EAI 01 ISSUE 05
100
61st iiGF co-hosted with iFJaS, the shows surpass previous editions
TARIFF WAR: TIT FOR TAT BEGINS BETWEEN US AND THE OTHERS AppArel eXpOrT prOMOTION COUNCIl MAGAZINe
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India-EU FTAs Walking On a Tight Rope? 8/3/2018 3:09:39 PM
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AppArel / Chairman’s Message
Dear Friends,
I
extend my gratitude to Central Board of Indirect Taxes and Customs (CBIC) for having organised the third fortnightly and IGST Refund Camp jointly with AEPC for clearing pending IGST Claims. Such camps in partnership with industry bodies like AEPC and FIEO are the first of its kind. AEPC Tirupur reported good response to the camp and I hope our exporter members in other regions also got benefitted by this move. I also welcome GST councils decisions on 21st July allowing refund of accumulated ITC on account of inverted duty structure. This was a very important relief provided, not only to the fabric suppliers, but also to the whole value chain. Besides this, the reduction of rates on various goods and simplification of returns including a provision for a quarterly return for those whose turnover is up to Rs. 5 crore are positive steps for overall facilitation of the manufacturing sector. We had been waiting for reaping the gains from China vacating over USD 20bn of apparel trade. Are we loosing the opportunity to our South East Asian competitors? What are the lessons to learn from their growth? While the Council is taking steps to ensure that our competitiveness is restored, through adequate policy support - like comprehensive refund of embedded taxes and procedural simplification for faster and efficient supply chain, the industry has to also gear up to the changing scenario. Scales of production, branding, innovation of products and systems are areas that need to be urgently looked into. Concepts like Apparel 4.0 and “Smart factories” is knocking at our doors. The council is working on new Fairs and Exhibition opportunities to improve access to important markets. Pure London, held in July and Apparel Textile Sourcing Canada, to be held in August, are two such new additions to our Fair calendar this year, to tap into the UK and Canadian markets. I am happy to share that our flagship domestic event, the 61st edition of IIGF which was held in Greater Noida, as a success congratulations to the team.
AEPC has been actively engaged with Drawback Committee and the various ministries for working out the new ROSL and Drawback rates. In this regard AEPC has requested for considering embedded taxes which are neither notified nor considered for refund. AEPC has also requested for a composite rate for refunding all the taxes to facilitate easier refund mechanism and enhancing the rates. I would like to convey our appreciation to Hon’ble Minister of Finance, Mr Piyush Goyal and Honb’le Minister of Textiles, Smt Smriti Irani for their invaluable support and positive consideration of our recomendations. The Council organised awareness workshops on AEO programme in Gurgaon, Mumbai, Bangalore, Jaipur, Ludhiana, Noida and Tirupur. Exporter Meeting on enhancing export management through ECGC was also conducted on 26th July 2018 at Apparel House, Gurugram to know about the ECGC products for risk management in Apparel trade. I invite suggestions on other issues that AEPC can take up for improving awareness or facilitation. n
HKL Magu, Chairman, AEPC
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE
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C O N T E N T S EAI 01 ISSUE 05
100
61st IIGF Co-hosted with IFJAS, the shows surpass previous editions
04 | the broadcast
India’s Ready-Made Garment (RMG) Export Update for FY (April-June) 2018-19
05 | the broadcast
TARIFF WAR: TIT FOR TAT BEGINS BETWEEN US AND THE OTHERS APPAREL EXPORT PROMOTION COUNCIL MAGAZINE
| August 2018
India-EU FTAs Walking On a Tight Rope?
India’s Textile & Ready Made Garment (RMG) Update for Index for Industrial Production (IIP) for FY (April-May) 2018-19
06 | aepc activities
AEPC submits representation to Drawback Committee
CHAIRMAN AEPC Mr. HKL Magu CHAIRMAN EP Mr. Sudhir Sekhri ADVISOR AEPC Mrs. Chandrima Chatterjee PUBLISHER Apparel Export Promotion Council
08 | aepc activities
• Premal Udani attends meeting on bank reforms • AEPCs receives award in GST Day celebration • AEPC sets up refund camp in Tirupur
10 | aepc activities
AEO Seminar series in Tirupur & Ludhiana
11 | brand retaIl
• Differential Brands Group makes a significant purchase • Higher than expected profit for Primark • Levi Strauss continues double digit growth in Q2
12 | retaIl
Fast fashion gets world’s attention
14 | trade treatIes
• India getting closer to Mauritius • India awaits change of status
15| trade treatIes Editor-in Chief & Publisher & CEO Sanjay Chawla Director - Salil Chawla Managing Editor - Sujata Dutta Sachdeva VP-Corporate Communications Shraboni Mukherjee Assistant General Manager - Saqib Meer Editorial - Narayan Subramaniam Editorial Asst. - Ranjit Kaur Correspondent - Ajay Kumar Goswami, Prerna Sharma Graphic Designer - Sanjeev D. Sonavane Production & Admn. - Dhansukh Rathod, Dinesh Poojary Mumbai Office: 38/314, Unnat Nagar 4, Off M. G. Road, MHADA Colony, Goregaon (W), Mumbai - 400 062. Ph: 022 2875 5181 e-mail: dfuif@yahoo.co.in / dfu@rediffmail.com Dehli Office: Salil Chawla, Business & Mktg: New Delhi - 110017, Mobile: +9193503 18639/ 95601 79633 e-mail: dfudelhi@yahoo.co.in Printing Press: VIBA Press Pvt. Ltd. C-66/3, Okhla Industrial Area, Phase-II New Delhi-110020 e-mail: info.vibappl@gmail.com
• UK looks to join Trans-Pacific Partnership • Vietnam hopes for a surge in exports to the EU • Germany keen to explore Central Asia
16| cover story
India-eu Fta: Less posturing, more open minded negotiations needed to move ahead
20 | busIness
• Ocean trade shows robust growth • Indian textiles sector on revival path
21 | busIness
• India overtaking China is a matter of time • Fall in knitwear exports
22 | busIness
• Cotton prices hurt exporters • Hosiery prices soar at Tirupur cluster
23 | busIness
• Belief in international production networks • Clothing prices dip in the US
24 | trade concern
Soaring raw material prices add to challenges
26 | trade concern
India may invite censure following trade measures
28 | trade war
• All-out trade conflict begins between the US and China • Global economies recovery may be badly hit
2 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | August 2018
29 | trade war
• Those who are diversified have no problem • Consumers, workers and businesses to bear the brunt
30 | trade war
• Countries stare at huge tariffs • Depreciation may cushion shocks
32 | trade war
Tariff war: Tit for tat begins between US and the others
36 | export
• Italy biggest customer of Portuguese clothing • Innerwear is a money spinner for Bangladesh
37 | export
• Sixteen per cent fall in garment exports • Apparel exports expected to dip further
38 | export
• India’s underwear exports to the US rise three per cent • Germany overtakes US as top export market for Bangladesh garments
39 | export
• Vietnam maintains numero uno position • Turkey faces rising orders • Japan remains steadfast buyer
40 | trends
Apparel companies offer innovative products
42 | Event
61st IIGF: Co-hosted with IFJAS, the shows surpass previous editions
46 | Event
25th Hong Kong Fashion Week Spring/ Summer Exploring the next wave
48 | sustainability
A new set of sustainability standards
50 | sustainability
• Brands clean up their act • Saving brand value at any cost
51 | tech trends
Dealing with dwindling attention spans of consumers
54 | compliance
Dutch production sites in India on the rise with higher compliance
56 | GST Update 58 | Ministry Notifications 59 | aepc event calendar
CALENDAR OF EVENTS - 2018
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AppArel / the broadcast
India’s Ready-Made Garment (RMG) Export Update for FY (April-June) 2018-19 India’s RMG Exports RMG exports were to the tune of USD 1357.46 million in June 2018 with the decline of -12.34 per cent against the corresponding month of June 2017, which was USD 1548.59 million. In rupee term export for the Month of June 2018 was Rs. 9202.63 cr. as against Rs. 9979.57 Cr. in June 2017 with the decline of 7.79 per cent. India’s RMG export to World in the April-June of 2018-19 was to the tune of USD 4045.84 mn. which has decreased by -17.46 per cent compared to the same period of previous financial year. During April-June 2017-18, India’s apparel exports were to the tune of USD 4901.40 mn.
India’s RMG Export to World FY 2017-18 Month
FY 2018-19
In INR Crore In US$ Million In INR Crore In US$ Million
MoM Growth of 2018-19 over 2017-18 (%) INR
US$
April
11272.24
1747.44
8859.67
1349.81
-21.40
-22.76
May
10342.55
1605.37
9040.63
1338.57
-12.59
-16.62
June
9979.57
1548.59
9202.63
1357.46
-7.79
-12.34
April-June
31594.36
4901.40
27102.93
4045.84
-14.22
-17.46
Source: DGCI&S, Kolkata, 2018
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AppArel / The BrOaDCasT
India’s Textile & Ready Made Garment (RMG) Update for Index for Industrial Production (IIP) for FY (April-May) 2018-19 INDEX OF INDUSTRIAL PRODUCTION
Month
Manufacture of textiles
MoM Growth Rate (In %)
Manufacture of wearing apparel
MoM Growth Rate (In %)
2017-18 2018-19
2018-19/2017-18
2017-18
2018-19
2018-19/2017-18
April
116
114.2
-1.6
155.5
134.6
-13.4
May
116.7
116.1
-0.5
156.8
136.8
-12.8
Total April-May
116.4
115.6
-0.7
156.2
135.8
-13.1
Source: CSO, 2018
SUMMARY • Manufacturing of Textiles has shown a decline of -.0.5% in May, 2018 and decline of -0.7% for the period of April-May, 2018-19 • Manufacturing of Wearing apparel has shown a decline of -12.8% in May, 2018 and -13.1% for the period April-May, 2018-19
AppArel eXpOrT prOMOTION COUNCIl MAGAZINe
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AppArel / AEPC activities
AEPC submits representation to Drawback Committee
Apparel Industry leader’s meets drawback committee in Bangalore.
A
EPC had submitted its representation to Drawback committee to consider taxes not subsumed GST like embedded taxes on purchase of ginned cotton (Agricultural inputs, seeds, fertilizers, power, diesel etc.), State VAT on petroleum products used as a fuel in transportation, Mandi Tax, Green Tax, Stamp Duty, Electricity duty, purchase from unregistered dealers, Embedded Taxes on MMF etc. Out of these Ministry has considered only VAT on fuel used in transportation (raw materials, finished goods and factory workers), VAT on fuel used in generation of captive power, Mandi tax on purchase of cotton and Duty on electricity used in manufacture as accumulated from stage of Cotton/MMF fiber till garment/made up stage and notified the rate of 0.75% to 1.22% on 27th September, 2017. AEPC had again submitted its representation to Drawback Committee to consider other embedded taxes which are not notified neither considered for refund. Ministry in its notification dated 25
November, 2017 have considered VAT on fuel used in transportation (raw materials, finished goods and factory workers), VAT on fuel used in generation of captive power, Mandi tax on purchase of cotton, duty on electricity used in manufacture as accumulated from stage of Cotton/MMF fiber till garment/made up stage, stamp duties on export documents and SGST on inputs used in production of cotton and embedded SGST in purchases from unregistered dealers. Accordingly, revised rate of 1.25% to 1.70% was announced. In a meeting held with Hon’ble Minister of Finance and Minister of Textiles on 27 May, 2018, AEPC this issue was raised by AEPC. Hon’ble Minister of Finance clarified that the required mandate will be provided to Drawback Committee for considering all the taxes – blocked and embedded, which are not being presently refunded to the apparel exporters. Accordingly, AEPC has submitted the data for Rebate of State Levies (ROSL) scheme for readymade garments to the drawback committee and the drawback committee. AEPC has also requested to change the nomenclature of ROSL to read as ROSCL to cover rebate of both State and Centre levies. The Central levies for any technical reason may be rebated through a separate mechanism like previously Service Tax was being refunded by Customs as per the rates fixed by Ministry of Finance. The Industry Data has been worked out for both state and central levies being not reimbursed currently. n
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AppArel / AEPC activities
AEPC submits representation on concerns of Banking Sector
Shri Premal Udani, Chairman Advisory Committee, AEPC, at Parliamentary Standing Committee meeting on Commerce at Mumbai
S
hri Premal Udani, Chairman Advisory Committee, AEPC, had attended a meeting of Department Related Parliamentary Standing Committee on Commerce on ‘Impact of banking misappropriation on
AEPC receives award on GST Day celebration
trade and industry’ in Mumbai from 9 to 11 July, 2018. He raised the issues faced by exporters due to banking misappropriations like difficulty in obtaining Foreign Inward Remittance Certificate (FIRC), low valuation of properties for credits, Increased Banking Charges on services etc. n
AEPC sets up refund camp in Tirupur
Dr. A Sakthivel, Vice Chairman, AEPC at the IGST refund camp at AEPC office, Tirupur
I Dr. A Sakthivel, Vice Chairman, AEPC received the award on behalf of AEPC during GST day celebrations in Coimbatore for AEPC’s tremendous support in implementation of GST.
