BSM South Africa inaugurated DGFT convenes Open House at

Vol.02 Issue No.08, April 2014
RNI No. HARENG/2012/45083
Postal Regn. No.GRG/37/2012-2014
BSM South Africa inaugurated
DGFT convenes Open House at Apparel House
Apparel Export Promotion Council
Participates in
COMMUNICATION
HONG KONG
FASHION
Hong Kong Convention and Exhibition Centre
National Council for Promotion of Urdu Language, New Delhi
Rashtriya Sanskrit Viyapeetha, Tirupati
Kendriya Hindi Sansthan, Agra +8 centres
India Institute of Mass Communication, New Delhi and Dhenkanal
Spring-Summer
2015
Venue :
Central Institute of India Languages, Mysore
Shri Lal bahadur Shasrti Kendriya Sanskrit Vidyapeetha, New Delhi
INSTITUTION, LOCATION
7-10 July, 2014
DESIGN
WEEK
Rashtriya Sanskrit Sansthan, New Delhi
Institute of Apparel Management (IAM), Gurgaon
Footwear Design and Development Institute, Noida
India Diamond Institute, Surat
National Institute of Design, Ahmedabad
Central Institute of Tool Design, Hyderabad
Institute for Design of Electrical Measuring Instruments, Mumbai
Hong Kong - Fashion Capital of Asia Perfect Hub for Fashion Sourcing Targeting Top Buyers
National Institute of Fashion Technology, New Delhi +12 centres
ATDC-IGNOU (25 community colleges)
Participation charges of HKFW, Hong Kong
Particulars
Participation Charges :
Actual cost per booth of 9 sqmt.
Rs 2,15,000/-
Early bird discount
If payment is made on or before 30th April,2014
(With 100% advance payment)
(Rs. 10,000)
Rs 2,05,000/-
After Early bird discount
If payment is received after 30th April,2014
Rs 2,15,000/-
International Pathways
UNDER-GRADUATE PROGRAMS
(in Collaboration With Edexcel, Uk)
BTEC HND in Fashion & Lifestyle Design (4 Yrs.)
BTEC HND in Fashion Art & Photography (4 Yrs.)
POST-GRADUATE PROGRAMS
Apparel Marketing & Merchandising (2 Yrs.)
Fashion Design Management (2 Yrs.)
Indian Pathways
BACHELOR’S DEGREE PROGRAMS
(in Collaboration With Mewar University)
B.Sc. in Fashion Communication (3 Yrs.)
B.Sc. in Apparel Design & Merchandising (3 Yrs.)
MASTER’S DEGREE PROGRAMS
M.Sc in Apparel Production Management (2 Yrs.)
M.Sc in Fashion Retail Management (2 Yrs.)
MBA PROGRAMS
Fashion Innovation & Entrepreneurship (2 Yrs.)
Women’s Wear
Men’s Wear
Kid’s Wear
Fashion Accessories
For further details please contact :
Mr. R.K. Sharma, Director (Fairs & Exhibitions), Apparel Export Promotion Council, Apparel House,Institutional Area,
Sector – 44, Gurgaon – 122003 (Haryana) India, Mobile: +91 9899167235, Tel: +91-124-2708026/8032,
Email: [email protected], Website: www.aepcindia.com
APPAREL
CONTENTS
INDIA
Editorial advisory board
VIRENDER UPPAL
Chairman, AEPC
06 Chairman’s Letter
58 aePC NOTIFICATIONS
07AEPC INITIATIVES
62 APPAREL INDIA
Advertising & Subscription Details
Sudhir Sekhri
Chairman
Export Promotion, AEPC
Information on the most recent
initiatives undertaken by AEPC
Puneet Kumar
Secretary General, AEPC
33 ATDC UPDATES
Updates on ATDC Initiatives
Sameer Pushp
Senior PRO, AEPC
Updates on Government Notifications
Message from Shri Virender Uppal
34 INDUSTRY NEWS
News from the Indian Apparel Industry
Tarun Tahiliani
Puneet Kumar
EDITOR
ANNOU IYER
EXECUTIVE EDITOR
50 AEPC EXPORT PERFORMANCE
Apparel Export Growth Remained high in February 2013-14
54 COUNTRY FOCUS
Japan: India-Japan CEPA may become catalyst for increasing Apparel Exports from India
Printed by TrendLAB Fashion Publishing Pvt. Ltd.
& Published by Apparel Export Promotion Council,
sponsored by Govt. of India, Ministry of Textiles.
Printed at Rakesh Press, A-22, Sector-68,
Noida-201 301, Uttar Pradesh, India and Published
at Apparel Export Promotion Council, Apparel House,
Sector 44, Gurgaon, Delhi NCR, India.
Editor: Puneet Kumar
Published by
Content & design
Apparel Export Promotion Council
Apparel House, Sector 44, Gurgaon, Delhi NCR, India
Tel: 91 124 2708000-03 Fax: 91 124 2708004-05 Website: www.aepcindia.com
Sahil Kochhar
Wills Lifestyle India Fashion Week Autumn-Winter 2014
celebrated the 23rd edition on the runway.
Held from March 26-30, 2014, at Pragati Maidan, New Delhi,
WIFW continued its journey of taking Indian fashion to a larger
global market and audience. This season, 118 renowned and
young designers, including 56 on the runway from across the
country showcased their collections and trend predictions for the
coming season. The event witnessed 31 shows and 162 designer
stalls at the exhibit area.
4
APPAREL INDIA
Registered Address: B-5, Anupam Plaza, Sri Aurobindo Marg,
Hauz Khas, New Delhi- 110016, India
Editorial & ADVERTISING queries:
M: +91 9899762388
E: [email protected]
Apparel India is a publication of the Apparel Export Promotion Council (AEPC). AEPC and APPAREL INDIA trademarks
are owned by AEPC. All rights reserved worldwide. The Council does not take any responsibility about the credit worthiness
or any other particulars of the firms featured in this monthly.
Reproduction in whole or in part without written permission is strictly prohibited. AEPC as well as TrendLab Fashion
Publishing Pvt Ltd. do not take responsibility for unsolicited material. Views expressed in Apparel India are not necessarily
those of AEPC and TrendLab Fashion Publishing Pvt Ltd.
Apparel India welcomes comments, suggestions or complaints if any. Email us, with your full name and address to
[email protected]
APPAREL INDIA
5
Letter from
the Chairman
APPAREL
INDIA
On this occasion, the entire team of Central Licensing
Authority (CLA) was present in AEPC. In this meeting,
participants from the Industry had raised issues like:
mismatch of fabric sample at the time of import and exports
of garments, automatic registration of licenses under
Market Linked Focus Product Scheme (MLFPS) at any port,
early fixation of Standard Input Output Norms (SIONs),
dispensing the need of landing certificate for claiming the
focus scrip and other procedural / policy issues. Additional
DGFT immediately invited exporters to contact their
concerned official to sort-out the issues.
I have taken up the matter of continuation of 3% Interest
Subvention Scheme to the garment export sector with
Commerce Secretary, GOI as there is no change in the
lending interest rates. The Council shall pursue this matter
for providing relief to our sector.
My dear fellow exporters,
The exports of garments for the period 2013-14 are likely
to touch US$ 14.75 Billion as against US$ 12.92 Billion,
achieved in the previous year. I take this opportunity to
congratulate my fellow exporters for this turnaround. I
would appeal the industry to keep this spirit and achieve
higher growth for our country.
6
AEPC
Open House & Seminar held at AEPC,
Gurgaon under the Niryat Bandhu Scheme
AEPC, in a bid to bring the garment exporters' concerns to the forefront as well chart
the draft of demands for the upcoming new Foreign Trade Policy (FTP) as the new
Government convenes, organized an Open house & Seminar with the Senior DGFT
officials and garment exporters at the Apparel house Gurgaon on 24th March 2014.
The inputs gathered at the seminar was stimulating and did provide the necessary
thrust & focus to the demands of garment exporters. Addl. DGFT informed that
these inputs will be surely used to chart the demands of the garment exports in India,
for the new FTP...
The industry was facing severe problem due to the position
taken by service tax department that service tax was
applicable on the job work given out by our exporters. The
Council engaged the services of M/s. Lakshmikumaran
& Sridharan and based on their opinion, the matter has
already been taken up with Chief Commissioner (Customs
& Service Tax), Central Excise Commissioner, Meerut for
providing clarifications to the field formations that service
tax on reverse charge mechanism is not applicable on job
work given out for manufacturing garments, even when the
same is carried out in their factory premises.
It has been decided that AEPC would prepare a detailed
paper on various industry related issues i.e. matters related
to Foreign Trade Policy, Labour Laws, FTA, Duty Drawback,
Industrial Dispute Act etc. and present the same before the
new incoming Government for consideration. I appeal to all
my fellow exporters to send their suggestions and inputs at
the earliest for inclusion in the paper.
I had a meeting with Shri Rajiv Talwar, Joint Secretary
(Drawback). I have requested certain clarifications to be
issued by the Department of Revenue so that our export
consignments are not held up at the customs and the
admissibility of drawback is automatic. In addition to this,
in the Executive Committee meeting, we have decided to
take up the issue of increasing the entitlement of Export
Performance Certificate from 3% to 5% and also include
fabrics. I seek the assistance of our members in sending the
technical details of such fabrics to Secretary General, AEPC
so that we can consolidate the same and take the matter
further with the Government.
