieve the right to safe, fair, healthy, and fulfilling work. (Published here courtesy : Hesperian Health Guides)

NCM-JULY 2014 41

Assessing Denim Quality

A Study of the Denim Value Chain and Critical Aspects of Denim Quality Caroline Nilsson and Elisabeth Lindstam Swedish School of Textiles This study examines what is significant for high quality of jeans, and what processes and factors affect the intrinsic quality of the jeans. Based on this, compilation of reclaim statistics was made and quality testing was conducted to determine the factors for good quality and to reduce the number of complaints.

Quality management is an important part of the day-to-day business of a company and should permeate the entire organization and all processes. In order to create jeans with high quality, quality testing is an important part of a quality management. Quality tests are made to ensure that the products meet the demands and expectations on its properties.

Quality tests also play an important role in the compilation and analysis of customer reclaims.

Despite the quality and quality tests, there is a risk that dissatisfied customers reclaim products they are not happy with. To relate customer claims against the quality of tests is a good way to evaluate what the problem is, or if it even is a problem.

The study showed that the production of jeans with high quality was definitely very important.

However, the problem was complex and therefore, the solution to reduce claims was not exclusively related to manufacturing high quality products alone. It was only a part of the solution. That goes for any company to be familiar with the underlying quality dimensions and based on that one has to analyze where the critical points are found in their product development and manufacturing process.

For the company of this study, the authors consider that the solution does not lie in raising quality requirements, but rather that the sewing should be improved and more quality control over garment measurement lists should be made. Quality tests cannot prove a lack of quality material and thus the authors consider that much of the claims are due to good will.

Introduction The essence of the look of denim jeans is variation. The fit, the colour and most of all, the finishing processes are eternally altered. Denim finishes are a company’s possibility to create a unique product. Every detail and decision regarding the developing process of a new denim style are being built into the overall quality of the garment. If the product does not meet the expectations of the customers, they will get dissatisfied and some of the customers will return the product with complaint.

During all processes of the production chain, several actors are involved; designers, pattern makers, quality department, buyers and suppliers. To

these named actors even more people are added, making the production chain long and the activities reach far beyond a company’s own walls.

To produce and maintain high quality jeans, the quality management is an impor tant part of the product developing- and production phase. The quality management can be expressed in many different ways, from quality management systems to quality requirements and tests. Quality tests are important to secure the product’s pledged properties, but also to make it possible to evaluate customer complaints and claims.

By testing the products and assessing the test results in relation to the reclaims, analyses can be made as to NCM-JULY 2014 42

whether the reclaims are valid or not.

How can a company, to a maximum extent, avoid getting dissatisfied customers, and by that decrease the number of jeans reclaims? Can the solution be high quality requirements on the product’s physical quality?

The present study aims to define high quality of denim and what critical aspects that affect the outcome of the manufacturing of denim jeans. These critical aspects are considered to be the same for all suppliers in the denim industry; the study will address these problems in a general way and illustrate the problems from the perspective of specific denim apparel supplier.

Three questions form a base for this study :

A Study of the Denim Value Chain and Critical Aspects of Denim Quality

Figure 1. : The percentage distribution of claim reasons.

•

What is high quality for denim jeans?

•

What are the critical aspects of high denim quality?

•

How can high quality be secured?

These three questions will lead to the answer and conclusion of the main question : Can increasing quality requirements lead to a decrease of reclaims on denim jeans for a brand supplier?

The base of this study is the company’s gathered reclaims during the 15 months period from January 2011 to March 2012. The amount of received customer claims was 1,3 % of the total amount of jeans sold in the company’s brand stores during this period. The compilation of the reclaims shows that the categories “broken fabric”, “twisted leg”, “discolouring”, followed by “broken seam” is the most common reasons among the reclaims. “Broken fabric” accounted for 31,1 % of the reclaims.

21,7 % of the jeans were reclaimed due to “twisted leg”, 9% due to “discolouring” and 8,7 % due to “broken seam”. The remaining 11 reasons did

each only account for a minor part of the reclaims, see Figure 1.

Quality Management

The claim reasons were classified into four categories; material, finishing processes, trimming and making.

39,3% of the reclaims are made due to defects in the material, 31,6% due to aspects of making and 9% can be traced to trimmings and colour.

According to the standard ISO 90042, quality is the essential nature of something, an inherent or distinguishing characteristic or property, superiority, excellence, or perceived level of value. Exact characteristics experienced as quality features vary between people. Each person has his/her own references of quality, some people find good durability and functionality as good quality, for others, attractive design and brand status is good quality.

The company involved in this study wishes to remain anonymous. To a great extent, this study is dictated by the company’s reclaims. They represent reclaims of denim jeans bought and returned in the company’s brand stores.

Quality testings performed in this study are based on the claim reasons represented in the claim statistics. The missioning company provided the jeans for testing.

This study is limited to only consider the intrinsic quality properties of denim fabric and the different denim finishes.

Other quality aspects, like brand name, merchandising and design, are excluded. The report is also limited to trousers made of denim fabric, in this report called denim jeans or jeans.

NCM-JULY 2014 43

Quality

Costumers rely on a wide variety of aspects to decide if the product meets their quality references. The quality characteristics of a product have to be incorporated so that the customer's desire and will to purchase the product can be cost-effective!

The broad concept of quality can be divided into three subcategories : • • •

Intrinsic Extrinsic Perceived

Intrinsic quality is created during product development and production

A Study of the Denim Value Chain and Critical Aspects of Denim Quality and is depending on materials, methods and processes. Extrinsic quality is not a part of the specific product; it is everything around the product like brand, shop, price, merchandising, marketing and reply of retailers. Perceived quality is the intrinsic and extrinsic quality together!

Denim Quality The intrinsic qualities of jeans are affected by two main groups; material and production. By dividing into these two groups when researching quality, it will be easier to analyse possible improvements.

The material category holds fibre, yarn and fabric structure whilst production consists of the production phase with pre-treatment, making (cutting, sewing, trimming) and finishing. Several different finishes or washes can be applied to jeans to achieve different looks. Many of the washes aim to give the jeans a worn and torn look.

Fibre, fabric and garment properties are tested with the purpose to ensure both high durability and quality. Durability properties can be tested in laboratories, but test results from the laboratories do not always accurately predict how the garment will perform when used by consumers. The test results will only indicate how the fabric may perform, it is also possible to notice fabrics or garments that do not stand the quality tests International Standards The International Organization of Standardization (ISO) is an international institution with an aim to simplify and improve the quality management of companies and organisations. By establishing standards, routines can be simplified, money saved and quality improved.

Most of the 16 000 standards of today are international. The benefit of international standards is that the common base of information will simplify trade and production across the world. The standards make it easier to compare and to assess capacity,

MATERIAL Fiber

Yarn

Fabric Structure

PRODUCTION Pretreatment

Making

Finishing

Figure 2 : Main groups and subcategories of factors affecting intrinsic quality of denim jeans. quantity, content, extent, value and quality. Standards are optional, but by deciding to follow them there are certain rules to meet. Many standards are used as regulations and also to guide or define properties that may secure material and products to be sufficient for its end use!

Quality Audits Quality Standards A quality standard is a common tool in the product development, planning and production processes of a company.

The standard contains the intrinsic quality level that the company requires.

The fundamental idea of having quality requirements is to make it possible to maintain a consistency among products and between orders of the same product, to avoid large variations.

The company standards say how many products that shall be tested, how the tests shall be performed and what the different requirements are for different products, both regarding the materials and the final garment. The testing of materials may be done several times during the developing and production processes. The first tests that may be done, called base tests, are made on the same fabric as the first prototype.

Tests can also be made on the fabric of the sales samples. The last test before production start is made on final fabric, the bulk material. There are no obligations to perform any tests, it is entirely up to the company to decide how thoroughly they want to be. It is also up to the company to decide where and by whom the tests shall be conducted. Test may be done by fabric manufacturer, by a third par ty laboratory or perhaps by the company themselves.

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Size and Fit Standards Measurement standards are set up by companies to avoid and to prevent large measurement variations among and between garment styles. The standards provide accepted variations and tolerances for the measurements of every size. The ability to keep a consistency of the measurements is an impor tant aspect of quality, therefore it is important to minimize the risk of having too large variations in production. The sizing system and measurement tolerances are normally based on the sizing standard of the company. For example, the waist measurement of a pair of jeans in size 27 inch are according to the measurement list 73,5 cm with a tolerance of Âą1 cm in variation.

If the waist measurement is 75 cm, it exceeds the tolerance. This is classified as a deviation, or a defect.

A measurement lower than 72,5 cm would also be considered as a defect.

Tolerances var y between measurements and some deviations in a garment are considered to be more critical than others. Large variations in waist are more critical than variations in bottom hem.

Tolerances allow variation from specified value in specification. A more detailed specification, leads to less variation allowed and there will be more consistency in the finished products.

Specified minimum and maximum values vary by the amount of allowed tolerance, therefore, while making the measurement lists the very lowest and highest value that can be used must be determined. Anything above or below the tolerance can as mentioned be rejected and classified as a defect.

A Study of the Denim Value Chain and Critical Aspects of Denim Quality The most critical measure variations are not accepted, therefor tolerances are only included when variations are accepted.

Variations of measurements from production are normal and are difficult to fully avoid. This is why it is of great importance that denim suppliers set tolerances that apply for their garments and each measurement.

Quality controls are randomly made on garments by quality control personnel, from the manufacturer itself, the denim buyer or a third party controller. Which measurements that are controlled depend on the complexity of the garment and what the requirements are.

The measures that are commonly checked during quality audits of denim jeans are: waist, thigh, knee, bottom hem, inseam, back rise and front rise.

AQL – Accepted Quality Level Accepted Quality Level (AQL) is a quality control tool for inspection of products. As earlier mentioned, products (in this case jeans) can be inspected in several different ways. For evaluations, tests or other types of comparisons, AQL is a good tool to control how well the products stand in relation to the quality requirements. The AQL will tell the amount of products that should be inspected and how many defects that are accepted, rather than dictating what tests should be made. Based on the AQL, randomised inspections are made, which gives the company a result that indicates the status for a majority of the products.

The amount of products that will get inspected and how many faults that are accepted are determined by a combination of the AQL-level, the inspection level and the size of the order. Each company chooses what levels they want to work with. An AQL of 1,5 will not accept faults in more than 1,5 % of the inspected lot. There are three inspection levels; I, II and III. Inspection level II is most commonly used, but at less comprehensive inspections level I is used, and at more

comprehensive inspections level III is used.

Defects are classified by their severity; minor, major or critical. Three minor defects are equal to one major defect.

If the amount of defected products in the inspected lot exceeds the AQL, the order should be rejected, otherwise it can be accepted.

Customer Reclaims Reclaims are the result of customer’s expectation of the properties or performance of a product not being fulfilled. The products inability to not live up to promises given by salesmen or advertisement, might also lead to reclaims. By assessing and map the customers needs and wishes, it is less likely that the customer will get disappointed.

Studies show that information about potential weaknesses in a product, limits for its use or any special care instructions are as important to consumers as to not give false promises. Information about a product will increase the awareness of a customer, it might increase the tolerance of the performance of the product, but also avoid some reclaims.

Claims should be handled at once and without questioning the customer, if not necessary. This will benefit both the company and the customer.

Studies show that 50 % of all dissatisfied customers do not tell the company about their dissatisfaction with a product they have bought.

Instead they keep it to themselves and by that increase the risk of nonreturning customers for the company.

However, the same study also shows that approximately 45 % of the customers do return a product they are not satisfied with. The handling and treatment of a reclaiming customer determine the customer’s future attitude towards the company.

The chances of returning customers increase if they, when doing reclaims, get some kind of compensation or a NCM-JULY 2014 45

new product. Only a minority, about 5%, of the dissatisfied customers contact the head office to state their dissatisfaction!

Fibres and Fabric Structure - An Overview of Their Properties and Influence on Denim Fabric To understand the properties, performance and the durability of a denim fabric, it is essential to understand the fibres within the fabric, the yarn, the fabric structure, and what processes and treatments that have been used to produce and finish the fabric.

Fibres contribute to fabric performance and influence product aesthetic, comfort, durability, appearance retention and care. Fibre properties are determined by their physical structure, chemical composition and molecular arrangement. The type of yarn and its structure influence hand and performance. The processes that are used also influence hand, performance, appearance and the performance of the fabric during use and care.

Properties of Cotton Fibres The fibre length influences the properties of cotton and cotton denim fabric. Longer fibres will give higher durability and quality.

Cotton quality is classified considering staple length, grade and character.

Only the two first-named plays a roll when purchasing cotton. In mass production and cottonsynthetic blends, low-middling cotton is commonly used.

For high quality products, longer staple fibres are preferred.

The cotton fibre is a medium strength fibre with a dry breaking tenacity of 3,5 to 4,0 g/d. In contrast with other fibres, cotton will get stronger in wet condition.

Strength can increase by 30 %.

The cotton fibre is easily harmed by acids but is not greatly harmed by alkalis.

Over all, the abrasion resistance of cotton is good, but heavy fabrics are

A Study of the Denim Value Chain and Critical Aspects of Denim Quality more resistant to abrasion in comparison with thinner cotton fabrics.

negative affect the durability of the jeans. The poor colour fastness to cotton can sometime be a problem!

Due to the higher strength in wet condition, cotton can be handled roughly during laundering and in use.

No special care needs to be taken when washing and drying cotton and cotton jeans. Dyed cotton products that are washed in too hot water, may loose colour. For better retain of colour, warm water should be used. Use of chlorine bleach will weaken the fibres and therefore it should not be used on regular basis.

Denim Fabric Properties

Ring Spun Yarns Ring spun yarn is commonly used in denim fabrics. In ring spun yarns the entire fibrous stand twisted. Ring spun yarns have fibres that are fairly well aligned with the yarn axis. The longer the fibres are, the stronger the yarn will be. Also, yarns with better-aligned fibres are stronger than yarns with less well-aligned fibres.

Crease retention is higher for those fabrics containing longer-fibres and better-aligned fibre yarns.

Denim Dyes Indigo is commonly used to dye blue jeans. There are different types of indigo dye, both natural and synthetic.

The synthetic indigo dye is commonly used in the textile industry. Indigo is challenging to dye because it is not soluble in water. To be dissolved, the indigo must undergo a reduction!

Generally the indigo has a poor staining to the cotton fibre, which could cause dry- and wet fade and colour loss.

When dying dark, especially black denim jeans, sulphur dye is used. Like the indigo dye, the sulphur dye is insoluble in water and a reduction has to be made to make it attach to the fibre. Fibres, yarn, fabric and garment can be dyed. For jeans, it is normal to dye the warp before weaving and keep the weft undyed. Sometimes additional dying are made on the garment, this is called garment dying. Dyes itself rarely cause damage on the fibres and

In denim fabrics the woven structure called 2:1 twill is commonly used. In 2:1 twill warp yarn floats on the surface of the fabric. The twill weave have a technical face and back, the technical face is the side of the fabric with most pronounced wale. The technical face is usually more durable than the technical back. High count woven fabric, i.e. high amount of interlacing, gives a strong, compact, stable and durable fabric. Low count fabric, i.e. fewer amount interlaces, gives a flexible and soft fabric that easily shrinks. To resist big dimensional changes it is important with a good balance between warp and weft.

Dimensional Stability Dimensional stability is the ability to resist shrinkage or stretching. As mentioned earlier, fibre content has influence on properties of the fabric.

Three factors that could cause dimensional changes are : • • •

Tension Swelling (Felting, wool)

Tension, and the degree of tension, is one important aspect that influences the dimensional stability. Tensions generally occur during construction when yarns are held stretched. When the fabric later on is exposed to moisture, this can result in dimensional changes. The degree of dimensional change at relaxation depends on weave type, both in warp, weft and on total shrinkage. Extremely compact fabrics or high thread counts are more stable.

Woven fabrics usually have a tolerance of ± 3 % shrinkage.

Studies show that for good dimensional stability, woven fabrics must have a good number of interlacing in both weft and warp direction. It is not enough to have good interlacing numbers in one direction, since woven NCM-JULY 2014 46

fabrics must have a stable structure.

Also, studies show that fabrics with low crimp values have good dimensional stability because it restricts shrinkage, even at low number of interlacings.

Swelling occurs when fibres are exposed to moisture and the fibre expands. Because of hydrophilic properties, fibres like cotton, flax, silk and ramie have great abilities to swell.

When fibres swell, their “way to walk” gets longer which will lead to shrinkage. Due to friction, dimensional changes will retain after drying.

Swelling can also result in expansion, so called growth.

To minimize the risk of having large dimensional changes, finishes can be done to prevent this. Depending on type of dimensional change you want to fix, finishing process is chosen.

According to previous studies, a connection could be stated between dimensional change and elastane in denim fabrics. Cotton/elastane blends tended to shrink more, and easier than pure cotton denim fabrics. The tension that is built up in fabric during weaving, will relax after laundering, and cause the fabric to shrink. No conclusion could be made that the amount of elastane in fabrics would have an impact on the dimensional change.

Tear Strength The tear strength property of a fabric is its ability to resist a tearing force.

Tear strength is an important property for the durability of a pair of jeans. Since the tear strength indicates of the strength of the yarn, this will therefor affect the jeans durability!

During the user phase, laundering of jeans will account for a large part of its total wear. Tests made in previous studies have shown that the tear strength of jeans will decrease after laundering, and that loss of durability and tear strength will proceed with number of launderings. While evaluating possible differences between pre washed, stone washed and enzyme washed jeans after 25

A Study of the Denim Value Chain and Critical Aspects of Denim Quality launderings, the strength loss was found to be similar for all three. It was also found that in cases where softeners were used during laundering, the decrease of tear strength was larger.

The study could also state that if the enzyme wash process is not carefully monitored, the fibre and fabric will get decreased tear strength properties.

Studies have examined how the tear strength is affected by laundering and the elastane content of the fabric. There was a tendency of elastane containing fabrics increasing their tear strength after a few washes.

Denim Making & Processes Pre-treatment The first step in the denim production chain is the pre treatment. A variety of garments, especially denim jeans, are pre-washed. Pre treatment minimizes the risk of unwanted shrinkage and colour loss when it is in the hands of the customer. Pre-treatment also removes stains appeared during the handling of fabrics. Because of the removal of size, this process is also called desizing.

During weaving, size is used to strengthen the yarn and after weaving this has to be removed from the fabric.

Sizes can be removed with different methods: washing with high acidic agents, alkaline agents or oxidative chemicals. This can cause damage on the fibres and is associated with many drawbacks and limitations. By using Alfa amylase, some drawbacks can be prevented. This process does not damage the fibres and is easy to control.

Making There are several factors that affect the intrinsic quality of jeans during manufacturing. The spreading and cutting of fabric can be done in different ways. The important thing is that there is as little tension as possible in the fabric when it is spread and that the pattern maker is placed in line with the selvedge when the pattern pieces

are cut. Otherwise the finished garment may twist and shrink due to fabric relaxation. Garment pieces must not be cut too big or too small.

At the assembling point, there are more factors that affect the intrinsic quality of a garment. The sewing skill of the operator will impact the final form of the denim jeans. Not staying within the seam allowances will make the garment either larger or smaller than it is supposed to be. This is by all means a critical aspect of quality.

Uneven feeding when sewing the fell seam on the inseam can result in unbalance between front and back pieces, crocked seams may make the trouser leg appear to be twisted.

Finishing Processes Today, washing plays an important role in the denim value chain. Lot of customers do not want to wear and tear their jeans themselves, but want the manufacturer to do it for them. To achieve this worn look, a lot of different treatments can be made and different kind of processes and machinery can be used. Some processes are easy and some are complicated and needs to be carefully controlled. Due to poor wet and dry rubbing fastness of the indigo dye, every step in the denim washing process can make a big difference.

There are two types of processes, dry and wet, that can be used on denim fabrics and garments. It is common to start with one or several wet processes and to finish off with dry processes.

By combining different processes, a variety of effects can be achieved.

Every process will have some kind of influence on durability of the denim jeans.

Denim Washing Or Wet Processes Stone Washing Stone wash is a traditional washing process where volcanic rocks or pumice stone are added to the garments during wash as abradants.

Stone washed products will have a NCM-JULY 2014 47

worn look, and are generally a bit puckered at the seams. Usually, stonewashing is made on indigo dyed garments that easily loses colour during abrasion. Often ringdyed yarns are used, which means that only fibres on the surface have been dyed and that the core remains uncoloured. Stone washing are made with natural and artificial stones. The artificial stones can be altered according to the wanted effect and can be made of coal or ceramic! Stone wash causes damage to fibres, the degree of damage depends on type of stones used and for how long the garment is stone washed.

Enzyme Washing Enzyme wash is a method when garments are washed in a cellulasebased liquid instead of being washed with stones. The cellulase enzymes are abrading the surface of the cotton fibre.

During strict control, damage on the fibres’ strength and highlights on seam can be resisted. The same hand can be achieved with enzyme washing as with stone washing, but in a microscopic level, this process is more merciful towards the fibres.

There are four kinds of enzymes for washing : • • • •

Amylase Cellulase Laccase Catalase

Cellulase enzymes are a mix of enzymes that depolymerise cellulose into glucose and other lower molecular.

In fabric made of cellulose fires, the cellulase enzymes are by hydrolyze removing the fibres of the surface, even the ones who holds dye. The neutral enzymes gives less back staining and works best with pH value between 6,0-8,0 and shows best activity at 55°C. Acid cellulose enzymes works best in the pHrange of 4,5-5,5 and have optimum activity at 50°C. Enzymes will attack a specific molecular group. For denim washing,

A Study of the Denim Value Chain and Critical Aspects of Denim Quality mainly three types of enzymes are being used. That is neutral, acid and bio polishing enzymes. The process has to be strictly controlled because of the enzymes sensitivity to temperature, time and pH. These three parameters highly affect the result and too big variations can cause damage on the fabric.

Sodium- and calcium hypochlorite are commonly used for medium to vintage denim looks and potassium permangate is used for super vintage and light shade looks.

After finishing an enzyme wash, a washing process that rinses the garment has to be done, to make sure there is no enzyme residue left. This process can be made in different ways and it will also give the garment a better appearance.

Tinting and Dyeing

Heavy Stone Wash Heavy stone wash is a combination of stone washing and enzyme washing.

The benefit of heavy stone wash is a shorter processing time and that almost 50 % less stones and enzymes are needed. The abrading effect of heavy stone wash depends on the type of stones, the enzyme type and the duration of the process.

Acid Washing (Acid Washed/Stone Wash) Acid washed garments are pre treated with stones that have been dipped in an oxidant.

This method reduces the physical damage on the garment and reduces the time of washing. The oxidant will make the indigo molecules oxidate, which will destroy their ability to reflect blue wavelength. This process is also called dry bleaching. The size of the stones and the oxidation effect can be adjusted by demands. By neutralisation, the process can be stopped.

Acid washing often gives light parts a light brown shade.

Bleaching Bleaching can be done in several ways, with several bleaching agents : • • • •

Hydrogen peroxide Potassium permangate Sodium hypochlorite Calcium hypochlorite

Hydrogen peroxide can be used when a light bleach effect is wanted or if the or if fabric is sulphur dyed. Bleaching can cause damage to fibres.

Tinting and dying are being done to change hue, cast or tone of indigo.

Tinting is when only parts of the garment are dyed and dying is when the whole garment is dyed. Generally tinting is used to give denim jeans a worn and vintage look.

Softening Process When selecting softeners there are some aspects that must be considered. Softeners may react with contaminants in high temperatures; this can cause fabric to start yellowing.

Some colours, especially blue and red, are very sensitive towards softeners, and can after softening change shade.

The softeners should be compatible with wetting agents, dispersing agents and other auxiliaries. Some softeners can have a solvent effect on certain dyestuffs.

Methods Used Three different methods have been used in this study to gather qualitativeand quantitative data.

Customer returns were assembled and compiled statistically, interviews were made with persons at key positions in the company and with store personnel and quality tests were conducted in a laboratory.

Quality Testing Denim fabrics were tested considering five durability aspects: abrasion resistance, tear strength, colourfastness to rubbing, colour fastness to washing and dimension stability.

The tests resulted in quantified data that was put together and analysed. On four out of five tests; abrasion resistance, colourfastness to rubbing, colourfastness to washing and dimension stability the result are subjective judged by the authors.

The selection of tests to perform and what denim styles to tested were based on the claim statistics of the company. The chosen denim styles were some of the most frequent styles in the claim statistics, and some of the styles were available on the market at the moment. These new styles did therefor not figure in the statistics.

Dry Processes

Testing Material

There are both mechanical and chemical dry processes. Scraping and grinding are two examples of mechanical processes. With scraping, colour is removed by using sand paper.

Grinding, also called destroyed effect, is a method that destroys or tears the fabric apart. This method is usually used at the bottom hem. Both methods cause damage on the fibres and on fabric surface and have negative effect on the durability.

The tests were performed on denim jeans with three different fibre contents and weight between 8,44 and 12,79 oz/ y2. The yarn size and the weave type were not the same for every sample, but considered to be similar. Tests were made on seven denim finishing represented by 14 different styles. Six styles had a material composition of pure cotton, eight had blended compositions of 98% cotton and 2% elastane.

The spraying process is made to achieve different effects on the fabric by spraying on chemicals or pigments.

This method saves water, energy and time.

Three samples were heavy stone washed. One were heavy stone washed and bleach washed. Two out of 14 were stone washed, one enzyme washed, two bleach washed and one

NCM-JULY 2014 48

A Study of the Denim Value Chain and Critical Aspects of Denim Quality rinse washed. Two samples were raw and did not have any finishing.