GST refund camp has been set up at AEPC office, Tirupur, for clearing pending IGST Claimstill 1st August 2018 to facilitate the exporters’ for clearing their IGST claims with the help of Customs Officials related to any Ports. Dr.A.Sakthivel, Vice Chairman, AEPC inaugurated the IGST camp in the presence of Shri.V.Elangovan, EC Member, AEPC Smt. Kalaiselvi, Asst. Commissioner of Customs, Tirupur, and Mr.John K John, Superintendent ICD Tirupur, along with our officials, exporters, press and media. n
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India Trend Fair Tokyo, Japan 19-21 Sep 2018
Have you booked your space yet
• More than 2500 professional visitors expected. • Organised by Apparel Export Promotion Council and Japan India Industry Promotion Association. • An exclusive Business Matching Event. • An opportunity for exporters to showcase their products and supply capabilities. • Special emphasis on Japanese fashion trends and requirements. • Buyer profile-Manufacturers, Wholesalers, Trading Companies, Importers, Speciality Stores, Departmental stores, Volume and Online Retailers etc.
TO AVAIL EARLY BIRD DISCOUNT APPLY BEFORE MAY 21 2018 For further details, please contact: Mr. K S Bisht, Joint Director (Fairs & Exhibition) +91 124 2708156 (D), +91 9810527747, Fax : +91 124 2708004, Email : kbisht@aepcindia.com The Application form may be downloaded from our website www.aepcindia.com (Highlights Section)
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AppArel / AEPC Events
AEO Seminar series in Tirupur & Ludhiana
Shri H K L Magu, Chairman, AEPC speaking at AEO Seminar, Ludhiana
A
EPC in its initiative to create awareness and clarity about the AEO Program among apparel exporters is organizing AEO Seminar series. AEO seminars have been successfully concluded in Gurgaon, Mumbai, Bangalore and Jaipur. AEPC in association with Office of the Commissioner of Customs has organized AEO seminars in Tirupur and Ludhiana.
The Ludhiana seminar started with the inaugural speech of Shri H K L Magu, Chairman-AEPC. He welcomed Shri A S Ranga, IRS, Commissioner of Customs, and thanked his team for partnering with AEPC for such awareness workshops across India. Shri H K Khatana, Deputy Commissioner, O/o the Commissioner of Customs, gave details of the AEO programme. EC Members Shri Anil Varma, Shri Harish Dua and Shri Narinder Chugh graced the seminar with their presence. Total 45 exporters attended the seminar in Ludhiana. n
T Dr. A Sakthivel, Vice Chairman, AEPC along with custom officials, interacting at AEO seminar, Tirupur.
he AEO seminar in Tirupur was held on 27th June, 2018, Dr.A.Sakthivel, ViceChairman, AEPC welcomed the officials of customs Shri.J. Mohammed Navfal, IRS, Joint Commissioner of Customs, Trichy, Mr. Subramanian, Assistant Commissioner of Central Excise & GST, Tirupur and Mr. Ramesh, Assistant Commissioner. Around 130 participants consisting of leading exporters, EC members and officials from the exporting firms attended the seminar. n
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AppArel / brand retail
Differential Brands Group makes a significant purchase
G
lobal Brands Group will sell a substantial part of its North American branded business to Differential Brands Group for $1.38 billion. The move, announced at the release of its annual results is aimed at cutting debt, pay a modest special dividend to shareholders and free capital to grow a more focused business, the company said. It will also result in about half of its 7,000 staff leaving the company. Global Brands Group is currently carrying about $1.1 billion of debt, much of it related to its 2014 spin-off from Li & Fung and
Higher than expected profit for Primark
P
rimark’s overall sales have risen six per cent for the year in constant currency terms. Profit will be higher than expected this year after the chain began buying more garments from Southeast Asia, where tariffs and production costs are lower than in China. The chain -- which sources around three-quarters of its products in dollars -- has also been boosted by the weakening of the US currency. With nine outlets in the US, Primark’s US business will be worth around $6.2 billion if the company is able to successfully translate its fast fashion model. In Europe, brick-andmortar fashion retailers have fallen from favor with investors amid the rise of e-commerce and a shift in spending from clothes to entertainment. Value retail giant Primark is going from strength to strength. It has stores in the UK, Spain, Netherlands, the US, Belgium, Germany and Italy. The fashion chain is performing particularly well in the UK and is also benefitting from the currency shifts that have seen the pound getting weakening since the EU referendum vote a year ago. Primark has continued to open stores fast and added 1.3 million sq. ft. retail space since the beginning of the financial year. n
subsequent listing. The assets to be transferred include: licences for Disney, Star Wars, Calvin Klein, Under Armour, Tommy Hilfiger, Bebe, Joe’s, Buffalo David Bitton, Frye, Michael Kors, Cole Haan, Kenneth Cole and the BCBG Max Azria label which it bought last year for $27.4 million after the company filed for bankruptcy. On branded product side, the group’s European and Asian businesses will remain as before, while its US business will now focus on footwear and its remaining fashion business. Brand Management will continue to be managed on a global basis. n
Levi Strauss continues double digit growth in Q2
L
evi Strauss’ Q2 results beat company’s own expectations with a third straight quarter of doubledigit sales growth across all regions. Levi Strauss has had a good run over the past three quarters, continuing to outpace industry peers even in a strong denim fashion cycle. Levi’s growth was the strongest in Europe, with net revenue up 31 per cent and operating income up 51 per cent through the quarter ended May 28, about a month before the EU put a 25 per cent tariff on imported jeans. Women’s apparel and tops were the strongest sales drivers in the quarter in Europe. Revenue grew 13 per cent in Asia compared with the year prior and 11 per cent in the Americas. The company has a fairly complex supply chain, so diversification is important. It sources from about 26 countries. No country supplies more than 20 per cent of its needs. Its direct-to-consumer business and retail partnerships are both growing. Direct to consumer, both store and online combined, logged its tenth straight quarter of double-digit sales growth. But the new 25 per cent tariffs on US jeans in the European Union and a trade war with China could spell trouble for Levi’s and other iconic American brands. n
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AppArel / retail
Fast fashion gets world’s attention
F
ast fashion has been gaining prominence globally despite challenges. For consumers, it must seem to be a ‘one size fits all’ template for fast fashion but there are multiple models in operation. Starting from social sellers, to online pure-plays, multichannel giants, and more traditional store focused value-based models, fast fashion has been a winner in every format as displayed by leading global retailers.
Following Zara’s template When it comes to fast fashion, Zara’s place is quite influential and its supply chain success story is one of the few in the industries to reckon with. It has over 2,200 physical stores globally and ventured online relatively late on (in 2010). Its model also differs from other store focused clothing businesses. Moving starkly away from a 8 to 12 weeks cycle, Zara updates designs and ships new product to stores on an average two-week cycle, which is quite a daunting task. Design teams crunch masses of daily store data to inform the trends
they are designing for. It employs a batch testing approach whereby small runs of designs are tested (in Zara’s case in store and online), and if the data says there is customer traction, then more inventory is quickly ordered and shipped out to the stores. Many designs are made into finished products locally (around half in Spain or nearby European countries). Compared to the traditional seasonal oriented retailers, who operate on lead times which can be up to nine months, this gives Zara an edge when it comes to being on-trend and staying relevant.
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AppArel / retail
Another key to its ability to stay relevant is only committing 5060 per cent of their manufacturing in advance versus the 80-90 per cent typically adopted by competitors, enabling it to react far quicker to changes in trends, maintaining its ability to fulfill customer’s fashion focus.
H&M the other success story Swedish brand H&M is another successful example of fast fashion. Its supply chain is completely in contrast to Zara. It has longer average lead times (varying from a few weeks to multiple months), and typically places larger order volumes putting more stock at risk of markdown. Recent poor performance
code’ with strategic posts. This tracks back the efficacy of that post or representative.
Fast deliveries vital for success
has led H&M to invest in its supply chain as it seeks to adapt further to the fast fashion model, introducing greater levels of automation, and looking to reduce lead times as it tries to stay on top of trends.
Market leader In the US, Nova is a master of the social selling model, using a network of Instagram stars as affiliate marketers. For years since their launch Nova has grown to more than 600 people, who produce roughly 500 new designs a week. Fashion Nova source clothes in the US and partner with close to 500 sewing factories in the Los Angeles area. About 80 per cent of its products are made in LA and Fashion Nova marketing is delivered via a network of 3,000 influencers that reach tens of millions of fans. These local social media influencers work as brand ambassadors and share their photo along with a ‘coupon
Consumers in the 16-30 years’ age group wants to experiment with their clothing, thanks to continuous feeds of the latest media streamed to their pockets, creating an insatiable appetite for all things ‘new’. In order to be successful, one needs to continuously keep evolving. But the challenge doesn’t end here alongside product, deliver model also needs to evolve such as the one which Amazon is currently testing – a one hour delivery window. Meanwhile, fast fashion companies need to stay in constant touch with people through their social media handles to gain a competitive advantage. With average return rates for fast fashion clocking around the 20 to 25 per cent, there needs to be an efficient returns channel in order to be a real differentiator. With an aim to cater to global audience, near-sourcing and more onshore manufacturing are increasingly being adopted to speed up lead times, and as fashion trends are changing quickly and demand for newness grows, demands are being made on manufacturers to become agile. n
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE
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AppArel / trade treaties
India getting closer to Mauritius
I
ndia and Mauritius are negotiating a free trade agreement. The broad contour of the FTA will include trade in goods, trade in services, dispute settlement, trade remedies, economic cooperation and technical barriers to trade. The choice of items for India for greater market access, though, is not too big as only
around six per cent of goods in the island nation are dutiable; the rest are already dutyfree. But as Mauritius is part of a host of FTAs in Africa, India is hopeful that a bilateral trade agreement with the country could open the doors wider to the entire continent. While Mauritius understands that the pact can’t be very wide as India’s tariffs are relatively much greater, India also accepts that actual tariff cuts have to be offered rather than merely giving a margin of preference over other countries. With China already prepared to sign an FTA with Mauritius later this year, the pressure on India is greater. Geopolitical reasons for signing a free trade pact with Mauritius are also important as India cannot allow China to have a greater influence there. Negotiations on the FTA had first begun in 2005, but they were soon suspended as there was no agreement on the definition of enterprise and treatment of shell companies in the chapters on services and investment. n
India awaits change of status
T
irupur knitwear exporters are positive about Bangladesh losing its duty-free access from the EU for readymade garment (RMG) in 2020 as the country is expected to move up from being a ‘least developed nation’. However, Tirupur exporters can reap the benefits of Bangladesh’s loss only if the Union government provides adequate support to the industry. According to United Nations Conference on Trade and Development (UNCTD), Bangladesh’s per capita income stood at $1,355 in 2016, a 39 per cent increase compared to 2013 ($974). At the current rate, by 2020, its per capita income is predicted to overtake India’s, which stood at $1,706 in 2016. As per the World Trade Organisation, if the country’s per capita income has remained more than
$1,000 continuously for three years, it could be classified as a ‘developing nation’. Indian garments attract about 10 per cent import duties in the EU while Bangladesh enjoys duty free status in many developed markets, including the EU. In fact, Bangladesh’s duty-free access was one of main advantages for RMG manufacturer, while Tirupur knitwear exporters had been repeatedly asking for a level playing field. They have been urging the government to provide adequate sops to sustain the industry. Experts say, if Bangladesh loses duty free access, it will provide opportunities to countries like India to compete and buyers will then choose where to source apparels. However, Tirupur Exporters’ Association president Raja M Shanmugham feels the situation may not really turn in favour of India. For example, when China started losing market share from 39 to 35 per cent in global market, India was expected to gain and improve its share by 3.5 per cent. However, Chinese RMG firms’ then moved manufacturing to labour-rich countries like Vietnam and Cambodia. n
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AppArel / trade treaties
UK looks to join Trans-Pacific Partnership
C
ountries like Thailand, Indonesia and possibly the UK are looking to join the Trans-Pacific Partnership. This is a huge free trade zone that will account for 13 per cent of the world’s gross domestic product and 15 per cent of global trade. TPP-11 nations are big recipients of exports from Asean members that have signed the agreement, or are likely to join later. The US’ decision to pull out almost collapsed the TPP as Asean members had little incentive to remain in the pact, which required them to push through painful domestic reforms without the benefit of access to the US market. Malaysia and Vietnam opted to stay in the
Vietnam hopes for a surge in exports to the EU
U
p to 99 per cent of Vietnamese products exported to the EU would be free of tariffs once the EU-Vietnam Free Trade Agreement (EVFTA) goes into effect. Vietnam’s exports to the bloc could rise by as much as four per cent to six per cent a year in the first ten years. The deal would provide new opportunities for Vietnam to increase exports of clothing, seafood and agricultural products. The products Vietnam could not export before due to high tariffs can now be exported to the EU market with more competitive prices. The deal would also benefit the EU, increasing the region’s income. It provides a big opportunity for European exporters. The EU hopes to finish processing this free trade agreement quickly so that businesses, workers and consumers alike in the EU can reap benefits as soon as possible. However, signing EVFTA can also give raise several challenges. There will be competitive pressure in the farming and automobile sectors but that’s not considered unusual. The deal is expected to be signed at the end of this year. Vietnam is the second country in the Southeast Asian region after Singapore with which the EU has reached a free trade agreement. n
agreement, while Thailand and Indonesia warmed to it. The US pullout reduced the clout of the trade accord. America is a major export market for these Southeast Asian nations, accounting for 10 to 20 per cent of their exports but only Singapore has a bilateral FTA with the world’s largest economy. For Asean members, the primary reason for being part of the trade pact was greater access to the lucrative US market. Thailand and Malaysia began FTA talks with the US in 2004 and 2006, respectively, but negotiations fizzled because of unworkable US demands. n
Germany keen to explore Central Asia
U
zbekistan and Germany will expand bilateral cooperation. Both countries came to an agreement on investments, three framework agreements and six export contracts. Both also discussed issues of increasing exports of finished textile products to the European market. They want to use the full potential of economic cooperation. Germany’s economic ties with Uzbekistan are modest. During the negotiations, issues of developing a program of technical assistance and the transfer of knowledge in the field of textile production, design, dyeing, finishing were discussed. Germany remains one of the main trade and economic partners of Uzbekistan in Europe. Germany stands seventh in overall commodity turnover of Uzbekistan with other countries in 2016. The main indicators of mutual trade turnover fell for Germany (almost 90 per cent). The main reasons for the low turnover growth rates are conversion, bureaucratic obstacles and legal security. As many as 123 enterprises operate in Uzbekistan with the participation of German companies, capital and advanced technologies. Large investment projects involving German banks are being implemented in various sectors of the economy. Investment projects for a total of more than a billion euro have been implemented in Uzbekistan jointly with German leading companies. n
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India-EU FTA
Less posturing, more open minded negotiations needed to move ahead Standing at crossroads, trade relations between India & EU are becoming tensed with both parties not showing any signs of flexibility. After many rounds of discussions, things haven’t moved since last year. If the prevailing scenario persists, then it might lead to the end of the golden treaty sooner than expected. But for now, one should just wait and watch for BREXIT and see how the situation takes a turn as most trade ties would finally fructify post that.