The Council has already announced holding of the export
promotion activities at Hong Kong Fashion Week, Hong
Kong (7-10 July, 2014), White Label, Berlin (8-10 July,
2014), IFF, Tokyo (23-25 July, 2014) & Sourcing at MAGIC,
Las Vegas (17-20 Aug, 2014). Members are encouraged to
take advantage of these export promotion activities and send
their participation applications at the earliest. AEPC has
already removed the compulsory registration for DISHA
while availing the concessional participation in Fairs,
supported under MDA/MAI.
AEPC had organized an Outreach Programme, under the
Chairmanship of Shri Sumeet Jerath,IAS, Additional DGFT.
Shri Virender Uppal
Chairman AEPC
APPAREL INDIA
Initiatives
Shri Sumeet Jerath, Addl DGFT & Head of CLA, being welcomed by Shri Upendra Uppal, Chairman AEPC
Shri RP Goyal, Joint DGFT, being welcomed by Shri Upendra Uppal, Chairman AEPC
APPAREL INDIA
7
AEPC Initiatives
Initiatives
AEPC
Shri Sumeet Jerath, Addl DGFT & Head of CLA, Shri RP Goyal, Joint DGFT, Shri Amiya Chandra, Joint DGFT, Shri Sushant Shekhar Das, Joint
DGFT, other senior officers of the DGFT numbering 18 were present for the meeting
it will be counterproductive and disastrous. It is also our
duty to give them job, he further added.
Addl DGFT, Shri Jerath also listed various challenges like
need of capital for the industry at easy rates, challenges
posed by MNERGA for the job workers, simplification of
policy, etc.
Shri Sumeet Jerath, Addl DGFT & Head of CLA, Shri RP
Goyal , Joint DGFT, Shri Amiya Chandra, Joint DGFT, Shri
Sushant Shekhar Das, Joint DGFT, other senior officers of
the DGFT numbering 18, were present for the meeting.
The AEPC delegation was led by Shri Virender Uppal,
Chairman AEPC and Shri Vijay Mathur, ASG AEPC. The
meeting revolved around the simplification of procedures
for the garment exporters gathered from the member
exporters as concerns and barriers to smooth the trade.
Garment exporters raised their concern and informed
that if these barriers of trade are addressed amicably it
has huge potential to boost trade and meet the multiple
obligations of the buyers as well as the Government.
Shri Sumeet Jerath, in his opening remark stated that,”It
8
APPAREL INDIA
is a privilege to visit AEPC for the second time in a short
span of six month, the objective was to meet the officials
at one place, interact on a one-to-one basis under one roof.
I congratulate the garment industry for its magnificent
performance in this fiscal. ” You have given us the list of
14 points raised, which we will take one by one, he added.
Expressing his opinion on the exports performance, Shri
Jerath stated that, “US$ 325 billion mark we should be
touching in this fiscal, is a great sign and we could bridge
the CAD and bring it down to 2.5% of GDP. We at DGFT,
are very appreciative of the garment Industry as it is
labour incentive and our growth has been largely jobless
growth. If we need to reap the benefits of our demographic
advantage, we need to capitalize on this sector. Otherwise,
Chairman AEPC in his opening remark welcomed the
DGFT officials and said, “I am glad that Shri Jerath
knows the garment industry so well and he is here with
his entire team. In this secession we just want to take
first the simplification of procedures. Our competitors
have much facilitative and industry friendly policy and
need is to study them and implement the best policies and
practices in India, we have to learn from our competitors
like Bangladesh and Sri Lanka for they are doing well
despite inadequate raw material base.” With regard
to the simplification of procedures, Shri Uppal said,
"We have the buyers' commitment to meet the orders in
time, if we have to be competitive, we have to import
fabrics that are not available in India, advance licences
should be registered on the shipment port, getting rid of
lending certificates, port wise validation of documents,
stopping the consignment because of the variation on
account of GSM, etc are some of the important bottle
necks that if smoothened out, has the potential to give
additional 5 to 6% growth in exports.”
Responding to the concerns of Chairman AEPC, Shri
Sumeet Jerath said, “We are a partners and friend of the
industry, we will try on our part that industry concerns
Issues of Garment Exporters Procedural &
Documentation Related
Exporters have to provide the details of Technical
Specification, Composition of fabric & GSM, etc. to
avail Advance License for import of fabric, which is very
difficult to maintain after the processing of fabric into
garment which is the final product for export. Therefore,
AEPC recommends that the technical specification
should be done away with specification provided in the
bill of entry, during import. DGFT should accept the
specification of the product given in the shipping bill
for export. This would simplify the paper work during
import and export both.
 Status Holder exporters are exempted from furnishing
bank guarantee, in the case of import of inputs under
Advance Licensing Scheme. They can give Legal
Undertaking [ LUT ]. However, in case of any mismatch
of output product to the imported input [say for example
in GSM, Technical parameters etc.] the exporters are
allowed export only on provisional basis, subject to
exporter providing a bank guarantee. Therefore it is
proposed that in case the Status Holder exporter is
eligible for giving LUT, then, exporter should not be
asked to give Bank Guarantee, in case exports are done
on provisional basis.
Response
Shri Virender Uappl said that plus or minus 10% may be
allowed as the variation in GSM, moreover the variation
on this account do not make any changes in duty
APPAREL INDIA
9
AEPC Initiatives
Initiatives
processing time and shipping of final product which some
time exceeds the one year license validity in this case
AEPC recommends that time period for export of final
product should be calculated from the date of Import of
raw material.
Response
Addl DGFT, in his response, said that there is already a
window of 6 months after the due date that means already
18 months are there and it should be sufficient.
 It has been found that garment manufacturing involves
many type of inputs which are imported under different
Advance licenses which under the export obligation are not
covered in the one shipping bill which makes practically
difficult for exporters to close the license, therefore AEPC
proposes to do away with such procedures.
Response
structure. The Fact is that it is very difficult or rather
impossible to maintain the same GSM of the fabric.
 Under the scheme of SHIS / Incremental export scheme,
license is allowed to be registered at any port. However,
this is not applicable in case of license under MLFPS.
Under MLFPS, the license can be used only from the
port, from where the goods were exported. In case of
change of port, the balance in the license is required to
be transferred to new port, which takes time. Therefore
AEPC proposes that Registration of MLFPS license may
be allowed with a flexibility of registration at any port of
exporter’s choice & convenience.
Response
DGFT officials in their response to point no 3, said that it
is already allowed.
 SION are placed in the Norms Committee in DGFT in
case the current SION are inadequate or norms are not
available. AEPC proposes that in all existing SION
norms, 15% input fabric consumption be increased and
in such cases, the norms fixed, should become a rule so
that, same can be used by other exporters, without going
to Norms Committee. Exporter may just quote the ruling
number / date.
Response
10
Addl DGFT on the idea of doing away with SION said
the query will be forwarded to its head quarters for an
appropriate decision.
APPAREL INDIA
 E-BRC is in place since 1 to 1.5 years. The system is under
transition phase and is getting stronger gradually. However,
there are instances, where the bank data and DGFT data does
not tally, with the result, the redemption of licenses cannot be
completed. Therefore, AEPC is of the view that a Committee
consisting DGFT, RBI and authorized dealers may review the
data mismatch pertaining to E-BRC and ensure posting of
correct export realization data, under intimation to shipper
and Exporter should not be held responsible for delay in
redemption in case of mismatch of data.
 While redemption of advance license under SION where
norms are already fixed, CLA calculates the consumption
by weight as mentioned on AWB/FCR etc. which are
impractical and AEPC requests DGFT to treat the fabric
consumed as mentioned on the shipping bills in sq mtrs.
Response
Response
Addl DGFT, in his response to the problem, said that
initially there was some problem due to uploading of the
data. Currently the E-facility is running smoothly and any
exporter who has a specific problem can contact the DGFT
office at any given point.
 Advance License should be on the annual basis and not
on the basis of consignments
Addl DGFT in his response, said that many items may
be declared under the import of raw materials under one
licence. That would solve the problem.
Addl DGFT in his response said that Obligation of average
export under EPCG is very cumbersome as exports of
RMG are of very seasonal nature.
Moreover, machinery imported under EPCG are not
only for new production, but also for replacement of
old machinery as the innovative technology makes it
mandatory to replace the obsolete machinery to attract
new buyers which makes difficult for export to maintain
average export obligation
Response
 All advance Licenses should be allowed as under the
procedure of 4.24 of HOP of FTP 2009-14.
Response
Domestically procured raw material or fabrics used
for export purpose are qualified to be deeded exports,
however, to make the domestically procured raw
material as deemed exports, the excise department
gives a certification for project authority certificate
which in case merchandiser and manufacturers
exporters are ambiguous as per the definition, which
Addl DGFT in his response said that they might contact
DGFT or Secretary Commerce, as it will require change in
the policy on the above subject.
 Validity of Advance License is for one year which covers
the imports of raw material, transportation to factory,
Addl DGFT in his response, said that this may be taken
up for inclusion in policy.
AEPC
should be rectified.
Response
Addl DGFT in his response said that we would take this
matter separately.
Shri Sumeet Jerath, Addl DGFT in his response asked
about the facilities to be given to the Gurgaon as it is the
town of excellence declared by DGFT. Shri Vijay Mathur,
in his reply, said that he will get back to the Addl DGFT
with the list of demands after consultations with the
industry.