Table 1 : List of samples tested Style

Composition

Finishing

Weight (oz./yd2 )

HSW 1

100% Co

Heavy Stone Wash

11,71

HSW 2

100% Co

Heavy Stone Wash

11,97

HSW 3

98% Co, 2% El

Heavy Stone Wash

11,29

HSW 4

100% Co

Heavy Stone Wash

12,79

HB&SW

100% Co

Heavy Bleach & Stone Wash

12,54

SW 1

98% Co, 2% El

Stone Wash

11,54

SW 2

98% Co, 2% El

Stone Wash

10,24

EW

98% Co, 2% El

Enzyme Wash

12,12

A common detergent for home launderings, Via Sensitive Colour, was used. In accordance with company policy, garments were put through three cycles of laundering and drying before being tested.

BW 1

98% Co, 2% El

Bleach Wash

11,75

BW 2

98% Co, 2% El

Bleach Wash

8,44

BW 3

98% Co, 2% El

Bleach Wash

9,28

RW

98% Co, 2% El

Rinse Wash

11,04

Tear Strength

NW 1

100% Co

No Wash

11,54

NW 2

100% Co

No Wash

12,04

Methods for Quality Testing Washing Procedure The laundering and drying procedure were done according to company policy. A domestic washing machine were used to perform the washing process and the garment were washed with a normal program at 40°C , the program length was approximately 1,5 hours. Garments were dried in a domestic tumble dryer at normal temperature for approximately 50 min, until the garment no longer was damp.

Tear strength was tested with the Elmendorf method, the ISO 13937-1, Tear properties of fabrics – Part 1: Determination of tear force using ballistic pendulum method. Specimens were randomly taken form the garment and torn in the testing apparatus. The mean tear force across warp and weft were calculated. Test load D was used during the tests Abrasion Resistance Abrasion resistance tests were preformed according to ISO 12947-2, Determination of abrasion resistance of fabrics by the Martindale method – Part 2: Determination of specimen breakdown, and judged according to the company’s quality requirements. After the end of each series the specimen was evaluated to determine if it yet had reached its breakdown limit. The colour change and appearance of the specimens was also evaluated. The test load of 9 kPa was used to press the specimens down. The evaluations were made at 3000, 5000, 10 000, 12 000, 14 000, 16 000 and 17 000 revolutions.

17 000 revolutions is the limit of the company’s abrasion requirement. The

shade change was assessed after every test interval.

Colour Fastness to Rubbing The colour fastness to rubbing was evaluated according to ISO 105-X12, Tests for colour fastness – Part X12: Colour fastness to rubbing. Two specimens, of each warp and weft direction measuring a minimum of 50 mm x 140 mm, were cut from testing sample. The tests were made with both wet and dry rubbing cloths.

Dimension Stability The dimensional stability was tested according to two standards, ISO 3759, Preparation, marking and measuring of fabric specimens and garments in tests for determination of dimensional change, considering the fabric and ISO 5077, Determination of dimensional change in washing and drying, considering the garment.

Before laundering, the areas on the denim jeans were marked length wise and width wise with three parallel benchmarks. After the first and the NCM-JULY 2014 49

third laundering, the dimensional change in percentage were determined and calculated with the formula : × 100, where is the garments original measurement and is the measurements after the wash and dry cycle.

In the dimension stability test of garments, measurements were taken according to the instructions for measuring positions on trouser-like garments of ISO 3759. The positions measured are width of waist, thigh, knee and bottom of leg, the length of inside leg from crotch to hem and length from junction of leg seams to top, both back and front, excluding waistband. The remeasuring is carried out after drying. The dimension change is calculated with the formula : × 100.

The remeasuring was made after both one and three washing and drying cycles.

A Study of the Denim Value Chain and Critical Aspects of Denim Quality Determening Laundering

Spirality

After

The tendency of spirality, or twist, in a woven garment, can be determined by ISO 16322-3, Determination of spirality after laundering - Part 3: Woven and knitted garments. The construction of twill weave has an inbuilt stress that may be released only after washing, which might result in torsion of the material. To measure this tendency of twisting in a woven garment, two benchmarks were placed 50 cm apart, and after wash the change was measured and the percentage change was calculated.

Quality Audit & Measurment Evaluation According to company standards the measuring of garments was made on waist, thigh, knee, bottom hem, inseam, front rise and back rise.

Deviations from the measurement list were noted. The results were compiled and deviations over the control limits were marked.

Opinions/Interviews One of the interviewed persons worked in one of the brand’s stores and was recommended to us by the company, because of his high knowledge about denim. The interview was done to get his point of view on reclaims and issues of denim jeans and to get another dimension to the statistically gathered information. Although the result to some extent is the interviewed person’s own opinions there is no significant reason to question it.

Comments On The Performance Of Tests The tests were performed according to the stated standards. Because of external factors some divergences had to be made. According to the standards the test material should be conditioned before testing, there were no possibilities for the authors to do this and therefore the testing was done on unconditioned material. The fact that the test material was not conditioned

affect the test results to the degree where a slight margin of error should be considered when evaluating the test results. It is hard to estimate how much effect this actually had on the test results though.

Process Sequence : Denim The designer, together with the design team, is the one who design and develop new jeans. In consultation with suppliers, treatments that should be made to obtain the desired look, are determined. After that, the denim buyer and the quality management take over and adding orders and secure quality through quality testing and quality audits. Quality tests are conducted on the fabrics several times, for example before selling and before production.

The test that is conducted just before production is called bulk-test and is made on the real fabric. Previous test could have been made on fabrics that are just a prototype of the real fabric.

After production and before shipping further controls are done. Based on the AQL-level that the company has chosen, and the size of the order, jeans are randomly taken for control. The jeans are then sent to the warehouse of the company and then to different shops.

Claims From The Store Point Of View The interview did show that up to 80% of the customer claims are classified as service claims and most of them are not registered among the other claims. The company handles service claims by goodwill. A majority of the service claims handled, are tried to be solved by offering customers to get their jeans repaired. A common reason for repairing reclaims at a tailor is that the crotch seam line has broken. The most common ”approved claims” for women are “broken fabric” and “twisted leg”.

The store personnel did not consider the denim reclaims to be a severe problem.

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When problems regarding a specific style is found, the store personnel will not hesitate to inform the quality team at the company head quarters. Though the jeans quality has substantially improved over the past few years and restrictions for accepting customer reclaims have become less strict, the amount of reclaims have approximately been on a similar level.

A majority of the reclaims are accepted by goodwill where the customers return an item that has been worn and torn for several years. According to the store personnel a pair of jeans should endure at least six months and within six months most reclaims are obvious cases. However, most jeans endure a longer time than six months with normal wear and care, which is also an ambition of the brand. Jeans older than six months are first and foremost taken in for service, although customers in some cases can get a new pair of jeans.

The store personnel considered themselves well capable of taking in information from their customers and guiding them to a purchase of jeans suiting the needs of the customers.

Hence varieties in measurements between different washes and styles were looked upon as a minor issue.

Although some variation between different washes was noted, none within a sole style was.

Test Result Tear Strength Results All unwashed and washed fabrics passed the test. Significant changes in strength before and after wash were noticed within some of the fabrics.

Results Of Abrasion Resistance One of the unwashed styles didn't pass the test (broke at 3000 revolutions).

After 3 washes, 5 out of 14 styles did not pass the recommendation of 17 000 revolutions. Three of the styles broke at early stage, after 5000 revolutions, one broke at 10 000 revolutions and two after 12 000 revolutions.

A Study of the Denim Value Chain and Critical Aspects of Denim Quality Results Of Colour Fastness To Rubbing According to quality standard, two tests of each style should be preformed, one dry and one wet. The colourfastness to rubbing should be at least level 3-4 for dry rubbing and at least level 3 for wet rubbing.

All tested styles passed the quality requirements for dry fade.

Two out of three stonewashed fabrics and none of the raw fabrics did pass the test when wet. Heavy bleach and stone washed, enzyme washed, rinse washed and bleach washed fabrics passed.

Results Of Colour Fastness To Washing After three washes, all jeans maintained good colour and passed the test.

Dimension Stability Results The enzyme washed fabric shrank in both warp and weft direction and did not pass the quality requirements.

Shrinkage over the recommendation was noticed for the unwashed (raw) fabrics in warp direction. BW3 shrank in both warp and weft direction and did not stand the recommendations. Even though there was a difference in dimensional change between warp and weft, the difference was not significant.

Results Of Determening Spirality After Laundering For all of the washed jeans, no twist or accepted twists were noticed after the first and second wash. After the third wash, the twist was gone for all of the garments.

Results For Dimensional Stability Of Garment HWS 1 made three washes without dimensional changes larger than ±3 %.

All other styles had one or more measurements that exceeded the quality recommendations. HB&SW only exceeded the recommendation at one point, the back rise.

Quality Audits Measurements made on nine of the company’s styles show that all nine had one or more deviations above the company’s accepted tolerance values.

No similar deviations are to be found in former reclaims, such as reclaims concerning too much back rise or too small thigh. However, the result detect one aspect that ought to be inspected.

The deviations were found at critical, as well as less critical measurements.

Some of them differed a few millimetres from the tolerance values, whilst others differed several centimetres.

The measuring of twisted leg/bad folding, showed that 87 % were well folded and showed no indication of twisted leg. 6,2% were badly folded but had no indication of twisted leg. 6,6% had twisted leg but were well folded and one item was poorly folded and had twisted leg.

All twisted leg cases were found within the style SW 3, a tight style for women.

The smaller sizes (25 and 26) were over-represented among the twisted leg cases, but also the larger sizes (30 and 33) had that problem.

All in all, 27 out of 422 jeans were badly folded which, according to this inspection, is not a vast issue since it is only 5,7 %. On the other hand, when looking at the 6,2% that seemed to be twisted but was badly folded, it is a problem and a risk of reclaims.

is that the authors find, and presume, that a lot of the reclaimed jeans were old and accepted by goodwill. Many of them looked-, and felt like they had been used for a long time, in some cases several years. A lot of the reclaimed jeans were heavily worn and torn and marked by stains of different kinds.

Adding to this, even if nonessential and of easy character, many of the reclaims from Copenhagen showed distinct wear in the crotch that seemed to be caused by a bicycle saddle. Stains on calves were also common, probably from bicycling as well.

When putting the claims in the records, store personnel get a series of categories of claim causes to choose from. For example, “broken fabric”, “twisted leg” etc. Despite these cause reasons, the same type of claim might be recorded in different categories, depending on the store personnel who handle the claim. Many of the reclaimed garments that have been assessed have several recorded claim causes.

Test Results – An Analysis Tear Strength - Change In Strength After Three Washes

Assessing Customer Claims

Eight styles had less than 10% in strength decrease. Three of them decreased more than 10% in weft direction. Half of the styles were in 100% cotton and the other half were in 98% cotton and 2% elastane. Out of eight styles that passed the test, three of them did not loose strength, but increased its strength after 3 washes.

Unfortunately no good statistics can be displayed to declare whether the reclaims were ”valid claims” or accepted by goodwill. The majority of the reclaims lacked in information about the reason for reclaim, and in the cases of noting this the text had been torn off. This made it difficult to determine in a scientific way whether a reclaim was ”acceptable” or not.

Six styles lost more than 10 % strength after three washes. Two of them were in 98% cotton and 2 % elastane.

Except one style, the test showed that styles with great decrease in warp direction also lost strength in weft direction. But the lost in warp direction was lower in relation to weft direction (10-20 N). Eight styles lost more than 10 % in weft direction.

The conclusion of the visual evaluation

Heavy Stone Wash showed a

However, this problem should not be expensive or particularly hard to solve.

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A Study of the Denim Value Chain and Critical Aspects of Denim Quality significant change in strength before and after washing in three of the fabrics.

With the forth fabric the strength increased. The Stone Wash fabric was basically unaffected by the washing.

The Enzyme Washed fabric decreased in strength in warp but not in weft. But the tear strength was still after three washes very high, this probably due to that enzymes are more merciful to the fabric compared to other wet processes.

The Rinse Washed model decreased in warp as well as in weft although the decrease in weft was larger. The deterioration in weft meant that it after three washes reached the lower limit for what it should withstand. The warp in this case is stronger than the weft and mainly that is the crucial point with a denim fabric, however a fabric is not stronger than its‘ weakest link. Probably the rinse wash is the reason of why the fabric decreased in tear strength.

The unwashed fabrics was not affected by the washing in a noticeable way, both of the fabrics were strong before and after washing. One of the fabrics, NW 2, displayed a decrease of strength in weft, however the decrease will most likely not affect the fabric as a whole since it is still far above the accepted requirements.

The Bleach Washed fabrics decreased a lot in both warp and weft. This was not unexpected since bleaching leads to weakening of the cotton fibre, and particularly the elastane fibre. Both of the two bleached fabrics were a mix of cotton and elastane.

BW 1’s strength decreased severely, whilst the decrease with BW 2 was acceptable.

The Heavy Bleach and Stone Washed fabric was the one with the greatest decrease, both in warp and in weft.

Earlier heavy treatments are probably the reason of such great decrease.

The test results varied a lot and no obvious connection between washes and tear strength could be notices. No

obvious connection between elastane and increased or decreased tear strength was either not noticed. Fabrics with elastane both increased and decreased in tear strength.

For example, the bleach washed samples showed a fairly great decrease, which probably is caused by the bleaching chemicals that harms the cotton and elastane fibres. The stone washed sample with elastane was basically unchanged. A Resin finishing earlier in the process could in this case be a reason for this result.

Abrasion Resistance Except one, all samples passed the abrasion test. HSW 1 was the one that did not pass and broke at 3000 revolutions. The fact that HSW 1 was heavy treated is probably the reason why it broke at such early stage. But chemical residues in the fabric could also be a reason, especially when the washed sample broke at 12 000 revolutions. If there were any chemical residues, they were probably rinsed during the laundering. That HSW 1 differs from the other heavy stone washed sample, could also indicate that the test result for HSW 1 is just random.

Eight out of 14 washed samples passed the test. Abrasion, cause by finishes as well as washing, is probably the reason why the remaining six samples did not make 17 000 revolutions. Both jeans with and without elastane broke before 17 000 revolutions, and therefore the effect from the elastane cannot be demonstrated on the abrasion resistance. It is likely that the bleaching cause damage fibres and weaker fabrics, but this could not be seen in this abrasion test.

Colour Fastness To Rubbing Loss of colour when rubbing is normal for raw denim fabrics. This is due to the hydrophobic property of the Indigo dye. Therefore, some dry fading is something that has to be accepted when it comes to denim jeans.

NCM-JULY 2014 52

However, too much dry fading means a risk of unsatisfied customers.

The reason of why HSW 1, HSW 3, NW 1, NW 2 and SW 2 faded when wet is probably due to the characteristics of the indigo. But it is surprising that two of three heavy stonewashed jeans did not pass the test for wet fade. Heavy stone washing is a process when the fabric is heavy treated and lot of colour is removed during abrasion.

In this case, probably and obviously, lot of colours are, despite the heavy treatments, still in the fabric and cause wet fade.

Colour Fastness To Washing After three washes, all jeans maintained good colour and passed the test.

Dimension Stability The one reason for the dimensional change, shrinkage, for all of the fabrics is hard to tell. The result could indicate the influence of denim finishing on dimensional stability, but it could also be randomly given result.

As mentioned earlier, Dimensional Stability, fibre and fabric structure plays an important roll for dimensional stability. Dimensional stability, or dimensional changes can be caused by different reasons. In this case, when all fabrics shrank, is possible that the change is caused by tension.

Fabrics with no significant difference between warp and weft, tension might be caused by different processes after weaving. Fabrics with greater shrinkage in warp, tension probably been mainly caused from weaving. But also from different denim processes, due to shrinkage even in weft.

To reduce the difference in dimensional change in warp and weft, one solution could be some kind of relaxing process of fabric after weaving. This would probably made the shrinkage due to denim processes more equal between warp and weft.

A Study of the Denim Value Chain and Critical Aspects of Denim Quality Equal shrinkage can be preferable, because even if the garment shrinks, it will maintain good proportions.

Shrinkage in warp direction is more critical than shrinkage in weft direction when it comes to denim jeans, especially denim jeans of cotton and elastane. Shrinkage in weft direction, easier returns to original measurements during use. Shrinkage in weft direction could in some cases be appreciated, when this helps to maintain fit. The shrinkage in warp direction is more critical due to it do not returns to its original length during use like the weft does. But, to minimize the risk of shrinkage, the garment can be stretched when wet. Because of the increased strength of the cotton fibre, stretching do not weaken the fibre or affect the durability of the jeans.

Spirality After Laundering The fact that all earlier noticed twisting after the third washes were gone was interesting. This speaks for tension within fabrics takes time to overcome.

Repeated laundering are needed for successive reduce of tension.

As mentioned, tension can be caused several reasons. In this case, it really hard to tell whether it is caused by weaving or making. The 2:1 twill could also be the reason of twisting. As mentioned earlier, the twill weave is unbalanced which cause movements in the denim fabric. These kinds of movements are characteristic and are hard to avoid.

Garment Dimensional Stability The stone washed fabrics were distinguishing with most changes over 3%. Except HSW 1, all other fabrics were pretty equal to each other. The lack of variation between finishes, indicate that fabric structure rather than denim finishing cause dimensional changes Twisting Vs Bad Folding Only a few pair of jeans had a ”real” twisted leg, i.e. twisted leg caused by dimensional changes in the fabric or

tension caused during sewing. The jeans with a ”false” twist, was probably bad folding, which made the leg look twisted. With better folding, it would not be any problem.

Discussion Quality is a subjective notion, which means that what one person considers to be high quality, another one might not. Because of this it is hard to define exactly what high quality jeans are.

However, the authors do consider the ability to maintain properties such as colour, fit and durability to be something that distinguish high quality jeans, i.e. the jeans cope with wearing and washing. Maintaining properties is not typical for jeans but is something that most people desire in other garments aswell. But since many jeans are processed to get a worn look, this issue becomes an important quality aspect.

All different parts such as fibres, yarn, cutting, sewing etc. are building blocks that create the final jeans quality.

Thereby all parts can be viewed as ”critical” and of importance to be able to manufacture high quality jeans. For example, by choosing a high quality cotton fibre, i.e. a long stapled cotton fibre, the chances of withstanding the following processes and the wearing phase increase, and a solid ground for the jeans to maintain its properties is laid. Therefore it its important for a jeans brand to be nit-picking from the beginning and also set high demands on material and manufacturing.

From this study it could be established that if you are careful from the beginning and choosing high quality fibres etc., the finishing is the most critical aspect of the manufacturing process of jeans. The wear finishes not only give a worn look, but also deteriorate the jeans’ ability to maintain its proper ties. Compared to the unwashed raw jeans i.e. those who were not finished to get a worn look, the treated jeans were slightly weaker before washing, but primary it became obvious that their ability to maintain NCM-JULY 2014 53

the strength they had before washing was decreased after washing.There can be several reasons for the deteriorated results; the bleach may have injured the cotton and elastane fibres or there can be chemical rests trapped in the fabric which weakens it. On the other hand, it can also be that the jeans has been so roughly worn in the finishes that they simply can not maintain its properties when subject to both mechanical- and chemical wear, which emerge when washing.

It has been very difficult to find detailed information about different denim processes as well as the chemicals used in the processes, which in its turn has made it difficult to see what the cause of the injuries in the different processes may be and what might be needed to change. With this in mind, there is no way to tell exactly what makes the jeans become weaker when washing, without wild speculations. The authors, however, can establish that the finishes, and especially washing, are very demanding on the jeans and affect their physical quality. And if you resubmit what has been mentioned earlier, that what distinguish high quality jeans is the ability to maintain its properties, these test results become interesting and something that jeans brands should take a deeper look into.

By washing the jeans and then do quality tests you can get an indication of how well they will withstand the wearing phase. Though, it only gives an indication and not a totally correct result. The wearing phase is incredibly difficult to emulate and tests after washing only give a hint. But, you can possibly detect jeans that, for example, decreases too much in tear strength, by comparing test results before and after a number of washes. Through this, perhaps the processes containing wearing can be made a bit more careful so that the jeans are not worn too much.

In this study all jeans were washed in the same washing machine, with the same washing program and with the

A Study of the Denim Value Chain and Critical Aspects of Denim Quality same laundry detergent. In spite of accuracy, the amount of laundry detergent may have varied which might have affected the results.

The tests were also made on unconditioned fabric, the effect of this on the test results is difficult to determine, but should be kept in mind.

No clear conclusions could be made since several different styles, but only a few samples of each style were tested.

This makes it difficult to tell by the test results whether they show a pattern or simply random results. To increase the trustworthiness of the study it would have been better to test more samples of fewer styles.

The colourfastness has also been subject to some tests in this study.

Overall, the samples displayed good results and the authors can only establish that they, in this case, were not a problem. The fact that the colourfastness is evaluated and judged visually, and thereby also subjectively judged, by the authors, should also be mentioned. In spite of accuracy, there is a risk of different judgements from one day to another. In contrast to this study’s test results, the colourfastness is a recurring problem, especially when it comes to cotton jeans coloured with indigo.

As mentioned earlier, to ensure high quality jeans companies need to be careful from the beginning and set high demands on fabric and manufacturing.

Add to that quality tests and inspections of both fabric and final products. Having a high AQL-level, i.e. more inspections and lower tolerance with defects, probably results in earlier detection of jeans with defects, which in its turn makes sure that fewer jeans with defects reach the stores and thereby also the customers.

Despite all this, jeans brands will probably never be able to avoid dissatisfied customers and reclaims.

The jeans will be judged subjectively by the customer who in some cases

will hold that they are of poor quality even if quality tests display the opposite. People wear jeans differently, meaning that some people will always get hard wear in some areas, where others will not get wear. This in spite of how high the quality is. So, getting reclaims is not necessarily a sign of poor quality.

For the jeans company subject to this study, the test results could not prove a lack of quality in the fabrics and thereby give an explanation to the reclaims that have been studied.

Therefore, the brand could probably not decrease the number of reclaims by increasing their quality demands.

The results of this study states that there are no severe problems regarding the tested products, the quality requirements are generally reached.

Deviations from requirements were most frequent in the quality audit performed. The measurement deviations are one of the critical aspects of quality. It might not be one of the main reasons why customers reclaim their jeans, especially not for customers who try the garment on in the store before buying. Deviations of measurement will be a problem if the garment is bought via Internet, when there are no possibilities to try the garment on before buying it. As the Internet sales increases this might be important to consider.

Today the brand accept a lot of reclaims out of pure goodwill, and if they wish to use the claim statistics in their quality management a slight development of the claim system would be preferred. In the reclaim statistics it should in a more clear way appear if jeans are accepted out of goodwill, and thereafter an additional reason such as “broken fabric” etc. should be noted. Today a goodwill claim could be accepted with “broken fabric” as a reason, which results in misleading statistics and therefore the statistics is difficult to use in the quality management.

For the claim handling system to NCM-JULY 2014 54

become clearer it could be a good idea to inform and educate the store staff about the importance of filling in the reclaim cause correctly.

As well as everyone getting an education in what is accepted claims and what should be classified as goodwill. The store staff is probably well aware of the differences between the two but a clarifying and straighter guidelines would help and decrease the risk of having the claims too individually judged by the staff in store.

Finishes that give jeans a worn and torn look not only affect their durability, but also the jeans’ ability to preserve its properties. By being careful and choose fabric such as high quality fibres and yarn and ensure a skilful manufacturing process, jeans company can produce and sell high quality jeans. However, finished jeans with a worn look will probably never have as good durability, and possess the same ability to preserve properties as untreated raw jeans. To some extent the finishing can be controlled and the wear finish can be made with ”consideration” so that unnecessary wear is avoided. But the fact that jeans’ durability is deteriorated when processed makes the finishing a critical aspect. In the end this forces you to put the design against the durability aspect and decide which one is the most important. The worn look is a different type of quality aspect and mainly determines if the customer will choose to buy a pair of jeans or not.

As a jeans company, you can probably never avoid to make jeans that does not brake and thereby avoid reclaims to 100 %. This is since people wear and tear their jeans very differently.

Therefore, reclaims is not necessarily a sign of poor quality and the solution does not need to be to increase the quality demands. The complexity of problems is rather the wearing phase and the fact that jeans have become a garment that is heavily used and sometimes worn without any consideration.

INTERNATIONAL BUSINESS PAGES

Pakistani Textile Sector in International Arena Brief Report on Roundtable Jointly organized by The Royal Netherlands Embassy in Islamabad and International Labour Organization (ILO) (24th May 2014 – ILO Auditorium Islamabad) Background The Textile industry is the largest manufacturing industry in Pakistan. It has traditionally, after agriculture, been the only industry that has generated huge employment for both skilled and unskilled labor and continues to be the second largest employment generating sector in Pakistan. Pakistan is the 8th largest exporter of textile products in Asia. This sector contributes 9.5% to the GDP and provides employment to about 15 million people or roughly 30% of the 49 million workforce of the country. Pakistan is the 4th largest producer of cotton with the third largest spinning capacity in Asia after China and India, and contributes 5% to the global spinning capacity.

At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products1.

The Textile Industry is largely concentrated in Punjab (mostly Faisalabad and Lahore) followed by Sindh (mostly Karachi). Textile exports managed to increase at a very decent growth of 16% in 2006. In the period July 2007 – June 2008, textile expor ts were US$10.62 billion.

Textile exports share in total export of Pakistan has declined from 67% in 1997 to 55% in 2008, as exports of other textile sectors grew. The major reason of decline of textile export of Pakistan is the Government policies and deprivation of energy, worsening security situation and lower compliance rate with labour laws and international labour standards.

The Government of Pakistan is seriously considering its competitiveness in global market and for this purpose,

it has ratified a number of global and UN Conventions. As a result, the Government has recently been granted status of GSP-plus (Generalized System of Preferences) by the European Union (EU). However, the continuity of GSPPlus status greatly depends on positive performance on 27 UN Conventions – which includes eight ILO fundamental conventions.

Netherlands is one of the major buyers of Pakistani Textile and Garment products. During 2013, the volume of Pakistani textile exports to Netherlands was around USD 300 million. The Government of the Kingdom of Netherlands intends to enhance this trade volume in line with the mutual understanding between Netherlands and Pakistan to enhance ‘Trade not Aid’.