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ilateral FTAs are instrumental in global trading system as the prospects of multilateral trading systems under the World Trade Organization are decaying gradually. There are more than 200 FTA deals worldwide. In such a scenario, can the two biggest trading partners call off their free trade agreements? Though it seems highly unlikely yet the
prevailing situation between India & EU over the looming FTA negotiations are pointing in this direction. If that happens, it would be really a challenging scenario for India especially as EU has been signing trade deals with other superpowers and the most recent one was with Japan. The deal covers 600 million people and almost a third of the global economy. Donald Tusk, European Union president, hailed the agreement as the ‘largest bilateral trade deal ever’. As per European Union officials’, it seems India did not
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• • • •
India-EU FTA has been pending for many years Negotiations have been checkered and little movement made Rigid posturing from both sides a bug bear Around 16 rounds of negotiations have taken place between the two sides for FTA • The EU is India’s largest trading partner, with 13 per cent of India’s overall trade • Two-way trade between India and the EU is well balanced • India’s exports to EU in 2016-17 was $47 bn and imports $42 bn
manufacturers. “We are working on solving all the issues prevailing in the industry,” said Irani, adding that the ministry would work on every plight of the sector. AEPC chairman Ashok Rajani said that exporters used to earlier receive 11.30 per cent incentives under Remission of State Levies (RoSL), but now it has come down to 6.5 per cent. He added exporters are facing a crisis while shipping their products abroad, especially the EU, which levies 12 per cent duty on Indian cotton while Bangladeshi and Vietnamese cotton are exempt from any duties.
The flashpoint The rocky patches between two trading partners have been evolving over sometime. Key differences arose over movement of professionals. Besides demanding significant duty cuts in automobiles, the EU also wanted tax reduction on wines, spirits and dairy products, and a strong intellectual property regime. European banks are also wary of India’s show enough flexibility in negotiations. India, on the other hand, has accused the EU of being too rigid in giving access to services. “The government of India is preparing a standard operating procedure that will be followed while entering into any new free trade agreement (FTA),” Union minister of commerce and industry Suresh Prabhu has said. Besides the European Union, the Indian government is currently in discussion with the Canadian and Australian governments for FTA. “When we talk of FTA there are always trade-offs... as a country we have to find how a trade-off can benefit us,” Prabhu said at an event organised by the Apparel Export Promotion Council (AEPC). On India-EU FTA talks, he said he had a meeting with the EU minister to discuss various issues. He added that the EU is great market for India for apparel, which is an employment generating sector. Speaking at the same event, textiles minister Smriti Irani said skilling would be among the focus area for the government and assured her ministry’s all support to garment
restrictive rules on priority sector lending and obligation on financial inclusion. On the other hand, India was seeking data secure nation status by the EU. India is among the nations not considered as data secure by the Brussels. The matter is particularly important for all those Indian IT companies currently wanting market access, and for the prohibitive costs of
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compliance with the existing data protection laws the Asian country currently faces. Also, India claims there are still many barriers to movement of professionals including rules on work permits, wage parity conditions, visa formalities and non-recognition of professional qualifications. EU official’s say, following the EU-India summit last October, EU and India had extensive and frank exchanges at political, chief negotiator and experts’ levels to evaluate whether conditions were right to resume negotiations. Both sides are now in the process of assessing the outcomes of those talks. For the time being, the EU-India trade negotiations have not been resumed.
Fact File • Govt had taken initiatives to sign FTA with Malaysia,Srilanka and Turkey • FTAs are needed to retain trade benefit after LDC graduation • Bangladesh will face 6.7 pc tariff once it is a developing country • The country may lose $ 2.7 b in trade due to in creases tafiff after LDC graduation • In 2016, the value of exports from Bangladesh to preference granting countries was $ 24.7b, Which account for 72pc of total export
As many as 16 rounds of negotiations took place between the two sides for the proposed FTA — officially dubbed as Bilateral Trade and Investment Agreement (BTIA) — from 2007 to 2013 before formal talks were stuck. Senior Indian and EU officials had met late last year to explore a way forward for the long-pending negotiations. Inflexibilities from both the sides and Brexit delayed resumption of formal negotiations.
The backgrounder The EU and India are currently officially committed “to further increase their bilateral trade and investment” through the Free Trade Agreement negotiations that were launched
in 2007. Since June 2007, both sides have completed 16 rounds of talks and five stock-taking meetings on the proposed pact, officially dubbed as Bilateral Trade and Investment Agreement (BTIA). The negotiations for the pact have been held up since May 2013, hanging on some substantial gaps on crucial issues such as intellectual property rights, duty cut in automobile and spirits, and liberal visa regime. The total value of EU-India trade stood at €77.5 billion in 2015. The EU is currently India’s largest trading partner, accounting for 13 per cent of India’s overall trade, ahead of China (9.6 per cent) and the United States (8.5 per cent). India is the EU’s 9th largest partner, (2.2 per cent of EU’s overall trade with the world), after South Korea, 2.5 per cent, and ahead of Canada, 1.9 per cent) with value of EU exports to India amounting to €38.1 billion in 2015. The value of EU exports to India grew from €24.2 billion
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in 2006 to €37.8 billion in 2016, with engineering goods, gems and jewellery, other manufactured goods and chemicals ranking at the top. The value of EU imports from India also increased from €22.6 billion in 2006 to €39.3 billion in 2016, with at the top textiles and clothing, chemicals and engineering goods. Two-way trade between India and the EU is well balanced with India’s exports to the region in 2016-17 at $47 billion and imports at $42 billion. The EU accounts for about 17 per cent of India’s total exports. Garments were India’s biggest exports segment, followed by engineering goods and gems & jewellery.
A TALE OF TWIN NEGOTIATIONS • What India wants: Easier movement of indian professionals to Britain and EU • What is british position: One of the main reason for Brexit is unresticted immigration from EU. London is hesitant • What is EU Postion: Open to give a wider berth but possibly not ot the extent demanded by New Delhi Similarly, the country imports capital goods and gems and precious stones worth billions of dollars from the EU.
Worried trade organisations The Tirupur Exporters’ Association (TEA) recently urged the Central government to take steps towards signing a Free Trade Agreement (FTA) with the United Kingdom (UK) to boost exports inclusive of garment items. TEA president, Sakthivel wrote a letter to the Prime Minister underlying the time is appropriate for India to commence negotiations with the UK for signing FTA. The letter also stated that the deal could be easily clinched as India is in the list of favored nations of the UK for trade purposes. Sakthivel wrote India has been facing a lot of issues including movement of professionals, which have stunted negotiations to have FTA with EU, which consists of 28 countries including the UK. By starting negotiations with the UK immediately for FTA, India could get the early bird advantage. At present, the UK is the number one country in
EU to which Indian garments are exported.