Shri Pirtam Goel, EC member raised the issue of
extending the date on account of meeting the export
obligation due to inadequate capital after 31st March
2014. He also stated that export houses may be exempted
from furnishing reshipping bills as the facility may be
provided to intimate the Government through e-BRC
filing.
Exporters also raised the issue of distinction in terms
of product classification by the customs authorities as
well as Textiles committee. They have difference norms
and exporters face problem because of this. On this
query, Shri SS Das, Jt DGFT replied that with regard to
the classification of products, the decision of Textiles
Committee shall be final and binding.
Shri Vijay Mathur, ASG AEPC, in his statement thanked
DGFT officials for coming to Apparel House. During
his address, he said, “It is a rare opportunity, where the
Government has come to the Industry. There should not
be any doubt in the mind of garment exporters that the
Government is not concerned about them. ”
Shri Mathur also raised the point that the continuation
of schemes like interest subvention of 3% till further
date must be notified and rates may also be increase. He
raised the issue on non-inclusion of the word garment in
the Chapter 1 of FTP and exporters face a lot of problem
because of it. He said that it must be immediately added
to avoid confusion.
Shri Sumeet Jerath in his concluding remark, stated that,
“We are happy to meet you. The vision of DGFT is to
make an IT savvy and an IT enabled office. Our vision is
to serve you with smile and deliver high-tech with humantech. This interactive session will help us in gathering the
inputs and help us in the future policy formulations.” ShriUppal, Chairman AEPC appealed to the Government
again to make the policy and working facilitative for
exporters and not use discretionary power and increase
the bottleneck.
During the interactions, the exporters discussed their
problem and demands which were resolved with on the
spot clarifications. Few issues stuck due to procedural
hassles, and where no policy changes were required,
those points were clarified/solved on the spot.
APPAREL INDIA
11
AEPC Initiatives
Initiatives
Celebrating Women’s Week, a Training
Session on “Open Hand Combat-Self
Defence Techniques” was organized by
AEPC for IAM 's women staff
AEPC
Aepc demands Separate Chapter for exports
in the banking sector: Chairman Aepc
RBI, on 1st April 2014, released the first bi-monthly Monetary Policy Statement
for the year 2014-15 where the key rates like repo rate, CRR, Bank rate and repo
rate remained unchanged and the Textiles Exporters were not very happy with the
announcement made ...
IAM represents an Institute that not only provides education to its students but also
concern, compassion and care for its students. The institute believes in empowering the
Women at an Intellectual level and also take responsibility and action in empowering its
surrounding and well- being of people invovlved with it...
Delhi has a high rate of crime capital, specially Rape and
Molestation of Women. IAM being one of the best education
Institute, can make a difference in others’ lives by not
only just imparting education, but also taking a stand for
its students. Such camps will not only make them skilled,
confident and competent in physical, mental and emotional
situations but also build up the confidence of parents in
institutes for not only its education but also for compassion
12
APPAREL INDIA
and care for its students.
This 3 day training camp was onducted by Martial Artstrained duo Shri Asif Rehman and Shri Raja Mookherjee.
With 30 years in the practice and holders of 2nd Dan Black
Belts in full-contact Karate, they also follow new defensive
techniques from across the world and have been associated
with Schools and Corporates in NCR Region and various
other organizations across India and South East Asia.
With RBI resisting any reduction of interest rate/ repo rate,
Chairman AEPC, Shri Virender Uppal has expressed his
concern that the momentum of the garment export growth may
be slowed down further with increase of rupee strengthening
over dollar. In his statement issued today, Chairman AEPC
said, “With the inflation hovering around 5% and core sector
growth improving to 4.5% in February, impacting positively on
industrial production, industry was expecting some relief in
terms of lowering of interest rate. With Current Account Deficit
also expected to moderate in line with the trade deficit, there
was clearly fiscal room for RBI to reduce the interest rate.” This
job-critical industry is suffering from high input cost leading to
reduced profit margins. Majority of our factories are SME’s and an
employment generating sector, and due to adverse consequences
of not lowering interest rates, it might lead to the loss of jobs and
further slowing of manufacturing activity, he added.
Shri Uppal demanded, “AEPC has already requested for separate
chapter for pre/post packing credit rate of 7.5%. Even the
Padmanabhan committee constituted by RBI has recommended
this sector to be covered under the priority sector lending. RBI
should consider this favourably so that momentum of garment
export growth is not lost. I therefore, request Government of
India to revise the interest rates downwards so that we leverage
our export and employment potential.”
Chairman AEPC also demanded that RBI should notify extension
of the 3% interest subvention which has expired on 31st March
2014 as the garment exporters are trying hard to meet the target
set by the Government.
RBI, on 1st April 2014, released first bi-monthly Monetary
Policy Statement for the year 2014-15 and made the following
announcements:
• keep the policy repo rate under the liquidity adjustment
facility (LAF) unchanged at 8%;
• keep the cash reserve ratio (CRR) of scheduled banks
unchanged at 4.0% of net demand and time liability (NDTL);
and
• increase the liquidity provided under 7-day and 14-day term
repos from 0.5% of NDTL of the banking system to 0.75%,
and decrease the liquidity provided under overnight repos
under the LAF from 0.5% of bank-wise NDTL to 0.25% with
immediate effect.
Consequently, the reverse repo rate under the LAF will
remain unchanged at 7.0%, and the marginal standing
facility (MSF) rate and the Bank Rate at 9%.
APPAREL INDIA
13
AEPC Initiatives
Initiatives
AEPC to participate in “Sourcing at
Magic” Las Vegas, USA, from 17 to 20
August 2014
AEPC is participating in Magic Fair, Las Vegas to be held from 17 to 20 August 2014,
which will take place in Las Vegas Convention Centre, Las Vegas, Nevada, USA...
AEPC’s participates in “White Label”
Berlin, Germany, from 8 to10 July 2014)
AEPC is participating in White Label, Berlin to be held from 8 to10 July 2014, which
will take place in Velodrom, Paul-Heyse-Strasse 26, Berlin, Germany...
About White Label
WHITE LABEL is the apparel sourcing fair in Berlin for readymade garment producers from all over the world.
At White Label, exhibitors from all important production places
of the world, from Eastern Europe to the Far East, reflecting the
diversity and the choice of products offer their production potential
to volume buyers of readymade garments with a unique opportunity
for them to find a selection of ideal suppliers at their doorstep. It
reaches out to the buyers – label manufacturers ( Hugo Boss, Espirit,
Gerry Weber, Adidas, Puma etc), retailers from leading chain stores
(Kaufhof, Karstadt, Peek & Cloppenburg, Marcs and Spencer,
New Yorker etc), trading companies, agents, online distributors (
Zalando) who are from big markets like Germany, Europe, US and
other countries. This fair takes place parallel to the major outerwear
fairs, thus benefiting from being part of the international fashion
business in Berlin.
SOURCING at MAGIC is North America’s largest, most
comprehensive sourcing event, reflecting the fashion supply
chain at its most complete. Offering unmatched access to
over 40 countries representing the world’s most important
markets, SOURCING at MAGIC showcases more than 1100
apparel, accessories and footwear resources, conveniently
merchandised by country and category: contract and original
design manufacturers; fabric, trim and component suppliers;
and service and technology providers.
Exhibitors, from worldwide leaders to local U.S. suppliers,
build business through exposure to thousands of sourcing
executives, designers, merchandising managers and private
label buyers. MAGIC connects exhibitors to the global
purchasing power of tens of thousands of men’s, women’s and
children’s apparel, accessories and footwear retailers.
The Sourcing Zone is a convenient space for retail buyers,
global importers, licensees and brands to meet and conduct
business with offshore manufacturers like India and contract
suppliers from the international manufacturing countries.
Products & Companies displayed
Production opportunities include fully integrated
production, outsourcing, private label production in the
following segments:
USA Apparel Industry
USA is the largest importer of garments with imports of
over US$ 83 billion. India’s garment export to USA is
US$3410 million during 2013, which amounts to around
4.1% of USA’s total garment imports from World.
14
APPAREL INDIA
2013
%change
2013/2012
2012
From World
81514.1
80688.7
83809.3
3.9
From India
3534.4
3237.9
3410.4
5.3
Our Share%
4.3
On the basis of recommendations of the Ministry of
Germany Apparel Industry
Germany is one of the major European countries for
Readymade Garment Exports. India’s export to Germany
stood at US$ 1060.7 million during 2013, which amounts to
around 3.1% of Germany’s total garments imports from world.
Thus Germany is a vital market for exports and efforts must
be there to increase exports to the country.
2011
2011
Benefit in participation fee on account of
MAI grant from Ministry of Commerce
• Womenswear
• Menswear
• Childrenswear
• Accessories
• underwear
Nearly 150+ companies from all over the world gathered in
WHITE LABEL 2013, at Berlin and displayed their products
in various categories such as womenswear, menswear,
childrenswear, Accessories and underwear. Some big
Companies such as Advocator Fashion, Fred International,
Harbour Bridge, Ingrainna Co. Ltd, Leon fashion, Mekotex Pvt.
Ltd. , Ningbo Noble, Shanghai Kendatex, Suzhou Hengrun,
Texmate, Wilson Cashmere to name a few have exhibited their
collections in the previous edition of the show.