However, in view of the increasing sensitivity of European buyers with social and environmental standards, it is imperative for Pakistani textile industries to understand and implement these standards in letter and spirit to become eligible for a long-term export to Europe.

In order to discuss these issues in detail and develop a way forward based on mutual cooperation and enhanced collaboration, the Royal Netherlands Embassy in Islamabad and ILO Office in Islamabad jointly organized a roundtable to discuss ‘Pakistani Textiles Sector in International Arena’ on 24th May 2014 in ILO Auditorium Islamabad.

Objectives The roundtable was organized to achieve the following objectives : •

Develop an understanding on the current situation of Pakistani textile sector; and NCM-JULY 2014 55

•

Identify areas where technical support would be required to make Pakistani Textile sector compliant with international standards.

Participants The event was primarily organized in connection with the visit of Ms. Lilliane Ploumen, Minister for Trade and Development, Kingdom of Netherlands to Pakistan.

More than 50 delegates including senior diplomats, Government officials, representatives from Textile & Garment Producers’ Associations, Workers and Employers federations, academia and civil society were among the participants.

The Federal Minister for Textile Industries in Pakistan, Mr Abbas Khan Afridi was the Chief Guest of the event. The main speakers included Mr Raja Ashfaq Sarwar, Provincial Minister for Labour & Human Resource Punjab; Mr Lars Gunner Wigemark, EU Ambassador in Pakistan; Mr Francesco d’Ovidio, Country Director ILO Islamabad and Mr Yasin Siddique, Chairman All Pakistan Textile Mill-owners Association (APTMA).

Welcome Address The roundtable started with a ‘Welcome Address’ by H.E. Mr Marcel de Vink. Ambassador of Royal Netherlands Embassy in Islamabad who thanked all the participants for joining the event – especially the visiting Minister from Netherlands. He also thanked ILO for co-hosting the roundtable and providing all facilities for a successful event. He said the Ministerial visits are always crucial and the Embassy would like to make maximum use of such visits. He said it was a difficult choice

INTERNATIONAL BUSINESS PAGES to select the most crucial areas to be presented to the visiting Minister – however, textile industries was a very natural choice for the Netherlands Embassy keeping in view the variety of textile and garments products Netherlands imports from Pakistan. He appreciated the quality and diversity of textile products being produced in Pakistan and remarked that He also thanked the management of Kohinoor Textile Industries who organized a visit for the Netherlands Minister to their factory in Rawalpindi and appreciated the quality of products being made in the factory. He expressed the hope to flourish Pakistani textiles in Netherlands making very good usage of GSP-plus facility. Having said this, he highlighted the increasing sensitivity of European consumers towards social and environmental standards and said that with this roundtable the Embassy wanted to provide a platform to discuss things which needs to be done and what followup actions would be required.

Presentation by ILO Islamabad Mr Francesco d’Ovidio, Country Director ILO Islamabad welcomed all the delegates to the ILO Auditorium and thanked the Royal Netherlands Embassy for partnering with ILO on such an important subject. He then made a presentation titled ‘International Labour Standards in Pakistan: the Carrot, the stick and a Business Case’ and explained the importance of compliance with International Labour Standards (ILS) in view of recent developments, i.e., award of GSP-plus status of Pakistan – which is contingent on country’s performance on ILS (the Carrot) as well as the recent withdrawal of US-based International buyer in Garment sector (Walt-Disney Corporation) – due to inadequate performance on World Governance Indicators (including Labour Standards) (the Stick). He elaborated various ILO Conventions including those on ‘Child Labour, Forced Labour, Freedom of Association & Collective Bargaining, and Discrimination at workplace’ which are mandatory for compliance. He also

Mr Francesco d’Ovidio, Country Director ILO Islamabad NCM-JULY 2014 56

INTERNATIONAL BUSINESS PAGES enumerated the Governance Conventions on Labour Inspection, Employment Policy and Tripartite Supervisory Mechanisms – which needs to ratified and implemented in Pakistan. He said that the major trends of a few decent work indicators present a hopeful situation as the positive trends are there – but the progress is very slow. He also appreciated the recent cooperation and forthcoming attitude of the Government of Pakistan and the provincial Governments for promoting decent work and presented a number of programs jointly designed and implemented by the Governments with technical support of ILO. He concluded his presentation with emphasizing a joint working strategy between ILO, Government of Pakistan and the Textile Industries Associations and assured of ILO’s full support in creating better working conditions and enhancing trade opportunities for the country.

Remarks by EU Delegation in Islamabad Mr Lars Gunner Wigemark, EU Ambassador in Islamabad elaborated that EU and Pakistan have a multi-billion dollar trade relations. In terms of trade volume with EU, Pakistan is ranked at 50th position – however, among all countries who got GSP-plus status, Pakistan is the largest among them.

Around 70% of Pakistani exports to EU consists of Textile and Garments. He said that EU is fully supporting the trade and development initiatives in Pakistan to help the country achieve 7% growth in GDP – which is essential to create sufficient jobs for all unemployed.

Mr Wigemark further said that nowadays Branding is an emerging issue which is closely linked with Labour Standards as European buyers are more closely looking at the label of products and the background stories of the production chain. He said the incidents like Rana Plaza in Bangladesh raise a number of concerns which are common in this region, how-

Mr Lars Gunner Wigemark, EU Ambassador in Islamabad ever, the initiative of ‘South-Asian Labour Conference’ organized jointly by the Punjab Labour Department, EU and ILO was one major right step to improve this situation and enhance regional cooperation. He said that the regional countries should now seriously look into the issues of child labour, exclusion of women from productive work, occupational safety & health and better environment for Trade Unions.

The responsibility for compliance with labour standards lies jointly on Government as well as Industries.

He gave the example of Bangladesh where women comprise 40% plus workforce in Textile Sector. He also emphasized for judicious use of water resources in the country which are fast depleting. He appreciated the tripartite structure of Government, Workers and Employers successfully working in Pakistan and emphasized onproviding better environment for Trade Unions to let them play their due role in improving working conditions.

He appreciated the efforts made by the Government of Punjab for a complete elimination of Child Labour from the province and said that since most of the Textile Industries are in Punjab, they will get benefit from the initiatives of the Government. He concluded by NCM-JULY 2014 57

saying that Pakistan is a very good country where investors would like to come if conditions are suitable.

Remarks by Textile Mill-Owners’ Association Mr Yasin Siddique, Chairman All Pakistan Textile Mill-owners Association (APTMA) appreciated the joint initiative of ILO and Netherlands in organizing the roundtable on ‘Textile Sector’ for a better understanding of challenges faced by textile industry in Pakistan and assured them of full cooperation by the Textile Industries to implement Labour Laws and Standards. He explained that the share of Textile in Pakistan’s GDP is 23% and share of textile in total exports of Pakistan is 55%. The textile sector is employing around 40% of industryemployees and is consuming 36% of total bank loans in Pakistan. He appreciated the EU’s GSP-plus facility and said that the Industry realizes its role in implementing labour standards for continuity of GSP-plus status. He said the Government of Punjab has enacted many labour laws and is in contact with industry for its implementation. The bigger industrial units have already implemented all laws while small industrialists are in the process of adoption. He appreciated the notion

INTERNATIONAL BUSINESS PAGES expressed by ILO to ensure decent working conditions all through the value chain, i.e., from ‘cotton fields to factory-floors’. While enumerating key challenges faced by textile industry, he requested technical support from ILO and Netherlands in compliance with ILS, water conservation technologies, generating windpower, enhancing cotton crops yield and providing skilled workforce for Textile and Garment industries. He also highlighted the past efforts of the Industries in collaboration with different NGOs to eliminate Child Labour and support Home-Based Workers. In conclusion, he assured that the business community of Pak is aware, alive and understand the requirements for international trade and will make the best use of GSP plus and make sure for all compliances.

Questions, Answers and Discussion The three presentations were followed by an interactive session where participants were requested to share their comments and relevant to the subjects of textile sector in international arena.

The following discussion ensued : Compliance – as a matter of ‘Right’ not ‘Business’ A representative from the Ministry of Commerce said that the position of Government of Pakistan is to implement treaties and Conventions since it is good for people of Pakistan and not for GSP-plus or any other business concessions. He said that the relevant Ministries are now responsible for implementation of each of the international treaty and convention. A Treaty Implementation Cell (TIC) has been established in the Prime Minister’s Office to review progress on each Treaty/Convention and advice for further improvement.

Data Deficiency & Informal Workers A representative from Academia identtified the gaps in data collection and statistics regarding analysis of

Mr Yasin Siddique, Chairman All Pakistan Textile Mill-owners’ Association (APTMA) labour inspection and working conditions. She also highlighted the importance of informal economy (homebased workers) in the overall development of textile sector and suggested to improve their working conditions.

ILO, while responding, agreed to her comments and said that the improvement of labour statistics is an ongoing process and Government is always open for such suggestions. The challenges in Labour Inspection and recognition of informal economy are high on the agenda of ILO and will be resolved in collaboration with the national counterparts.

Flexibilities and Competitive Wages A representative from Towel Manufacturers Association said that the foremost requirement for implementation of Labour Laws is that the company should be earning profits. If company is in a loss, the owner cannot afford to pay any benefits to workers. Unfortunately, due to various challenges, the textile and garment factories are hardly making any profits. While comparing minimum wages in different countries, he said that minimum wage in Pakistan is Rs: 10,000, while that in East Punjab (India) is Rs: 5,000, and in Bangladesh the Trade Unions are askNCM-JULY 2014 58

ing for Rs: 5,000. Even if an employer is paying 8,000 is violating law, but paying higher than competitors. He said that most of Pakistani laws are in consonance with ILO Conventions. There could be some industries which are violating on small things in conventions, but larger parts of Conventions and laws are being fully implemented.

He suggested to have 2-3 years grace period for GSP-Plus status to be fully compliant. He also mentioned that towel manufacturing association has setup a training institute (SMART) in Karachi for Skills training with preference of existing workers in the textile sector. He informed that ILO is already supporting this institute by imparting training courses to the victims of Baldia Town factory fire.

Technical support for Pakistani Textile Industries A Member of Parliament (Pakistan) said that the human rights are equally important as the economic development.

He asked the Netherlands Minister if Government of Netherlands would provide some technical support to Industries for sustainable enterprises and compliance with minimum standards.

Minister Ploumen responded that from

INTERNATIONAL BUSINESS PAGES 1st July 2014, a Dutch ‘Good Growth Fund’ will be established to enable small and medium entrepreneurs to work with Pakistani business sector. It will not be subsidies, but loans, grants and equities. In all free trade agreements, always there are paragraphs on sustainability – which is a joint responsibility between the Governments and the industries to comply with. She emphasized to strive and raise things to the top, and avoid taking things to the bottom of standards. She assured that the Dutch Government will work with Pakistan to ‘raise to the top’.

Tripartite Model in Netherlands A representative from Trade Union asked the Netherlands Minister about the model of tripartite system working in Netherlands. He also posed question about the appropriateness of ILO’s support in the trade and economic development. Minister Ploumen responded that Netherlands is 6th largest economy in world where a successful tripartite model is built on consensus of workers, producers and buyers, which ensures provision of minimum wages, social security and freedom of association. She said that the standards always help you improve economically. There is a need for all stakeholders (buyers, producers, and workers, consumers) to work jointly.

Conference like this always helps to clarify roles, responsibilities and situation to the relevant people. She said that she is a strong and true believer of ILO and she thinks ILO is very helpful in setting standards and helping countries in implementing these standards to ensure better working conditions and enhance welfare of workers.

Devolution of Powers (from Federal to Provincial Governments) To a question the Federal Minister for Textile Industries responded that the devolution of powers in Pakistan has taken place in June 2011 and is a relatively new phenomena. He said it will take some time to get proper benefit from this devolution.

Pictures above are from the Question-Answer Session Better Work in Pakistan A representative from Trade Development Authority of Pakistan asked ILO about the timeframe for starting Better-Work Programme in Pakistan and what would it include? ILO responded that star ting the Better-Work Programme is a long procedure. It requires a lot of assessments and prefeasibilities to see if the policy, legislation and institutional mechanism is in place. Pakistan made a request only in September 2013 – and there are very few chances to start BWP before 2016.

However, in the meantime, ILO and Government of Pakistan are putting in NCM-JULY 2014 59

place an ILS Compliance project in Pakistan to enable Pakistani industries start working on ILS and this project will help to prepare ground for Better Work Programme.

More Compliance – More Buyers One participant remarked that the Industries should not consider compliances as a ‘Cost’ but with compliances, you can have more buyers. So, compliances create actually an opportunity.

Concluding Session After a detailed discussion and comments, the event was concluded with following three concluding speeches :

INTERNATIONAL BUSINESS PAGES Raja Ashfaq Sarwar, Minister for Labour & Human Resource, Government of Punjab The Provincial Minister, on behalf of the Chief Minister Punjab, welcomed the visiting Minister from Netherlands and appreciated the willingness of European Governments to their commitment on ‘enhancing Trade not Aid’ with Pakistan. He said that the Textile Industry is the oldest and more important export-oriented industry for Pakistan which employs around 40% of labour-force in industrial sector – which means around 9 million workers and their families are directly associated with this industry. The share of textiles is 55% in total exports of Pakistan and 8.5% of total country’s GDP. He lamented that the country could not progress well on the ‘valueaddition’ and ensured that under the visionary leadership of the Chief Minister, the Government of Punjab is making serious efforts to promote this industry in all dimensions. He said that Pakistan has a strategic location and it wants friendly relations with all neighbouring countries to improve a climate for business in the region.

Referring to the award of GSP-plus facility, the Minister informed that the Government is looking beyond 2017 to further enhance trade with European partners and a Cabinet Committee has been formed in Punjab to ensure compliance with all laws, conventions and treaties related to trade enhancement.

He enumerated a number of initiatives that the Punjab Government has started to provide better working conditions and appreciated the technical support received from ILO. He said the Government of Punjab has amended the laws to ensure timely and effective labour inspection to all workplaces and has also removed the restriction of ’50 workers’ to form a Trade Union.

eliminate Child and Bonded labour from all Districts of Punjab Province. He also mentioned that the Punjab Government and Pakistan are now moving beyond the boundaries to forge partnerships with South-Asian countries for promoting Decent Work and mentioned a recent ‘South-Asia Labour conference’ in Lahore which was wholeheartedly attended by more than 300 delegates from all over Pakistan as well as around 70 delegates from South-Asia, Turkey, China and Europe. Commenting on the feedback of participants, he assured them that the Government of Punjab is seriously looking at the issue of ‘informal economy’ workers particularly home-based workers.

He also mentioned the successful pilot projects of ILO on Child and Bonded Labour and said that the Government of Punjab has recently developed a Rs: 5.5 billion Project to comprehensively NCM-JULY 2014 60

Mr Abbas Khan Afridi, Federal Minister for Textile Industries, Government of Pakistan The Federal Minister for Textile Industries, Mr Abbas Khan Afridi was the Chief Guest at the occasion and he highlighted salient features of Pakistani textiles in domestic and international markets. He also said that the textile sector provides a corporate edge to Pakistan as it has complete valuechain of textile industry. In cotton production, Pakistan is the 4th larges producer and 3rd largest consumer in the world. Around 2.7 million workers are engaged in textile industries while an addition 5.5 million workers in cotton

INTERNATIONAL BUSINESS PAGES farms. He mentioned lack of skilled workforce and water-usage as major challenges for the industry to flourish.

He assured the audience that the Ministry if gearing up to take maximum benefits from GSP-plus status and is working on next ‘Textile Policy’ to give a positive outlook for future growth. He also assured that the Government is serious in ensuring decent work, safe working environment, wages and other facilities to workers for enhancing their productivity. He appreciated the technical support of ILO and requested to start the Better Work Programme on priority basis. He said that the Government of Pakistan is now moving towards ‘high-value addition’ in the textile sector for which around 100,000 persons would need to be trained and Ministry would be keen to collaborate with ILO and other development partners to enable Pakistani Textiles to find new international markets. He concluded by saying that the youth-unemployment has been one of the drivers of security situation in the country. The Government would like to engage youth in productive jobs and textile sector can provide the best platform to enhance youth employment and subsequently improve security situation in the country.

H.E. Ms Lilliane Ploumen, Minister for Trade and Development Cooperation, Kingdom of Netherlands In her concluding remarks, the visiting Minister from Netherlands, Ms Ploumen thanked the conference delegates and Government for the warm welcome and to have an opportunity to directly talk to such a diversified group of important stakeholders and to listen to their suggestions and concerns. She said that the Dutch Government would like to enhance trade with Pakistan to realize its commitment of ‘Trade-not-Aid’.

The Dutch Government believes in free trade and that is why it fully supported Pakistan’s inclusion in GSP-plus facility. However, she said ‘Free Trade’ is not free for all rather it has a lot of attached responsibilities for industries –

as the international buyers are increasingly getting sensitive about ethical sourcing and international compliances. She said that the decision of Walt-Disney Corporation to withdraw from Pakistan should be taken as a wake-up call and it indicates how the international buyers are getting more sensitive about compliances and standards. She emphasized on the Pakistani textile industries and business community to provide better working conditions to the workers in the factories and in return, she will strongly advocate more trade for Pakistan in EU. She said that the Netherlands is the biggest donor of ILO’s Better Work Programme. While referring to the discussion and feedback of audience, the Minister said that the major challenge in Pakistan is not the inadequacy of the laws but the subsequent implementation of these laws. She also mentioned that the international buyers are now increasingly demanding to have their own enforcement mechanism and labour inspection and certification process. She appreciated the Joint Action Plan for Promoting Workplace Safety and Health in Sindh and the good interventions of Punjab Government – but still a lot needs to be done.

She emphasized on creating good environment for Trade Unions and promote ‘living wages’ instead of only ‘minimum wages’ as a ‘happy worker NCM-JULY 2014 61

is always a productive worker’. She said that the industries should not look to the countries paying lesser wages rather should look at those paying higher wages as even with the existing minimum wage of Rs 10,000, workers are unable to save anything. She invited ILO to develop a follow-up plan after this roundtable to support any action in Punjab and Sindh for textile sector.

She concluded by saying that the Dutch Government will stay in Pakistan and will help improve workers’ conditions for which the support of relevant stakeholders in the roundtable would be required and will hopefully have a similar event in October 2014 to review the situation and way forward.

Conclusion The roundtable concluded with a commitment from all stakeholders to work together to improve the working conditions in Pakistani exporting industries thus enhance trade opportunities for the country.

The Textile Industry of Pakistan employs around 40% of labourforce in the industrial sector – which means around 9 million workers and their families are directly associated with this industry. The share of textiles is 55% in total exports of Pakistan and 8.5% of country’s total GDP.

INTERNATIONAL BUSINESS PAGES

Understanding the Safety Requirements for the U.S. Apparel Market Gib Mullan Chief Counsel to Commissioner Buerkle U.S. Consumer Product Safety Commission

Overview of safety requirements generally applicable to apparel sold in the United States Additional requirements for children’s apparel and footwear Safety requirements for special categories of apparel General Safety Requirements for Apparel

apparel using three classes of flammability.

-

Fabrics that meet a specific exemption do not require testing

8. Class 1 and 2 fabrics are refurbished and tested again, another 5 specimens.

Wearing Apparel Flammability Standard

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The applicable standard is 16 CFR Part 1610 – commonly known as the “General Wearing Apparel Standard” which was adopted in the 1950s –before there was a CPSC.

16 CFR Part 1610-Test Summary

This standard keeps the most dangerously flammable textile products and garments out of the marketplace.

The Standard applies to all adult and children’s wearing apparel, except : -

-

footwear, hats, gloves, interlining fabrics; and children’s sleepwear, which must meet a more stringent standard (unless it is tight-fitting) The Standard specifies testing procedures and determines the relative flammability of textiles used in

1. 50mm x 150mm (2” x 6” specimen).

2. Conditioning requirements.

3. Specified test cabinet.

4. A 16 mm (5/8 in) flame impinges on a specimen mounted at a 45 degree angle for 1 second.

5. The specimen is allowed to burn its full length or until the stop thread is broken (burn time is recorded).

6. Preliminary burns are conducted to determine the fastest burning area and direction of fabric.

7. Fabrics are tested in their original state, 5 specimens -

Tested in direction of fastest burn time.

Raised surface fabrics are brushed to raise fibers.

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All samples are dry cleaned.

-

All samples are washed and tumble dried, 1 cycle.

9. The burn time of several specimens is averaged and a Class (Class 1, 2, or 3) designation is made based on the average burn time (speed of burning) and surface characteristics of the sample.

10. Class 3 textiles are considered dangerously flammable and are not suitable for use in clothing due to their rapid and intense burning.

Wearing Apparel Flammability Standard : Common Noncomplying Fabrics - Sheer 100% rayon skirts & scarves

Paper presented at the International Product Safety Conference Ho Chi Minh City, Vietnam in May 2014 NCM-JULY 2014 62

INTERNATIONAL BUSINESS PAGES -

Sheer 100% silk scarves

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100% rayon chenille sweaters.

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Rayon/nylon chenille and long-hair sweaters.

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Polyester/cotton and 100% cotton fleece garments.

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100% cotton terry cloth robes.

Exemptions : 16 CFR 1610.1(d) Specific exemptions Products made entirely from one or more of these fabrics are exempt from any requirement for testing of those fabrics : 1. Plain surface fabrics, regardless of fiber content, weighing 88.2 grams per square meter (2.6 ounces per square yard) or more; and 2. All fabrics, both plain surface and raised-fiber surface textiles, regardless of weight, made entirely from any of the following fibers or entirely from combination of the following fibers: acrylic, modacrylic, nylon, olefin, polyester, wool.

Certification : Each manufacturer must certify that the product complies with the standard.

This is called a “General Certificate of Conformity” or “GCC”. A GCC must be based on a test of each product or a “reasonable testing program” unless the item is exempt (GCC still required but no testing).

Summary for Clothing Generally Adult clothing : 1. 16 CFR Part 1610 (Flammability).

2. GCC required, including for products that are exempt from testing.

Additional Requirements for Children’s Apparel Wearing Apparel Flammability Standard For children’s apparel other than some sleepwear, the flammability require-

Summary for Clothing Generally (Adult clothing) : 1. 16 CFR Part 1610 (Flammability).

2. GCC required, including for products that are exempt from testing.

What Is a Children’s Product?

Definition of Children’s Product : The Consumer Product Safety Improvement Act of 2008 defines a children’s product as one that is designed or intended primarily for children twelve years old and younger. ments are the same as those for adult clothing. But the certification requirements are different.

undyed textiles, but it does not cover all aftertreatments such as screen printing.

Certification of Children’s Products

4. The limits apply to “accessible” component parts only (16 CFR 1500.87).

1. Manufacturer must certify children’s products based on “third party testing” 2. The testing must be conducted by an independent laboratory approved

by CPSC for each particular standard.

3. A list of labs approved to test for each standard is available on CPSC web site.

Lead Content Limits 1. Currently 100 parts per million— may become more restrictive in the future.

2. MOST textiles are exempt from the lead limits (cotton, wool, polyester (fleece), spandex, elastic, rubber.

Check 16 CFR 1500.91 for full list.

3. Textiles exemption covers dyed and NCM-JULY 2014 63

5. Snaps, zippers and other fasteners (metal, plastic, polyresin) all need to comply with the lead content limits.

Lead in Paint and Other Surface Coatings The limit for lead in paint and other surface coatings is 90 parts per million (ppm) without any exceptions. If the material can be scraped off then the CPSC staff would treat it as a surface coating. Otherwise, it is part of the substrate and tested (different methods) to the lead content limit of 100 parts per million.

Many printed garments (roller printing) where the ink is like a dye may be exempt from total lead content testing.

16 CFR 1500.91

INTERNATIONAL BUSINESS PAGES quirements. All fabrics and garments must be flame resistant and self-extinguish (not continue to burn) when removed from a small, open-flame ignition source. The fabric, garments, seams, and trims must pass certain flammability tests.

Tracking Labels Manufacturers of children’s products, to the extent practicable, must place distinguishing marks on a product and its packaging that would enable the purchaser to ascertain the source, date, and cohort (including the batch, run number, or other identifying characteristic) of production of the product by reference to those marks.

Labels must be permanently affixed to the product and its packaging to allow identification of the manufacturer, date, and place of manufacture, and cohort information (batch or run number).

Summary-Children’s Clothing For All Children’s Clothing :

The standards are designed to protect children from small open-flame sources, such as matches/lighters, candles, fireplace embers, stoves, and space heaters.

The standards are not intended to protect children from large fires or fires started by flammable liquids, such as gasoline.

Children’s sleepwear means any product of wearing apparel intended to be worn primarily for sleeping or activities related to sleep in sizes larger than 9 months through size 14. Nightgowns, pajamas, robes, or similar or related items, such as loungewear, are included.

1. Five 8.9 cm x 25.4 cm (3.5 inches x10 inches) specimens of fabric, seams, and trim.

2. Specimens are conditioned before testing.

3. The gas flame of 3.8 cm (1.5 inches) is applied to the bottom edge of the specimen for 3 seconds.

4. Char (burn) length is measured after the flame/afterglow has ceased.

Several factors determine if a garment is sleepwear :

1. Same flammability requirements (except sleepwear).

-

2. Limits on Lead Content.

-

Garment and fabric features.

3. Limits on Lead in Surface Coatings.

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Marketing, merchandising/display, intended use.

Suitability for sleeping, likelihood of garment to be used for sleeping.

4. Tracking Labels.

5. Certificate Must Be Based on ThirdParty Testing for each applicable standard.

Category Exceptions (must comply with general wearing apparel standard) :

Additional Requirements for Certain Types of Children’s Product

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Tight-fitting children’s sleepwear

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Underwear and diapers (exempt)

Children’s Sleepwear

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Infant garments (exempt)

Children’s Sleepwear Flammability Standards

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Sizes 9 months or younger

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One-piece garment does not exceed 64.8 cm (25.75”) in length

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Two-piece garment has no piece exceeding 40 cm (15.75”) in length.