All is not lost… Recent dialogue between India and the EU brings some relief with EU’s ambassador to India Tomasz Kozlowski stating the EU was by far India’s largest trading partner with bilateral goods and services worth €100 billion traded last year. “We are not taking stock of what happened in the past. We are updating each other on our position, on our interests... how far we may go with our position,” the EU envoy said, adding both sides were approaching the subject with an open mind. Despite the deadlock in matters of trade and investment, India-EU relations had expanded rapidly and now encompass many new areas, Kozlowski said, listing space and civil nuclear cooperation, counter-terrorism, foreign policy, and security matters as some of the new areas. Of late, The Netherlands is emerging as a leading voice on free trade and on economic policies that will make the whole of Europe competitive again in the wake of Brexit and in the present political landscape in Europe and Dutch vision, which is increasingly relevant for the Indian businesses, suggested Netherlands Prime Minister Mark Rutte. “The fifth-largest economy in the European Union post-Brexit, the Netherlands is also India’s fifth-largest source of foreign direct investment. As India renews its partnership with the European Union and negotiations for a free trade agreement, the Dutch vision is increasingly relevant for the Indian government and businesses,” Rutte told a leading media during his recent visit. Such affirmative versions from EU government officials only give us a ray of hope and augment scope for immense opportunities in the future. n
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Ocean trade shows robust growth
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s per DHL Global Trade Barometer, India’s trade growth in the third quarter will continue to exceed that of the world’s largest economies at 79 points despite a slight
decrease in the pace of growth. This growth is driven primarily by air imports in high technology, machinery parts and industrial raw materials, and air exports for chemicals and products and consumer fashion goods are expected to also perform well. Ocean trade shows robust growth on both the import and export fronts, with industrial raw materials driving the positive outlook for ocean exports. Basic raw materials and high technology chemicals & products are expected to drive the import demand. Developed jointly by DHL and Accenture, the DHL Global Trade Barometer provides a quarterly outlook on future trade, taking into consideration the import and export data of seven large economies: China, South Korea, Germany, India, Japan, the United Kingdom, and the United States. Together, these countries account for 75 per cent of world trade, making their aggregated data an effective bellwether for near-term predictions on global trade. The DHL Global Trade Barometer, assesses commodities that serve as the basis for further industrial production, predicts that global trade will continue to grow in the next three months, despite slight losses in momentum. n
Indian textiles sector on revival path
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ndia’s textile industry, which had been languishing for the last few years following demonetization, GST, rupee appreciation and high cotton prices, is finally showing signs of revival. The gross NPA ratio rose from 19.4 per cent to 22.8 per cent during September 2017 to March 2018 whereas the stressed advances ratio increased from 23.9 per cent to 24.8 per cent. The support extended to the textile
sector including the Rs 1,300 crore Samarth scheme for skilling, the Rs 6,000 crore package for apparel and madeups along with various state incentives, is expected to create a strong turnaround in the textile sector and put the industry back on the growth path. However, excess imports remain a problem. In fiscal 2018, imports of textiles and apparel were 16 per cent higher than previous year’s value. All categories across the value chain have seen a drastic rise in imports. Fabrics and apparel imports have seen a rise of 27 per cent and 30 per cent respectively. Also, embedded duties, which are in the range of four per cent to six per cent across the value chain are not getting refunded. The biggest game changer that could transform the industry and put it at par with its competitors such as Vietnam and Bangladesh is free trade agreements with the EU, Australia, Canada and Britain for made-ups and garments. n
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India overtaking China is a matter of time
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ndia is likely to outdo China in the textile sector. Contributing factors are cheap labor and modernization. With quality and skilled labor and machinery, India can easily overcome Chinese competition in the textile industry as labor costs in China are high compared to India’s. High-tech machines which help deliver quality goods will enable India to reach the set targets at production level. Tamil Nadu alone accounts for 39 per cent of total textile production in the country. There are 4.13 lakh handlooms in Tamil Nadu providing employment to 6.08 lakh weavers while the 3.66 lakh power looms and 1,889 spinning mills provided employment to another 2.40 lakh people. Knitwear and woven garment production units provide employment to over five lakh people. India aims at doubling annual revenue
from textiles by 2025. The textile sector contributes 16 per cent to the country’s GDP. Foreign direct investment is being encouraged in the sector, which has the potential to create millions of jobs. The textile sector is capable of strengthening the rural economy and creating large-scale employment. However, the Indian textile industry is over-dependent on the exports to the European Union and the US. But when the season ends in those markets, there aren’t enough orders. n
Fall in knitwear exports
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ndia’s knitwear exports have been falling month on month since October 2017. For the second half of 201718, the decline in exports was 21 per cent. And the negative trend in export growth is continuing this fiscal. The sector went through a challenging business environment following the implementation of GST. But now yarn prices threaten to derail the industry. This would affect the sector and also have a boomerang effect on textile mills. Cotton yarn prices have increased by Rs 20 a kg. The impact of price increase has made textile mills increase yarn prices which ultimately affects downstream value added sectors like weaving, knitting, garmenting and made ups, particularly value added exporters, as they cannot hike the price which was fixed more than three to five months back. However, a turnaround seems possible as the sector is now booking orders and business has started to look up and is poised to bring back the industry
from the brink after a prolonged one year lull. Knitwear exporters want the Cotton Corporation of India to ensure the availability of enough supplies of the desired quality to protect farmers’ interest, textile industry and also generate employment. n
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Cotton prices hurt exporters
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he knitwear industry in Tirupur has urged mills not to increase cotton price further, as exporters are already struggling to survive. Falling rupee has given no respite to the industry as the price of yarn, its key raw material, has zoomed. Cotton yarn price have risen by Rs 20 a kg this month to Rs 240 per kg for 40 count yarn. With strengthening cotton prices, industry fears another hike of Rs 5 per kg in July. The price hike has put the knitwear garment export sector in a difficult situation, hard to sustain in the competitive global environment. Beleaguered knitwear export sector has been passing through a challenging business environment following the implementation of GST. This was evident from the continuous decline in knitwear exports month after month since October 2017, after three months transition period was over. Exports declined by
as much as 21 per cent during the second half of 2017-18. The most worrying factor is that the negative growth trend in exports is continuing in the current financial year and the average decline of knitwear exports in the month of April and May was 34 per cent. n
Hosiery prices soar at Tirupur cluster
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he price-cost trend graph of hosiery products in Tirupur cluster indicates a rise on as many as 14 occasions since December 5, 2005. The products supplied from this cluster have cumulatively become costlier by 123 per cent, since the first collective decision of entire hosiery manufacturers to increase prices in 2005. Interestingly, prices were scaled down only once between December 5, 2005
and the latest decision taken a few days back by the South India Hosiery Manufacturers Association (SIHMA) to increase costs. The resolution to reduce prices on July 11, 2011, by 5 per cent was made due to a significant reduction in the cotton yarn prices during that period, even though the other costs like transportation and labour charges were going up. Prices increased the maximum number of times in 2010, when Tirupur cluster become dearer on four occasions with prices collectively going up 32 per cent. n
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Belief in international production networks
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he perception of globalisation in Japan may be a bit different from other developed countries as Japan strongly believes in international production networks. In the past, a typical negotiation team for a free trade agreement consisted of representatives from the Ministry of Foreign Affairs, the Ministry of economy, Trade and Industry, the Ministry of Agriculture and the Ministry of Finance. These representatives often fought harshly among themselves — even in front of their foreign counterparts. poor coordination among them substantially weakened strategic moves and lessened their negotiating power. Now, Japan’s political leadership is overcoming traditional inter-ministry competition. The way of working toward FTAs has fundamentally changed. The majority of Japanese support the idea of Tpp 12, at least so far as they understand its elements. They believe the competitiveness of Japanese firms resides in their active
involvement in east Asian production networks. In parallel with the Tpp, Japan has already completed negotiation on Japan-eU economic partnership Agreement. Diplomatic relationship with China has been restored to some extent and negotiations over the regional Comprehensive economic partnership and the China–Japan–Korea FTA are ready to be accelerated. Japan is trying to be a hub of multiple mega-FTAs and there is public support for this concept. n
Clothing prices dip in the US
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S retail apparel prices fell a seasonally adjusted 0.9 per cent in June after being unchanged in May but were up 0.6 per cent from a year earlier. Women’s wear prices fell 1.2 per cent last month, led by declines of 3.5 per cent in dresses and 3.4 per cent in the underwear, nightwear, sportswear and accessories category, balanced somewhat by price increases of 0.5 per cent in outerwear and 0.1 per cent in suits and separates. Men’s wear prices inched up 0.1 per cent in the month, with gains of 0.5 per cent in shirts and sweaters, 0.3 per cent in furnishings and 0.2 per cent in pants and shorts, while prices for suits, sport coats and outerwear were off 0.3 per cent. The falloff runs counter to increases in raw materials prices, which have been on the rise, and is likely indicative of retail trends, including the strength of off-price merchants, a shift to summer goods from
spring merchandise, and a softness in overall pricing power in the highly competitive sector. raw material and apparel prices are expected to spike in the coming months due to the import tariffs already imposed or set to be imposed this fall on textiles and some clothing from China, the largest supplier of apparel to the US. n
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Soaring raw material prices add to challenges
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esides other prevailing challenges, apparel companies need to tackle steep increase in prices of raw
materials as well. Recent stats reveal, wool prices have soared to record highs this year with booming demand, while a drought in Texas and rising Chinese imports have sent cotton futures to
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a nearly six-year peak in the US. The price of oil, used to make synthetic fabrics like polyester and rayon, is up over 50 percent from a year ago. Retailers, including Abercrombie & Fitch and Ralph Lauren, have already red marked rising supply chain costs as a potential threat. But they have limited options beyond passing along prices to customers, an unappealing prospect for retailers facing declining mall traffic and increased competition from low-price competitors online. Some, including H&M, are planning steep discounts in coming months to reduce inventories, and could now see rising prices for cotton and polyester squeeze already
slim profits. Adam Mansell, Chief Executive of not-for-profit organisation UK Fashion & Textile Association feels margins within the supply chain are incredibly tight. Unless you are supplying top-end luxury goods, it is a very difficult world to be in at the moment.
Declining cotton stocks a cause of concern Cotton prices are moving north because bad weather is reducing global supplies. Cotlook, an independent analysis firm, forecasts a decline in the world’s stock of cotton by the end of this year. Chinese textile manufacturers have also begun drawing down massive government stockpiles. Oil prices have risen steadily over the last year, as the Organisation of
the Petroleum Exporting Countries as well as Russia have reduced production, and countries like Libya and Venezuela have seen supply outages. Brent crude, an international benchmark, traded at about $78 a barrel on Wednesday, compared to about $50 a barrel a year ago. The fashion industry’s demand for wool is rising faster than farmers can handle. Wayne Gordon, commodities analyst at UBS Global Wealth Management Chief Investment Office, highlighted that you have to have the breeds of sheep, and it takes 2-3 years to have any impact on the market. It will put a pressure onto the fashion industry.
When the going gets tough Indeed brands have a difficult choice to make – raise prices and lose customers or keep customers and accept lower profits. That’s a tough pill to swallow at a time when 700 clothing stores shut down in the UK alone last year, according to Local Data Company data compiled for PwC. At Abercrombie & Fitch, commodities are pushing expenses higher, though the company said transportation costs are a bigger threat right now. John Kernan, an analyst at Cowen, stressed that things are going to get be tougher, they are going to raise prices to offset cost inflation. It will be difficult. n
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India may invite censure following trade measures
y imposing retaliatory import duty, India can fall under the list of nations that have broken their commitments to WTO, say trade experts. The bound tariff rate is the customs duty rate committed by a country to all other members under the most favored nation principle. The global trade law for the 164 WTO members prohibits discrimination on the basis of tariffs. India raised basic customs duties on 43 broad categories of goods, including electronics, in this year’s Budget. It also raised import tariffs on 76 textile products and announced higher safeguard duties on solar cells imported from China and Malaysia. The tariff increases that India implemented so far are within the bound rates, unlike US President Donald Trump’s global tariffs on steel and
aluminium as well as the ongoing tariff measures being taken by Washington DC and Beijing against each other. Talking about India’s decision to increase duty rates, Biswajit Dhar, trade expert and professor at the Jawaharlal Nehru University says India had informed the WTO of its plan to raise tariffs through safeguards measures. But existing norms do not allow a country to take safeguard measures against just one nation, as India has done. The US has not respected the multilateral system recently, but if it feels that the tariffs are unjust, it should go to the WTO. In order to take control of the situation, a team of officials from India are camping in Washington DC, trying to secure an exemption from America’s aluminium duty hike, following which India may also roll back its own import hike. n
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All-out trade conflict begins between the US and China
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S tariffs on Chinese imports have taken effect. With China vowing to respond immediately in kind, the world’s two biggest economies took a high-stakes turn toward an all-out trade conflict. China has also imposed tariffs on imported US goods including autos and agricultural products. The United States may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount that the United States imported from China last year. The US has railed against China for intellectual property theft and barriers to entry for US businesses and a A$375 billion US trade deficit with China. Throughout the escalating conflict, China has sought to take the high road, positioning itself as a champion of free trade. While the initial volley of tariffs is not expected to have a major immediate economic impact, the fear is that a prolonged battle would disrupt