USA’s Import of Apparel From World and India (in US$ Mn)
USA’s Import of Apparel From World and India (in US$ Mn)
USA's RMG
Imports
AEPC
4.0
4.1
1.4
Textiles, Ministry of Commerce has approved funding
under Market Access Initiative (MAI) for the “Sourcing
at Magic” fair in Las Vegas, United States of America
from 17 to 20 August, 2014.
Germany’s
RMG Imports
2012
2013
From World
38239.2
33877.534183.4
From India
1643.7
1231.51060.7
Our Share%
4.3
In its ongoing efforts to promote trade and to build a strong
image of India in Germany, Apparel Export Promotion
Council (AEPC), sponsored by Ministry of Textiles, Govt.
of India is participating in the “White Label” in Berlin,
Germany from 8 to 10 July, 14.
Season
3.6
3.1
MDA Grant
This project is under Marketing Development Assistance
(MDA) scheme. Market Development Assistance (MDA), as
announced by the Ministry of Commerce and as amended
from time to time, would be applicable and would be
reimbursed to the eligible participants.
The July 2014 edition of this fair will showcase Spring/
Summer collections.
APPAREL INDIA
15
AEPC Initiatives
AEPC
Evaluating Aid for Trade- A Survey of
Recent Studies Policy Research Working Paper
AEPC to organize India Market Days,
April 2014 edition
The demand for accountability in aid-for-trade is increasing but monitoring has focused
on case studies and impressionistic narratives. The paper reviews recent evidence from
a wide range of studies, recognizing that a multiplicity of approaches is needed to learn
what works and what does not...
Apparel Export Promotion Council will be organizing 'India Market Days’ at Apparel
House, Gurgaon, its world class venue for the business of fashion on 24 to 25th April
2014. The event is organized for the promotion of showrooms at Apparel House...
The review concludes that there is some support for the emphasis
on reducing trade costs through investments in hard infrastructure
(like ports and roads) and soft infrastructure (like customs).
But failure to implement complementary reform-especially the
introduction of competition in transport services-may erode the
benefits of these investments. Direct support to exporters does
seem to lead to diversification across products and destinations,
but it is not yet clear that these benefits are durable. In general, it
is difficult to rely on cross-country studies to direct aid-for-trade.
More rigorous impact evaluation is an underutilized alternative,
but situations of clinical interventions in trade are rare and adverse
incentives (because of agency problems) and costs (because of the
small size of project) are a hurdle in implementation.
Introduction
Since the Paris declaration of 2006, calling for an expansion of Aid-forTrade (AFT) funding to reduce trade costs, a WTO AFT task force was
set up to implement this ‘positive agenda’ to enhance competitiveness.
Multiple goals were adopted, but clear guidelines on how to conduct
evaluations were largely absent.3 Evaluation has progressed slowly
from accountability (making sure that infrastructure has been built)
to outcomes (has performance improved), but no agreement has
been reached so far as to the main yardsticks to be used to measure
outcomes. Progress has also been slowed by donors (multilateral,
bilateral and NGOs) using different evaluation frameworks, by lack of
information, and by context-specificity. So far three biennial reviews
have produced a useful discussion of approaches and methods4
and a digest of a large collection of projects and case stories-many
voluntarily supplied-feeding into meta-evaluations that have not
yielded significant insights.
According to OECD (2011), the AFT agenda has been classified under
six categories: (i) trade policy and regulation; (ii) trade development;
(iii) trade-related infrastructure; (iv) building productive capacity; (v)
trade-related adjustment; (vi) other trade-related needs. According to
OECD (2011), 80% of donors use the DAC principles for evaluating
programmes and projects
To respond to the quest for accountability, the task force calls for
‘managing for development results (MfDR) along a ‘results chain’. For
example, the meta-evaluation of 162 projects in Ghana and Vietnam
(not all with a trade emphasis) revealed that what matters most for
policy makers (terms like “imports”, “exports” or “regulatory reform”)
were rarely mentioned. It also highlighted that project evaluators
16
Initiatives
APPAREL INDIA
often lacked the baseline data against which to measure progress. See
OECD (2009) and OECD (2011).
This paper provides a selective review of some recent evidence. We
begin in Section 2 with studies that examine the impact of aid directly
on trade (Figure 1 shows how we decompose the channels of AFT’s
impact). Credible identification is a challenge and overall there are few
convincing results that aid matters for trade. We then turn to evidence
on the two main channels through which AFT could be expected to
have an impact on trade.
In Section 3, we take a closer look at the first channel, through a
reduction in trade costs. We examine the drivers of trade costs,
focusing on the importance of improvements in hard infrastructure
(such as ports and roads) and soft infrastructure (such as customs
regulations and procedures), both of which have benefitted from
AFT. A key insight here is that still-elusive complementary reform –
particularly the introduction of greater competition in transport services
– is needed to reap the full benefits of investment in infrastructure in
terms of reduced trade costs.
In Section 4, we turn to the second channel of potential impact
– through direct support to exporters. It is this class of directed
assistance which is most amenable to rigorous impact evaluation
because it may be feasible to distinguish between beneficiaries (the
“treatment group”) and non-beneficiaries (candidates for the “control
group”). The few studies that follow this route suggest that AFT may
indeed stimulate durable diversification but does not seem to have a
durable effect on total exports of beneficiary firms. The review also
highlights the inescapable trade-off between “internal validity” (the
ability to identify impact effects net of confounding influences), which
improves as one goes from (usually aggregate level) cross-country
studies to impact evaluations, and “external validity” (the ability to
draw general policy propositions from evaluation results) which may
well worsen.
This paper is a product of the Trade and International
Integration Team, Development Research Group. It is a part
of a larger effort by the World Bank to provide open access
to its research and make a contribution to development policy
discussions around the world. Policy Research Working
Papers are also posted on the Web at http://econ.worldbank.
org. The authors may be contacted at afernandes@
worldbank.org and [email protected].
Product profile on display
The product profile of the event covered the entire value chain of
the textile and clothing industry and included the following:Ladies Casual Wear, Children’s Wear and Men’s Wear in both
Knots and Woven covering products like Shirts, Shorts, Skirts,
Suits, Sweat Shirts, T-Shirt, Trousers, Vests, Cocktail Dresses,
Evening Dresses, Bodysuits, Under Garments, Nightwear &
Pajamas, Outerwear etc. Other products on display were related
Fashion Accessories like Pareos, Scarfs, Stoles, Handbags etc,
Soft Home products like Cushion Covers, Bed Linen etc, Fashion
Jewellery and Fabrics.
India Market Days is a project approved by Ministry of Textiles
and is funded under the Market Access Initiative (MAI) Scheme
of Ministry of Commerce & Industry, Government of India for
inviting overseas buyers and buying agents under reverse BSM.
This is the April 2014 edition of the India Market days which will
be a two day event. India Market days will provide an opportunity
to analyze and choose, from the wide spectrum of existing and
emerging products at one place, analyze prevailing rates in the
market, finalise bulk requirements and negotiate best rates for
bulk orders. This event will help the garment exporters find the
right partners for their business.
AEPC by organizing India Market Days, is once again ready to
provide an opportunity and a platform where wonderful products
are displayed in the showrooms. Buyers’ may like to avail this
opportunity to choose from the wide spectrum of products at one
place. This Fair will help you develop your creative collection and
augment your resources
India Market days will provide an opportunity to analyze and
choose, from the wide spectrum of existing and emerging products
at one place, analyze prevailing rates in the market, finalise
bulk requirements and negotiate best rates for bulk orders. It is
good news that from the last seven months garment exports are
registering robust growth, buyers across the world are seeing India
as a dependable country for sourcing the garments.
APPAREL INDIA
17
AEPC Initiatives
Initiatives
India Clothing & Textiles Trade Show at
South Africa
Apparel Export Promotion Council has organized India Clothing and Textile Trade
Show at Johannesburg and Cape Town, South Africa from 13 – 17 March’2014.
This was the eighth consecutive edition of the Buyer-Seller-Meet since 2007 and
this time 22 Indian garment exporters participated in the BSM...
The project was funded under the Market Access
Initiative (MAI) scheme of Ministry of Textiles &
Ministry of Commerce & Industry, Government of India.
The show provided a unique opportunity for Indian
apparel & Textiles exporters to initiate, negotiate and
foster business tie-ups with South African Textiles &
Apparel importers and big South African Chain stores.
The Council also received good support from High
Commission of India in South Africa in terms of brand
building and show promotion.
The BSM was organized in Cape Town from 13th to 14th
March 2014 and in Johannesburg from 17th to 18th
March 2014. In Cape Town, the BSM was inaugurated by
Ms. Zohara Chatterjee, Secreatry Textiles, GOI, and Dr.
Swati Kulkarni, CGI Cape Town in the presence of Shri
Virender Uppal, Chairman, AEPC, Shri Sudhir Sekhri,
Chairman (Export Promotion), AEPC and Shri Puneet
Kumar, IAS, SG AEPC.
A cultural/fashion show followed by a dinner was hosted
by H.E. Dr. Swati Kulkarni Counsel General of India,
Cape Town in Cape Town International Trade Convention
Centre (CITCC) where around 280 invitees were present.