The children’s sleepwear standards, 16 CFR Parts 1615 and 1616), were developed in the early 1970s to address the ignition of children’s sleepwear, such as nightgowns, pajamas, and robes.

Children’s Sleepwear Flammability Test Requirements

Children’s sleepwear (that is not tightfitting) must pass the flammability reNCM-JULY 2014 64

Specimen is placed in a metal holder Children’s Sleepwear Flammability Standards : Key Points 1. The average char length of five specimens cannot exceed 17.8 cm (7.0 inches).

2. No individual specimen can have a char length of 25.4cm (10.0 inches) (full-specimen burn).

3. Tested samples are required to be retained.

4. Standards include production testing and recordkeeping requirements.

5. Standard requires tests of fabric, seams, and trim.

6. Each test sample consists of five specimens.

7. Each specimen is placed in a metal

INTERNATIONAL BUSINESS PAGES holder and suspended vertically in the test cabinet.

For child’s safety, garment should fit snugly. This garment is not flame resistant. Loose-fitting garment is more likely to catch fire.

8. Tests conducted in original condition and after 50 laundering cycles (if the sample passes the original state test).

Tight-Fitting Sleepwear Tight-fitting garments (defined by the Standards) are exempt from testing to the sleepwear requirements. But they must meet specific maximum dimensions and comply with 16 CFR Part 1610 standards. They must also meet labeling requirements.

2. Certification based on Third Party Testing.

3. Lead Content 4. Lead Surface Coating 5. Tracking Labels 6. Phthalate Requirements Children’s Upper Outerwear Drawstrings

Phthalates Limit Sleepwear intended for young children must comply with a limit on six specific phthalates.

The limit only applies to plasticized components. For example some sleepwear for young children has plasticized material on the bottom of the feet.

Drawstrings on upper outerwear have been classified as a substantial product hazard. This applies to drawstrings on upper outwear, jackets, and sweatshirts having :

-

is or has been determined to be imminently hazardous in a section 12 proceeding.

•

Sizes 2T-12 (or equivalent) with neck or hood drawstrings.

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has a defect that constitutes a substantial product hazard.

•

Sizes 2T-16 (or equivalent) with waist or bottom drawstrings that do not meet specified criteria.

-

was imported by a person not in compliance with inspection and recordkeeping requirements.

According to the official classification, dresses are not upper outerwear and belts are not drawstrings.

Refusal of Admission A consumer product must be refused admission to the U.S. if it :

Children’s Sleepwear : What’s Required

-

fails to comply with an applicable consumer product safety rule (CPSA standard or ban).

1. 16 CFR Parts 1615 and 1616 (Flammability) Test Standards.

-

is not accompanied by a required certificate or tracking label or is acNCM-JULY 2014 65

companied by a false certificate.

Penalties Any person who knowingly commits a violation is subject to a civil penalty of $100,000 for each violation.

The maximum civil penalty for a related series of violations is capped at $15,150,000 (January 2012).

Criminal penalties (including imprisonment) are also possible for willful violations.

INTERNATIONAL BUSINESS PAGES

“Yarn-Forward” Free Trade Agreements Kim Glas Deputy Assistant Secretary for Textiles, Consumer Goods, and Materials U.S. Department of Commerce Textile and Apparel Imports under Free Trade Agreements : Some Highlights •

FTAs with 19 countries.

•

Imports of textiles and apparel increased 18 percent from $99.7 billion in 2005 to $117.5 billion in 2013.

•

•

•

“Yarn-Forward” Free Trade Agreements

Imports of textiles and apparel under FTAs increased faster, growing 39% from 12.5 billion in 2005 to $17.4 billion in 2013.

Yarn-forward rule of origin imports accounted for 78 percent of imports under free trade agreements in 2013.

New Investment in U.S.

: : : : : :

62.5% 4.0% 0.6% 1.9% 4.6% 6.7%

% Change 2013/2005

Total Imports ($B)

$ 99.6

$ 117.4

18%

Imports under FTAs ($B)

$ 12.5

$ 17.4

39%

FTA Qualifying (Yarn-Forward) ($B)

$ 8.2

$ 13.5

65%

FTA Qualifying (Yarn-Forward) (%)

66%

78%

Company (Nationality)

Investment Location(s)

Investment Amount

Estimated Job Creation

Gildan (Canada)

Salisbury, NC Mocksville, NC Clarkton, NC

$250 million

500-700 jobs

Parkdale (USA)

Raburn Gap, GA

$85 million

210 jobs

Shrivallabh Pittie Group (India)

Screven County, GA

$70 million

250 jobs

Gulf Coast/ Zagis USA (Mexico)

Bunkie, LA

$130 million

300 jobs

Keer (China)

Lancaster County, SC

$218 million

500 jobs

Trans-Pacific Partnership (TPP)

•

The Trans-Pacific Partnership (TPP) negotiations are ongoing.

United States : A Global Leader

•

Separate textile and apparel chapter to provide clarity and transparency.

•

Yarn-forward rule of origin with certain flexibilities.

•

Strong Customs enforcement language.

•

Safeguard mechanism specific to textiles and apparel.

Full cumulation among the TPP partner countries.

•

The U.S. has a strong and diverse textile industry, manufacturing a range of high quality products including fibers, yarn, fabric, and apparel.

•

The U.S. is the fourth largest single country exporter of textiles, with $13.5 billion in exports in 2012.

•

A significant trade partner to TPP countries and the world, the U.S. imported $88.0 billion in apparel and $26.0 billion in textiles in 2012.

Negotiating Objectives :

CAFTA-DR Imports by Provision FTA Qualifying, Yarn-forward Commercial Availability Value Added Cumulation Cut and Sew Nicaragua TPL

2013

New Investment in U.S.

United States imports of textiles and apparel that meet the yarnforward rule of origin under free trade agreements increased 65 percent from $8.2 billion in 2005 to $13.6 billion in 2013.

Since September of last year, investments in seven spinning operations owned by five different companies were announced. These investments have been reported to be worth $753 million and represent the creation of about 1,860 jobs throughout the southeast.

2005

Paper presented at the 2014 International Sourcing, Customs & Logistics Integration Conference in Washington, DC NCM-JULY 2014 66

INTERNATIONAL BUSINESS PAGES •

In 2012, the U.S. was the largest single country importer of apparel and the largest single country importer of textiles, accounting for 20% of total world imports of apparel and 9% of textiles.

Exports by TPP Country (2012) Country

Textiles

Apparel

Total

United States

$13.5 billion

$5.6 billion

$19.1 billion

Vietnam

$4.1 billion

$14.1 billion

$18.2 billion

Japan

$7.8 billion

$557 million

$8.4 billion

Mexico

$2.2 billion

$4.4 billion

$6.7 billion

Malaysia

$1.8 billion

$4.5 billion

$6.3 billion

Canada

$2.0 billion

$1.3 billion

$3.3 billion

Peru

$488 million

$1.6 billion

$2.1 billion

Singapore

$801 million

$1.3 billion

$2.1 billion

The four largest TPP textile exporters the U.S., Japan, Vietnam and Mexico – represent over 80 percent of total TPP textile exports.

Chile

$193 million

$404 million

$597 million

Australia

$257 million

$264 million

$521 million

New Zealand

$266 million

$186 million

$452 million

Short Supply List

Brunei

$1 million

$7 million

$8 million

•

Source: WTO Statistics Database, “Time Series on International Trade”.

TPP Region Has Substantial Textile and Apparel Production Total TPP textile exports $33.5 billion Total TPP apparel exports $34.3 billion

•

While we believe that a yarn-forward rule is best way to promote regional integration, encourage investment and create sustainable supply chains, we realize that some products may not be available from TPP partners.

To maximize the eligibility of textile and apparel products for duty preference, a short supply flexibility is being negotiated.

3. Second round of negotiations - October 7-11, 2013 in Brussels, Belgium (cancelled).

4. Third round of negotiations – December 16-20, 2013 in Washington, DC. 5. Fourth round of negotiations – March 10-14, 2014 in Brussels, Belgium.

boost economic growth in the United States and Europe and add to the over 13 million American and European jobs already supported by transatlantic trade and investment.

In particular, the Partnership would aim to : •

Further open EU markets U.S. goods and services.

The U.S. and the European Union are each other’s largest economic partners :

•

Grow investments strengthen rules.

•

Eliminate all tariffs on trade.

Transatlantic Trade & Investment Partnership (T-TIP)

•

$2.6 billion worth of goods and services flow between the U.S. and EU each day.

•

Reduce costly non-tariff barriers that impede the flow of goods.

•

Transatlantic Trade and Investment Partnership (T-TIP) is a comprehensive trade and investment agreement between the United States and the European Union that offers significant benefits in promoting U.S. international competitiveness, jobs, and growth.

•

In 2012, the U.S. exported $458 billion of goods and services to the EU, our largest export market.

Reduce the cost of differences in regulations and standards by promoting greater compatibility, transparency, and cooperation.

•

World’s largest investment relationship, almost $3.7 trillion in investments in each other’s economies, as of 2011.

•

T-TIP Highlights :

•

More than 13 million jobs tied to the transatlantic economic relationship.

Develop rules, principles, and new modes of cooperation on issues such as intellectual property and market based disciplines addressing state-owned enterprises and discriminatory localization barriers to trade.

•

Promote the global competitiveness of small- and medium-sized enterprises.

•

A short supply list (SSL) has been structured to identify inputs not available in TPP countries and eligible for use from third countries.

1. Announced the launch of negotiations – June 17, 2013.

2. First round of negotiations – July 8-12, 2013 in Washington, DC.

A successfully negotiated agreement - Transatlantic Trade and Investment Partnership (T-TIP) - would aim to NCM-JULY 2014 67

through

INTERNATIONAL BUSINESS PAGES Transatlantic Trade and Investment Partnership (T-TIP)

“The greatest opportunity – and the greatest challenge – of T-TIP is in the area of regulation and standards…”

- U.S. Trade Representative Michael Froman, September 30, 2013 The African Growth and Opportunity Act (AGOA) •

Expires September 30, 2015.

•

Administration committed to working with Congress to extend AGOA beyond 2015.

•

•

3rd country fabric provision extended through September 30, 2015.

Trade (YTD 2012)

•

•

•

Keep all documentation related to NAFTA transactions on file for at least 5 years.

•

Read the letter carefully and contact SAT immediately with any questions.

•

Respond within the designated timeframe (usually 30 calendar days).

•

Ask the designated SAT contact person if your company is eligible for an audit under streamlined procedures, which include the use of selective sampling on a case by case basis.

•

Keep detailed records of all communications with SAT. Examples of Restricted Substances (RS) related to textile products: Substance

Max. limit

Restricted material

Azo colourants

30 mg/kg

Textile & leather

Virtually all imports receive preferential access to U.S. market under AGOA.

Cadmium

0.01%

Plasticized material

Nickel release

0.5 µg/cm2/week

Metal

Organotin compounds

0.1% by weight of tin

Article

SAT Verification of Origin Audits

•

•

U.S. imports of textiles and apparel from SSA totaled $931.6 million in 2013 (+11% from 2012).

Mexico SAT : NAFTA Verification of Origin Audits

•

SAT Audits : Best Practices

Focus on textiles & apparel began in 2011 in an effort to combat illegal transshipment.

Many affected companies contacted USG to request assistance because of the broad scope and nature of the documentation SAT, Mexico’s tax authority, requested.

In February 2012, SAT committed to adopt an improved, less burdensome process for audits.

New procedures have been implemented on a case-by-case basis, including the use of “selective sampling.”

We continue to work with the Mexican government to ensure a more transparent verification and auditing process.

Example of EU Product Recall – Chromium (VI) Notifying country : Germany; Product Category: Clothing, textiles and fashion items; Product: Ladies' shoes; OECD Portal Category: 63000000 - Footwear; Description: Black leather shoes for ladies; Country of origin: China Danger Found : Presence of Chemical The product poses a chemical risk because the leather insole contains up to 20 mg/kg of Chromium (VI). Chromium (VI) is classified as sensitising and may trigger allergic reactions.

Voluntary Measures adopted by notifying country : Withdrawal of the product from the market Example of EU Product Recall – Nickel Release Notifying country : Slovakia; Product Category: Clothing, textiles and fashion items; Product: Children´s trousers; Description: Children´s corduroy dungarees with adjustable straps, multiple pockets with metallic buttons and clasps. Size 12 months; Country of origin: China Danger Found : Presence of Chemical The product poses a chemical risk because the metallic parts of the buttons release up to 3.35 µg/cm2/week of nickel, exceeding the limit value of 0.5 µg/cm²/week. The product does not comply with the REACH Regulation.

Voluntary measures: Withdrawal of the product from the market. Compulsory measures: Ban on the marketing of the product etc.

NCM-JULY 2014 68

INTERNATIONAL BUSINESS PAGES Cotton yarn exports from Pakistan down due to China's lower demand and India's lower price Although yarn manufacturing posted growth compared to the previous year, a gradual slowdown is visible in Q2 and Q3 of current fiscal year. While external demand for yarn weakened after a change in cotton policy by China, import of cheaper yarn from India (at zero tariffs) lowered the domestic demand.

Growth in Manufacturing (YoY) Percent Industry Sector

Wt.

Textile Sector

FY14

Q1

Q2

Q3

JulMar

Q1

Q2

Q3

JulMar

21.0

-0.5

0.9

2.4

0.9

2.4

1.2

0.9

1.5

- Cotton yarn

13.0

-0.6

1.2

3.2

1.3

3.0

1.4

0.9

1.8

- Cotton cloth

07.2

-0.3

0.1

0.9

0.2

0.9

0.6

0.5

0.7

Figure 1 : Yarn Export Receipts from China 150

The Chinese government announced a lower target price in the new cotton reserve policy relative to support price offered in the older policy.

125

Million US$

The import of the Indian yarn reached to US$ 86.3 million during Jul-Mar FY14 compared to US$ 58.3 million during the same period of FY13. This not only lowered the demand for local yarn, but also kept market prices down.

In response, the Economic Coordination Committee of the cabinet restored 5 percent duty on yarn import from India in April 2014.

FY13

100

75

50

Cotton clothing Cotton cloth, which is the second largest segment after yarn in textile manufacturing, posted moderate growth of 0.7% in Jul-Mar FY14 against 0.2% in the corresponding period of FY13. This trend is consistent with growing domestic demand for light cotton fabric (i.e., lawn) which has impacted the cotton cloth sales.

Textile Exports In it’s recent report, the State Bank of Pakistan notes : “The growth in textile exports can entirely be attributed to higher export quantums, as the price impact remained negligible. During the first nine months of FY14, Pakistan exported higher volume of yarn, cotton fabrics, knitwear, bed-wear and readymade garments. Improvement in energy supply and opportunities from GSP Plus enabled the textile sector to increase production and its export business.

Source: State Bank of Pakistan

Reversal of Cotton Policy by China China has been building cotton stocks since 2011 by offering higher than competitive price to local farmers. The consequent widening of the gap between the international and the local cotton prices encouraged Chinese manufacturers to increase their import of cotton yarn and its bye-products. Hence, Pakistan’s export of textile items flourished. In fact, during FY11-H1FY14, the country earned US$ 3.5 billion from the export of cotton yarn to China only.

In March 2014, Chinese government introduced a major shift in this policy, i.e., instead of buying cotton at higher than market prices, the government would pay the price differential to farmers if market price falls from a target level, which is significantly smaller than the price at which government was earlier buying from the market.

Interestingly, yarn demand from China had already fallen in February 2014 in anticipation of this new policy (Figure 1). At the same time, this policy shift eased the pressure on yarn prices in the international market.

NCM-JULY 2014 69

INTERNATIONAL BUSINESS PAGES Although GSP plus is not restricted to textiles, Pakistani textiles are better placed to benefit from this facility, due to its established infrastructure, expertise in global trade, and specialized manpower. Nevertheless, these benefits can only be realized fully if the sector gets adequate supply of energy and other raw materials – especially cotton. However, there is also a risk to the sector, as safeguard measures introduced by the EU, do not leave much room for our existing export base, which is highly concentrated in terms of commodities. Thus, Pakistan needs to focus on diversification of its exports to maximize the benefits from GSP plus status in the medium to longrun.”

Bank Credit to Textile sector : According to the SBP report, following growth in credit to the textile sector during the first half of the year (especially from September to December), Q3-FY14 recorded a net retirement of Rs 31.4 billion. Segment-wise data indicates that loans for fixed investments fell as a number of textile firms were retiring credit that had been utilized for alternate energy sources and BMR (balancing, modernization and replacement) in the recent past.

Credit to textile sector expanded by Rs 100.0 billion during H1-FY14, compared with Rs 65.2 billion during H1-FY13.

Fixed investment loans recorded a net retirement of Rs 4.3 billion during Q3FY14, while the textile sector borrowed Rs 6.8 billion (in net terms) in previous 4 quarters (Q3-FY13 to Q2-FY14) for the BMR. Pakistan’s total exports grew by 3.0 percent reaching US$ 18.9 billion during Jul-Mar FY14, compared to US$ 18.3 billion in the same period last year.

As usual, more than half came from the textile sector, which showed a YoY growth of 6.3 percent during this period. However, the textile export growth was negative and overall exports showed zero growth during the same period last year.

Table : Pakistan’s Textiles Exports (July-March) Item

Export value million US$

Textiles export growth (%)

FY13

FY14

FY13

FY14

Cotton

161.2

191.5

-3.0

0.3

Yarn

1553.1

1612.0

3.1

0.6

Cotton cloth

1944.4

2051.1

0.0

1.1

Other textile materials

526.6

494.6

0.5

-0.3

Synthetic textile

324.4

321.3

-1.8

0.0

Knitwear

1527.7

1634.9

-2.7

1.1

Bed wear

1375.4

1530.1

-0.7

1.6

Towels

518.9

541.3

0.2

0.2

Readymade garments

1241.3

1351.5

1.9

1.1

Other textiles

409.8

462.7

0.4

0.6

Textiles total

9582.8

10191.0

-2.1

6.3

Source : State Bank of Pakistan

Pakistan Hosiery Manufacturers and Exporters appeal Prime Minister to deploy army in Karachi Thevalue-added textile sector has appealed to the federal government to deploy army in the provincial metropolis to stem unrest and restore order in Karachi, saying the 'rampant' lawlessness hascrippled industrial work and tarnished the national image globally.

In a letter to Prime Minister Muhammad Nawaz Sharif, the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) feared the 'rampant' lawlessness may benefit the country's competing nations on the world markets.

The PHMA has blamed the Sindh government, police and rangers for its failure to curb the growing menace of crimes in the city 'effectively'. The association called the city's overall situation as 'most serious and alarming', seeking the army deployment to arrest the lawlessness.

It said the army's deployment was the only way left to stop rampant crimes across the Karachi city as the placement of military personnel will create a sense of security among the citizens and businessmen. It urged the government to provide protection to citizens.

The letter invited the premier's attention towards the threats which poses to the industries in the city, saying extortion from exporters; robberies in factories; hijacking of export-laden goods' trucks; kidnapping of industrialists for ransoms and snatching of salaries and valuables from workers have badly hit the textile sector. It said the unabated crimes have created sense of insecurity among the workers and industrialists in Karachi. The unstoppable crimes have also tarnished the national image, hampering global buyers to visit Karachi for striking business deals, it said, adding the volatility benefits the country's competing nations on the world markets.

NCM-JULY 2014 70

INTERNATIONAL BUSINESS PAGES Pakistan’s textile exports up 6% to $12.6bn in JulyMay 2014

The textile products that witnessed negative growth in trade included cotton yarn, exports of which decreased by 9.91%, from $2,061.091 million last year to $1,856.824 mn in 2013-14.

Islamabad: The textile exports from the country increased by 6 percent, mainly due to growth in value-added products, during July to May 2014 of the fiscal year 2013-14, compared to the exports of the same period of last year.

Similarly, the exports of towels decreased from $713.756 million to $699.882 million, showing negative growth of 1.94 percent whereas the exports of tents, canvas and tarpaulin decreased by 26.41 percent by falling from $104.429 mn to $76.848 million.

The overall exports from the country during July-May 2013-14 were recorded at $12.626 billion against the exports of $11.916 billion during July-May 201213, according to the latest data of Pakistan Bureau of Statistics (PBS).

The products that contributed in positive growth of textile trade included raw cotton, exports of which grew by 38.84 percent by surging from $146.724 million last year to $203.709 million in 2013-14.

The exports of cotton cloth increased from $2,466.739 million to $2,576.765 million, showing an increase of 4.46 percent while the exports of cotton (carded or combed) increased from $6.086 million to $6.260 million, an increase of 2.86 percent.

The exports of yearn other than cotton yarn increased by 11.87 percent by going up from $35.267 million to $39.453 million while expor ts of knitwear increased by 11.35 percent by going up from $1,843.260 million to $2,052.400 million.

Bedwear exports from the country were recorded at $1,958.635 million in 2013-14 compared to $1,632.316 million during last year, showing a positive growth of 20 percent whereas the exports of readymade garments were recorded at $1,768.984 million compared to $1,640.180 million, an increase of 7.85 percent.

The exports of madeup articles (excluding towels) increase by 12.39 percent by growing from $545.695 million last year to $613.289 million during 2013-14.

Exports of art, silk and synthetic textile during 2013-14 were recorded at $348.395 million compared to $369.170 in 2012-13, showing decrease of 5.63 percent. However, the exports of all other textile products increased by 20.74 percent during the first eleven months of the FY2013-14 as these grew from $351.910 million last year to $424.883 million.

Meanwhile, on year-on-year basis, the textile exports increased by 1.99 percent as these grew from $1.176 billion in May 2013 to $1.200 billion in May 2014.

On month-on-month basis, the textile exports in May 2014 increased by 13.78 percent compared to the exports of $1.054 billion in April 2014, the PBS data revealed.

The country’s overall trade deficit narrowed by 5.66 percent during first 11 months of current fiscal year as exports expanded by 3.71 percent while imports witnessing negative growth of 0.57% as compared to the same period of last year. On year-on-year basis, the trade deficit witnessed sharp decrease by 27.60% in May 2014 when compared to the deficit of the same month of last year.

According to break up figures, the exports from the country during July-May 2013-14 were recorded at $23.112 billion against the exports of $22.286 billion recorded during July-May 2012-13.

The imports into the country during the period under review were recorded at $40.777 billion against the imports of $41.011 billion during the corresponding period of last year.

NCM-JULY 2014 71

Shaban Khalid President Islamabad Chamber of Commerce & Industry Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to revamp trade missions and reinvigorate them by inducting credible and well-qualified business professionals as Commercial Counselors because they can play an effective role in improving country’s exports.

Shaban Khalid, President of ICCI, said that there is no doubt that the country needs to improve its international perception. He said that the performance of Pakistani trade missions has been mostly not up to the mark and hoped that the appointment of business professionals as Commercial Counselors will enable the country to find new customers for its products because being themselves in business, they are in a better position to fully tap all untapped foreign markets and regions for introducing Pakistani products.

He said in 1981, Pakistan and Turkey had the same levels of exports of about $2.5 billion, but due to better performance of its Trade Missions, Turkish exports have reportedly crossed $150 billion last year while Pakistan is still struggling to export $25 billion.

Even Bangladesh, which does not produce any cotton, has more value added textile and garments exports than Pakistan.

INTERNATIONAL BUSINESS PAGES

An Overview of Textiles Industry in Hong Kong The mainland and Hong Kong agreed in October 2005 to further liberalise the mainland market for Hong Kong companies under the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Under CEPA III, the mainland agreed to give all products of Hong Kong origin, including textiles, tariff-free treatment starting from 1 January 2006.

Hong Kong's textiles industry serves not only the local clothing manufacturers, but also those on the Chinese mainland and other offshore production bases. Capitalising on the long experience in the manufacture of textiles, many Hong Kong companies are also engaged in textiles trading. Hong Kong’s textiles industry is reputed as a supplier of quality dyed and printed fabrics. It is also strong in cotton spinning, denim weaving, knit-to-shape panel knitting and fine-gauge cotton knit manufacturing.

Hong Kong’s textile exports decreased by 5% in the first two months of 2014, after edging up 2% in 2013. Reexports, accounting for almost 99% of total exports, fell by 4% over the same period, while domestic exports slid by 18%. Among those reexported, more than 72% were originated from the Chinese mainland.

Asia is the leading market for textiles exported from Hong Kong, accounting for more than 92% of the total textile exports. Of the top 10 destinations for textiles exported from Hong Kong, nine of them are in Asia, with the Chinese mainland being the predominant export market.

The textiles industry – comprising spinning, weaving, knitting and finishing of fabrics – had a total of 679 manufacturing establishments as of December 2013, employing 4,658 workers, or 4.5% of the local manufacturing workforce. The textiles industry is one of Hong Kong's major export earners, accounting for 2.3% of the total exports in 2013.

In recent years, with rising production costs and stringent environmental regulations, an increasing number of manufacturers have shifted their production of lower-end products to the Chinese mainland and Southeast Asian countries. Their manufacturing operations in Hong Kong are focused on sophisticated and high value-added items, including quality ring-spun, open-end yarn, fine gauge knitted fabrics as well as complicated dyed and printed fabrics.

To enhance competitiveness in the global market, some Hong Kong textiles companies have formed strategic partnership with indigenous Chinese companies. For instance, some of them join force with mainland cotton suppliers in producing cotton textiles.

Hong Kong's textiles industry is a major supplier to the local clothing industry. Producing textiles locally, Hong

Industry Features as on December 2013* Sector

No. of Establishments**

Employment**

Manufacturing

679

4,658

Import & Export

5,920

29,910

* Industry statistics refer to production in Hong Kong only. ** Excluding knitwear from yarn Kong textile manufacturers have an advantage in accommodating orders from local garment manufacturers in short notice. Meanwhile, a significant portion of textile exports is destined for use in Hong Kong companies’ offshore production of garments, especially on the Chinese mainland.