makers and importers of affected goods in a blow to global trade, investment and growth. For companies with supply exposure to tariffs, they will move sourcing country of origin if they can; if they can’t, they’ll pass on as much of the tariff cost as they can, or see a cut in margins. The dispute has roiled financial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent weeks. n
Global economies recovery may be badly hit
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he US tariffs on Chinese products will damage the global economy. The immediate threat is of disruption to a global economy which is enjoying its most sustained synchronised recovery since the international financial crisis. Unilateral tariff imposition is not merely against the interestof any one country but against the
interests of all states. Just the threat of tariffs led to hundreds of billions of dollar losses for investors – even before damaging tariffs were imposed. German companies fear they could suffer considerable collateral damage because machines and cars made by their subsidiaries in China and exported to the
US could end up being hit just as hard as Chinese products. But even greater than the immediate damage to the world economy is the strategic threat. By definition, international trade is multinational, and must, therefore, have mutually agreed rules. If any one country is allowed to set the rules, or to act outside a mutually agreed framework, it would inevitably manipulate the situation to its own advantage. Any US action outside the World Trade Organisation therefore strategically threatens the multilateral trade framework on which every economy’s prosperity depends. While the US tariffs will damage the global economy, they will not reduce the US trade deficit. n
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Those who are diversified have no problem
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s the EU imposes counter tariffs on American denim, the US side of the industry remains on edge. However, large companies such as Levi’s and True Religion, as American as they seem, actually create the largest portion of their goods overseas. The EU tariffs affect US-manufactured goods only. Levi’s sources products from 26 countries to service 110 countries around the world. Levi’s feels this diversifies their source base and spreads the supply chain. The brand is an American business but with an international footprint. The same goes for True Religion, a brand with entirely American roots that moved production to Turkey long ago. The counter tariffs do not affect True Religion since it does not produce denim in the USA anymore. And it’s the smaller American denim labels that are still producing entirely in the US but selling overseas that are left facing a challenge that could cost them their entire European market share. However, the mood is definitely tense. Apparel imports were already taxed high before
the trade standoff, so the additional 10 per cent import tax on everything coming into the US from China, like apparel and textile and apparel production machinery, coupled with the 25 per cent
tariff China has placed on raw cotton imports from the US, could have a serious impact on prices for both brands and consumers. n
Consumers, workers and businesses to bear the brunt
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he US decision to impose tariff on an additional $200 billion worth of imports from China is expected to hurt American consumers, workers and businesses resulting in inflationary costs throughout the supply chain, ultimately paid for by American consumers. The list includes numerous textile, accessory, and travel goods products such as handbags, hats, and textiles on this additional list of products that will directly impact the American apparel and footwear industry and its retail partners. More than 84 per cent of US travel goods come from China. The United States may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount that the United States imported from China last year. The US has railed against China for intellectual property theft and barriers to entry for US businesses and a 375 billion
dollars US trade deficit with China. The dispute has riled financial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent weeks. While the initial volley of tariffs is not expected to have a major immediate economic impact, the fear is that a prolonged battle would disrupt makers and importers of affected goods in a blow to global trade, investment and growth. n
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Countries stare at huge tariffs
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angladesh exporters may face an average tariff of over 40 per cent if the global trade war intensifies. The US would impose average tariffs of 30 per cent vs. seven per cent now); the EU would increase its own average tariffs from three per cent to 35 per cent, Canada from three per cent to 53 per cent, Mexico from almost nil to 60 per cent. Even an open trading economy like Singapore would increase tariffs from two to 33 per cent. By unilaterally introducing tariffs, a large country not only limits its imports from the rest of the world, but also reduces the price of its imports relative to its exports, thereby benefiting from an improvement in its terms of trade. These unilateral tariffs can be calculated by estimating the leverage each country has on international markets, depending on whether its trade policies are able to influence international prices. Tariffs applied on developing countries’ exports could rise from three per cent to 37 per
cent. But whereas average tariffs affecting countries like Nigeria and Zambia probably would not go above ten per cent, those against Mexico could reach as high as 60 per cent. n
Depreciation may cushion shocks
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S punitive tariffs will hit around 50 per cent of total Chinese exports to the US. Even though China will suffer some offset in export competitiveness, the significant depreciation of Chinese yuan against the dollar will provide an offset. The United States will begin the process of imposing 10 per cent tariffs on an additional 200 billion dollars of Chinese imports. The action is in response to China’s decision to impose retaliatory tariffs of $34 billion of US imports. Chinese export sector would be hit hard by the additional tariffs, particularly key industries such as textiles, metal products, auto parts, glass products and electrical and electronic equipment. The new US list of products subject to an additional ten per cent duty will impact a large range of Chinese textile products, including cotton and wool fabrics and yarns. The US feels that its large bilateral
merchandise trade deficit with China will help since China will run out of US products to impose retaliatory tariffs on long before the US runs out of Chinese products to apply punitive tariffs on. The US is China’s largest export market, accounting for 19 per cent of overall shipments. The wider damage of the US-China trade war will significantly increase the transmission effects to the rest of the Asia Pacific economies. n
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Tariff war
Tit for tat begins between US and the others
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fter China, European Commission is also prepping for retaliatory tariff on US products. The EU placed additional duties on €2.8 billion ($3.2 billion) worth of US goods, adding that it will subject €3.6 billion ($4.2 billion) of American products to high tariffs ‘at a later stage’ — either ‘in three years’ time or after a positive finding in a WTO dispute settlement.’ As per European Commission’s estimates, EU steel and aluminum exports affected by the US measures were worth €6.4 billion ($7.45
billion). In March 2018 the Trump administration signaled the imposition of 25- and 10-per cent tariffs on steel and aluminum, respectively. The tax hike was imposed to Europe on June 1. Commissioner for Trade Cecilia Malmström reiterated the rules of international trade, which EU has developed over the years hand in hand with its American partners, cannot be violated without a reaction from their side. EU’s response is measured, proportionate and fully in line with WTO rules. If the US removes its tariffs, its measures will also be removed.
Germany emerges top exporter to the US As per Eurostat, the US was the largest partner for EU
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exports in 2017 and the second largest for the bloc’s imports. At the same time, Germany emerged as the largest exporter to the US among EU member states. Between 2008 and 2017, the EU had a trade surplus with the US peaking at €122 billion ($142 billion) in 2015 and falling to €120 billion ($139.7 billion)
in 2017. When it comes to EU exports to the US, which totaled €376 billion ($435 billion) in 2017, €6.4 billion ($7.45 billion) in tariff-hit goods pale in significance. Vice versa, €2.8 billion ($3.2 billion) worth of US goods subjected to EU duties stand nowhere near total US exports to the bloc, which amounted to €256 billion ($297.8 billion). The EU’s major exports to the US comprise of machinery, packaged medicine, vehicles and medical and pharmaceutical equipment not targeted by the Trump administration’s tariff spree. Germany, which accounted for 30 per cent of all EU exports to the US in 2017, views North America as its largest single export market for cars. In line with other countries, Mexico also applied additional tariffs on $3 billion worth of US goods in early June, while India notified Washington on June 22 that it will impose higher
tariffs on a number of products imported from the US, including agricultural products and industrial inputs, from August 4. Looking at the prevailing scenario, Gerry Rice, director of communications, IMF, stated that everybody loses in a protracted trade war, IMF encourages countries to work constructively together to reduce trade barriers and to resolve trade disagreements without resort to exceptional measures.
India too jumps into tariff war fray The trade war between US and China, oil spike and volatility in exchange rate is likely
to have a negative impact on oil importing countries like India. To mitigate this, India plans to hike tariff on 30 imported US goods including motorcycles, heavy machinery, chocolates, almonds and shrimps. This is in response to US increasing duty on aluminium and steel imported from India, resulting in a combined loss of $240 billion, which though not significant, mutes the expansion possibility.
Cautious approach needed Care chief economist MadanSabnavis has advised India to have a cautious approach at this stage as the trade war could be extended
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to India as well. President Donald Trump is very unpredictable, and has already indicated that Washington could levy higher tariff on some of the products imported from New Delhi. The Sino-US trade war, however, opens an opportunity to boost India’s exports to the US. India-US trade is worth over $100 billion. Both in merchandise and services, bilateral trade is loaded in favour of India. But there is also a possibility of dumping from China in the face of US restricting imports from Beijing. New Delhi cannot remain complacent as Washington may demand enhanced market access in farm and dairy products and medical equipment. Although India’s trade surplus with the US is little over $25 billion as compared to China’s $337 billion, America reckons India as a big market for its dairy and farm products and medical equipment. India is one of the largest producers of fruits and vegetables with horticulture recording bumper harvest of 375 million tonne this year. Import of US farm products will worsen farmers and food
security concerns.
Narrowing the trade gap with China Although, the US has threatened to withdraw the special and differential flexibilities for India, China and South Africa, trade experts see this as a window of opportunity for New Delhi to step up farm exports to Beijing which can help in narrowing the trade gap with China, now at over $50 billion. India can increase its global farm exports to $100 billion from the present $40 billion. Analysts say, the trade war has certainly opened some opportunities and it is now up to the government and exporters
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to cash-in on it. FIEO regional head and a top garment exporter A Shaktivel said that as it is garment exports are not doing well and a trade war will definitely hit the Indian exports which of late has started looking up.India will do well to be cautious as it could be the next target. There may be a window of opportunity as well which depends on what Chinese items attract higher tariffs in the US.
Apparel sector facing a grim scenario US policy makers have put themselves in a fix with the imposition of duty on imported products. While clothing
and footwear haven’t come under the duty radar but the scenario seems grim. Clothing accounts for about $35 billion of China’s annual exports to the US and footwear $15 billion, around 10 per cent of the total, reveals Dylan Chu, China consumer discretionary analyst, CLSA. The repercussions of the policy enactment may lead to shifting to some
Other potential sources of supply include Cambodia, Indonesia, the Philippines and India. Africa is also developing its manufacturing base in Ethiopia, Kenya and countries in the north of the continent. However, the lion’s share still goes to China, which accounted for 36.4 per cent of global clothing exports in 2017, as per the WTO figures.
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factories outside China to offset higher labour costs. Owing to rising wages, Chinese manufacturing has been losing sheen and countries like Bangladesh are quick to grab the opportunity, thanks to zero-tariff access to Europe for its textiles, much like Vietnam. Other potential sources of supply include Cambodia, Indonesia, the Philippines and India. Africa is also developing its manufacturing base in Ethiopia, Kenya and countries in the north of the continent. However, the lion’s share still goes to China, which accounted for 36.4 per cent of global clothing exports in 2017, as per the WTO figures.
Consumers at receiving end Moving further afield means longer lead times. Vietnam might take the gains here as supplies can be trucked in from its northern
neighbour. In spite of this, it is estimated that the lead time for apparel would typically be 45 to 90 days in Vietnam, compared to as little as 10 to 20 days in China. Zara chain is able to get the hottest trends to consumers within weeks. That’s because the company makes about 60 per cent of its products close to its headquarters, in Spain, Portugal and Morocco. With such a challenging scenario, consumers should be prepared to pay more for the latest fashion. What’s more, having more fashion hits, and fewer misses, should mean less products being sold at a discount. That should mean more of a cushion to absorb higher duties. Now as consumers are used to cheaper clothing, the task in hand is to push the extra costs further down the supply chain, forcing manufacturers to share some of the pain, which wouldn’t be easy either. For now, retailers hope that speed to market wins, and consumers prioritise latest colors or style over the bargain basement. n
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Italy biggest customer of Portuguese clothing
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ortuguese clothing exports increased 2.2 per cent during the first five months of the year. Italy was the fastest growing customer during this period, corresponding to a 33 per cent rate development. Other markets were: France with a 4.5 per cent growth and the Netherlands with 11.6 per cent growth. The main markets for fashion from Portugal are the US, Spain, Germany and the Nordic countries. Exports account for 70 per cent of Portugal’s textile and clothing business. The industry has been able to carry out an extraordinary reconversion and modernization. It is primarily clustered in the north coast of the country and encompasses spinning, weaving, finishing, knitting, apparel manufacturing, home textiles and technical textiles. Located in the same region are the Technological Centre of the Textile and Clothing Industry and the Centre of Nanotechnology and Smart Materials. Over the past two decades, the country’s textile industry has shifted focus from pricing to value in response to competition from low-cost
countries. The focus now is on fashion, design, technological innovation, logistics and international markets. Portugal is promoting textiles in three silos: brands/fashion/design, private label and home textiles. Home textiles represent nearly 40 per cent of the sector’s exports to the US. n
Innerwear is a money spinner for Bangladesh
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or 2017-18 Bangladesh’s export earnings from lingerie — innerwear and nightwear — were up 7.84 per cent compared to previous fiscal. Manufacturers are now making fresh investments in this segment as they try to grab a bigger share of the global market. The prospect of orders coming in a large number following a rise in the cost of manufacturing apparel in China has made attracted local investors. To add more value added products to the export list, dozens of garment factories have started manufacturing lingerie in the last few years, contributing to the rise in export volumes. As entrepreneurs have already demonstrated their expertise in this segment in the last one decade, buyers are now showing interest in sourcing such items from Bangladesh. Besides, buyers who have already been sourcing other