H.E. Dr. Swati Kulkarni Counsel General of India, Cape
Town delivered a welcome address followed by a speech
delivered by Hon’ble Mr. Maurius Fransman, Deputy
Minister, South Africa in the presence of Hon’ble
Economic Affairs Minister. Thereafter, Secretary
Textile, Chairman AEPC and ED, CLE also delivered
the speech and informed the gathering about the social,
political, economic and cultural relationship shared by
both nations since 20th century which has helped both
countries develop cordial and strong relation to grow in
the changing world economic order. Trade being one of
the instruments to bring the countries on same platform
has played a crucial role in the development of both
nations. Representatives of both nations have also shown
keen interest in signing MOU on textile and clothing
trade to explore better opportunities in this sector. India
has offered its services in the skill development and
technological knowhow to South Africa to make their
industry competitive globally. A Gujrati folk dance was
18
APPAREL INDIA
performed during the programme followed by Fashion
Show by Ms. Farak and her troop by displaying the out
fits of all the exhibitors. The show was appreciated
by all the dignitaries, Govt. Officials, Buyers and the
Exhibitors. At the end of the programme Secretary,
Textile and Chairman AEPC, given a small memento
to Hon’ble Deputy Minister of South Africa, Foreign
relations. Ms. Zohra Chatterji, Secretary, Textiles, HE
Dr. Swati Kulkarni, CGI, Shri Virender Uppal, Chairman
AEPC, Shri Sudhir Sekhri, EP Chairman AEPC and Shri
Puneet Kumar, SG AEPC visited Wesgro and a meeting
was organized with Mr. Nils Flaatten, Ceo, Wesgro. The
Delegation from India and Wesgro (Wesgro is the official
Destination Marketing, Investment and Trade Promotion
Agency for the Western Cape, located in Cape Town.),
South Africa exchanged their views on the trade and
commercial cooperation between them and how it can
be enhanced to a higher level where both the nation can
benefit from their long relationships. Major importers
such as Woolworth, Foschini, Pep, Truworths, Zando,
Ackermans and Cigar Clothing visited during the 2 days
of the BSM at Cape Town.
In Johannesburg, the BSM was inaugurated by H.E.
Shri Virender Gupta, Hon’ble High Commission in the
presence of Shri Nandan Singh Bhaisora, Acting Consul
General of India, Shri Virender Uppal, Chairman, AEPC,
Shri Sudhir Sekhri, Chairman (Export Promotion),
AEPC and Shri Puneet Kumar, IAS, SG, AEPC followed
by a press conference with the local media. Major
importers like Makro, Edgers, E&B Jonas, Trubok and
Fashion World visited during the two days of the BSM at
Johannesburg.
The total import of apparel in South Africa is US$ 1770
million in the year 2013, out of which India has a share
of US$ 76 million only. This shows that there is major
scope to tap the vast South African market.
The major products i.e. HS codes which has vast potential
where India can increase its market share, are 620342
(Mens/Boys Trousers and Shorts of Cotton, not Knitted),
610910 (T-Shirts, Singlets and other vests - of cotton,
knitted), 620462 (Womens/girls trousers and shorts
AEPC
of cotton, not knitted), 611030 (Pullovers, cardigans
and similar articles of man-made fibres, knitted) and
620520 (Mens/Boys shirts, of cotton, not knitted).
Johannesburg show was below expectation since more
number of boutique buyers/retailers attended the BSM
instead of chair stores/importers.
A total number of 22 manufacturer-exporters participated
in the India Clothing and Textile Trade Show in both the
cities. The zone wise participation are as follows:-
Cape Town show was excellent. Many prominent buyers
attended the BSM since all the prominent buyers are
based in Cape Town only.
North India - 05
West India - 10
South India - 07
East India - 00
Inauguration of ‘India Clothing & Textile Trade Show’ at Johannesburg
and Cape town
The ‘India Clothing & Textiles Trade Show’ at Cape Town was inaugurated by Smt. Zohra
Chatterjee Secretary Textiles & H.E. Dr. Swati Kulkarni CGI Cape Town in the presence of Shri
Virender Uppal, Chairman AEPC, Shri Sudhir Sekhri, Chairman Export Promotion, AEPC &
Shri Puneet Kumar, SG, AEPC.
H.E. Dr Swati Kulkarni CGI Cape Town and Ms. Zohra Chatterjee Secretary Textiles inaugurating the ‘India Clothing & Textile Trade Show’
at Cape Town in the presence of Shri Virender Uppal, Cairman AEPC, Shri Sudhir Sekhri, Chairman Export promotion, AEPC & Shri Puneet
Kumar, SG, AEPC
The Secretary, Textiles and Counsel General of India was
welcomed by the Chairman, AEPC and EP Chairman
Thereafter, Smt. Zohra Chatterji, Secretary Textiles and
other dignitaries addressed the Exhibitors and Buyers in the
presence of Print and Electronic Media.
Chairman, AEPC, EP Chairman and SG AEPC also
requested Smt. Zohra Chatterji, Secretary Textiles and H.E.
Dr. Swati Kulkarni Counsel General of India, to visit the stalls
where exhibitors showcased their collection to attract the
buyers.
Secretary and H.E along with Chairman AEPC, EP Chairman
and SG AEPC visited all booths and interacted with
exhibitors, buyers etc. and enquired about the response from
the South African buyers for their collection and products.
APPAREL INDIA
19
AEPC Initiatives
Initiatives
Trade being one of the instruments to bring the countries on
same platform has played a crucial role in the development of
both nations. Representatives of both nations have also shown
keen interest in signing MOU on textile and clothing trade to
explore better opportunities in this sector. India has offered its
services in the skill development and technological knowhow
to South Africa to make their industry competitive globally.
AEPC
A Gujarati folk dance was performed during the programme
followed by Fashion Show by Ms. Farak and her troop by
displaying the out fits of all the exhibitors. The show was
appreciated by all the dignitaries, Govt. Officials, Buyers and
the Exhibitors. At the end of the programme, Secretary, Textiles
as well as Chairman AEPC gave a small memento to Hon’ble
Deputy Minister of South Africa, Foreign relations.
Smt. Zohra Chatterjee Secretary Textiles, Shri Upendra Uppal, Chairman AEPC & Shri Sudhir Sekhri, Chairman (EP) AEPC interacting with
one of the exhibitors in Cape Town BSM
Thereafter, a press conference was organized with the local
Media including the TV News Agency “Good Morning Africa”.
A dinner was hosted by H.E. Dr. Swati Kulkarni Counsel
General of India, Cape Town in Cape Town International
Trade Convention Centre (CITCC) where 280 nos. of invitees
were present. H.E. Dr. Swati Kulkarni Counsel General of
India, Cape Town delivered a welcome address followed by a
speech delivered by Hon’ble Mr. Maurius Fransman, Deputy
Minister, South Africa in the presence of Hon’ble Economic
Affairs Minister.
Thereafter, Secretary Textile, Chairman AEPC and ED, CLE
also delivered the speech and informed the gathering about
the social, political, economic and cultural relationship
shared by both nations since 20th century which has helped
both countries develop cordial and strong relation to grow in
the changing world economic order.
Smt. Zohra Chatterjee Secretary Textiles, Shri Upendra Uppal, Chairman AEPC & Shri Sudhir Sekhri, Chairman (EP) AEPC at the
inauguration of Cape Town BSM
20
APPAREL INDIA
Smt. Zohra Chatterjee, Secretary Textiles, GOI, Dr. Swati Kukarni, CGI, Shri Puneet Kumar, SG AEPC with Hon’ble Mr. Maurius Fransman,
Deputy Minister Foregin Affairs South Africa
On 14th March 2014 Ms. Zohra Chatterji, Secretary,
Textiles, HE Dr. Swati Kulkarni, CGI, Mr. Virender
Uppal, Chairman AEPC, Mr. Sudhir Sekhri, EP
Chairman AEPC and Mr. Puneet Kumar, SG AEPC
visited WESGRO and attended the meeting with CEO
of WESGRO Mr. Nils Flaatten. Delegation from India
and WESGROW, South Africa exchanged their views on
the trade and commercial cooperation between them and
how it can be enhanced to a higher level where both the
nation can benefit from their long relationships. Detailed
Minutes are prepared separately on the Secretary’s visit
to WESGRO.
Smt. Zohra Chatterjee, Secretary Textiles, DR. Swati Kulkarni CGI Cape Town, Shri Virender Uppal, Chairman AEPC, Shri Sudhir Sekhri
Chairman (EP) , Shri Puneet Kumar, SG AEPC with Mr. Nils Flaatten, Ceo of Wesgro in meeting
APPAREL INDIA
21
AEPC Initiatives
Initiatives
Smt. Zohra Chatterjee, Secretary Textiles, Dr. Swati Kulkarni CGI Cape Town, Shri Virender Uppal, Chairman AEPC, Shri Sudhir Sekhri
Chairman (EP) , Shri Puneet Kumar, SG AEPC while presenting a memento to CEO of WESGRO Mr. Nils Flaatten in meeting.
Johannesburg
The ‘India Clothing & Textiles Trade Show’ at Johannesburg
was inaugurated by H. E. Mr. Virender Gupta, High
Commissioner of India to South Africa in the presence of
Smt. Zohra Chatterjee, Secretary Textiles, GOI, Shri Virender
Uppal, Chairman AEPC, Shri Sudhir Sekhri, Chairman EP,
AEPC and Shri Puneet Kumar, SG AEPC.