Following 2% growth in 2013, Hong Kong’s textile exports decreased by 5% in the first two months of 2014. Reexports, accounting for nearly 99% of total textiles exports, experienced a decline of 4%, while domestic exports fell by 18%. With more than 72% of the textile re-exports originating from the Chinese mainland, Hong Kong’s reexports of textiles of China origin registered a decrease of 4% in JanuaryFebruary 2014.

Asia is the leading market for textiles exported from Hong Kong, accounting for more than 92% of Hong Kong’s textile exports in the first two months of 2014. Of the top 10 export destinations, NCM-JULY 2014 72

nine of them are in Asia. The Chinese mainland remains to be the city’s predominant export market, accounting for some 60% of Hong Kong's textile exports in January-February 2014.

Other major export markets of Hong Kong textiles include Vietnam, Cambodia, Bangladesh, Indonesia, Sri Lanka, the US, Thailand, India and the Philippines. In particular, because of Vietnam’s cheap labour and WTO membership, many foreign investors, including those from Hong Kong, have set up garment factories there. This gives rise to sustained demand for textile imports, making Vietnam the second largest market for Hong Kong’s textile exports, after the Chinese mainland.

Product-wise, Hong Kong's exports of textile yarns (down 5%), woven fabrics (down 9%), knitted or crocheted fabrics (down 4%), finishing accessories (down 5%) and floor coverings (down 14%) all registered declines in

INTERNATIONAL BUSINESS PAGES the first two months of 2014, while special yarns and fabrics showed 9% growth.

Sales Channels Hong Kong is both a leading production centre and a global hub for clothing sourcing. As such, Hong Kong's textiles industry is well positioned to serve both local and overseas clothing manufacturers and merchandisers.

While many Hong Kong textile manufacturers and traders supply their products to the clothing manufacturers in Asia, particularly on the mainland, international textile companies are also using Hong Kong as a gateway to promote their products to other Asian economies. For instance, Brazil’s fastgrowing fashion industry is attempting to leverage Hong Kong’s trade platform to promote their textiles and apparel on the Chinese mainland.

The industry is capable of producing either a wide range of quality products in bulk or specialised items within a short lead-time for varied applications.

Its competitive edge lies in the superb quality and swift response to fashion trends and market demand. The industry has also earned a worldwide reputation for unique quality, expertise, workmanship and flexibility.

Performance of Hong Kong’s Exports of Textiles^ 2012 (HK$ Billion)

Value

Domestic Exports

1.441

Re-exports

2013

Growth (%)

Jan-Feb 2014

Value

Growth (%)

Value

Growth (%)

-9

1.247

-14

0.144

-18

80.358

-7

81.854

+2

10.380

-4

of China-origin

57.650

-6

58.990

+2

7.489

-4

Total Exports

81.798

-7

83.101

+2

10.523

-5

(by Markets)

Value

Growth (%)

Value

China

65.4

-10

63.1

-2

59.6

-7

Vietnam

6.9

+2

8.2

+21

8.7

+3

Cambodia

4.7

+15

5.4

+17

5.6

+10

Bangladesh

4.0

+8

4.5

+16

5.5

-3

Indonesia

4.1

-5

3.9

-3

3.9

-22

Sri Lanka

1.8

+3

2.1

+22

2.4

+9

US

1.7

-2

1.8

+4

1.8

-5

Thailand

1.4

-12

1.3

-6

1.5

+9

India

1.0

-2

1.1

+12

1.2

-21

Philippines

1.3

-11

1.2

-2

1.2

-8

2012

2013

2012

Growth (%)

2013

Hong Kong is an ideal one-stop shopping centre for buyers looking for new and trendy fabric materials. The Interstoff Asia International Fabric Show, held twice a year in spring and autumn, is a significant marketing and sourcing platform in the region for both fabric manufacturers and buyers alike.

Organised by the HKTDC, the Hong Kong International Home Textiles Fair offers a wide range of high quality products such as bathroom textile, bedroom textile, kitchen textile, carpet and floor covering. It is a specialist platform, giving exhibitors and buyers of home textiles immediate access to markets in Asia and beyond.

Textile Yarns

27.2

-6

28.1

+5

29.2

-5

Woven Fabrics

29.1

-12

27.1

-5

25.4

-9

Cotton

17.6

-9

16.7

-4

15.3

-11

Man-made Textile Materials

8.5

-12

7.7

-8

7.2

-7

Others

3.0

-25

2.7

-9

2.8

+2

Knitted or Crocheted Fabrics

23.3

-5

23.9

+4

23.3

-4

Finishing accessories

8.8

+9

9.4

+9

10.0

-5

Special Yams and Fabrics

8.0

-11

7.9

*

8.3

+9

Textile Made-up

2.9

-9

3.0

+4

3.3

*

Floor Coverings

0.6

+34

0.5

-15

0.4

-14

Industry Trends

* Insignificant ^ Since offshore trade has not been captured by ordinary trade figures, these numbers do not necessarily reflect the export business managed by Hong Kong companies.

73

Growth (%)

Jan-Feb 2014

Value

NCM-JULY 2014

Value

Growth (%)

(by Categories)

In line with the global manufacturing landscape and fierce competition across the board, Hong Kong's textiles

Growth (%)

Jan-Feb 2014 Value

Value

Growth (%)

INTERNATIONAL BUSINESS PAGES industry has been moving up the value chain to cater to the demand for upmarket textile products with original designs or brands. Today, the operation of the textiles industry in Hong Kong is focused mainly, if not all, on higher value-added activities such as sales and marketing, quality control, designs and development, while offshore plants are specialised in production operations. This, in turn, results in a high proportion of re-exports (almost 99%) in Hong Kong’s textiles exports portfolio.

With rising labour costs, RMB appreciation, volatile raw material prices and stricter environmental regulations on the Chinese mainland, many Hong Kong's textiles manufacturers have relocated their production facilities to other Southeast Asian countries, like Vietnam, Cambodia and Bangladesh.

A few companies have even set up offshore production in Latin America (e.g. Mexico) and Africa (e.g. Nigeria) to take advantage of preferential treatments allowed by regional trade agreements such as North American Free Trade Agreement (NAFTA) and the EU’s GSP scheme.

To stay tuned to the advancements of manufacturing technology and product requirements, the textiles industry, as a capital-intensive business, has invested heavily to keep up with the latest technological trends. Advanced production technologies are sourced mostly from vendors from Germany, Italy, Spain, Switzerland, Japan and South Korea. Modern technologies like automatic web spreading, nano biofunctional materials finishing and Texparts® Zero Underwinding are no strangers to local manufacturers. As such, Hong Kong textiles manufacturers are able to offer a wider range of fibres, yarns and fabrics to clients.

To comply with the global trend of green manufacturing, more textile corporations have adopted the bluesign® standard – one of the industry’s major voluntary standards for environmental sustainability. To be qualified, a corpo-

ration must reveal its chemical processes, dye compositions and relevant green workplace initiatives for scrutiny.

Apart from the bluesign® standard, Global Organic Textile Standard (GOTS), the Oeko-Tex® Standard 100 or Oeko-Tex® Standard 1000 are other popular product labels that textile manufacturers use to show their greenness.

In line with the 12th Five-Year Plan, the China National Textile and Apparel Council (CNTAC) has recently issued the "Outline for Science and Technology Progress of Textile Industry in the 12th Five-Year Period", aiming to promote comprehensive upgrade of China's textiles industry management and boost the development of high-end textiles products. Other areas covered include promoting technology innovation, energy conservation and emission reduction, setting up industry-related standards and developing domestic brands.

CEPA Provisions On 18 October 2005, the mainland and Hong Kong agreed to further liberalise the mainland market for Hong Kong companies under the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Under CEPA III, the mainland agreed to give all products of Hong Kong origin, including textiles, tarifffree treatment starting from 1 January 2006. According to the stipulated procedures, products which have no existing CEPA rules of origin will enjoy tariff-free treatment upon applications by local manufacturers and upon the CEPA rule of origins being agreed and met. But non-Hong Kong made textile products will remain subject to average tariff rates of 10-25% when entering the mainland.

General Trade Measures Affecting Exports of Textiles Despite the elimination of textile quotas among WTO members in 2005, the US and EU had subsequently imposed safeguard measures against imports NCM-JULY 2014 74

from the Chinese mainland. Starting 1 January 2009, however, textile and clothing products originating in China no longer require any import licence or surveillance document before entering the EU. Meanwhile, textile and clothing shipments to the US made on or after 1 January 2009 are no longer subject to any quotas.

Product Trends Among various kinds of fibres, cotton remains the most preferred material for consumers in the appeal market. With reference to Cotton Council International and Cotton Incorporated’s Global Lifestyle Monitor Survey 2014, “100% cotton” is the marketing term that is more likely to influence European consumers’ clothing purchase decisions, while more than half of UK consumers say they are willing to pay more to keep cotton their clothing in face of increasing fiber substitution.

From the perspective of product innovation, microfibers are drawing greater attention from textiles manufacturers.

The major benefits of textile products made of microfibers are its light in weight and superior performance in keeping warm. Aside from microfibers, many innovative new fibres and fabrics have bought demand in many different areas. To answer the needs, more and more breathable, flexible, anti-bacterial, anti-ultraviolet, wrinkle-free, water-resistant and environmental friendly materials are invented and marketed.

According to Texworld, technology and innovation remain the buzzwords in the coming seasons. Fancy weaves and prints will give more flexibility in the choice of manufacturing processes, while digital prints as well as artisanal decoration will make textiles more malleable. Meanwhile, hand-crafted excellence, original visuals and exceptional handles will continue to be sought after, given consumers’ ever-growing appetite for uniqueness and distinctiveness. Solar-powered handbag made of a textile photovoltaic surface that powers a battery inside to charge a mobile

INTERNATIONAL BUSINESS PAGES phone and “climate costumes” that sense changes in carbon emission with light patterns using conductive thread and LEDs are just some examples of how technical textiles are shaping the future textiles industry.

Consumers, particularly in developed markets such as West Europe, the US and Japan, are enthusiastic about the environmentally friendly properties of biodegradable natural fibres like organic cotton, soy fibre and ahimsa silk. To keep up with this trend, manufacturers have also expanded their production of green textiles by utilising more bio-degradable materials and environmentally-friendly manufacturing processes, including high-efficiency management practices, process control, special processes, and recycling of wastewater.

Apart from rising green consciousness, product safety remains a major concern for consumers, not confining to developed market, but emerging markets. For instance, a number of disqualified apparel fibers consisting of unsatisfactory levels of pH value, formaldehyde content and banned azo dyes, have been reported on the Chinese mainland in recent years. Meanwhile, in traditional markets, for example, the EU’s Rapid Alert System for Non-Food Products (RAPEX) revealed that textiles, clothing and fashion items were the main product categories for which corrective measures had to be taken, representing 25% of the total number of notifications of dangerous products in 2013.

With the rapid urbanisation of towns, along with the marriage and baby boom, the demand for high-end household textile products is growing rapidly on the Chinese mainland. It is reported that the annual growth rate of consumption of household textile products will exceed 20% in the next 10 years, while the sector of household products is expected to replace the garment industry to present the leading demand for textiles. (Courtesy : Hong Kong Trade Development Council - HKTDC)

Textile Technology Business Center launched in Bangladesh Ms. LiliannePloumen, Minister for Trade and Development Cooperation of the Netherlands launched the Textile Technology Business Center (TTBC), the first of its kind in Bangladesh, during a ceremony at the Embassy of the Kingdom of the Netherlands in Dhaka on May 26, 2014. As a knowledge hub, one of the key roles of the TTBC will be to assist the textile industry in adopting resource efficiency measures including waste water and ground water management systems.

Netherlands Minister Lilianne Ploumen (middle) is holding honorary membership form of TTBC after she declares launching of the TTBC. The Textile Technology Business Center (TTBC) - set up by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) with support from the Embassy of the Kingdom of Netherlands (EKN) and the International Finance Corporation (IFC) - is part of the Partnership for Cleaner Textiles (PaCTprogram).

Housed within the offices of the BGMEA, the TTBC supports textile factories in adopting best practices and technologies that improve business and environmental sustainability.Through its strong local and international network, the TTBC collects, analyzes, and translates practical information on best available technologies, business-to-business linkages, and financing, and shares this with factories, service providers, input suppliers, knowledge institutions, and other stakeholders in the textile sector. The TTBC provides unbiased information on Cleaner Production (CP), Occupational Health & Safety (OHS) and Water, Sanitation and Hygiene (WASH), said Mr. MrinalSircer, IFC at the launching event.

“The TTBC captures the knowledge developed by the PaCT program for broader public dissemination,” he said. TNO, a reputable Dutch research organization, provided technical support in the establishment of TTBC. “The Netherlands aims to support this industry in becoming more sustainable and globally competitive. Bringing in cleaner production practices and technologies that significantly reduce water consumption and effluent, will make the sector more resource-efficient and more competitive,” said Netherlands Minister LiliannePloumen “Launching the TTBC marks an important step in the evoNCM-JULY 2014 75

INTERNATIONAL BUSINESS PAGES lution of the industry,” said BGMEA vice president Mr. ShahidullahAzim while addressing the gathering. “The need of an institution that connects the industry with academia and provides localized, tailor-made solutions is vital if we are to ensure the long term sustainability of the Bangladesh textile sector.”, he added.

“Supporting the setup of the TTBC shows IFC’s commitment to the textile sector with regards to ensuring its environmental sustainability. It is part of our broader initiative to help the sector flourish,” said Kylekelhofer, Country Manager for IFCBangladesh, Bhutan and Nepal.

PaCT is a partnership between textile wet processing factories in Bangladesh, international apparel buyers (C&A, H&M, Inditex, G-Star, KappAhl, Lindex, Primark, and Tesco), wet processing technology suppliers, the Embassy of the Kingdom of the Netherlands (Dhaka), the International Finance Corporation (IFC), and the NGO Solidaridad.

The PaCT partners share a commitment to bring about systemic, positive environmental change for the Bangladesh textile wet processing sector, its workers, and surrounding communities, and to contribute to the sector’s long-term competitiveness.

US assures continued support to Bangladesh for RMG A Bangladesh delegation led by Commerce Minister Tofail Ahmed visited Washington D.C. on 11-12 June 2014 and held important meetings with a number of representatives of the US House and administration. The 10member business delegation includes BGMEA President Md. Atiqul Islam, BGMEA Vice President Md. Shahidullah Azim, BKMEA’s acting President Mohammed Hatem, Director General of Bangladesh Fire Service and Civil Defense Brig. Gen Ali Ahmed Khan; workers’ representative Sukuur Mahmud & an Alliance representative.

The United States has assured continued support for further development of Bangladesh’s RMG sector and acknowledged the progress already made in the areas of labour rights and factory safety.

The assurance came during Commerce Minister Tofail Ahmed’s meetings with the US officials in Washington, according to Bangladesh Embassy in Washington.

Tofail Ahmed held separate meetings with US Trade Representative Michael Froman, Congressman Sandy Levin, high officials from the Department of State as well as Department of Labor which included Under Secretary of State for Economic Growth, Energy, and the Environment Catherine A Novelli, Assistant Secretary of State for South and Central Asian Affairs Nisha Desai Biswal, and various retailers’ associations.

During his discussions with the USTR, Congressman Levin and other officials of the US government, the Commerce Minister briefed them of the progress made in accordance with the US ‘Action Plan for GSP’.

He also urged them to consider dutyfree and quota-free (DFQF) market access of Bangladesh apparels into the US market which can further boost the ongoing progress of the RMG industry that has employed more than three million women in the sector bringing about positive changes in women empowerment, child and maternal health, education, and other socio-economic sectors.

Tofail Ahmed highlighted that the supNCM-JULY 2014 76

port and assistance of private sector like BGMEA and BKMEA, ILO, Alliance, Accord and a number of western countries including the US. Congressman Levin called the initiatives of Accord and Alliance as important for the progress of the RMG sector.

Undersecretary Novelli mentioned that the umbrella program for GSP is yet to be renewed and once renewed there may be opportunities for Bangladesh but in the meantime, she emphasized that, the remaining issues under the GSP Action Plan need to be addressed

by Bangladesh.

Nisha Biswal appreciated the partnership between Bangladesh and the US to promote the issues of mutual interest. She expressed interest in seeing a boost in intra-regional trade among the south Asian countries which is minimal vis-à-vis their external trade with the outside world.

Tofail Ahmed was leading a delegation comprising the private sector members including BGMEA President Md. Atiqul Islam and Vice President Md. Shahidullah Azim, and BKMEA’s acting President Mohammed Hatem.

BGMEA signs MoU with Chinese company for industrial park BGMEA President Md. Atiqul Islam and Chief Executive Officer of the Orion Holding Tang Xiaoji signed the MoU on behalf of their respective sides in presence of Prime Minister Sheikh Hasina in Beijing on 10 June. As per

INTERNATIONAL BUSINESS PAGES the MoU, the Orion Holding will construct the garment village at Gazaria in Munshiganj district.

The BGMEA and Oriental International Holding, a Chinese company, have signed a billion dollar agreement to develop a new garment industrial park in Munshiganj.

“A memorandum of understanding has been signed today [Tuesday] with the Chinese company in the presence of Prime Minister Sheikh Hasina and her Chinese counterpart Li Keqiang,” BGMEA Vice President Reaz Bin Mahmood said.

BGMEA President Md. Atiqul Islam and chief executive officer of the Orion Holding Tang Xiaoji signed the MoU on behalf of their respective sides.

Reaz Bin Mahmood said the industrial park will be built on 470 acres of land in Gazaria at an approximate cost of $1.2 billion.

WTO Chief hopeful of duty free access for LDCs The duty-free access of Bangladesh’s garment items to the US market largely depends on the successful completion of the World Trade Organisation’s Doha Round of negotiations, WTO’s director general said on 3 June. “I have already held meetings with the developed countries and asked them to successfully complete the Doha Round,” Roberto Azevedo said. He said they expect ‘a good outcome’ from a meeting in December in Geneva. Azevedo, who was now in Dhaka on a two-day visit, was speaking at a meeting with businesspeople at Hotel Sonargaon. Azevedo said the WTO is not an organisation that can put pressure on any country.

Under the MoU, the Chinese company will conduct a complete feasibility study within three months and a framework agreement will be signed between the two parties.

“Oriental will also pay money to the government to procure the land,” he said.

The company will develop land, roads, power plant and necessary constructions and build structures for selling it to the members of BGMEA and BKMEA. After completion of feasibility study, within three months OIH will produce all relevant documents from their authority and financiers for financing the project and full fund for the land payment and other costs.

Roberto Azevedo, director general of World Trade Organisation, speaking at a meeting at Sonargaon Hotel in Dhaka on 3 June. Commerce Minister Tofail Ahmed and BGMEA President Md. Atiqul Islam are also seen.

Currently, being a least developed country, Bangladesh enjoys duty-free access for 97% of its products to the US, but the country’s main export item - garments - is not entitled to the privilege. As a result, garment exporters have to pay 15.61 percent duty on exports to the US, Bangladesh’s single largest export destination. Bangladesh paid $746 million to the US customs as duty in 2012. China, despite being a developed nation, pays 3 percent duty for exporting its garment products to the US. The US duty benefit for Bangladesh’s 97 percent products was agreed in the Hong Kong ministerial conference of the WTO in 2005.

The government has allocated 470 acres of land at Baushia in Munshiganj for setting up a readymade garment industrial park.

Md. Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, said removal of tariff barriers is one area where many have helped. “We urge the WTO to ensure that non-tariff barriers are not used against LDCs. The ‘rules of origin’ are unnecessarily complex in cases,” Islam said.

It will have roads, water, power and gas supply, telecommunication, effluent treatment plant, transportations, hospital, hotel and factory sheds.

Mohammad Hatem, acting president of Bangladesh Knitwear Manufacturers and Exporters Association, said the preferential rules of origin are often considered too restrictive and inflexible in the case of LDCs, making it difficult for them to take advantage of an intended preference. Azevedo also met ComNCM-JULY 2014 77

INTERNATIONAL BUSINESS PAGES merce Minister Tofail Ahmed at his secretariat in Dhaka.

“If the Doha Round is completed, an automatic mandate will be in place for duty-free access for all products originated from the least developed countries,” he said at a press conference after the meeting with the commerce minister.

Tofail Ahmed said Bangladesh’s garments not enjoying duty benefit in the US market is a challenge. “We accepted the challenge and are performing well. We have successfully eliminated child labour from the garment sector,” he said.

GIZ and Huntsman Textile Effects Cooperate to Raise the Bar for the Textile Industry in Bangladesh Through Chemical Environmental Management Dhaka – Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, a German federal agency that promotes sustainable development around the world, and Huntsman Textile Effects, the leading global provider of high-quality dyes and textiles chemicals, are cooperating to raise industry standards in the management of chemicals by textile mills in Bangladesh. Ten mills have so far signed up to the partners’ GIZ Chemical Environmental Management for Competitiveness Program.

The cooperation was formalized with the signing of a Memorandum of Understanding between Huntsman Textile Effects and Promotion of Social and Environmental Standards (PSES) a textile industry initiative jointly developed by the governments of Bangladesh and Germany, and implemented by GIZ. The GIZ Chemical Environmental Man-

EU garment buyers look for Philippines suppliers Two large German distributors and three major Spanish retailers in Europe are exploring opportunities to source high-end garments and footwear supplies from the Philippines, the Department of Trade and Industry reported.

A DTI report identified the two large German distributors in Europe as Ariston Nord West Ring Schuh for shoes and Katag AG for garments. “Garments and footwear – all types. This is one sector that may defy the slow prospects for the eurozone,” stated the DTI paper, which was apparently prepared for the recent investment roadshows in Europe led by DTI Secretary Gregory L. Domingo.

In Spain, three major retailers from El Corte Ingles, Becara and Mango have been identified for their interest in the Philippine garments and fashion accessories. El Corte Ingles was interested in sourcing garments and home textiles while Becara expressed interest in hand bags. Mango, which has already established some outlets in the country, was keen on garments and fashion accessories. The paper also identified six products for priority promotion to the EU in general.

Mr. Magnus Schmid, Program Coordinator, GIZ (second from left) and Mr. Peter Gregory, Brand and Retail Marketing Director, Huntsman Textile Effects (second from right),formalizing the Memorandum of Understanding signed on June 16, 2014. The MOU cooperation aims to improve chemicals management in the Ready Made Garments (RMG) sector. agement for Competitiveness Program will include managerial and technical training, audit and consultancy services and implementation support from local and international Environmental Management System experts from GIZ and Huntsman Textile Effects.

Working closely with the local textiles sector, the two partners will support the development of industry-wide NCM-JULY 2014 78

chemical management (CM) best practices in Bangladesh and accelerate the adoption of these practices, with the ultimate aim of supporting the industry’s environmental and economic sustainability.

Bangladesh’s textile industry is the nation’s largest export sector. The ready-made garment (RMG) sector was

INTERNATIONAL BUSINESS PAGES worth US$19 billion in 2012, when more than 5,000 garment factories employed about 4 million people and accounted for 45% of all industrial workers. To remain internationally competitive, local textile mills and RMG factories increasingly have to demonstrate that they operate in a socially and environmentally sustainable way.

Mr. Magnus Schmid, PSES Program Coordinator, said “Textile factories in Bangladesh are now taking environmental issues more seriously as regulatory requirements become stricter and the economic benefits of sustainability become more widely recognized. PSES has already made a great impact with our CM training program and other initiatives and we look forward to doing even more through our new partnership with Huntsman Textile Effects. With Huntsman, we are committed to helping the industry eliminate hazardous substances from the production process in order to achieve a cleaner and safer textiles sector.”

GIZ has actively supported the development of the textile sector in cooperation with the Bangladesh government for several decades. Through PSES, it has already trained more than 60 consultants from 20 service organizations in the use of its CM tool. This CM tool covers the proper handling and storage of chemicals and seeks to improve workplace safety and compliance with environmental laws and achieve cost savings. Huntsman Textile Effects will support this ongoing work, contributing expertise in the optimization of washing and dyeing processes. It will also provide audit and consultancy services to local mills under its Productivity Improvement Program (PIP).

Mr. Peter Gregory, Brand & Retail Marketing Director of Huntsman Textile Effects, said, “Huntsman Textile Effects has a long established presence in Bangladesh. As a global leader in the transition to a more sustainable textiles sector, we are pleased to join hands with GIZ in Bangladesh to help

local factories optimize their production efficiency and environmental compliance whilst also building local competence to enable continued adoption. Our international staff will also receive training from GIZ on its CM toolkit so that we can extend our efforts to factories in other countries as well.”

The cooperation with GIZ is part of Huntsman Textile Effects’ commitment to the Zero Discharge of Hazardous Chemicals programme. This global initiative of 18 leading apparel and fo otwear brands and retailers intends to eliminate hazardous chemicals from textiles production by 2020.

“We have grown indeed…”

THINGS change. Ever since the US signaled that Bangladesh has to do a lot more for labour in the RMG sector, your columnist has been losing her sleep.

More? In less than one year, labour laws have changed, minimum wages have shot up, factories are being inspected, retailers are tightening their grip on compliance … and yet we need to do more?

Look at Myanmar, which suffered sanctions from the US way back in 2003 and is a star now. Till the US sanctions in 2003, apparel export accounted for 40% in Myanmar. Half was to the US. After the trade embargo, export dropped from 800 million to 300 million. But eventually the US revised its decision and was kind enough to ease sanctions in 2013 and, almost instantly, exports increased to around $1.2 billion in 2013, a 33% increase from the year before. It is expected that by 2016 it will go up to $2 billion. Of course, the Americans would have to be mad not to be there. As a result, Gap, the giant retailer, has just signed a sourcing deal with Korean owned factories in Yangon, which already produce outerwear for Old Navy and Banana Republic.