garment items now want Bangladesh, well known as a garment-producing country ensuring quality and lead times, to produce lingerie. Lingerie is called engineering industrial garments since it is a complicated and technical product that needs a sophisticated design with the right fabric and tailoring to yield a good and satisfactory fit. Exporters have set their sights on this value-added product to maximise their earnings amid a growing demand for it. n
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Sixteen per cent fall in garment exports
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ndia’s readymade garment exports in the first three months of the current fiscal fell 16.57 per cent as compared to the same period last fiscal. After reporting a eight per cent decline in fiscal ’18, exports of readymade garments fell 21.40 per cent in April, 12.59 per cent in May and 7.8 per cent in June. In dollar terms, the decline in April, May and June 2018 was at 22.78 per cent, 16.57 per cent and 12.45 per cent respectively. The sector has been hit hard by rising cotton prices coupled with issues such as GST as well as reduction in duty drawback rates and return on state levies. The beleaguered knitwear export sector has been passing through a challenging business environment. Knitwear exports have been declining since October 2017 on a month-on-month basis and the decline in exports for the second
half of 2017-18 was 21 per cent. The most worrying factor is the negative trend in export growth is continuing in the current financial year. However, India’s apparel market is expected to grow 11 to 12 per cent in the next seven years. The market grew at a compounded annual growth rate of 10 per cent from 2005 to 2017. n
Apparel exports expected to dip further
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ndia’s apparel exports may decline by 10 per cent in fiscal ’19. In 2017-18 exports declined by four per cent. The downturn continued in fiscal 2018-19 with a month on month decline of eight to 10 per cent. The country’s apparel exports have taken a beating from October 2017 onwards. GST has resulted in non-refund of several embedded taxes. The 20 per cent jump in cotton prices in the last few months has also hit exports severely. India’s domestic apparel market has grown at a CAGR of ten per cent since 2005. With strong fundamentals, the domestic apparel market is expected to grow at a CAGR of 11 to 12 per cent up to 2025. The Indian domestic market has performed better than the largest consumption regions like US, EU and Japan, where depressed economic conditions has led to lower demand and growth. The domestic market size is dominated by the readyto-wear category, with 84 per cent share, which is further growing at a CAGR of 10 to 11 per cent. The ready-to-stitch market is expected to grow at a CAGR of seven per cent and reach about $20 billion by 2025. n
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India’s underwear exports to the US rise three per cent
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S noted a dip in volume of underwear imports from January to May 2018 by 3.13 per cent. Import was valued at $1,454.81 million a rise of 0.63 per cent on Y-o-Y basis. India and Vietnam lead in underwear imports to the US followed by countries like China, Sri Lanka and Bangladesh. India shipped 7.34 million dozen underwear to the US worth $131.37 million marking a growth of 3.07 per cent in valueterms and 10.16 per cent in volume-terms. India marked a profitable period due to high unit prices valued at $17.89 per dozen. This unprecedented growth indicates India has been able to capture orders of high-end underwear. Vietnam too posted a solid period as it shipped 18.89 million dozens underwear fetching $245.59 million, not far behind to the export value of China which clocked $299.57 million and exported 19.33 million dozen of underwear in the US market. In value and volume of export Vietnam
grew by an impressive 12.68 per cent and 1.97 per cent, respectively, while China fell drastically by 4.86 per cent in value and 4.53 per cent in volume. Given the pace of growth, Vietnam is expected to takeover China in underwear export to the US by the end of 2018. Bangladesh indicated a negative trend as exports dipped 3.72 per cent. The analysis indicates the trend of basic underwear is on an all-time low, while underwear made up from specialised fabrics and manufactured with advanced technologies will surely make a mark in the future. n
Germany overtakes US as top export market for Bangladesh garments
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ermany has overtaken the United States and become the largest export market for Bangladesh’s readymade garments. Due to strong economic activities in Europe, especially in Germany, and preferential treatment received by Bangladeshi exporters, Europe’s largest economy has become the largest market for Bangladeshi garment products. Bangladesh’s readymade garment exports to Germany grew 8.65 per cent in fiscal ’18 against a growth of 2.84 per cent in the US market. Export earnings from the UK, the third highest export destination for Bangladesh, increased by 11.76 per
cent. Readymade garment exports to the UK grew by 12.63 per cent. Export earnings from France grew by 5.94 per cent. Readymade garment exports to the market grew by 4.94 per cent. Export earnings from Spain in fiscal ’18 grew by 21.40 per cent. Readymade garment exports from Spain in the period were 21.24 per cent higher than in the previous fiscal year. Export earnings from Poland grew 20.53 per cent. In Asian markets, export earnings from China slumped 26.80 per cent while from Japan grew 11.74 per cent. Export earnings from India grew by 29.87 per cent. Readymade garment exports to India in the period grew by 114.68 per cent. n
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Vietnam maintains numero uno position
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rom January to April ’18, Vietnam’s textile and clothing exports to the US were up 6.18 per cent compared to corresponding period of 2017. Vietnam is the third largest textile and clothing exporter to the US after China and India (volume-wise) and second after China (value-wise). Earnings from readymade garment exports rose 4.05 per cent yearly. Exports of cotton apparels were up 1.84 per cent and exports of manmade fiber apparels
Turkey faces rising orders
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s per Turkish Clothing Manufacturer’s Association (TGSD), the country’s apparel exports of $17 billion would increase to $18 billion this year and reach around $25 billion in five years. Top domestic textile sector players have stressed the importance of environment-friendly and quality products to make the rise in demand sustainable. Leading apparel supplier Colveta, which every year purchases $46 million worth products from Turkey, plans to raise purchase to $75 million within five years. The company buys around 30 per cent of its products from Turkey which it plans to raise it to 50 per cent. Hermes Otto aims to increase purchases from Turkey to over $115 million in 2018, a 7 per cent growth. Verner, one of the major buyers, would increase its apparel order currently $63 million, by 5 to 10 per cent this year. Near East Manufacturing, on the other hand, is ready to increase its $100 million order by 10 per cent. n
Japan remains steadfast buyer
B were up 6.75 per cent. On the other hand, exports of wool apparels fell 12.34 per cent and exports of silk and veg apparels fell 12.34 per cent year-on-year. Exports of non-apparel products from Vietnam to the US skyrocketed 61.24 per cent. Made-ups topped the export growth in non-apparel products and saw a staggering jump of 107.18 per cent. Yarn exports from Vietnam to the US jumped by 15.20 per cent, while the value of fabric exports got a boost by 4.20 per cent. The South East Asian manufacturing powerhouse is ready to achieve its export target of $35 billion by this year. n
angladesh apparel exports to Japan have been increasing over the years, thanks to entrepreneurs’ relentless efforts to meet buyers’ quality requirements and policy support from the government. Another reason for the rise is ‘China-plus policy’ and relaxation of rules of origin. Locally-made knitted items have been enjoying duty-free entry in Japanese market since April, 2015 and woven items since April 2011, even though raw materials are imported. As per Export Promotion Bureau (EPB) data, the country exported apparel items worth $787.13 million during July-May of fiscal year (FY) 2017-18, a 13.04 per cent growth over the corresponding period of previous fiscal. Apparel exports fetched $744.48 million in FY 2016-17, up from $572.27 million in FY 2013-14. RMG export was only $74.33 million in FY 2008-09. Overall exports reached a billion-dollar mark in FY 2015-16 for the first time and maintained the same trend during the last two fiscal years. n
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Apparel companies offer innovative products
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ustainability is now an integral part everyday life with consumers’ growing awareness and their stance to opt for eco-friendly products. And to sustain existing customers and lure new ones, textile and apparel companies are creating ethical robes and offering innovative products. They are also making sure that the impact is percolated till the end of the value chain and their suppliers so that no unethical practices are imbibed and followed. In line with this, San Francisco-based startup Allbirds, founded by Joey Zwillinger and Tim Brown, introduced the world’s most comfortable shoes. Among the materials used by the brand are recycled bottles for laces, castor bean oil for the
insoles, recycled cardboard for packaging as well as its signature merino wool and tree fibers for the shoe uppers. In May, Adidas Speedfactory in its first high-performance running shoe made with Parley Ocean Plastic off the West
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high-street e-tailer asos partnered with the Centre for sustainable Fashion to launch a circular fashion training program to educate its designers on sustainability. nike, Under armour and other mega footwear and apparel players have also joined the fray — publishing their own annual sustainability reports to keep track of their advancements in this arena. While universal guidelines for sustainability have yet to be determined, the sustainable apparel Coalition is the most credible governing body for the industry, developing the higg index that enables brands and retailers to measure and score a company or product’s sustainability performance. it empowers businesses to improve conditions Coast, and The north Face recently revealed the pilot phase of its green project, renewed, a collection of refurbished clothes sourced from returned, defective or damaged apparel. stella McCartney launched her fashion house as the first vegetarian luxury brand and has built her business based on the practice, founding the ‘World of sustainability’ platform to document the start-to-finish process of operating a modern and responsible company. Other well-known brands that have established their sustainability credentials include Patagonia, eileen Fisher and reformation.
using natural resources and fast fashion companies are not far behind. h&m for example in its 2017 Sustainability Report revealed recycled or other sustainably sourced materials made up 35 percent of the company’s total material use. mattias Bodin, sustainability business expert in materials and innovation, h&m, stated every year the company takes new steps towards its bold goal to only use recycled or other sustainably sources materials by 2030. This significantly reduces the use of natural resources and the negative impact the business has on the climate.
for factory works, local communities and ultimately the environment. although millennials vouch for sustainable fashion and social change, the eco-friendly factor of a fashion product are often dominated by factors such as price and value. a Lim College survey determined that even though the generation favors sustainable apparel and accessories, the industry is not providing them with sufficient choices that also meet their most important criteria for making a purchase. n
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61st IIGF
Co-hosted with IFJAS, the shows surpass previous editions The decision to co-host two big trade shows– IIGF and IFJAS – at a new location paid off well for both sectors. The 61st edition of IIGF held at Expo Centre & Mart, Greater Noida from July 16-18, 2018 turned out to be a major milestone for apparel industry. The positive show results reflect an era of newer synergies and coherence between trade shows. A report. 42 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | August 2018 All_Pages_2.indd 29
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he 61st edition of India International Garment Fair (IIGF) ended with on a positive note for the apparel industry with business deals to the tune of $300 million. The trade show was inaugurated by Shri. Mahesh Sharma, Minister for Culture, in the presence of Shri. Satya Dev Pachauri, Minister of Khadi, Village Industries, Sericulture, Textiles, MSME and Export Promotion, Uttar Pradesh and Shri. Pankaj Singh, BJP MLA, Noida & General Secretary BJP, Uttar Pradesh, on July 16, 2018 at the India Exposition Mart, Greater Noida. The three-day fair held from July 16 to 18, 2018 presented the Autumn/Winter and Spring/Summer collections for European Union, US and other western markets. More than 1,000 overseas buyers visited the 61st IIGF with around 345 exhibitors showcasing a rich variety of products from across the country. The IIGF is organised jointly by International Garment Fair Association, along with four other major agencies, viz. the Garment Exporters’ Associations Viz. Apparel Exporters & Manufacturers Association (AEMA), Garment Exporters Association (GEA), the Clothing Manufacturers Association of India (CMAI) and Garment Exporters of Rajasthan (GEAR). The concurrent hosting of the 11th edition of IFJAS, the Indian Fashion Jewellery & Accessories Show 2018 at the Expo Centre & Mart by EPCH along with the IIGF was seen as a positive initiative taken by the organizers, and welcomed both by foreign as well Indian participating members.
The inaugural session AEPC chairman, HKL Magu and Lalit Thukral, chairman, Exhibition Advisory Committee in their inaugural address, said the IIGF has been the turning point in India’s apparel export industry, reaching new levels, despite the slack domestic and global economy. The industry is expecting a growth of 15 per cent in 2018-19, with GST issues gradually stabilising. Lalit Thukral, chairman, Exhibition Advisory Committee, AEPC Noida Apparel Export Cluster & Convener, said this initiative was very encouraging, as more than 800 apparel exporters are located in Noida and it would allow them to expand and generate 4-5 lakh jobs. Pachauri remarked IIGF has been the only B2B platform hosted at such a big level for the apparel industry. With the setting up of apparel park in Noida on 200-acre land allotted by the UP government and Rs 4,28,000 crore sanctioned under the ODOP scheme, Noida is soon going to emerge as the country’s business hub. He emphasised that the UP government’s focus has always been to make the state an industrial hub, and
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attract investments, create job opportunities and while earning foreign currency. Singh added a slew of initiatives have been taken by the UP government to remove hurdles. The new reforms are aimed at making the apparel industry reach new heights. HKL Magu said Gautam Budh Nagar is now identified as the ‘City of Apparels’. Expressing gratitude to the entire industry, he hoped business would perform better this year, with stagnant growth perceived in the last three years, especially with GST hurdles. Hinting at stability in GST, the problems would be overcome and a positive business mood will improve growth of the apparel industry. Om Prakash Prahladka, Chairman, EPCH adds, “We have made history by bringing together the two shows – a hallmark of international fairs”. Thukral agreed that the apparel industry has witnessed a downward trend in the past 3-4 years due to reduction of the drawback facilities, poor bank financing, GST returns being held up and overall challenges faced by exporters. Indian currency devaluation has been more advantageous to big players, working with large volumes, whereas small volume players do not derive much benefit. He observed setting up a raw material sourcing centre in the Noida apparel park would further address the woes of exporters, which will cut down production costs. Magu hoped with GST settling down and
more than 50 amendments being introduced, apparel exports would increase by 10-15 per cent. He assured exportess AEPC is already asking for alternative measures from the government to resolve drawback incentive issues and with the co-operation of the Ministry of Textiles, some solution will be arrived, which would benefit the whole apparel industry. The Pillai Committee (Drawback Committee) has been formed in this connection and all stakeholders are invited to resolve issues.