HE ShriVirender Gupta, High Commissioner to South
Africa, GOI, Smt. Zohra Chatterji, Secretary Textiles and
Shri Virender Uppal, Chairman AEPC inaugurated the
show at Johannesburg in the presence of Shri Sudhir Sekhri,
Chairman, EP AEPC and Shri Puneet Kumar, SG AEPC,
representatives from South African media, exhibitors,
buyers and esteemed dignitaries. After the inauguration,
AEPC
H. E. Shri Virender Gupta, High Commissioner of India, Smt. Zohra Chatterjee Secretary Textiles, GOI, Shri Virender Uppal, Chariman
AEPC, Shri Puneet Kumar, SG AEPC, Shri Nandan B, Acting CGI at the Johannesburg Shandton City Conference while inaugurating the India
Clothing and Textile trade Show at Johannesburg.
HE delivered a brief speech on the importance of the IndiaSouth Africa and welcomed all exhibitors and buyers for their
participation into BSM to make it successful. Secretary textile
also delivered his speech and wished all exhibitors and buyers
for good business. Thereafter, Chairman AEPC invited the
H.E and Secretary Textiles to take a round of the exhibition
hall. H.E and Secretary Textiles, along with Chairman AEPC,
EP Chairman AEPC and SG AEPC visited stalls of the
exhibitors and enquired about their range of products which
they were showcasing and which are the new product range
which they have brought with them to showcase in South
Africa. Moreover, H.E gave the exhibitors some insight about
the economy of South Africa and the prospect of textile and
clothing market of South Africa.
HE Shri Virender Gupta, High Commissioner of India to South Africa, while addressing the gathering at India Clothing and Textile Trade Show
at Johannesburg
H. E. Shri Virender Gupta, High Commissioner of India, Smt. Zohra Chatterjee Secretary Textiles, GOI, Shri Virender Uppal, Chariman AEPC,
Shri Puneet Kumar, SG AEPC, Mr. Nandan Bhaisrow, Acting CGI at the Johannesburg Shandton City Conference
22
APPAREL INDIA
Smt. Zohar Chatterjee Secretary Textiles, GOI while addressing the gathering at ‘India Clothing and Textile Trade Show’ at Johannesburg
APPAREL INDIA
23
AEPC Initiatives
During the dinner, a cultural programme highlighting
the rich culture of India was presented to the visiting
Initiatives
buyers and dignitaries was organized by Nataraj School
of Dance.
H. E. Shri Virender Gupta, High Commissioner of India, Smt. Zohra Chatterjee Secretary Textiles, GOI, Shri Virender Uppal, Chariman AEPC,
Shri Puneet Kumar, SG AEPC, Shri Nandan B, Acting CGI at the Johannesburg Shandton City Conference while taking around of ‘India
Clothing and Textile Trade Show’ at Johannesburg
Meeting was organized between Apparel Export Promotion
Council (AEPC) India and South African National Apex
Cooperative Ltd. (SANACO) Republic of South Africa to
explore the possibility of business cooperation in the field of
textile and clothing trade. The AEPC delegation comprised of
Shri Virender Uppal, Chairman AEPC, Shri Sudhir Sekhri,
EP Chairman AEPC, Shri Puneet Kumar, SG AEPC. The
delegation from SONACO attended the meeting and they
discussed in the detail, about the role of organization they
are working for and their objective and mission. Moreover,
discussions also were on the issues related to textile and
clothing industries and how are they important for their
economies. Both parties agreed to start exchanging views
and knowledge in the field of textile and clothing to build up
institutional mechanism for strengthening trade and commerce
relation between both countries. AEPC emphasizes on
institutional participation in building and strengthening the
relationship as institution would facilitate to exchange views,
ideas and data for better understanding of industries and
business working in India and South Africa.
H. E. Shri Virender Gupta, High Commissioner of India, Smt. Zohra Chatterjee Secretary Textiles, GOI, Shri Virender Uppal, Chariman AEPC,
Shri Puneet Kumar, SG AEPC, joinig hands with the GM of South African National Apex Cooperative Ltd. SANACO Republic of South Africa
24
APPAREL INDIA
A dinner was also hosted by HE High Commissioner of India
to South Africa on the 1st day of the BSM at Johannesburg
for the visiting buyers and the Indian Participants and Senior
AEPC
Govt. Officials of Republic of South Africa and official of the
CGI. Dinner was organized in Jo'burg for an interaction with
exhibitors and media representatives.
HE Shri Virender Gupta, High Commissioner of India to South Africa hosted a dinner for Smt. Zohra Chatterjee Secretary Textiles, GOI,
Shri Virender Uppal, Chariman AEPC, Shri Puneet Kumar, SG AEPC, buyers and exhibitors at Johannesburg
A meeting was organized between CGI, Johannesburg,
Secretary Textiles, Textile Federation of South Africa, along
with Chairman EP, SG AEPC and Director, IIGF, on 17th
March 2014. The aim of the meeting was to deepen the
India-South Africa relationship by way of co-operation in the
field of textile and clothing trade. During the meeting, Shri
Sudhir Sekhri, Chairman EP gave a detailed description on
AEPC’s initiatives for the Apparel Trade including ATDC
and IAM, and also explained that the Indian Exporters are
not coming to South Africa to create the unemployment,
but are willing for the Joint Ventures by investing the funds
which will only re-structure the closed Garment Factories,
in other terms, which will only show path for generating the
employment. He also expressed his views to launch ATDC
and IAM in South Africa for skill development from the
grass root and to provide trained man power to the apparel
industry. This would be a great way to raise the employment
amongst South African youth.
Smt. Zohara Chatterjee, Secretary Textiles GOI, Shri Sudhir Sekhri Chairman EP AEPC, Shri Puneet Kumar SG AEPC and CEO, of Textile
Federation of South Africa
APPAREL INDIA
25
AEPC Initiatives
Response of the Trade Show
Fashion Shows
A spectacular fashion show and a cultural
show was held at Cape Town, which was well
attended by buyers, fashion designers, stake
holders ,participants and Govt. dignitaries
from South Africa & CGI, Cape Town.
South African as well as international models
were hired for displaying the upcoming
collections of the Indian exhibitors. The
samples exclusively prepared for South
African market were showcased through this
Fashion Show.
Johannesburg
The summary of the responses (in%) received
from the participants is given hereunder:
1.The familiarity with South African Market
is as follows:
New to market
79%
Familiar to market
21%
2. Other responses (in%)
a.
A total of 408 buyers attended the trade show
at Johannesburg and the list of the major
buyers at Johannesburg is given hereunder:
Name of the Major Importer / Buyer / Chain Store
S. No. visited the Show
b.
c.
d.
Particulars
Average Satisfactory Good
The present level
of participation in
77%
13%
10%
the BSM
The display in the
13%
46%
36%
booth
General facilities
10%
26%
56%
provided
Facilities and
assistance provided
for establishing/
62%
23%
13%
developing business
contacts
1
Makro – Chain Store
2
E & B Jonas – Independent Retailer
3
Edgars – Chain Store
4
Fashion World – Independent Store
5
Home Hyper City – Chain Store
I
New to market
224
6
Trubok – Manufacturer/Importer
II
Familiar to market
537
7
Patbro Textiles – Importer
8
Double Dot Clothing – Agent/Large Importer
9
Elegance Novelties – Importer
10
Barclay & Clegg – Importer
11
Cougar Fashion House - Importer
Total Buyers visited ‘India Clothing &
Textiles Trade Show’ in South Africa:
26
Initiatives
Johannesburg
:408
Cape town
:
685
Total Buyers visited
:
1093
APPAREL INDIA
VeryGood
Show
Promotion
Through
Enhanced pr Campaign
 Website publicity:
• The website publicity was increased for better response,
which really showed off its worth.
Hall Entrance banner:
• An entrance banner was put up at the Hall entrance.
 Printing of Show Catalogue:
An exclusive show catalogue containing the profiles and
contact details of all the participants was prepared and
distributed to buyers visited the show.
E-Mailers sent to all South African apparel &
textiles importers / buyers / big retail chains.
The event was covered in the following Print and
Audio Visual Media of South Africa:
AEPC
Media Attendance in Cape Town –
•
•
•
•
•
•
•
•
•
•
•
Charl Reineke – Cape Times
Carin Smith – Sake24
Jana Joubert – Woman24
Carmen Williams – Home and Away
Liz Black or colleague – Your Business
Anneke Blaise – Home/Tuis Magazine
Marcia Margolius – SA Décor and Design
Tim Glen – Simply Green Magazine
Marianne Boulle – Odyssey Magazine
Shiraz Reddy – Next 48 Hours
Networking Dinner for major buyers along with all
participants has been arranged, which provided a very
good platform for one-to-one interaction.
0%
5%
8%
3%
3.Number
of
companies/buyers;
the
participating exhibitors were able to contact
during the BSM:
TOTAL Contacts
21%
However, the total footfall at the show was
1289 buyers.
Networking Dinner was arranged to provide platform for dialogue between buyers and exhibitors
Media Attendance in Johannesburg
4. Business generated:
Value of orders booked
US$ 3010,00
Value of orders (Under negotiation)
US$ 5,986,50
Total orders (Booked + under
negotiation)
US$ 8,99,650
•
•
•
•
•
•
•
•
Fakir Hassen – The Post
Anna-Mari Claasen – Sunday Times
Craig Jacobs – Sunday Times
Colleen Goko – Business Day
Dimakatso Motau – Sowetan
Theunis Strydom – The Times
Bernard Satage – The New Age
Asha Speckman – Business Report (The Star, Pretoria
News, Daily News)
• Njabulo Ngcobo – Daily Sun
• Sixolisiswe Ndawo – City Press
• Lotus FM (SABC National Radio Station for SA’s Indian
community)
• RSG (SABC National Afrikaans Radio Station)
Big buyers like Woolworth, Trueworth, Ackerman’s,
Cape Union Mart, Mr. Price etc. attended the networking
dinner and interacted with various exhibitors.