Friends, Myanmar is just beginning.

US imports fell by 3.7% year-on-year in May, slipping from 1.89 billion square metre equivalents SME (Square Meter Equivalent, also referred to as "M2". SME is a notional, common unit of quantity, and time and product based conversion factors are used to convert units of quantity into SME.) to 1.96 billion SME a year earlier. In a five-month period in 2014, China edged up .5% to 3.6 billion SME, it was 12% up for Vietnam to 1.02 billion SME, with Bangladesh falling 3.8% to 705 NCM-JULY 2014 79

Rubana Huq Managing Director Mohammadi Group, Bangladesh Mohammadi Group was started in 1986 with a just 2-line factory in Lalbagh Dhaka. The factory had 52 workers and since then it has grown into one of the largest garments manufacturing groups in Bangladesh. Today the Group produces over 500,000 pcs of woven garments and 250,000 pcs of sweaters a month.

Since last fifteen years, Rubana Huq, has been actively empowering five thousand women who manufacture and export a million pieces of ready-made garments every month as the MD of the Group. Besides running the day to day operations of the group, Mrs. Huq is well known for her contribution in the literary and cultural circle in Bangladesh.

This article by Rubana Huq is reproduced here through the Courtesy of The Daily Star.

INTERNATIONAL BUSINESS PAGES million SME, and India climbing 8.2% to 444 million SME. Out of all of those considered, India has begun.

As for China, Xi Jinping has pledged to root out pollution and corruption in China. Competitiveness is still not affected. All seems to be on track. But importers have paid China 3% less compared to its competitors' prices in the first five months of 2014. And bad news … China imported less textile equipment in 2013 than in 2012. Official inflation stood at 2.5% in 2013 but Bureau of Statistics has just estimated inflation for migrant workers to be at 22%. In China, locations determine competitiveness of wage. With regard to the hunt for location for new factories, Xinjiang province has been the feasible location as unemployment is high there and there are abundant cotton fields nearby. The residents in the area are local Uighurs (mostly Muslims) who speak a language close to Turkish and resent Chinese speakers.

To make it worse, on July 2, China banned Xinjiang Party members, students and teachers from Ramadan fasting. So, Xinjiang may not be the best place after all. In fact, China may just end up being a difficult place to be in sometime during the future. Let's pay attention to the recent Japanese import figures from China, which have fallen from 85% to 75% following the Chinese attack on Japanese property in China. Let's also not forget that the Vietnamese rioted in May against the Chinese owned factories. China is changing.

Cambodia announced a possible increase in the workers' minimum wage in January 2015. Minimum wage increased $15 to $80 in May, 2013. In December 2013 it went up to $95, as announced by Cambodia's Labor Advisory Committee, a tripartite group led by the government. It again shot up to $100 in February. But the trade unions want the increase to be at $160. The 31st Synthesis Report of ILO's Better Factories , based on the 362 factories and 9 footwear factories surveyed, revealed that 15% of casual workers and

Mohammadi manufactures woven shirts & blouses. They are one of the top manufacturers of sweaters in Bangladesh.

The Group caters to H&M, Walmart, C&A, Zara, Esprit, Sears, Target to name a few.

8% of piece-rate workers are not paid minimum wage; child labour has increased by 1%, pushing the increase in the number of factories with confirmed child labour cases to 4%; strikes had gone up from 19% in November 2011 to 24% in July 2013; number of factories engaged in discrimination has gone up from 16% to 20%; number of factories with wide enough and unobstructed access paths has declined over the last year; there has been an 8% increase in heat levels in factories; only 56% of factories conducted emergency drills every 6 months, and only 44% emergency exits are unlocked during working hours. Yet, Cambodian exports grew by 12% to $560 million in 2013 while 106 workers fainted at two garment factories from suspected exposure to toxic substances. Is Cambodia an enigma?

And while most of us are struggling with structural, electrical and fire issues in our factories, and running from customer to customer with a plea to hike prices and failing miserably, there has been a 14% growth in the apparel export figures, standing at $24.49 billion compared to $21.51 billion in 2013-14, exceeding the nation's export target of $24.15 billion. While, together, apparels and textiles made $25.62 billion and 85% of the entire export proceeds, readymade garments alone has a share of 77% of that amount with woven products increasing by 12.7% to 12.44 billion and knitwear by 15% to 12.05 billion. Friends … Bangladesh is surviving.

That the country is surviving shouldn't NCM-JULY 2014 80

send us signals of triumph. We are surviving just because we are still the most competitive. Most of us have compromised on prices again and are having trouble making ends meet. On one hand, no one wants to lose a customer, on the other, the customer knows this and is pushing for “better” prices. With a yearly increment for the workers already due, and with the bonuses due before Eid calculated on the already increased minimum wage levels, how will the industry deal with the challenges this month? Getting past this month maybe possible, but what lies beyond? With the fund requirement for all the remediation to be done in factories and with the constant pressure of dropping prices, how will Bangladesh ever find its niche? Are export figures enough to assess an industry, or is it just a tool to tell the world that we are survivors because we are resilient? Will the government and the industry leaders take a deep breath and do an industry assessment and chart the map for the rest of us? Recording growth figures may act as a lullaby for many, but there are many more who are fighting raging fires in our backyard and losing sleep on the other side of the fence. Just survival isn't enough.

Just a surge in export figures also does not paint a clear picture of the overall health of RMG in the country.

Without a detailed research on the sector's potential and future, a post trauma survival (after Rana) for the industry may just mean weaning ourselves out of the life support system, but it certainly does not promise healthy levels of sustainable growth.

INTERNATIONAL BUSINESS PAGES Mexico and Canada Consume Bulk of US Textile Exports

inched up by 3.58 percent to $3.039B and exports of made-up articles climbed 2.64 percent to $1.218B.

Two countries - Mexico and Canada consume bulk of the textile and apparel exports made by the US, according to data from the U.S. Department of Commerce.

In recent years, the US textile and clothing exports have been growing at a steady pace. They have grown from $19.752B in 2010 to $22.403B in 2011, $22.676B in 2012, and $23.66B in 2013.

From January to April 2014, the US exported textiles and apparel worth US$ 7.857B, growing at 2.64 percent year-on-year, the latest Major Shippers Report, released by the U.S. Department of Commerce, showed.

Mexico, the US’ southern neighbor, accounted for $1.992B or 25.35 percent share in all US textile and garment exports during the first four months of the current year, whereas, Canada, the northern neighbor, contributed $1.692B or 21.53 percent share, the data showed.

Honduras and China were the other two countries who enjoyed a share of more than 5 percent in overall textile and clothing exports from the US during the four-month period.

Among the top ten destinations for the US textile and apparel exports, the highest increase of 20.78 percent yearon-year was registered in exports to Belgium, followed by Mexico, Honduras and El Salvador with growth of 7.5 percent, 7.47 percent and 6.11 percent, respectively.

However, the US textile and clothing exports to China and Japan fell by 14.1 percent year-on-year and 9.46 percent to $426.331M and $224.847M, respectively, during the period under review.

Segment-wise, garment exports from the US increased by 2.23 percent yearon-year to $1.88B in the first four months of 2014, while exports of textile mill products rose by 2.77 percent to $5.976B. Among textile mill products, yarn exports grew by 1.45 percent year-on-year to $1.718B, whereas fabric exports

Korea's trade deficit with China in textile, clothing hits $1.43b According to a recent report by the Korea Institute for Industrial Economics and Trade (KIET), South Korea's trade deficit with China in textiles and clothing reached $1.43 billion in the first five months of this year due mainly to the inflow of cheap goods.

In the January-May period, South Korea imported $2.47 billion worth of goods and shipped some $1.04 billion in clothing and textiles, the report said. The size of the deficit is equal to 39.8 percent of the $3.59 billion deficit posted for the whole of last year, when the country imported $6.32 billion worth of Chinese products.

Since 2002, South Korea has logged a trade deficit with its neighbor.

KIET said that chronic trade imbalance stems from cheap Chinese goods making steady inroads into the local market and from moves by South Korean clothing manufacturers that set up operations in China in the past, transferring their production centers to Southeast Asia. Such developments reduced the shipments of yarn, textiles and half-finished products to China. Once made into clothing, these products were shipped to third countries.

The changes, moreover, caused Vietnam to emerge as South Korea's No. 1 export market for textiles. Up till May of this year, the Southeast Asian market accounted for 16.5 percent of the total textile exports, surpassing China's 15.6 percent. This is the first time Vietnam has usurped its larger neighbor to become the largest export destination for South Korean textiles.

KIET, however, said that despite recent trends, China remains an attractive market with considerable growth potential.

"Instead of shipping textiles and materials, local companies should concentrate on shipping finished goods," the institute said.

It pointed out that China's fashion market stood at 291 trillion won ($286.8 billion) in 2012, up 10% from the year before and that it will grow into a 435 trillion won market by 2017, having grown an average 8% to 9% annually.

KIET said that, in particular, a free trade pact with the neighboring country will make it possible for South Korean products not to pay stiff tariffs of 20 percent to 30 percent that Beijing imposes on all clothing goods, which could give it an edge vis-a-vis other foreign rivals.

The Korea Institute for Industrial Economics and Trade (KIET) is a non-profit and non-partisan research institute established by the Korean government in 1976.

NCM-JULY 2014 81

INTERNATIONAL BUSINESS PAGES British Public ‘still surprised’ by export of used clothing The British public is still surprised to discover that many of the clothes they donate to charities end up abroad, according to Alan Wheeler, director of the Textile Recycling Association (TRA).

Mr Wheeler’s comments come ahead of a BBC documentary called ‘The Secret Life of Your Clothes’, due to air on BBC Two (July 14) at 9pm, which will explore what happens to the thousands of tonnes of unwanted clothes that are donated to charity every year.

Presented by Paralympian Ade Adepitan, it follows the trail of used clothing from donation, through sorting and on to export to Ghana, the biggest importer of the material from the UK. It claims that with cheaply made western clothes flooding the market, the local textile industry has been decimated, with a ‘seismic’ effect on Ghanaian culture also taking hold with western style outfits fast replacing the iconic West African prints usually found in the area.

However Mr Wheeler noted that the TRA – the UK trade association representing used clothing and textile collectors, sorters and reprocessors – alongside coverage in the media is raising awareness of the fact that many of the donated items are exported and sold on for reuse in other countries, such as Ghana.

Mr Wheeler said: “A number of people don’t really give a thought about what happens to the clothing that they donate to charity shops etc, and despite the widespread coverage in the media and on the internet, they are still surprised when they hear that much of the clothing ends up abroad. However, since I started working at the TRA over 10 years ago, we have made a concerted effort to make people aware of what actually happens to their clothing.”

When questioned how important the

Bangladesh Textile Chemicals Market to Grow at 7% CAGR till 2019 Growing global demand for readymade garments, specialty finishing chemicals and dark textile shades to driving textile chemicals consumption in Bangladesh According to a recently published report by TechSci Research a research based global management consulting firm, “Bangladesh Textile Chemicals Market Forecast & Opportunities, 2019”, the country’s textile chemicals market is forecast to grow at a CAGR of around 7% during 2014-19. The report indicates that Dhaka is the largest consumer of textile chemicals in the country due to the presence of a large number of textile mills and garment factories in the region. Huntsman, Dystar and Archroma are some of the country’s leading suppliers of textile chemicals, which are majorly imported from countries such as Singapore, India, China, Taiwan and South Korea.

Textile chemicals are used for coloring textiles and fabrics, improving the quality of textiles, and providing desired properties to the textile during processing. These chemicals find widespread application during the processing of cotton, wool and synthetic fibers. Bangladesh continues to be one of the major textile exporting countries, globally, after China and India. The textile chemicals market in Bangladesh benefits from large-scale exports of knitted and woven garments from the country to international markets including the US and EU. Growing demand for knitted and woven wear in these two markets has been surging the overall consumption of textile chemicals in Bangladesh. The country is also exploring various other export markets, which is expected to further boost the demand for textile chemicals in Bangladesh over the forecast period. Leading textile brands such as Walmart, Mango and GAP manufacture their readymade garments in the country, which continues to benefit the market for high performance textile chemicals.

“Bangladesh textile chemicals market is expected to exhibit healthy growth over the next five years. Major factors that would boost textile chemicals market in Bangladesh include the country’s growing textile industry, rising readymade garment exports to global markets, and growing demand for multifunctionality and specialty chemicals in the country.”, said Mrs. Rishi Koul, Consultant with TechSci Research.

“Bangladesh Textile Chemicals Market Forecast & Opportunities, 2019” has analyzed the potential of the textile chemicals market in Bangladesh and provides statistics and information on market size, share and latest trends.

The report will suffice in providing the intending clients with cutting-edge market intelligence and help them in taking sound investment evaluation.

Besides, the report also identifies and analyzes the emerging trends along with the essential drivers and key challenges faced by the Bangladesh textile chemicals market.

Contact details : TechSci Research A – 51, Sector – 57, Noida, National Capital Region, India – 201301 Email :info@techsciresearch.com NCM-JULY 2014 82

INTERNATIONAL BUSINESS PAGES income from the sale of goods to wholesalers is to charities he added that around £100 million was raised through charity shops alone in 2012 and 2013 as a result of the sale of material to textile collectors, who would then sort and export the clothing.

Discussing the industry’s importance to the UK economy Mr Wheeler says: “It also worth noting that the UK textile recycling industry is important to the economy locally, nationally and internationally. We estimate that around 5,000 people are employed directly by the industry and it helps to support the 100,000 people employed or who are volunteering in the charity retail sector. In addition to this, some of the bigger textile collectors are major employers locally.”

Native industry One point raised by the documentary is the impact the import of used clothing has had on the native textile production industry in Ghana.

However, Mr Wheeler is keen to point out that the export of used clothing to these countries plays a ‘vital’ part in the countries’ economy. He notes that there are many reasons the textile industry is struggling in these countries, including the global nature of this industry meaning the African market is finding it hard to compete.

Elaborating on this he said: “The used clothing industry is successful and vital to the economy of many Sub Saharan African countries. It is apparent that the native textile production industries are struggling in these countries as well. However the reasons behind this are far more complex than just the inability of textile manufacturers to compete. Indeed it can be asserted that exports of used clothing became popular in the 1980s and filled a huge gap in the market, because local textile producers were not able to meet the clothing demands of the local population back then, due to structural failures.

“It is also important to note that even without the presence of used clothing in Africa, it would be very doubtful whether textile producers would flourish unless orders come from international clothing retailers. The biggest competition for used clothing retailers in Africa is not from native clothing retailers but from cheap imports of new clothing from Asia.”

Registered garment factories up 8% in Cambodia The number of registered garment manufacturing factories in Cambodia increased by 8 percent at the end of June 2014 to reach 1,200, compared to the number of registered apparel factories at the end of last year, The Phnom Penh Post reports citing data from the Ministry of Industry and Handicraft.

As per the report released by the Ministry, the number of people employed in Cambodia’s garment industry at the end of June 2014 stood at 733,000, which is 8.22 percent increase over 677,600 people employed at the end of 2013. The growth in number of both registered clothing factories as well as the number of people employed is a good sign for the industry, according to the Ministry.

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INTERNATIONAL BUSINESS PAGES Mekong-Ganga Cooperation Asian Traditional Textiles Museum in Cambodia The project that began in 2010 was completed in April this year, with the opening in Siem Reap of the brand new Mekong-Ganga Cooperation Asian Traditional Textiles Museum, built with the help of funding from the Indian government. Siem Reap is about 300 kms from Phnom Penh. Siem Reap province is the major tourist hub in Cambodia, as it is the closest city to the world famous temples of Angkor.

Ken Loo Secretary-General of the Garment Manufacturers Association in Cambodia (GMAC)

The Museum showcases different textiles and weaving techniques from the Mekong Ganga region – Cambodia, Laos, Vietnam, Thailand, Myanmar and India.

Meanwhile, Ken Loo, secretary-general of the Garment Manufacturers Association in Cambodia (GMAC) said that the association’s membership has increased this year, but the rate of growth in membership is slower compared to last year.

“The museum features traditional textiles from around Museum director Professor Charu Smita Gupta two river cultures,” (Courtesy : Miranda Glasser) says museum director Professor Charu Smita Gupta. “That is the Ganga and Mekong. When we talk of Ganga, it is India, but when we talk of Mekong we have the five different countries.”

According to GMAC data, the exports of garments and textiles from Cambodia grew by 8.98% to US$ 1.173 bn in the first 3 months of the current year, compared to exports of $1.076 bn made during the same period last year.

The museum is divided into four galleries: the Orientation Gallery, the Material and Process Gallery, Traditional Textiles and finally Contemporary Trends.

The Material and Process Gallery displays different decoration techniques such as ikat, a kind of tie-dye method of dyeing fibres before the weaving process.

In recent years, Cambodia’s apparel and textile exports have grown in leaps and bounds. From an earning of mere $1.156 billion from clothing and textile exports in 2001, the figure grew to $2.19 billion in 2005, $3.008 billion in 2010, and $4.047 billion in 2011.

Last year, Cambodia’s clothing and textile exports increased by 11.71 percent to $4.966 billion, as against exports of $4.445 billion made in 2012, as per GMAC data.

Because narrow profit margins are causing factories look carefully at moving out of China, Cambodia and Indonesia are the primary beneficiaries.

“Presently many factories are moving out of China and the countries they are considering are Bangladesh, Cambodia and Indonesia,” Loo said.

“With ikat we tie and dye the warp and weft before weaving. You end up with the pattern on the yarn not the fabric, and when you weave that yarn, the pattern emerges,” says Gupta.

“It’s a very important tradition of Southeast Asia and is common to almost all these countries. So there are certain common traditions and we are trying to emphasise how these traditions are now setting trends in the contemporary scenario. In the third gallery we have depicted the finished forms of each country, some costumes and the cultural trends.”

Various fabrics are displayed, from silk to cotton and even an ornate Indian carpet woven with strands of silver. The oldest textile in the museum is an Indian piece dating from the nineteenth century.

For children and budding fashionistas, there is an interactive angle with a work station where they can try their hand at Indian block printing onto white fabric. There are also plans for an on-site training centre in the future, as well as a shop.

Siem Reap is also the home of the Institute for Khmer Traditional Textiles, which has a shop and workshop on the road to the Great Lake. They are involved in the revival and activation of tradition textiles in Cambodia and for textile enthusiasts, both the new museum and the IKTT center are must visits when you are in Siem Reap.

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INTERNATIONAL BUSINESS PAGES World’s First Monster Silk™ Textile Created by Warwick Mills and Kraig Biocraft Laboratories Collaborative Effort Spider Silk Textile Development Breakthrough Lansing, Mich.– Kraig Biocraft Laboratories, Inc., the leading developer of advanced spider silk based fibers, announced last month Warwick Mills (“Warwick”), a leader in the engineering and development of advanced technical textiles and protective materials, created the world’s first textile utilizing Kraig’s genetically engineered spider silk, Monster Silk™.

Monster Silk Woven Textile

The first Monster Silk™ textiles are knitted gloves. They are considered to be the first of many textiles that are to be created as part of the Company’s joint development agreement with Warwick.

“We have been working with various types of Monster Silk™,” stated Charles Howland, President of Warwick. “We find that all of these fibers are compatible with existing yarn processing and textile formation methods. As is expected, fiber consistency is not yet at full production levels. However, for the current stage of maturity, these silk materials already have good levels of quality and consistency. We have been making jersey knit samples and will start weaving shortly.

These small scale trials are key to helping identify, for Kraig Labs, areas for development for upcoming fiber production trials. We are reviewing textile properties of the samples with Kraig staff and exploring the most attractive applications for this fiber. Overall the trials are Monster Silk Woven Textile (Magnified 84x) well underway and we are making good progress toward commercialization.”

“One of the biggest issues facing our Company was creating our first textile and the open question of whether genetically engineered spider silk could be successfully processed using existing textile formation methods,” said Company founder and CEO, Kim K. Thompson. “With this successful test, and the creation of the first Monster Silk™ knits, we have established that our genetically engineered spider silk works well with existing manufacturing methods. The creation of these knits is a huge milestone in our progress toward making genetically engineered spider silk available for industrial and consumer applications.

The fact that these advanced materials process well on existing machinery will help speed up the development of advanced spider silk textiles.”

According to a latest press release by Kraig Biocraft Laboratories, Monster Silk Woven Textile (Magnified 300x) they have successfully doubled their Monster Silk™ production program - a yet another major milestone in the Company’s spider silk commercialization process.

“Earlier this year, we set ambitious goals for the growth of our Company and for the production of genetically engineered spider silk,” said Company Founder and CEO, Kim K Thompson “Since then, we have expanded our productive capacity in order to make that growth a reality. The current production run is by far the largest in the Company’s history. The doubling of production is an important milestone in the commercialization of spider silk and is affirmation of the success of our production plan and commercialization strategy,” stated Thompson. (More information at www.KraigLabs.com) NCM-JULY 2014 85

INTERNATIONAL BUSINESS PAGES What Every Member of the Trade Community Should Know About :

The Mod Act imposed an obligation on CBP to provide the public with improved information concerning the trade community's rights and responsibilities under customs regulations and related laws. In addition, both the trade community and CBP share responsibility for carrying out these requirements. For example, under Section 484 of the Tariff Act, as amended (19 U.S.C. § 1484), the importer of record is responsible for using reasonable care to enter, classify and determine the value of imported merchandise and to provide any other information necessary to enable CBP to assess duties properly, collect accurate statistics, and determine whether other applicable legal requirements, if any, have been met. CBP is then responsible for fixing the final classification and value of the merchandise. The failure of an importer of record to exercise reasonable care could delay release of the merchandise and, in some cases, could result in the imposition of penalties.

BONA FIDE SALES & SALES FOR EXPORTATION TO THE UNITED STATES

The material in this publication on “Bona Fide Sales and Sales for Exportation to the United States” will help the trade community to improve voluntary compliance with customs regulations and laws and to understand the relevant administrative processes. It is provided for general information purposes only. As many complicated factors can be involved in customs issues, an importer may wish to obtain an advance or pre-importation ruling under the CBP regulations (19 CFR Part 177) or to obtain advice from an expert who specializes in customs matters, for example, a licensed customs broker, attorney or consultant.

U.S. Customs and Border Protection (CBP) Proposes Changes to First Sale Program CBP has issued a draft copy of a revised version of the Informed Compliance Publication on Bona Fide Sales & Sales for Exportation to the United States. This publication along with the noted reference materials should be on the ‘must read’ list for importers entering goods subject to a multi-tier transaction at the foreign manufacturer’s or so-called “first-sale” price.

These revisions were largely prompted by a challenge raised by counsel during a CBP audit. The audit and ensuing discussions with counsel for the importer led to an exploration of what documentary evidence CBP could request and examine when attempting to determine the proper basis of appraisement and entered value for goods. The draft revised Informed Compliance Publication adds examples of CBP validations and possible evidentiary support, as well as an extensive but not exhaustive list of supporting documents that CBP may request when evaluating first sale. CBP does not see these revisions as a change to policy but rather as an opportunity to aid importers in understanding their compliance obligations.

Importers may, however, see these revisions as requiring corporate policy changes evaluating their readiness for making and defending first-sale declarations. Notably in the publication, CBP reminds importers of their reasonable care obligation, specifically stating, “before an importer declares a transaction value based on a transaction to which it is not the buyer, the importer should be sure that such a transaction satisfies the criteria discussed above and be prepared to submit supporting evidence as described in T.D. 96-87, upon request by CBP. An importer who declares a value to CBP without the necessary supporting documentation would not be exercising reasonable care and may be subject to a penalty or other enforcement compliance action.” [Note: This language is in the original publication; the list of documents is an addition.] In the draft version CBP has added language regarding existing recordkeeping requirements. Importers are reminded of the recordkeeping regulations to support transaction value. Specifically, “Section 163.1 of 19 CFR defines records as among other things, any information made or normally kept in the ordinary course of business that pertains to any importation, declaration or entry.”

The crux of the revisions focuses on what CBP may consider when testing the applicability of transaction value. Generally, transaction value is the price actually paid or payable for merchandise when sold for exportation to the United States, plus certain statutorily enumerated additions. In order for a value to be considered a viable transaction value, CBP must be able to verify the price paid or payable, including statutory additions. CBP holds that without sufficient evidence, the importer has not overcome the burden to rebut the presumption that the transaction value is based on the price actually paid or payable by the importer and therefore CBP will base the valuation on the price paid by the importer rather than the first-sale price. The publication states that, “In a multi-tiered transaction, all parties involved in the purchase and resale of goods destined for the United States are required to maintain and provide records upon request from CBP. For example, CBP may require the ultimate consignee, importer, middleman, agent and factory records to determine the proper valuation of the imported goods and if amounts related to statutory additions have been declared.” This is where the extensive list of documents comes into play. Bear in mind that inquires and demands for records may come from many CBP sources outside of Regulatory Audit and could come in the form of Requests for Information from Import Specialists. Download draft copy from : www.newclothmarketonline.com

NCM-JULY 2014 86

NEWS BRIEFS Textiles Minister Welcomes Union Budget as Forward-Looking Union Budget Recognizes Core Strengths of Textiles Sector with Human Emphasis: Santosh Kumar Gangwar The Minister of State for Textiles (Independent Charge), Parliamentary Affairs, Water Resources, River Development and Ganga Rejuvenation, Shri Santosh Kumar Gangwar, applauding the Union Budget 2014-15 said that “this is a forward-looking Budget for all including the textile industry.” He further added that “the Budget recognizes the aspirations of a new India which is looking towards the government for decisively moving towards high growth, low inflation and more jobs.” This Budget, said Shri Gangwar, “aims for a 7 per cent or higher growth rate in a sustained manner within the next few years and will also usher in macro-economic stability in the near future.”