Visitors’ voice The fair saw a good number of international visitors. Clayton Harvey from US said Indian suppliers make good efforts to project new designs in popular colours after a detail study of the US and European markets. She found the colours quite relevant and suppliers accommodating buyer’s requirement. The venue change was also appreciated, though Delhi stood as a favourable choice and registration facilities were lot easier this year. The co-location of jewellery show made sense as the costs of the trips were cut down. Talking about the slowdown in global economy and GST’s impact on Indian suppliers, Harvey said these challenges should
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not takeaway the transparency in trade by suppliers. Good quality should remain the criteria and reducing prices should not mean compromising quality. India has an edge over China as designs are not replicated here. “We love to do business with India as it is more conducive and we will come back every time. Though the global trade mood is uncertain and it’s too early to predict the China-US trade war escalation, there ought to be an upward swing.”
Juan Chacon Moreno, a Spanish buyer was overwhelmed with the clubbing of two shows, the timing of the shows as they coincided with vacations in Europe and was satisfied with the product range, modern yet ethnic in taste, ‘rich and oxidental’. He has been a regular visitor to the fair for the past few years. Radhika from London, a first time visitor, was awed by the ‘too much variety’ of garment designs. It is a perfect opportunity to see different fusions of western cuts with Indian
fabrics and embellishments. She appreciated the synergies of both shows as it gave her the opportunity to view both categories under a single roof. Adolf Martinez Carreras from Spain expressed his keenness to do business with India because of the rich variety of design options. He felt the concurrence of the jewellery show was an added advantage for buyers this year. The participating suppliers were equivocal about bringing together the IIGF and IFJAS shows under one roof as it would allow greater momentum for business, with each category complementing the other.
Unfolding future possibilities The Indian apparel exhibitors boasted of displaying new fascinating designs in western cuts adorned with ethnic inspirations and embellishments. On offer were blended fabrics, innovative dyeing techniques such as tie & dye, exciting new collections, amazing outfits in floral bouquet and jungle prints. The key takeaway was that Indian exporters need preferential support by the government as is the case with China, Pakistan, Sri Lanka and Bangladesh. With Indian designs at par with international standards, support from the government would boost exports and give India leadership position. n
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25th Hong Kong Fashion Week Spring/ Summer Exploring the next wave
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rganised by the Hong Kong Trade Development Council (HKTDC), the 25th Hong Kong Fashion Week Spring/ Summer ended recently. The four-day fair held from July 9-12, 2018 attracted around 11,000 buyers from 65 countries and regions. The participating countries included: Bangladesh, India, Indonesia, Malaysia, Russia, Thailand and Vietnam recorded considerable growth. Around 15 fashion events, including
fashion shows, industry forecasting and fashion tech seminars, a buyer forum and a networking reception were held to generate business opportunities for industry professionals. As Benjamin Chau, Deputy Executive Director, HKTDC said, “Global economy is now facing significant challenges, with the impact of Sino-US trade friction. Hong Kong companies should stay competitive by launching diversified products and designs, and by exploring emerging markets. Besides participating in trade fairs, they should also engage in promotions with online sourcing platforms and social media, to reach more global buyers.�
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Fashion and technology have merged and formed a new trend in recent years, where more and more innovative technologies are incorporated in fashion design, manufacturing, sourcing and sales. The fashion week also hosted seminars organized by HKTDC such as ‘The Next Wave in Fashion Technology’ and ‘Online Shopping Reshapes the Fashion Industry’. These discussed latest fashion tech applications and explored marketing strategies for online fashion sales, offering useful insights for both exhibitors and buyers. ‘The next wave in fashion industry’ seminar session explored wearable tech in thermostatic clothing and how to get the accurate shapes and sizes using smart 3D human modelling technology.
Market intelligence and fashion The four-day fair showcased latest market intelligence and fashion tech to buyers and created many sourcing opportunities for the industry. Mohamed Sadhique, a buyer from UAE’s Lamia Garments Manufacturing, said it was his second visit to source laces and other fabrics. He had already placed on-site orders
“Global economy is now facing significant challenges, with the impact of Sino-US trade friction. Hong Kong companies should stay competitive by launching diversified products and designs, and by exploring emerging markets. Besides participating in trade fairs, they should also engage in promotions with online sourcing platforms and social media, to reach more global buyers.” polyester, and the order was expected to be finalised within three to six months. She also pointed out existing customers from Italy and Australia returned to make new orders, while the company has established cooperation with another new Australian company to develop new collections. To cater to the demand for sourcing in small amounts, the show once again set up the hktdc.com Small Orders zone, featuring nearly 100 showcases and garment racks with close to 300 products, which are available for orders in minimum quantities of between five and 1,000 pieces. During the four-day event, 2,700 buyers visited the zone and
with two suppliers from Hong Kong and the Chinese mainland. For him Hong Kong is an excellent place to source fabrics and expects to develop business with more new suppliers for a mix of laces and fabrics.
A flood of orders Hong Kong exhibitor MsEnvy has been displaying at the fair for many years and leveraged the platform to launch an array of silk women’s wear each year to capture buyers’ attention. This year, the company offered women’s wear with 300 styles to buyers. Jun MK Wong, MD, MsEnvy, said a number of new customers including from Canada, Japan, Singapore and other Southeast Asian countries showed interest in their designs. A new buyer from Italy was keen on purchasing some styles in silk and
6,000 connections were established. The third edition of Centrestage, a platform for international, especially Asian fashion brands and designers to promote their brands and launch their collections, will be held September 5-8, 2018. n
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A new set of sustainability standards
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ith growing eco-landscape, retail giant REI has come up with a new set of sustainability standards, which will apply to 1,000-plus outdoor brands it sells currently, and the ones it will sell in the future. With immediate effect, companies will need to abide by the code of conduct, pledging to uphold environmental and social responsibility in the supply chain. REI encourages brands to use either REI’s own factory code of conduct or a code of conduct that’s aligned with internationally recognized best practices, like those published by the International Labour Organization. Companies will also have until 2020 to remove BPA, oxybenzone, long-chain PFAs, and certain dangerous flame-retardant chemicals from their products, and to make sure all their down and wool is sourced humanely. If a company refuses to make these changes, REI
will terminate contract with those suppliers and look out for other players. REI has also listed a host of ‘preferred attributes’, including Bluesign approval (certifying a chemically clean manufacturing process); fair trade certification; use of the Higg index (a metric designed by the Sustainable Apparel Coalition to enable companies to measure their own sustainability attributes); adoption of the Responsible Wool Standard and either the Responsible Down Standard or the Global Traceable Down Standard (all third-party auditing groups that certify humane treatment of animals and best use of the land they graze on); use of organic cotton; and use of recyclable or compostable packaging. Greg Gausewitz, Product Sustainability Manager, REI says the preferred attributes will be one of the many factors REI takes into account when considering creating a relationship with a new company. They are also intended to call attention to the brands that are using those certifications, educate customers about why those certifications matter, and build demand and loyalty for those products.
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Many brands use the same factories, and if they are going to those factories asking for sustainable practices, it’s easier to effect change. Indirectly, one can get a large number of suppliers working toward common positive outcomes. Danielle Cresswell, Sustainability Manager, Klean Kanteen, observed there weren’t resources or guidelines for going green. It found out that partnering with high quality factories was a critical investment because they are able to meet more stringent environmental standards. Naturally, those factories are more expensive. However, every company must make trade-offs and choose where to put limited resources. n
Setting standards
Over the last summer, REI consulted around 60 brands as it drafted the new standards. Gausewitz points out, the company wanted to make sure the standards were feasible, not just for big companies like Patagonia but for up-and-coming brands too. For Nemo Equipment, it’s difficult to carve out time and resources to figure out what you should be doing on the sustainability front, highlighted Theresa Conn, supply chain and sustainability coordinator, Nemo. With these standards, one can easily pick the top 10 things to spend their energy on.
Long term, costs are lower Throwing light on this crucial subject, Ali Kenney, VPglobal strategy & insights, Burton says costs are only high if you try to implement change right away. But if you take a longerterm view, the costs are lower. That’s because companies often do product development two seasons ahead. To implement supply chain changes now would mean switching up the manufacturing process for items that are already in production, possibly re-prototyping and perhaps even switching factories, none of which is easy. Implementing change two years in the future, on the other hand, means the company has time to start from scratch with its new line.
The preferred attributes will be one of the many factors REI takes into account when considering creating a relationship with a new company. They are also intended to call attention to the brands that are using those certifications, educate customers about why those certifications matter, and build demand and loyalty for those products
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Brands clean up their act
T
he fashion industry has made progress toward purging its supply chain of hazardous chemicals. Brands are taking responsibility for the whole production -complete supply chain -- instead of just focusing on the finished products. Greenpeace has signed on 80 apparel companies to detox by 2020. These include
sportswear brands such as Puma, Nike and Adidas, fast-fashion giants including Primark and H&M, as well as outdoor brands, suppliers and denim brands including Levi’s and G-Star Raw. Detox implies ending the use of hazardous chemicals in the fashion supply chain and products. Almost all detoxcommitted brands have moved towards greater transparency by implementing regular water-waste testing and disclosing the results. In addition, 72 per cent of brands either already publish or have committed to publishing an extended list of suppliers to include wet processing suppliers (typically washing and dying) lower down the supply chain. However, the luxury sector is unwilling to commit to detoxing. Only two luxury houses, Burberry and Valentino, are among the detox-committed brands. Suppliers have also helped reduce the use of hazardous chemicals in the luxury sector, even if highend brands haven’t committed to the campaign. Zara-owner Inditex committed to detoxing in 2012. Making corporations legally responsible for their supply chains wherever they produce in the world is a way forward. n
Saving brand value at any cost
A
s per Burberry’s 2017-18 annual report besides reporting an annual revenue of $3.61 billion, the brand also physically destroyed finished goods worth $37.8 million. These included readyto-wear products and accessories. Burberry is not the first brand to come under fire for destroying unsold items. As Quartz reported earlier this year, Richemont was actively buying-back and dismantling its pricey timepieces, in an effort to “save their brand value,” at least in part from the tarnishment that comes from the grey market. Louis Vuitton has, for years, been plagued by reports that
in order to avoid selling its well-known bags at a discount and risk tarnishing its image as a luxury leader, it burns its excess leather goods. H&M was also accused of burning more than 3,483 pounds of clothing on one occasion last year, according to an investigation from Danish television channel TV2’s Operation X program. n
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w
ith designer labels filling up wardrobes and fashion changing fast, the attention span of consumers has reduced considerably. given this scenario, designing clothes that last beyond the next week is not practical. Therefore, to help designers traverse through the fashion landscape with solid direction, tech companies are using predictive analytics.
developing consumer insigHt While outwardly, predictive analytics may appear to be antithetical to creativity; design houses, manufacturers, and retailers have always engaged in analysis, albeit perhaps not in a formal sense. reviewing what has sold well previously, researching the history of a brand to inform future styles and staying on
Dealing with dwindling attention spans of consumers top of things like color trends are all basic analytics that have always being used by designer teams and merchandisers. however, the newer role of data is meant to give more developed insight into what consumers want. ‘edited’ is a retail technology company that helps retailers and brands around the
world ensure they have the right product at the right time for the right price. among other things, it creates dashboards where executives can compare their own successes and failures from the previous season, and that of their competitors. Planning toolkits also help companies set up trend parameters, identify key growth areas, and the subcategories that drove that business.
tHe cHanging nature oF sHopping Use of data can help brands develop a closer relationship with their customer. as per a Cotton incorporated Lifestyle monitor™ survey, nearly half (46 per cent) of all consumers would like apparel brands and retailers to use information from their purchase history to personalise their shopping experience. another, 46 per cent consumers wish apparel brands and retailers knew more about what they like and how they shop. and more than one-third would like brands and retailers to focus more on local trends and styles in their cities. Data can be a guide when a designer feels creatively
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Lifting the veil on the supply chain
This is the type of data that brands and merchandisers can mine for future collections. As Tableau Software points out
Blockchain was originally created as a public ledger for bitcoin, the crypto-currency. In the apparel industry, blockchain means more transparency when it comes to what apparel is made of, and where and how it is made. Daniel Newman, Principal Analyst and founding partner, Futurum Research explains blockchain can help lift the veil on supply chain. In a global economy, companies all over the world partner for manufacturing, agriculture, pharma development, etc. But as distance between companies grows, so does the ability to ensure that the products and
fashion retailers are using embedded analytics to validate orders for certain styles, size, and color to avoid incurring additional manufacturing costs for small production run sizes. Fashion Snoops is another forecasting agency that works with companies on future trends. They understand how consumer lives, what they eat, what kind of music they listen to, where they travel. All this sets the tone and intention on product that will serve and resonate with them. The company also identifies cultural macro and micro trends using news articles and social media. They follow the trends throughout the year and help inspire design themes based on that. This includes color, texture, shape, and material. For brands and retailers, having these data points will help take the guesswork out of how best to reach consumers.
processes agreed upon are actually followed when the final product is made. Blockchain can help combat fraud by verifying the legitimacy of every part of the supply chain process, helping both the buyer and manufacturer. Being more transparent can enhance consumer loyalty, which would be a boon for any store or brand in a competitive marketplace. Recent Cotton Incorporated Lifestyle Monitor Survey illustrates more than half of consumers (56 per cent) are less loyal to brands than they were a few years ago. However, consumers admit they would
stifled or when his team feels that the data is pointing out something new and different which they should try, even if that’s not the case. The study points out nearly 40 per cent consumers use apparel brand and retailer apps on their smart phones or computers to shop online or in-store. And 54 per cent consumers are more likely to buy clothes from a store that offers personal clothing collections based on previous purchase history and preferences.