 Hon’ble Dy. Foreign Minister of South Africa Mr. Marlus
Fransman also attended the networking dinner at Cape
Town.
APPAREL INDIA
27
AEPC Initiatives
Initiatives
Import from India at the 4 Digit HS Code level
Table: Top 5 South Africa's Apparel Import from World and India, US$ Mn., HS 6 Digit
Table: Top 5 South Africa's RMG import from World and India, US$ Mn., HS 4 Digit
Rank
in
2012
Product
code
Total
South Africa's imports from India
Product code
Product code
'6204
2
'6203
3
4
5
'6109
'6105
'6205
South Africa's imports from World
Value in
2012
% CAGR
2005-12
% Growth
2012/11
Value in
2012
4597.5
22.6
14.4
101610.6
9.2
South Africa's imports from India
Product code
Product code
RMG
1.9
Value in
2012
% CAGR
2005-12
4597.5 22.6
% Growth
2012/11
South Africa's imports from World
Value in
2012
% CAGR % Growth
2005-12 2012/11
14.4 101610.69.2
1.9
66.1
3.5
-9.5
1450.6 9.8
4.0
3.5
-9.5
1450.6 9.8
4.0
1
'610910
5.8
-19.1
115.813.5
-2.1
Women's suits,
jackets,dresses 11.2
skirts etc & shorts
T-shirts, singlets
and other vests, of 8.2
cotton, knitted
-3.9
-3.4
180.6 3.2
-4.6
2
'610510
Mens/boys shirts,
6.7
of cotton, knitted
14.8
-13.6
41.619.3
-0.9
16.1
209.69.6
4.7
3
'620520
Mens/boys shirts,
of cotton, not
5.5
knitted
3.7
-2.3
60.012.3
-7.4
172.112.9
1.5
4
Mens/boys trousers
and shorts, of
'620343
synthetic fibres, 5.1
not knitted
57.7
5.4
33.1-0.3
-6.3
5
'620442
Womens/girls
dresses, of cotton, 3.9
not knitted
9.8
-10.6
15.019.8
-13.0
Men's suits,
jackets, trousers 9.6 41.7
etc & shorts
T-shirts, singlets &
other vests, knitted 8.9
or crocheted
5.8
Men's shirts,
7.5
knitted or crocheted
13.4
Men's shirts
6.5
In the above given table top five product group at HS 4 digit
constituted 44% in South Africa’s RMG imports from India.
India’s share is only 11% in top five RMG import from world.
Total 34 products were imported from India at HS 4 digit, out of
which 15 products had registered positive growth from previous
year while rest of the 19 products had registered decline. There
were 9 products at HS 4 digit which had grown at more than 40%
from previous year and these accounted for 42% share in import
3.9
-18.3
-9.8
-1.9
65.415.6
82.68.9
1.4
There has been marginal increase in the imports of South
Africa in quantity and value terms both from world. Top 50
apparel imports at HS 6 digit from world constituted more
than 80% in which India’s share stood 5.2%. India exported
204 items to South Africa at HS 6 digit out of which 101
registered negative growth from previous year while 103
registered positive growth. Share of positively increased
products in total RMG import from India accounted for
42.1% and products which registered negative growth
accounted 57.9%.
Source: UN Comtrade, 2013
-8.1
from India. Severely affected items were Men's or boys' singlets
and other (6207), Women's or girls' overcoats, (6202), Panty
hose, tights, stockings, socks knitted (6115), Babies' garments
and clothing accessories (6209) and Handkerchiefs (6213) and
they have declined by75, 68, 57, 55 and 47% respectively from
previous year. Interesting fact is that import items from India
which had registered setback in South Africa market in 2012
majority of them belong to woven category.
Import from India at the HS 6 Digit Code level
APPAREL INDIA
Product
code
Total
% CAGR % Growth
2005-12 2012/11
(Source: U.S. Department of Commerce Office of Textile and Apparel, 2014)
28
Rank
in
2012
66.1
RMG
1
AEPC
Recommendations
• In order to capture a bigger market pie, the organization of
India Clothing & Textiles Trade Show should be continued in
the coming years as well.
• The venues (Cape Town International Convention Centre
and Sandton Convention Centre) chosen for India Clothing
& Textiles Trade Show are good. Thus, may be considered /
booked at early dates for the forthcoming edition.
• Duration of two days (each location) is ideal and may be
considered in future also. The proposed dates for the event in
2014 are proposed as follows:
• Cape Town
Venue: Hall 1, International Convention Centre,
March 2014
• Johannesburg
Venue: Ballroom 1/40, Convention Centre, Sandton,
March 2014
• The next dates should be finalized immediately since the
venue can be booked on time. The preferred timings for the
show should be 9:00 AM to 5:00 PM on each day.
• The possibility of swapping dates between Cape Town and
Johannesburg should be there (subject to availability), so that
the possibility of organizing Fashion Show at both the places
can be explored accordingly.
• It was recommended by H.E. Shri Virendra Gupta, Hon’ble
High Commissioner of India in Pretoria that a Fashion Show
should be organized in Johannesburg, one day before the start
of the show, which would attract the buyers in an effective
manner.
• Ministry of Commerce may pursue with South African
Government for relaxation in duties. At present, the duty is
as high as 45%.
• Govt. of India should invite the CEOs of major chain stores
like Woolworths, Trueworths, Ackermans, Edgars, Pep,
Foschini etc. in the next edition of India International
Garment Fair.
• The Council has engaged M/s LTE, South Africa as official
PR Agency for buyers’ promotion, PR campaigning, Stall
Construction and other corporate communication matters. The
services of M/s LTE, South Africa found to be satisfactory and
hence we may continue with its services in the next edition.
• The transportation of luggage of samples by AEPC was
appreciated by all the exhibitors and it is recommended that
the same may be continued in future also.
APPAREL INDIA
29
AEPC Initiatives
Initiatives
AEPC
Aepc organizes Buyer Seller Meet in
Uruguay & Chile (13 to 18 March, 2014)
Apparel Export Promotion Council organized a Buyer Seller Meet in Montevideo,
Uruguay & Santiago, Chile from 13th to 18th March, 2014 with 15 exhibitors at
each venue. The funding was approved by Ministry of Textiles & Ministry of
Commerce, India under Market Development Scheme (MDA) for the same....
BSM Chile was inaugurated by H.E the Indian Ambassador to Chile, in the presence of Shri HKL Magu, Chairman (F & B) AEPC, the
President of the Asia Pacific Chamber of Commerce, the President of the Indo-Chile Chamber of Commerce & the President of the Santiago
Chamber of Commerce as well as participating exhibitors
BSM Uruguay & Chile was inaugurated by H. E Shri Amarendra
Khatua, Indian Ambassador of Argentina, in the presence of
Shri HKL Magu, Mr Armando Torres, CEO Grupo Disco and Mr
Ruben, Consul general Indian Consulate in Uruguay.
The 1st day of the BSM saw buyers visiting from prominent
companies such as :
• Grupo Disco
• Lolita
• Indutop
• Club House
• Limite
The 2nd day of the BSM Uruguay & Chile ended on a good note,
with almost 50 buyers from 37 companies visiting the BSM. some
notable companies who visited the BSM on the 2nd day where :
• Harrington
• Wanami
• Urban Haus
• Si Si
• Ta-Ta
The exhibitors were quite satisfied with the quality and number of
buyers who visited the BSM.
The BSM was inaugurated by H.E The Indian Ambassador
to Chile, Shri Debraj Pradhan in the presence of AEPC as
well as other dignitaries such as:
Mr HKL Magu, Chairman (F & B) AEPC
The President of the Asia Pacific Chamber of Commerce
The President of the Indo – Chile Chamber of Commerce
The President of the Santiago Chamber of Commerce
BSM Uruguay & Chile being inaugurated by H. E Shri Amarendra Khatua, Indian Ambassador of Argentina, Shri HKL Magu, Mr Armando
Torres, CEO Grupo Disco, Mr Ruben, Consul General, Indian Consulate in Uruguay in presence of buyers as well as exhibitors
The Council once again organized the Buyer Seller Meet in
Chile and Uruguay wherein one to one meeting was organized
for participating exhibitors. A meeting space was also assigned
30
APPAREL INDIA
to each exhibitor for their business promotion. The exhibitors
showcased their latest collections specially designed for these
markets and negotiated orders with the buyers during the event.
The Indian Embassy had also invited a lot of press, buyers as well
as other diplomatic staff from the Indian Embassy as well as trade
bodies and associations. After the Inauguration ceremony, the
dignitaries visited each stall and met the participating exhibitors
and got to know a little but about their companies. After the meeting
with the exhibitors, the Indian Ambassador hosted a breakfast
meeting with the dignitaries and the main agenda of the meeting was
to focus on increasing trade with India. One of the main discussions
was to lower the duty rate from 6% to 4% and in the future, sign a
PTA for smooth trade with Chile. The prominent buyers who visited
on day 1 were :
• Modella Group • Privilege S.A
• Moletto S.A
• Perry Ellis
• Empresas Hites S.A
• Modatex
• Trial/ Jockey
A total of 89 meetings took place on day 1 while the 2nd days
sechdule was prepared by Santiago Chamber of Commerce. Some of
the important buyers who visited on the second day were :
• Falabella
• Italmod
• Colgram
• Daffti Group
Participating exhibitors submitted a good response towards the
BSM. However, they also stated that three big companies namely
Paris, La Polar and Ripley were missing from this edition of the
BSM as they had participated as buyers in the 2013 edition of
the BSM.