Shri Gangwar welcomed the proposals for the textile sectors which include setting-up of mega textile clusters at Varanasi, Bareilly, Lucknow, Surat, Kuttch, Bhagalpur, Mysore and one in Tamil Nadu with a sum of Rs. 200 crore. The Finance Minister also announced a Trade Facilitation Centre and a Crafts Museum with an outlay of Rs. 50 crore to develop and promote handloom products and carry forward the rich tradition of handlooms of Varanasi. A Hastkala Academy for the preservation, revival, and documentation of the handloom/handicraft sector in PPP mode in Delhi, with an outlay of Rs. 30 crore was also announced. A Pashmina Promotion Programme (P-3) and a programme for the development of other crafts of Jammu & Kashmir also figured in the Union Budget, for which a sum of Rs.50 crore is set aside.

“The Budget recognizes the core strengths of the textiles sector and

The Minister of State for Textiles (Independent Charge), Parliamentary Affairs, Water Resources, River Development and Ganga Rejuvenation, Shri Santosh Kumar Gangwar inaugurating the “59TH National Garment Fair of CMAI”, in Mumbai on June 23, 2014. The Secretary, Ministry of Textiles, Smt. Zohra Chatterji is also seen.

Shri Santosh Kumar Gangwar visiting a stall after inaugurating the “59TH National Garment Fair of CMAI” aims to promote them with a strong human emphasis”, said Shri Gangwar.

To encourage exports of readymade garments, the Finance Minister has proposed to increase the duty free entitlement for import of trimmings, embellishments and other specified items from 3 percent to 5 percent of the value NCM-JULY 2014 87

NEWS BRIEFS of their exports. Apart from it, faster clearance of import and export cargo will also be implemented to reduce transaction costs and improves business competitiveness.

The Textile industry, which plays a pivotal role in the economic life of India, also majorly contributes to industrial output, employment generation and the export earnings of the country. It contributes about 14% to the industrial production, 4% to the GDP and 11% to the country’s export earnings. The textile sector is the second largest provider of employment after agriculture.

The Date for submission of applications/DPRs for New Textile Parks has been extended to 7th August, 2014 Invitation of proposals for setting up of Apparel Manufacturing Units under Scheme for Integrated Textile Parks (SITP) The Ministry of Textiles, Government of India, has extended the last date for submission of proposals for setting up Integrated Textiles Parks (ITPs) under SITP (XIIth Five Year Plan) from 15th July 2014 to 7th August, 2014.

In order to provide a fillip to the Apparel Manufacturing industry and generate additional employment, particularly for women, the Government of India, Ministry of Textiles in the XII Plan has proposed additional grant of Rs 10 cr each for five Apparel Manufacturing Units under Scheme for Integrated Textiles Park (SITP). The additional grant is proposed for (i) Factory building and (ii) Support infrastructure/Facilities and is for creating additionality in these components, wherever required and is over the above the ‘factory building’ and ‘support infrastructure’ that has been ap-

Shri Santosh Kumar Gangwar briefing the media, after inaugurating the “59TH National Garment Fair of CMAI”, in Mumbai on June 23, 2014. The Secretary, Ministry of Textiles, Smt. Zohra Chatterji is also seen. proved in the DPR of the existing Parks.

Detailed guidelines of the scheme are available at the MoT's website and also from the following PMCs, responsible to evaluate the proposals for setting up of Apparel Manufacturing Units and present them before the evaluation committee.

Name & contact details of the PMC: 1. IL&FS Clusters Development Intiative Limited Shri Dinesh Gangadharan, Vice President 08527629666 Shri Prasant Sood, Assistant Manager 09958038880 2. Technopak Advisors Private Limited Mr. Amit Gugnani, Sr. Vice President Mb: 09871755992 Mr. Sanjay Arora, Principal Consultant Mb: 09971110566 The interested & eligible SPV may submit their proposal for setting up of Apparel Manufacturing Units as per the guidelines of the Scheme through NCM-JULY 2014 88

any of the above PMCs to Shri R.K.Srivastava, Under Secretary (SITP), Ministry of Textiles, 339-B, Udyog Bhavan, New Delhi latest by 5:00 P.M on 7th August 2014. Projects received after due date will not be accepted under any circumstances. Proposals submitted through PMCs should be mandatorily accompanied with a demand draft of Rs 10,000 as processing fee (non-refundable) in favour of PAO, Ministry of Textiles, New Delhi.

Bangladesh : Emerging Market For Indian MMF Textiles Exports The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) has reported that Bangladesh is emerging as a lucrative market for Indian Man-made fiber fabrics.

According to SRTEPC, Bangladesh imported around US$ 3 billion of Manmade fibre textiles from the world during 2013 of which India’s share was around 8% (US$ 0.23 billion).The main countries which exported Man-made fibre textiles to Bangladesh during the year were China, India, Thailand, South Korea, Indonesia, Japan, Viet-

NEWS BRIEFS nam, etc. Since, India’s share in Bangladesh’s total import of Manmade fibre textiles was only 8%, there is huge untapped scope for increasing exports of Indian Man-made fibre textiles to this country.

SRTEPC has noted that Bangladesh has emerged as one of the largest apparel exporting countries in the world. Bangladesh is manufacturing for international brands like Tommy Hilfiger, Gap, Calvin Klein, H&M, etc. and global retailers like Target and Walmart are now having sourcing offices in Dhaka. Exports of apparel from Bangladesh have recorded a growth of 12% during 2013 as compared to the previous year. Major apparels exported by Bangladesh include knitted and woven articles like Jerseys, pullovers, T-shirts, singlets, Babies' garments, suits, jackets, trousers, shirts, skirts, shorts, jackets, sweaters, among other fashion apparel.

However, the strong and growing ready-made garment industry of Bangladesh is not being able to support adequately by its local production of textiles and there is a huge demand – supply gap which has been covered up through imports.

Bangladesh is importing its required textiles including Man-made fibre textiles from countries like China, India, Thailand, South Korea, Indonesia, etc.

During 2013 Bangladesh imported around US$ 800 Mn. of Man-made fibre yarn from the world of which India’s share was around 9% (US$ 70 Mn.). Thus, there is substantial scope for India to increase its market share in Bangladesh’s import of MMF yarns from the world.

During 2013 Bangladesh imported around US$ 1 Bn. of Man-made fibre fabrics from the world of which India’s share was 12% (US$ 118 Mn).

Hence, there is scope for India to increase exports of MMF fabrics to Bangladesh.

Bangladesh is a growing market for

Colorant Limited Receives GDMA Awards Colorant Limited, a leading Ahmedabad based reactive dyes manufacturer and exporter received the GDMA Awards for the outstanding performance in Export Market as well as Domestic Market in the SME category for the year 2013-14.

The Award Function, organised by the Gujarat Dyestuff Manufacturer Association (GDMA) was held on 27th June, 2014 at Diamond Hall, Rajpath Club, in Ahmedabad.

Mr Subhash Bhargava, Managing Director, Colorant Ltd., receiving the award and certificate from Dr. S.K. Nanda, Principal Secretary, Govt of Gujarat Colorant - an ISO 9001:2008 & ISO 14001:2004 certified Company - is one of the leading Manufacturers and Exporters of Dyes in India. Most of their products are “GOTS” Certified and Pre-registered with “REACH”. The Company also enjoys the status of Government recognised “Export House.”

Colorant has also the distinction of being the first Indian Company to offer it’s clients, in India and overseas, a wide range of high quality Fluorine based Reactive dyes in the brand name of COLRON “CN” series.

Colorant is the sole selling agent for Color Root of China – the biggest manufacturer of Fluorine based Reactive dyes in the world. Under the agreement, Colorant is having exclusive marketing rights for these dyes in India enabling the company to offer most modern and environmentally green chemistry to it’s customers for the first time in India. These specialized range of dyes is revolutionizing the dyeing industry due to the energy saving and emission reduction it offers to the users. Colron High Performance Colorant's Reactive dyes like SD series, GLX series, CN series and SF series are already being used by more than 650 customers (including Corporate Houses) in India. These dyes are also well accepted in Export market for their superior quality and cost-effectiveness. Colron Reactive Dyes are very well accepted in Bangladesh, China, Turkey, Pakistan, Iran, Egypt, Costa Rica, Brazil, Nigeria, Gautemala and many other countries.

Colorant enjoys the status of a favoured supplier also due to the company's customer-friendly services and it's commitment to timely supplies.

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NEWS BRIEFS Man-made fibre textiles. During 201314 Bangladesh has emerged as the 5th largest market for Indian Manmade fibre textiles. Exports of these textiles from India to Bangladesh have steadily grown over the years to reach to the tune of USD 230 Mn. during 2013-14 recording a growth of 32% compared to the previous year.

Bangladesh's import tariffs are applied on the c.i.f. (cost, insurance, freight and other charges) value.

Main items of exports in India's export basket of Man-made fibre textiles to Bangladesh during 2013-143 were as follows : Fabrics : Polyester Filament Fabrics, Nylon Filament Fabrics, Sarees, etc.

Made-ups : Furnishing Articles, Laces, Braids, Muffler, etc.

Yarn : Acrylic Spun Yarn, Polyester Textured Yarn, Polyester Cotton Yarn, etc.

Fibre : Viscose Staple Fibre, Polyester Staple Fibre, etc.

South Asian Free Trade Area (SAFTA) Bangladesh is committed to allow duty-free import of 248 products from Non-LDCs (NLDCs) under SAFTA including India as part of a major move by the South Asian nations to boost intra-regional trade. By doing so, Bangladesh has reduced the number of items in its Sensitive List from 1241 to 993 in case of Non-LDCs which also includes textile items including synthetic & rayon textiles. Approval of duty - free import of Man-made fibre textiles from India is expected to substantially boost to already growing exports of Indian Man-made fibre textiles to Bangladesh.

Sensitive lists under the SAFTA comprise around 53% of the total trade among the SAFTA member-states.

Bangladesh being India’s neighbouring market, India has various comparative advantages due to geographical proximity including logistical advan-

tage to export Man-made fibre textiles to Bangladesh.

Enhanced trade ties in textiles between India and Bangladesh is a win win situation for both the countries.

Moreover, with imports of Indian MMF textiles Bangladesh can cut costs and Indian MMF textiles are complementing Bangladesh garmenting industry rather than competing.

Indian Government’s Positive Steps The Government of India has recently taken proactive initiatives to facilitate bilateral trade between India and Bangladesh like extending working hours at Petrapole, aligning the weekly holiday with Bangladesh, allowing movement of trucks carrying export cargo up to the LCS of the importing country for discharge of cargo, regular meetings between the jurisdictional commissioners of Customs of India and Bangladesh as well as meetings at the border to address issues of concern to the trade, etc. The same will enormously help in increasing exports of Indian MMF textiles to Bangladesh.

The Council has also requested for a system to be introduced by which trucks from India may be given permission to reach goods directly to factories in Bangladesh which may substantially reduce the role of middle men and leakages.

Exclusive Indian Textiles Exhibition in Bangladesh Planned In view of the importance and growing scope for increasing exports of Indian Man-made fibre textiles to Bangladesh, SRTEPC is planning to organize an exclusive Indian Textiles Exhibition in Bangladesh during 2014.

This will be a big opportunity for the Indian companies to explore the Bangladeshi market in right time and to showcase India’s strength in Manmade fibre textiles before Bangladeshi buyers/importers, retail houses, agents, etc. and take advantage of the event.

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Exports Of Indian Synthetic And Rayon Textiles During April - March 2013-14 According to SRTEPC, total exports of Indian Synthetic and Rayon MMF textiles during 2013–14 were US$ 6027.53 Million against US$ 5249.30 Million during 2012–13 showing a growth of 14.83%.

Highlights *

Exports have witnessed a growth of nearly 15% in April-March 201314 as compared to the previous year.

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Exports were directed to 146 countries during 2013-14.

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Fabrics dominated the total exports with 39% share followed by Yarn 31%, Made-ups 22% and Fibre 8%.

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The value-added products like fabrics and made-ups were the main export items accounting for 61% share.

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All segments of Indian MMF textiles recorded growth in exports during the year.

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Exports of Fabrics witnessed 25% growth followed Made-ups 24%, Yarn 3% and Fibres 1%.

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Polyester Filament Fabrics (USD 849.92 Mn) was the leading fabric exported during 2013-14 followed

by Synthetic Filament Fabrics (USD 512.60 Mn) and Polyester Viscose Fabrics (USD 358.36 Mn).

*

In case of yarn export, Polyester Filament Yarn was the leading item with USD 1023.41 Mn followed by Polyester Cotton Yarn with USD 160.84 Mn.

*

In Made-ups segment exports of Muffler, Shawls/Scarves were the leading items with USD 210.01 Mn and 131.91 Mn export respectively.

NEWS BRIEFS *

Exports to the sophisticated and quality conscious EU region have increased to 28% from 20% in the previous year.

*

UAE has emerged as the leading market for Indian MMF textiles exports.

*

Turkey has emerged as the 2nd largest market.

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Neighbouring market Bangladesh has emerged as the 5th largest market.

Other major markets during AprilMarch 2013-14 were U.S.A., Brazil, Bangladesh, Afghanistan, U.K., Germany, Egypt, Iran, Pakistan, etc.

Product Share During April-March 2013-14, exports of Fabrics dominated in the total exports with 39% share, followed by Yarn 31%, Made-ups 22% and Fibre 8%.

Exports of Polyester Filament Fabrics dominated with a share of 36%. The major items of exports in this segment were Sarees, Shir tings, Suitings, Narrow woven Fabrics, Tyre cord fabrics, Parachute Fabrics and Umbrella Cloth. It is heartening to note that exports of fabrics like Synthetic Filament Fabrics and Polyester Viscose Fabrics have registered significant growth of 63% and 20% respectively.

Yarn In the yarn segment growth was nearly 3% during 2013-14. Polyester Filament yarn continues to be the main export items with exports of USD 1023.41 Mn. followed by PolyesterViscose with USD 181.20 Mn. and Polyester-Cotton Yarn with USD 160.84 Mn. Exports of Polyester-Viscose yarn had witnessed significant growth of 43%. Exports of Viscose-Cotton Yarn also witnessed excellent growth of 109% followed by Acrylic-Cotton 58% and Viscose Filament Yarn 33%.

Made-Ups Export of Indian MMF Made-ups witnessed a growth of 24% during 201314 as compared to the previous year.

Main made-ups items with significant growth are Blanket 86%, Motifs 71%, Muffler 44%, Fishing net 19% and shawls/scarves 10%.

Fibre Exports of Fibres witnessed only 1% growth during 2013-14 as compared to that of last year. However, exports of Polyester Staple Fibre which is the dominant fibre in total export have witnessed 13% growth.

Exports of Viscose Staple Fibre showed negative growth of 27% whereas Acrylic fibres recorded excellent growth, 276% growth in exports of Acrylic staple and 190% growth in exports of Acrylic Filament Fibre.

Direction Of Trade Exports of Man-made Fibre Textiles from India were directed to 146 countries during 2013-14. The sophisticated European Union has emerged as the leading destination for India’s MMF textiles exports with a share of 28%, followed by the far flung North

& South America with 21% and neighboring Asia 21%, Middle East/Gulf 20% and Africa 10%. It may be noted that during 2013-14 exports of Indian MMF textiles to the EU region have gone up to 28% from 20% witnessed in the previous year. However, during 2013-14 exports to Middle East/Gulf have declined to 20% from 24% in the previous year.

Leading Markets The leading market for India’s MMF textile exports during 2013-14 was U.A.E. with an export of US$ 588.07 Mn. Other leading markets during the year were Turkey, U.S.A., Brazil, Bangladesh, Afghanistan, U.K., Germany, Egypt, Iran, Pakistan, etc.

Exports of Indian MMF textiles have declined in major markets like Egypt and Pakistan. The main reasons for decline in our exports to Egypt may be due to the political crisis that occurred and continued in Egypt during 2012-13 and consequent adverse impact on trade and business. Exports to Pakistan have also been affected due to continued political and civil crisis in Pakistan. Moreover, unresolved trade issues/relations between Indian and Pakistan have adversely impacted exports from India.

AEPC urges govt to expedite India-EU FTA Apparel exporters have sought expeditious finalisation of the India-EU Free Trade Agreement to enable better market access for Indian exporters whose total outbound shipments stood at USD 15.7 billion last year.

"India's clothing exports to the FTA countries have increased significantly after signing of the FTA/PTA (Preferential Trade) agreements. These markets accounted for 12% share of India's clothing exports and around 58% (of USD 475 mn in 2013) share in the country's global clothing import", Apparel Exports Promotion Council (AEPC) Chairman Virender Uppal said.

AEPC has urged the government to expedite the process of India-EU FTA finalisation, as this will help exporters to have better market access, that is already enjoyed by India's competitors like Bangladesh, Vietnam and Cambodia.

Global apparel exports are estimated at USD 428 billion, out of which Indian exports stood at a mere USD 15.7 bn as against China's USD 165 bn in value terms. Similarly, Bangladesh exports apparel worth USD 26.2 bn.

The high labour cost in China and the problem related to compliance in countries like Bangladesh are beginning to bite them, and the need of the hour is to seize the opportunity.

NCM-JULY 2014 91

NEWS BRIEFS Owner of Rana Plaza Building Charged Finally the name of Sohel Rana, who was excluded in the case filed by the Anti-Corruption Commission on the construction of Rana Plaza in violation of the building code, has been included in the charge sheet.

The ACC has approved the charge sheet in the case filed on June 15 with Savar Police Station, saying the accused in league with each other had built Rana Plaza violating the Bangladesh National Building Code. The building collapsed last year, killing at least 1,135 people.

The case was lodged against Savar municipal mayor, Rana's parents and 14 others.

"During the investigation, several FIR-named accused stated that Rana exercised influence in constructing the faulty building and setting up garment factories illegally in the shopping complex," ACC Commissioner Shahabuddin said, explaining why Rana's name was finally included in the charge sheet.

Asked why Rana was dropped from the FIR, Shahabuddin said it was done since Rana did not own the piece of land on which the building was made and had not made any formal appeal seeking approval for the building.

The commission will also look into why Rajdhani Unnayan Kartripakkha (Rajuk) did not take any action against the authority of Rana Plaza for not obtaining Rajuk's approval before constructing the building, he said.

The commission will take steps to arrest all the chargesheeted accused, Shahabuddin told reporters.

Among the 18 accused, only Rana is behind bars. The Bangladesh government has already confiscated all his properties including the Rana Plaza land, a multi-storied tower at Savar and a big slice of land in the neighbouring district of Dhamrai. He faces murder charges. Rana is a junior official in the ruling Awami League party.

Rana Plaza was built on swampy ground, with substandard concrete. It was designed as a five-storey shopping centre, but the owner of the building, a local political leader, rented it out to factory owners and built three more floors.

According to the case statement, the building authorities obtained permission for a six-storey building but later extended it by three more floors.

The Savar municipal authorities, including their engineers, gave the nod for the illegal construction, it says, adding that they approved the setting up of garment factories on the top six floors though the nine-storey building was supposed to be a shopping complex.

Savar Mayor Mohammad Refatullah; Associate Professor of Khulna University Abdur Razzak, who was the architect NCM-JULY 2014 92

NEWS BRIEFS of the building; former chief executive officer of Savar municipality Uttam Kumar Roy, Mohamamd Ali Khan, a ward commissioner of Savar and Rana's parents - Abdul Khalek and Morzina Begum - are among the accused.

The April, 2013, collapse of the Rana Plaza ranks amongst the world’s worst industrial accidents and sparked a global outcry for improved safety in the world’s second-largest exporter of ready-made garments.

Bangladesh has become the world’s second largest clothing producer after China with $22 billion in exports last year, mainly to retailers in Europe and the United States. Retailers including Walmart, Tesco and Carrefour source large amounts of their apparel from Bangladesh, home to around 4,500 garment factories.

Bangladesh's garment industry employs some 4 million people, mostly women. While the jobs give the women economic power and an independence they did not have before, many work long hours in poorly ventilated, fire-trap factories.

Low labour costs and what critics call shortcuts on safety make Bangladesh the cheapest place to make large quantities of clothing.

Texprocil Welcomes Union Budget 2014-15 Texprocil View on the Union Budget July 2014 With Regards to Cotton Textiles Shri Manikam Ramaswami, Chairman, Texprocil (The Cotton Textiles Export Promotion Council), welcomed the various announcements and stated the budget in general is a positive budget. There are several new ideas together with continuity.

Focus on poverty reduction, agriculture etc will help the poor have more disposable income which is essential for the textile industry.

Focus on agriculture and organic cultivation and urban waste converShri Manikam Ramaswami sion into organic manure will further Chairman, Texprocil strengthen India’s pre-eminent position as the world’s largest organic textile producer. Logistics cost reduction, moving cargo over rail and water which are far more efficient than moving it over roads will reduce costs as textile manufacturing has a high logistics cost component. Cheap loans to rural self help groups will rebate distributed garment manufacturing capacities which together with deeper penetration of e-business make ready-to-wear garments highly affordable and spur consumption.

Shri Ramaswami also welcomed the removal of service tax on loading, unloading, storage, warehousing and transportation of cotton whether ginned or baled. Another positive step in the budget is that handlooms have at last been identified as a handicraft. Also, 6 clusters in areas where handloom weavers are artisans making heritage textiles are to be set up with integrated skill development and training facilities.

Late last year, the government raised the minimum wage for garment workers by 77 per cent to 5,300 taka ($68 U.S.) and amended the labour law to boost workers’ rights, including the freedom to form trade unions. It is also cooperating with garment factory inspections by safety experts hired by retailer brands.

However, Shri Ramaswami opined that the introduction of excise duty on polyester produced from waste is a serious retrograde step. Recycling of waste plastics and pet bottles into fiber helps waste realize a high enough price to encourage separation of this dangerous non-biodegradable waste from biodegradable digestable waste. The high price of the waste makes this expensive segregation of waste a viable activity. Levying excise duty on the fibers produced will increase crude consumption and reduce waste segregation activity which is detrimental to the environment. These retrograde steps of creating inverted duties and not reducing existing inverted duties need to be done away with at the earliest.

But erratic decision-making poses a new set of problems for the industry, whose safety record has been under the microscope since the collapse of the Rana Plaza.

Texprocil facilitates the exports from India of raw cotton, cotton yarns and blended yarns, woven and knitted fabrics, home textiles and technical textiles. The Council provides export promotional services to over 3,500 members including composite mills, spinning units, weaving units, knitting units, process houses and merchant exporters.

Bangladesh’s exports, however, in the year to June hit a record $30-billion, up 11 per cent from a year ago on the back of stronger garment sales.

The Cotton Textiles Export Promotion Council Engineering Centre, 5th Floor, 9 Mathew Road, Mumbai 400 004 Telephone : (022) 2363 2910 to 13 Fax : (022) 2363 2914 Email : info@texprocil.org Website : www.texprocil.org.in NCM-JULY 2014 93

NEWS BRIEFS Textile & Garment Manufacturers happy with the Budget 2014-15 In a boost to the readymade garment sector, the Budget has announced duty-free entitlement for import of trimmings, embellishments and other specified items to five per cent of the value of their exports, from the current three per cent.

“This will help increase exports and is a good boost for the industry,” said Rahul Mehta, president of the Clothing Manufacturers Association of India. The government has fixed a $50billion textile export target for the current year. Nearly 40 per cent of this is readymade garments.

Budget fails to impress Surtis Surtis termed it 'ordinary' as it has not addressed any of their longpending demands The Union budget evoked lukewarm response from the textile sector of Surat. According to businessmen and experts, there is nothing new in the budget (except some insignificant sops) and the finance ministry has ignored the long-pending demands.

"We welcome the announcement of developing mega cluster in Surat, but the finance minister has not been clear if the cluster will be for handloom sector or for the entire textile sector. In the budget, there is no allocation for the embroidery sector and the weaving units," said Arun Jariwala, president of Federation of Indian Art Silk Weavng Industry (FIASWI) and a highly respected figure of the textile industry.

Arun Jariwala President of Federation of Indian Art Silk Weavng Industry (FIASWI)

According to Jariwala, long-pending demand to abolish duty on polyester yarn and fabrics has not been addressed in the budget. No new policy has been announced for the sector, which is passing through a bad phase.

Rahul Mehta President, CMAI The move will also help Indian manufacturers to compete with other countries in getting more orders from global retail sourcing entities, such as Walmart. The industry says the move will help bring down the cost of readymade garments meant for export by two to three per cent.

The government also removed basic customs duty on specified inputs for manufacture of spandex yarn, from five per cent. About Rs 100 of these inputs are imported annually. “We were losing to large players who were directly importing spandex yarn. We will now be at par with these companies,” said YC Gupta, head, business and operations, at Indo Rama Industries, a leading manufacturer of spandex, the stretch material used in finished products such as stretch denim, swimwear and leggings.

Mahendra Katargamwala, president of Southern Gujarat Chamber of Commerce and Industry (SGCCI) termed the budget as a mixed one, addressing issues related to textile and diamond sectors. "Demands that are not included in the budget will be raised with finance ministry," he said.

What the textile sector got 1. Developing Mega Cluster in Surat (though it is not clear whether cluster will be for the handloom and handicraft sector or for entire textile sector) 2. 5% customs duty on stretchable fiber (used for making garments) abolished 3. Increasing the investment limit in SME sector 4. Customs duty on ancillary products used for readymacle garment sector (buttons, chains, threads and others) brought down from 5% to 3% Expectations of the textile sector 1. Demand to decrease duty on polyester fabric from 12% to 6% or abolish it completely. Textile sector wants duty on polyester fabric to be removed.

2. Anti-Dumping duty on polyester yarn and polyester fabric 3. Abolishing 4% import duty on import of textile machines and ancillary equipment.