Data mining
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be more likely to buy clothes from stores that offer things like clothes made from 100 per cent cotton (81 per cent) and clothes made in the USA (76 per cent).
A public digital ledger Blockchain would work as a public digital ledger where each item being manufactured would be given a unique product identity that is then stored in the blockchain. As an item makes its way through the production system, each transaction needed to manufacture that product is validated on a digital ledger that is continually updated for everyone in that network. Once information is entered, it can’t be changed. All participants have access to the same data at the same time, allowing them to seamlessly find information and answer questions. Elaborating on this, Lori Mitchell-Keller, Global General Manager of Consumer Industries, SAP, says both manufacturers and retailers should understand blockchain’s key capabilities. With blockchain technology, manufacturers have access to a living activity log, so they can manage the flow of goods, identify and track problems to any point within the supply chain and streamline processes. In addition, retailers who are purchasing apparel can benefit from the technology, particularly from the transparency, security and reliability it provides. Given that information on blockchain cannot be tampered with, retailers can ensure the items they sell are authentic and appropriately priced based on the products used and the overall manufacturing process.
As per Monitor Research, apparel manufacturers could more easily trace factors such as the fiber being used in their garments. It would also allow manufacturers and retailers to track and then promote natural fibre content to consumers. This is especially important, considering that consumers are willing to pay more to keep cotton from being substituted in their underwear (70 per cent), t-shirts (65 per cent), denim jeans (62 per cent), casual clothes (60 per cent), dress clothes (57 per cent), and activewear (55 per cent).
Tracking products from start to end Mitchell-Keller pointed out that retailers can develop an authenticity trail from point-of-origin to point-of-use, reassuring consumers, as well as everyone along the global supply chain, that the products are authentic, transactions are protected, and operations are efficient. In addition, if there is an issue with a product, retailers can use blockchain to locate the affected batch and remove it from shelves faster than ever before. Blockchain’s revolutionary capabilities not only alleviate many points of friction in business transactions but they allow companies and individuals to easily exchange digital assets, positioning the technology for mass disruption. n
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Dutch production sites in India on the rise with higher compliance
G
oing by The Dutch Agreement on Sustainable Garments and Textile (AGT), currently there are 4,268 production sites in India where participating companies produced goods in the past year. This sharp rise in the number of production sites is a result of more companies signing up the Agreement, and them gaining insight into their supply chain and production sites.
A positive step towards transparency, this helps companies gain better understanding of the value chain and enables them to act on the risks identified. With this, NGOs and trade unions can get to the bottom of the prevailing working conditions at production sites raise any occurring issues within the Agreement.
From 55 to 79 When the Agreement was incepted in 2016, it had only 55 brands on board. The number has now increased to 79, almost 42-45 per cent of the Dutch garment industry. It is expected that the Agreement will achieve its objective of 50 per cent market coverage in 2018. Participation in the Agreement though voluntary; is not free from obligations. The company’s efforts are assessed according to an established assessment framework.
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Monitoring credentials For the first time, the Agreement has systematically identified the materials used and subsequent quantity of ‘sustainable’ materials. It is clear that cotton is by far the most frequently used material, of which 56 per cent is ordinary cotton and 44 per cent more sustainable cotton. This knowledge makes it possible to monitor the sustainable credentials of the choices that the companies will make in the years to come.
Identifying risks From next year onwards, the participating companies, will also publish individually the greatest risks that they face in the factories where they produce, together with their policy for dealing with these risks. This will be done on the basis of IRBC (International Responsible Business Conduct) risk management (i.e. due diligence). This provides information on risks in the areas of, for example, a living wage, child labor, environmental damage and animal welfare. Within the Agreement, companies do also cooperate with NGO’s, trade unions and government, with the shared goal of tackling risks and negative impacts. This is done, for example, by discussing with local authorities or considering collaboratively how problems in the value chain can be best addressed.
Progress chart At the end of its second year, the Agreement can show the progress made on what was agreed in 2016. As Pierre Hupperts, Independent Chairperson point out companies are making strides towards transparency in their value chain and the manner in which they deal with risks. Collaborative projects have also been launched, for example in the areas of freedom of association and prevention of child labour. However, parties to the Agreement are also realistic: the Netherlands is a relatively small player in world market and the problems are substantial. Parties are therefore, working on international upscaling initiatives, such as the German-Dutch cooperation launched at the beginning of 2018. n
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G
ST council met on 21-07-2018 and took some significant decisions recommending changes in the GST law, procedures, simplification of returns, rationalisation and reduction in rates of tax on a wide spectrum of goods and services. The changes relevant for the textile and apparel sector have been culled out and their gist is briefly narrated as under.
Refund of accumulated credit on account of inverted duty structure to fabric manufacturers: At present Fabrics attract GST at the rate of 5% subject to the condition that refund of accumulated ITC on account of inversion will not be allowed. This has caused serious financial hardship be to the fabric manufactures/ exporters who have huge amounts of accumulated ITC of which refund is not admissible. Considering the difficulty faced by the Fabric sector on account of this condition, the GST Council has recommended for allowing refund to manufactures of fabrics on account of inverted duty structure prospectively i.e. from a date to be notified. This step will ease out the situation for future but the past blocked up amount shall still remain un refundable. Reductions in rate of tax on items in the Textile/ Handloom sector (12% to 5%) • Chenille fabrics and other fabrics under heading 5801 • Handloom dari (18% to 12%) • Zip and Slide Fasteners (12% to 5%) • Handmade carpets and other handmade textile floor coverings (including namda/gabba) • Handmade lace • Hand-woven tapestries (These changes shall be effective only from the date when the relevant notifications are issued) Export / other trade facilitation measures • The exemption granted on outward transportation of all goods by air and sea shall be extended by another one year i.e. up to 30th September, 2019 as relief to the exporter of goods. • Reverse charge mechanism in case of supplies received from unregistered persons to be deferred till 30-09-2019 Returns • There shall be a simple monthly return having two main tables- one for outward supplies and the other for availing ITC. • Taxpayers having turnover up to Rs 5 Cr shall have the option to file a quarterly return. However, the payment of tax shall continue to be on a monthly basis • Uploading of invoices shall be a continuous process and the recipients will also have the facility to view and lock them. • Taxpayers would have facility to create his profile based on nature of supplies made and received. • NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS. • There shall be facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return. • Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers. (The new return shall be applicable only when notified)
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Migration Many taxpayers registered under the previous laws could not migrate to the GST on account of various reasons including technical glitches. Recognising the difficulties faced by such taxpayers in discharging their tax liabilities and ensuring other compliance with the GST law a short window (up to 31-08-2018) has been opened for such persons to complete the migration process. Such taxpayers should approach the jurisdictional Central Tax/State Tax nodal officers with the necessary details on or before 31 August, 2018. Proposed changes in law The major recommendations are as below • Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. • Composition dealers to be allowed to supply services (other than restaurant services), for up to a value not exceeding 10% of turnover in the preceding financial year or Rs. 5 lakhs, whichever is higher. • Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council (In any case it has been decided to defer RCM till 30-09-2019). • The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs. • Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory. • The following transactions to be treated as no supply (no tax payable) under Schedule III. a) Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India; b) Supply of warehoused goods to any person before clearance for home consumption; and c) Supply of goods in case of high sea sales. • Scope of input tax credit is being widened, and it would now be made available in respect of the following: a) Most of the activities or transactions specified in Schedule III; b) Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft; c) Motor vehicles for transportation of money for or by a banking company or financial institution; d) Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force. • In case of non -payment of the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but liability to pay interest shall not be there. • Registered persons shall be allowed to issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year. • Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively. • Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, up to a period of one year and two years, respectively. • Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI. • Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. • The order of cross-utilisation of input tax credit shall be rationalised. (These amendments will become effective only when the Central GST Acts and State/ UT GST Acts are amended by the Parliament and the respective legislatures of States and Union territories).
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Ministry NotiďŹ cations Subject : Nodal ofďŹ cers nominated for implementation of e-way bill system
C
BIC in its press release (http://www.cbic.gov.in/resources//htdocs-cbec/press-release/ Final_press_e-way_Bill.pdf;jsessionid=18eC33C1036A63933BCCF6eF10A0CCFA) on 18 July, 2018 has stated that as per the decision of the GST Council, e-way bill system has
been rolled out in a staggered manner across the country. e-way bills are getting generated successfully and till 17th July, 2018, more than thirteen crore and fifty lakh e-way bills have been generated which includes six crore and fifty lakh e-way bills for intra-State movement of goods. Grievance redressal Officers have been appointed by both Central and State Governments
under the provisions of e-way bill rules for processing the complaints/information uploaded by taxpayers/transporters regarding detention of their vehicle. list of these Grievance redressal Officers
is
available
at
-
http://www.cbic.gov.in/resources//htdocs-cbec/gst/GrO%20
Officers%20-%20180718.pdf . Any difficulties or issues being faced by the exporters may be brought to the notice of Grievance redressal Officers in your jurisdiction. exporters are also advised to make themselves conversant with e-way bill rules and be aware of mechanisms available for redressal of all their concerns.
Sub. : Accountability of inputs where Advance Authorisations are issued on net to net basis for parts/ components
D
GFT in its policy circular no. 10/2018-19 dated 13 July, 2018 it has been stated that in order to improve ease of doing business and to facilitate issuance of eODC, it has been decided that eODC shall be issued on the basis of the
following:
a. exporter should invariably declare input quantities used in the export product in the relevant part of the shipping bill. b. Authorisation holder shall submit an accountability statement showing description and quantity of exported products and inputs consumed therein as per the annexed format. c. A certificate, as per annexed format in full circular, from independent Chartered engineer having domain knowledge, certifying that inputs imported are actually required for manufacturing of the resultant product and as per inventory; all imported inputs have been used in the resultant products. He shall also certify the quantity exported and item wise input quantity consumed. For Full Circular: http://dgft.gov.in/Exim/2000/CIR/CIR18/10.pdf
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AppArel / aepc event calendar
CALENDAR OF EVENTS -
1
2
2018
20-22 August, 2018, CANADA
12-15 August, 2018, USA
Apparel Textile Sourcing, Toronto
Sourcing at Magic, Las Vegas
3
17-20 September, 2018, France
4
19-21 September, 2018, JAPAN
India Trend Fair at Tokyo
Texworld/ Apparelsourcing
5
27-29 September, 2018, China
6
3-4 October, 2018, SPAIN
Intertextile Shanghai
7
9-10 October, 2018, Netherland
8
Buyer Seller Meet in Madrid 20-22 November, 2018, AUSTRALIA
IAF World Fashion Convention Maastricht
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AEPC AWARENESS INITIATIVES
Fashion Forecast Intelligence K n o w l e d g e Pa r t n e r
• • • • •
•
Mumbai . Noida . Jaipur . HK Chennai . Ranjan
All_Pages_1.indd 4
.
| Gurugam . . 9891754969| Ludhiana . J.S. 9929871619 R | Tirupur .
. 9871385078 | 9810035722| . 9449826354 |
8/3/2018 3:23:50 PM
• •
• •
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DISCOVER THE FASHION MARKET OF SPAIN! UNCOVER YOUR F UT URE MARKET GROW TH!
Join us for the
Buyer-Seller Meet Madrid, Spain
3-4 October, 2018
For further details, please contact: Mr. K S Bisht, Joint Director (Fairs & Exhibition) +91 124 2708156 (D), +91 9810527747, Fax : +91 124 2708004, kbisht@aepcindia.com The Application form may be downloaded from our website www.aepcindia.com (Highlights Section)
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