NCM-JULY 2014 94

NEWS BRIEFS Union Budget 2014-15- Highlights According to the Handloom Export Promotion Council (HEPC), following are the highlights of Union Budget 2014-15 presented by Finance Minister for the year 2014-15. Features having relevance to the Handloom sector and export sector are given : Textiles 1. Rs 50 crore is provided to set up a Trade Facilitation Centre and a Crafts Museum to develop and promote handloom products and carry forward the rich tradition of handlooms of Varanasi.

2. Sum of Rs 500 crore for developing a Textile mega-cluster at Varanasi and six more at Bareilly, Lucknow, Surat, Kutch, Bhagalpur and Mysore.

YC Gupta Head, Business & Operations Indo Rama Industries According to industry experts, export opportunities could also be opened with the announcement of six mega textile clusters at Bareilly, Lucknow, Surat, Kutch, Bhagalpur, Mysore and one in Tamil Nadu, apart from a trade facilitation centre. The Budget provides Rs 600 crore for this.

“The trade facilitation centre, crafts museum and academy for the handloom sector, coupled with six mega clusters, would help both domestic and export marketing of traditional crafts like zari and pashmina, among others,” said the Handloom Export Promotion Council (HEPC).

The minister has allocated Rs 50 crore for a trade facilitation centre and a crafts museum to promote handlooms. And, proposed to set up a Hastkala Academy for preservation, revival and documentation of the handloom and handicraft sector, in a public-private partnership, with an allocation of Rs 30 crore.

To encourage Kashmiri pashminas, the government has proposed to start a Pashmina Promotion Programme and a programme for the development of other crafts in Jammu and Kashmir, allocating Rs 50 crore.

The Rs 13,500-crore Tirupur industry

3. Rs 20 crore to set up a Hastkala Academy for the preservation, revival, and documentation of the handloom/handicraft sector in PPP mode in Delhi.

4. Rs 50 crore is provided to start a Pashmina Promotion Programme (P3) and development of other crafts of Jammu & Kashmir.

Administrative Initiatives 1. High level committee to interact with trade and industry on regular basis to ascertain areas requiring clarity in tax laws is required to be set up.

2. Convergence with International Financial Reporting Standard (IFRS) by Adoption of the new Indian Accounting Standards (2nd AS) by Indian Companies.

Foreign Direct Investment (FDI) The manufacturing units to be allowed to sell its products through retail including E- commerce platforms.

Industry 1. Central Government Departments and Ministries to integrate their services with the e- Biz -a single window IT platform- for services on priority by 31 December this year.

2. Proposed to establish an Export promotion Mission to bring all stakeholders under one umbrella.

Indirect Taxes 1. Duty free entitlement for import of trimmings, embellishments and other specified items increased from 3 percent to 5 percent of the value of their export, for readymade garments.

2. 24x7 customs clearance facility extended to 13 more airports in respect of all export goods and to 14 more sea ports in respect of specified import and export goods to facilitate cargo clearance.

3. ‘Indian Customs Single Window Project’ to facilitate trade, to be implemented.

4. Customs and Central Excise Acts to be amended to expedite the process of disposal of appeals.

NCM-JULY 2014 95

NEWS BRIEFS South India hails Union Budget 2014-15

A Sakthivel (President) Tirupur Exporters Association has welcomed the Budget. Tirupur Exporters Association President A Sakthivel hailed the Budget saying it would benefit the domestic textile manufacturing sector. He welcomed considering the association’s requisition for increasing the duty free entitlement for import of trimmings, embellishments and other specified items from three per cent to five per cent of the value of their exports and also highlighted the removal of Customs duty from five per cent to nil for import of specified inputs for manufacture of spandex yarn which may help to reduce the spandex yarn manufactured domestically.

‘This should give us a cutting edge in the global market,’ he said, adding, ‘the inclusion of certain accessories and embellishments used for made-ups under the eligible list of duty-free import is another welcome move.’

Sakthivel lauded the establishment of Export Promotion Missions with states, a long pending requisition of the association for the promotion of exports.

He also welcomed the announcement on setting up of six textile clusters in various places in the country, including one in Tamil Nadu.

He noted the garment sector was expecting an announcement of three per cent interest subvention on packing credit, which expired in March 2014, in the Budget. That there was no mention of the continuance of interest subvention in the Budget was seen as a negative.

Southern India Mills' Association thanked the Government for extending the optional route Cenvat for textiles, which was one of the demands of industry, till GST was implemented, to have a level playing field.

SIMA Chairman T Rajkumar in a statement said that the exempting cotton transport loading and unloading services from the purview of service tax, will give a considerable relief to the industry and cotton farmers, as the mills in the South sourced more than 70 per cent of their raw material from upcountry markets.

T Rajkumar “We had sought continuation of opSIMA Chairman tional route till GST is implemented to have a level playing field. The optional route has been in vogue from July 2004 and it has helped the industry achieve significant growth despite the recession in 2008-09 and 2010-11,” he said. He however appealed for reduction in the CST from 2 per cent to one per cent, as the Government had committed to phase out CST before implementing GST. The SIMA Chief also hailed the 15 per cent allowance on investments made towards plant and machinery for over Rs. 25 crore, faster clearance of import and export cargos, and setting up of textile clusters.

A Sakthivel, President, Tirupur Exporters Association, welcomed the budget and termed it as a pragmatic one giving more thrust for boosting manufacturing sector through infrastructure development in Roads, Ports and Power. Shaktivel welcomed announcement of investment allowance at 15 per cent to a manufacturing company that invests more than Rs 25 core in any year in new plant and machinery and noted this will be beneficial to garment entrepreneurs.

Meanwhile, the Tirupur Exporters and Manufacturers Association (TEAMA) president M P Muthu Rathinam said the announcements, including various schemes for the knitwear export sector, would help the sector. However, he called for increase in allocation amount and their effective utilisation.

Commenting on the budget, the president of South India Hosiery Manufacturers Association (SIHMA) AC Eswaran said, “The announcements on creating new industrial cities, skill development, power supply, solar power generation schemes and various tax concessions would benefit the industry.”

Tirupur Exporters Association (TEA) to go to elections on Aug 31 The association to see serious elections for first time across all 27 seats The Tirupur Exporters Association (TEA), which represents the Rs 13,000crore knitwear industry in Tirupur, will go to elections on August 31 for the first time to select all of its 27 leadership posts, including president.

NCM-JULY 2014 96

NEWS BRIEFS Unlike its previous elections, this time, the association's long serving president, A Sakthivel, is facing serious opposition for adding 195 new members into the association's fold.

Uniqlo coming to India for garment business Chairman of Japanese clothing major Uniqlo - Tadashi Yanai - calls on Modi, wants to source garments from India

The membership issue was taken to the notice of Registrar of Societies alleging violations in accordance with the by-law. It got an interim stay from the Madras High Court against operation of the notice sent by the Registrar and the dispute is pending with the court.

An intervention petition requesting the court to intervene in the matter and appoint a commission to look into the allegations in the appointment of new members is being filed, said Raja M Shanmugham, MD of Warsaw International, who is contesting against Sakthivel for the post of president. “According to the by-law, selection criteria for the members says, a company should have a minimum Rs 50 lakh annual turnover for the last three years to be eligible for membership in TEA,� he said.

Speaking on the new membership and election, Sakthivel said, "ours is an organisation, which has got international attention and new people want to join us. But, some want to disturb that." He added that the association was not restricting anybody from contesting.

A Sakthivel has been the foundercum-president since 1990. For the first time in 2010, he faced competition from former treasurer Veluswamy.

The counting will also take place on August 31. The executive committee has already appointed an executive officer for this. TEA has 897 life members, contributing around 95 per cent to the total exports from Tirupur.

Total number of export units here is around 1,000. In 2013-14, knitwear garment exports from Tirupur recorded Rs.17,800 cr against Rs. 13,700 cr achieved in the previous year 201213, with a growth rate of 30% in terms of Rupee and 15% in terms of Dollar.

NCM-JULY 2014 97

NEWS BRIEFS Tadashi Yanai, president and CEO of Uniqlo's parent company Fast Retailing Co., met Prime Minister Narendra Modi in New Delhi recently to talk about the group’s business interest and multi-billion investment plans in India. This is the first high-profile international meeting of any industrialist with Modi after he took charge as PM. Uniqlo plans to set up single-brand stores across India.

Uniqlo is one of Japan's most popular casual clothing brand. A government statement said Uniqlo was looking to source garments from India for exporting to other countries. Modi, who is scheduled to visit Japan in August, welcomed Uniqlo’s interest in India and elaborated on the benefits of the country’s garment sector in his interaction with Yanai.

Although Fast Retailing Co Ltd’s Uniqlo has been exploring opportunities to set up stores in India, it is learnt to have indicated that in the first phase, it would like to source from Indian market. Uniqlo stores may come in the next phase, though no timeframe is given. According to sources, in the medium- to long-term, the company is looking at investing heavily in India, with plans of hundreds of stores.

Besides Modi, Yanai and his team also met commerce minister Nirmala Sitharaman and textiles minister Santosh Gangwar to discuss the potential of tying up with manufacturers in the country.

Uniqlo's Indian Road Map In first one, Uniqlo is likely to source from Indian market.

Uniqlo stores may come in the next phase, though no timeframe is given.

The firm has asked India to identify 10 largest clothes manufacturers and exporters with whom it could tie up for exports.

This Uniqlo store at Westchester’s Ridge Hill in the New York metropolitan area has 20,000 square feet of shopping space offering high quality, stylish basics for men, women, kids and babies.

Mr. Tadashi Yanai, the Chairman of UNIQLO, a leading Japanese garment company, called on the Prime Minister, Shri Narendra Modi, on June 25. The company aims to source garments from India.

Shri Modi welcomed Mr. Yanai’s interest in developing UNIQLO’s business in India, and highlighted the advantages that India enjoys in the garments sector, including availability of cotton, skilled manpower, robust infrastructure, a big domestic market and good ports for exports During the meetings, Santosh Kumar Gangwar, the textiles minister, said he would welcome the popular brand in India.

"The talks were very positive and favorable," he said. "There has been a change in regimes in India, and the Japanese are showing a lot of interest in the Indian market. They were here to explore the possibility of investing in India."

Yanai said Uniqlo intended to not only open stores across India but also procure and produce locally. When asked if the move into India will advance in high gear, Yanai answered, "I think it can be taken so."

The Apparel Export Promotion Council (AEPC) made a presentation to NCM-JULY 2014 98

hardsell India’s potential in garments as well as a sourcing destination for several top brands of the world. Uniqlo wants AEPC to identify the 10 biggest manufacturers with which it could tie up for exports.

The global brands sourcing from India include Zara, Next, GAP, Marks & Spencer, Ann Taylor, Ralph Lauren, Abercrombie & Fitch.

India’s comprehensive economic partnership agreement (CEPA) with Japan under which textile raw material can be imported duty-free has been highlighted as a big plus in talks with Uniqlo. It has also been promised stand alone buyer seller meet to explore possibilities .

Currently, Uniqlo sources apparel from

NEWS BRIEFS China, Vietnam, Bangladesh and Indonesia.

While brands such as Uniqlo and GAP are waiting for the right opportunity to set up stores in India, other single-brand majors such as Zara and Marks & Spencer already operate in India through local partnerships. H&M, too, has been cleared by the Indian government to run business in the country and is expected to open stores this year.

In 2012, the UPA government raised the foreign investment level to 100 per cent from 51 per cent earlier in singlebrand retailing. Even so, not many marquee brands have come on their own, primarily because of the hurdle of 30 per cent local sourcing, preferably from small and medium industries. Furniture major IKEA and fashion chain H&M are the only exceptions to file their applications to invest in India.

UNIQLO's Global Reach UNIQLO has formed business relationships with partner factories in China, Vietnam, Bangladesh and Indonesia. It has a global reach with production offices in Shanghai, Ho Chi Minh City, Dhaka and Jakarta to ensure their clothes are made to the highest global standard of quality.

UNIQLO Japan had 853 stores nationwide (including 19 franchise stores) at the end of August 2013. Since opening the first store outside Japan in 2001, UNIQLO International has expanded to 446 stores, including 280 stores in Greater China, 105 in South Korea, and 39 elsewhere in Asia. Store development has been especially rapid in Asia, and they have also begun to develop a full-fledged store network in the United States.

Uniqlo's Takumi Team In order to produce millions of products of standardized quality, it becomes important to implement quality control across factory production technology and management. UNIQLO has a team of technical specialists, known as the Takumi Team, boasting many years of experience in the Japanese textile industry. These specialists are sent directly to Uniqlo's partner factories in China to offer technical instruction and share their abundant experience. At the same time, the supervisors from the Production Department, based in the Shanghai office, make weekly visits to partner factories to check the quality and progress of production.

Uniqlo is believed to have risen from roadside chains to one of the biggest apparel retailers in Asia.

Uniqlo provides the following information about it's business activities on it's website :

It runs over 2,000 outlets worldwide.

The company has also been in the news for talks with textile and apparel company Arvind for setting up stores in India. However, subsequently the tie-up didn’t materialise.

"In the year ending August 2014, we expect UNIQLO International sales will increase to ¥400.0 billion, operating income will expand to ¥35.0 billion, and the number of UNIQLO stores located outside of Japan will rise to 632 stores. UNIQLO International already accounts for over 30% of total UNIQLO sales. Favorable new-store expansion in the Asian region has proved the key driver of recent growth, and we are now focusing our attention on another promising location for future expansion: the United States.

With sales dropping off in Japan, its home base, Fast Retailing has been aggressively expanding overseas. As of the end of May, Uniqlo had approximately 860 stores in Japan. The brand plans to expand sales in each store rather than increase the number of outlets in Japan.

Overseas businesses have been doing well for Uniqlo. That success is especially significant in China, where Uniqlo continues to open a number of retail stores, including one in Shanghai that opened last September. It is Uniqlo's largest outlet in terms of floor space.

After expanding into the German mar-

Within the Asian region, our Greater China operation (China, Hong Kong and Taiwan) is growing rapidly, with approximately 100 new stores opening each year. We have expanded our horizons for new store openings across Southeast Asia and Oceania, encompassing Singapore, Malaysia, Thailand, the Philippines, Indonesia and Australia. Across the Pacific, we have now reached a point where we can begin building a genuine store network in the United States. We aim to expand our store network in the United States to 100 stores over the next few years by opening between 20 and 30 new stores each year. ket in April, Uniqlo currently operates more than 500 overseas stores in 15 nations and regions.

Although Uniqlo's domestic sales for the fiscal year ending this August are expected to increase only 5 percent to 700 billion yen ($6.88 billion), the company is projecting a 1.6-fold increase to 400 billion yen in sales overseas.

While the Indian retail market is pegged at about $600 billion, the country’s textile and clothing value chain is worth $90 billion. Clothing sector exports are at about $15 billion.

NCM-JULY 2014 99

NEWS BRIEFS Handloom: An Endangered Industry

The weavers of Banaras are facing a social crisis for over the past two decades.

Cloth has symbolised the politics of relations between human beings and the sacred and has also been used to describe the content and texture of human beings and the domain of the sacred.

Vasanthi Raman in her research fellowship for the IIAS came up with these findings as she traced the genealogy of the weavers and their crisis as the historical low caste julahas and their conversion to Islam and becoming Momin Ansaris, a key step in their social and historical voyage. This book is a social document of weavers that are fast facing extinction as an artisanal community. This is the story of the humble weaver or the julahas of Bihar and their journey over the centuries and their attempt to transcend their lowly and despised status in a hierarchical Hindu social order by conversion to Islam.

Book review by Imtiaz Ahmad Ansari (Courtesy : Mainstream) Entangled Yarns : Banaras Weavers and Social Crisis by Vasanthi Raman; Indian Institute of Advanced Study, Shimla; 2013; pp. X+126 (Hardcover), Rs 350.

The book Entangled Yarns: Banaras Weavers and Social Crisis by Vasanthi Raman deals with the various dimensions of the weaving industry in Banaras and the people associated with it. The book is a sequel to her previous book, titled Warp and the Weft: Community and Gender Identity Among Banaras Weavers, published in 2010. When read together, it presents a complete picture of social, political, economic and cultural aspects of weavers and the weaving industry in Banaras.

However, Entangled Yarns has its own merit. The book mainly deals with the crisis before the weaving industry after the 1990s, when India opened its market for the world. The fundamental unit of production is family; therefore, it is the artisan family which bears the brunt of the crisis. Although the focus of the study is the Muslim families, the book also captures the inter-community relations in general and social relations of production. The book is mainly based on the data collected through ethnographic method and other published secondary sources.

Momin Ansari Community The book focuses on the Momin Ansari community of Banaras. It is a tightly-knit community. Occupation and spatially restricted endogamous marriages provide solidity to the structure. It is mainly through the women that the community’s boundaries are maintained. Prof Raman breaks the myth of a homogenous Muslim community. Momin Ansaris of Banaras are

divided into various taats (lineages or clans). Marriage decisions are regulated by these taats. Not only social differentiation but economic and sectarian differences are also marked.

The world of Momin Ansaris is identified by weaving. It is continuing from generation to generation. The family is the basic unit of production. The division of labour is based on age and sex. Women and children are an integral part of the weaving process. Most of the preparatory work like carding and making the yarn ready for weaving and other post-preparatory work are done by women and children. The child is even socialised into the weaving process from an early age.

The Looming Crisis A major part of the book deals with the decline of the handloom industry and the pitiable condition of the weavers in general, and Muslim weavers in particular. The most famous product of the Banarasi handloom industry is the Banarasi silk sari. Whereas a majority of the weavers are Muslims, the main traders in the sari industry are Hindu bania (traditionally trading community) groups. Presenting the historical antecedents of the challenges before the weaving indusNCM-JULY 2014 100

try, Prof Raman mainly focuses her attention on the crisis in the postliberalisation period. During the last two decades the industry has declined rapidly, leading to severe impoverishment of weavers and their families to such an extent that the horrible realities of malnutrition and suicides have come to the surface.

The causes are multiple. Indiscriminate mechanisation has led to the fast depleting handloom weaving. The cheap powerloom-made products have flooded the market. The machine-made cheap imitations have reduced the demand for handloom products. A rough estimation shows that one powerloom can produce the same quantity as produced by 14 handlooms. The mainstay of Banarasi handloom is its design. However, advancing technology has created a challenge for the very survival of the handloom industry.

Competition from Surat has adversely affected the Banarasi sari industry.

Automated looms, abundant power supply, yarn and cheap labour in Surat facilitate the production of silk saris on a mass scale. Recent media reports show how the traders are using ‘WhatsApp’ to copy the design and send it back to the manufacturers in

NEWS BRIEFS Surat who print them on saris and send back to the traders in Banaras.

The work structure of the industry is such that a thin stratum of middleman (grihasthas/gaddidars) stands up at the top followed by a huge middle stratum of mostly self-employed weavers and the bottom consists of a thin layer of wage workers. The role of gaddidar (middle-man) is very important in creating the stark situation before the industry. The trade is mainly controlled by these gaddidars. It is this class of traders who provide the raw material as well as control the market and sometimes also own the looms. A majority of the independent workers (self-employed) ultimately had to turn up to these gaddidars for the access of raw materials and, in a sense, works for them. This middle stratum is depleting very fast and expanding the base, that is, the stratum of wage workers. The result is that the work structure has taken the shape of a pyramid with a thin layer of gaddidars at the top, a relatively thicker middle stratum of self-employed weavers and a huge base of wage workers.The rapidly changing fashion trends have also added to the misery of the handloom industry.

Other than these local factors, there are global factors as well that are equally responsible for the worsening situation of the Banarasi weaving industry. In fact, it is the economic policies adopted by the Indian Government in the post-liberalisation phase which accounts for the major challenge to the Banaras handloom industry. The New Textile Policy (NTP) of 1985 produced a paradigm shift in the Indian growth history. The author writes: “The shift was from an emphasis on state-controlled import substitution to that of an export-oriented growth

with the liberalised market economy playing a significant role.

The emphasis was now on modernisation, efficiency, productivity and market competition in sharp contrast to the earlier policy thrust on employ-ment generation, equality and social justice. This shift was favourable to the powerloom and mill sector.” (p. 44) The trade liberalisation policies, adopted by the goverment in the 1990s, further aggravated the situation. The New Economic Policy of 1991 intensified the process of depleting the handloom industry.

One of the major blows to the Banaras handloom industry is from what is called the ‘China factor’. Although the indigeneous hand-loom industry was already facing challenges from China, the abolition of quantitative restrictions on silk (as required under the WTO regime) in 2001 further threatened the industry. As a result of this, silk import increased tremendously.

Banarasi sari ‘Made in China’ flooded the Indian market. However, the Chinese yarn was more expensive than the Indian yarn. The level of import from China clearly shows how ag-

NCM-JULY 2014 101

NEWS BRIEFS gravating the situation became. As recorded by the author, within a short span of four years (from 2000-01 to 2004-05), the Chinese silk fabric imported to India increased to a whopping 6560 per cent, from 14.48 lakh metres to 9.649 crore lakh metres.

The Question of Survival Although the declining handloom industry has affected a range of people from gaddidars to wage workers across all religious and caste communities, it is the Muslim artisan weavers, self-employed as well as wage workers, who have experienced the brunt of the crisis. The ensuing pauperisation has forced the weaving class to move into other labour intensive occupations like rickshaw pulling, construction work, etc. The gloominess of the situation can be gauged from the fact that even cases of child malnutrition, selling blood and suicides have been reported among the weavers.

The crisis has presented another paradox before the Muslim families. Earlier, the women used to work within the confines of the home but now they have to search for daily work outside the home. Many of them have started working as domestic servants. It has upset the gender roles. Large scale migration has been adopted by these families as survival strategies. Bangalore, Surat, Hyderabad and Rajasthan are the major destinations for these migrants. Whereas earlier it is the males only who migrated to different areas but now the entire family is migrating to escape from the clutches of starvation and death and to earn thier livelihood.

Conclusion The textile industry generates employment second only to agriculture. For the weavers of Banaras, weaving is not only an economic activity. It is a way of life. It is their cultural identity wrapped in the inalienable process of tana-bana. However, this identity is under threat and on the verge of ex-

Imports of Dyes by Pakistan : Few Examples ITEM/S : REACTIVE DYES - SUNFRON BLUE C-R & SUNCION GOLDEN YELLOW P-2RN Importer : Liberty Mills Limited A/51-A, S.I.T.E, Karachi-75700 Email : info@libertymillslimited.com Exporter : Oh Young Industrial Co., Ltd. 4th floor, Keun Shin building, 250-4, Dowha-Dong, Mapo-Ku, Seoul, Korea Tel : 82-2-711-5101 Fax : 82-2-719-6513 Website : www.ohyoung.net ITEM/S : SYNTHETIC ORGANIC DYES - JAKAZOL BLACK CECL Importer : Gul Ahmed Textile Mills Plot No.82, Main National Highway, Landhi, Karachi-75120, Pakistan +92 21 111 485 485 +92 21 111 486 486 Website : www.gulahmed.com Exporter : Jay Chemical Industries Limited Jay House, Panchvati Circle, Ambawadi, Ahmedabad - 380 006 India.

Ph: +91 79 2642 3363 Fax: +91 79 2642 5763 Email: info@jaychemical.com ITEM/S : REACTIVE T. BLUE MGN; REACTIVE ORANGE 122; REACTIVE ORANGE M2R; DIRECT BROWN MN; REACTIVE BLUE 4; DIRECT T. BLUE 86 Importer : ASRA ENTERPRISES E-24, 4th Floor, Motondas Building, M.A. Jinnah Road, Karachi Exporter : Marudhar International No. 67, Nutan Cloth Market, O/s Raipur Gate, Ahmedabad-380022. India Ph:+91-79-25463548 Mobile: 91-9825060157 Email: info@marudharinternational.com ITEM/S : REACTIVE BL 100% Importer : German Specialty Chemicals 58/M,Block-2,P.E.C.H.S. Karachi. Ph : (92 21) 34389820, 34391012 Fax:(92 21)-34391012 Web: www.gsc.com.pk Exporter : RONEST TRADING CO (PTE) LTD (FULL ADDRESS : NA) ITEM/S : BODACTIVE YELLOW CP; BODACTIVE RED CP; BODACTIVE BLACK CB; 150% REACTIVE BL Importer : MEMON BROTHERS (FULL ADDRESS : NA) Exporter : Bodal Chemicals Ltd. Plot No. 123-124, Phase - I, G.I.D.C., Vatva, Ahmedabad - 382 445. India Phone :+91-79-2583 5437 Fax :+91-79-2583 5245 E-mail : bodal@bodal.com, bcpl@bodal.com ITEM/S : REACTIVE YELLOW 3RS; REACTIVE RED 3BS; REACTIVE YELLOW 4GL; REACTIVE ORANGE 2RH; REACTIVE N/BLUE Importer : Chem Color International C.I-43, Sector # 1, Surjani Town, Cotage Ind'l Area, Karachi (92 21) 36910085, 36910086 www.chem-color-international.pakbd.com Exporter : Hong Kong Shanghai Trading Company Ltd. (FULL ADDRESS : NA) ITEM/S : INDIGO DYES FOR DENIM Importer : Marfani Denim Mills Plot No.26, Sector 15, Korangi Industrial Area, Karachi, Sindh, Pakistan Phone: 9221-5070373 Fax: 9221-5058091 Email: info@marfanidenim.com Exporter : Wonderful Chemical Industrial, Ltd., Hong Kong Unit 18, 8 F, Pacific Trade Centre, 2, Kai Hing Road, Kowloon Bay, Kowloon Ph: 852-27980118 Fax:852-27959817

tinction. Both local and global factors are responsible for the present crisis.

The Banarasi handloom industry is dying and could be a thing of the past unless India’s next government steps in. The crisis which the Banaras handloom industry is facing today could be a reality for other indigeneous industries tomorrow. The right time to act is now.

The reviewer is associated with the Department of Sociology, Jamia Millia Islamia, New Delhi. His Email is : imtiaz.ahmad01@gmail.com NCM-JULY 2014 102

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