The Indian Ambassador also hosted at his residence, a cocktail
evening, which was especially organized for the participating
exhibitors.
Uruguay & Chile Readymade
Garments Imports:
The exports of readymade garments to Uruguay and Chile show
that there is good potential of RMG exports from India to Uruguay
and Chile.
APPAREL INDIA
31
AEPC Initiatives
Updates
ATDC
ATDC awarded as the Best Vocational
Training Institute Award 2014 by
Assocham
ASSOCHAM has awarded “Education Excellence Award 2014” to ATDC under the
category “Best Vocational Training Institute”. Shri Hari Kapoor, VC, ATDC and
Dr. Darlie Koshy, DG&CEO, ATDC received the award on behalf of ATDC on 19th
February 2014 from Padma Vibhushan Dr. Karan Singh...
Uruguay’s RMG Imports
All figures in US$ Millions
2010
161.9
Uruguay
RMG Import
From World
From India
9.4
Our Share (%)
5.8
2011
2012
214.7
229.9
10
%Change
2012/2011
7.1
7.4-25.6
4.7 3.2-30.5
Chile’s RMG Imports
All figures in US$ Millions
2010
1729
2011
2384
2519.9
%Change
2012/2011
5.7
Chile
RMG Import
1
From World
From India
8.5
27.435.5 29.7
Our Share (%)
1.1
1.1 1.422.7
(Source: UN Comtrade, 2013)
32
2012
APPAREL INDIA
This award is conferred to acknowledge the institutions which
have contributed significantly in improving the quality of
education, innovation, research and development.
ATDC made this distinction by achieving innovation in
vocational training, maintaining highest standards of quality
parameters in skill training by having simulated production
environment, running multi-disciplinary NCVT approved
courses for garment and fashion sector.
The implementation of Integrated Skill Development Scheme
(ISDS) by ATDC in the last three years brought over 1,00,000
men and women under the intensive rapid training programmes
and up-skilled in the industrial work culture in high speed
machines or in making quality ‘make through’ garments to
make them enter a new phase as an employee or a microentrepreneur leading to economic empowerment.
Advancing forward on the agenda to ‘Target-Train-Transform’
with focus on employability especially for school dropouts, less
educated youth, women, disadvantaged section of the society,
differently abled, rural, semi urban, special section such
as trans genders, jail inmates, OBC, Safai Karamchari etc.
ATDC has emerged as the single largest vocational training
provider for the apparel sector in the country and probably
the single largest training provider for any vocational trade in
India and the single largest beneficiary or Nodal Agency for
implementation of a Government’s Skill Development scheme.
In 2011, ATDC was awarded Best Skill Provider at UK-India
Skills Forum Award for its outstanding commitment to the
skills agenda in India. The Apparel Training & Design Centre
according to FICCI and UK Skill Forum has been a training
provider who has demonstrated an outstanding commitment to
the skills agenda in India one of the most important challenges
India faces today and has supported the development of
vocational and soft skills among the Indian citizens, both in
cities and rural areas, both basic and advanced levels to train
the trainer, continuously ensuring the best possible quality of
services provided.
APPAREL INDIA
33
INDUSTRY News
News
India launches Safeguard Investigation
on bare Elastomeric Filament Yarn
On 5 March 2014, India notified the WTO’s Committee on Safeguards that it initiated on
28 February 2014 a safeguard investigation on bare elastomeric filament yarn...
In the notification, India indicated as follows:
“All interested parties may make their views known within a
period of 30 days from the date of the notice issued by the Director
General (Safeguards) i.e. 28 February 2014 to:
The Director General (Safeguards)
Bhai Vir Singh Sahitya Sadan: 2nd Floor,
Bhai Vir Singh Marg,
Gole Market, New Delhi-110 001, INDIA.
Telefax: 011-23741542
E-mail: [email protected]
Any other party to the investigation who wishes to be considered
as an interested party may submit its request so as to reach the
Director General (Safeguards) on the aforementioned address
within 15 days from the date of the aforesaid date of notice of the
Director General (Safeguards).” A safeguard investigation seeks to
determine whether increased imports of a product are causing, or is
threatening to cause, serious injury to a domestic industry.
During a safeguard investigation, importers, exporters and other
interested parties may present evidence and views and respond
to the presentations of other parties. A WTO member may take a
safeguard action (i.e. restrict imports of a product temporarily) only
if the increased imports of the product are found to be causing, or
threatening to cause, serious injury.
Emerging Asian economies expected to
remain resilient but structural reform
critical, says new Economic Outlook
for Southeast Asia, China and India
The economic outlook for Emerging Asia (Southeast Asia, China
and India) remains robust over the medium term, anchored by
the steady rise in domestic demand, according to a new report
from the OECD Development Centre. GDP growth in Emerging
Asia is projected to moderate gradually but stay resilient over the
2014-18 period, with an average annual growth of 6.9%, albeit
less than the 8.6% registered before the global financial crisis
(2000-07). The region will continue to play an important role in
global growth.
The Economic Outlook for Southeast Asia, China and India says
Indonesia is projected to be the fastest-growing ASEAN 6 economy
with an average annual growth rate of 6.0% in 2014-18, followed
by the Philippines with 5.8%. Real GDP growth in Malaysia and
34
APPAREL INDIA
Thailand is projected to increase by an annual 5.1% and 4.9%
respectively, led by domestic demand, especially in infrastructure
investment and private consumption. Singapore’s economy is
forecast to grow by 3.3%. Cambodia, Lao PDR, Myanmar and
Vietnam are expected to grow at a robust pace over the medium
term.
2014- 20002012 2018 2018 2007
ASEAN-6 countries
Brunei
“The success of emerging Asian economies will hinge on managing
several challenges”, said OECD Deputy Secretary General Rintaro
Tamaki. “To harness the medium-term growth potential, it is
critical that policy makers implement structural policies to reap the
benefits of capital flows and foster closer economic co operation and
integration in the region.”
Mario Pezzini, Director of the OECD Development Centre added,
“While Emerging Asia has made remarkable economic progress
over the past four decades, some of the middle-income developing
economies face difficult challenges to sustain their long-term
growth and move beyond the middle-income trap. Indeed, success
2.4 2.3
-
Indonesia
6.2 6.16.05.1
Malaysia
5.6 5.35.15.5
Philippines
6.8 5.95.84.9
Singapore
1.3 3.13.36.4
Thailand
6.5 5.34.95.1
CLMV countries
Cambodia
7.2 7.16.89.6
Lao PDR
7.9 7.57.76.8
Myanmar
-
Vietnam
5.2 6.05.47.6
Average of ASEAN 10
5.5(*)
5.65.45.5(**)
will require fundamental changes in economic structure and
further development of the modern services sectors.” In the “best
scenario”, if fundamental changes are applied, China and Thailand
could become high-income countries within 20 years. On the other
hand, Vietnam and India will need more than 40 years to reach the
high-income group.
To grow beyond the middle-income trap, these Emerging Asia
countries need to shift away from growth that is driven primarily
by factor accumulation. They should rather embrace growth based
on productivity increases driven by improvements in the quality of
human capital and innovation.
Best scenario simulation of estimated time required to become high income countries for selected Asian
middle income countries (years)
Malaysia
in 2020
in 2026
China
1.0
Thailand
in 2031
Indonesia
2 large economies in Emerging Asia
INDUSTRY
in 2042
Philippines
in 2051
Vietnam
in 2058
India
in 2059
0
10
20
30
40
50
60
Source: OECD Development Centre. Note: Based on World Bank’s criterion for classifying economies, high income countries
are defined as having GNI per capita above USD 12 000 in 2013. Growth prospects in this simulation are in line with MPF2014. Population projections are based on UN data.
7.0 6.8 -
China
7.8
India
3.7 6.15.97.1
Average of Emerging Asia
6.5 6.96.98.6
7.5 7.7 10.5
Source: OECD Development Centre, MPF-2014
APPAREL INDIA
35
INDUSTRY News
The Outlook examines policy insights for China, India,
Indonesia, Malaysia, the Philippines, Thailand and Vietnam
that come from the development experiences of other advanced
Asian economies such as Japan, Korea and Singapore.
While manufacturing will continue to be important, the
middle-income countries of the region should also consider
further developing their service sectors, especially in finance,
information and communications technology, and business
services. According to the OECD Product Market Regulation
Indicators (PMR) – widely used as an indicator of the stringency
of regulation – China and Indonesia’s services markets are
considerably more restricted than those of more advanced
Asian economies, notably Japan and Korea, and the most
restrictive among the largest developing countries. The report
states that the further development of institutional capacities
which help to enhance human capital, foster competition and
innovation, and facilitate infrastructure development, also
needs to be central to development strategies of the middleincome Emerging Asian countries. On-going efforts to achieve
greater regional integration can have a potentially high payoff
in helping the middle-income countries in Emerging Asia to
reduce the gap with the higher-income countries.
The recent turmoil in emerging
economies
Since early 2014, heightened volatility in international
financial markets has hit emerging economies hard. In the year
leading up to 5 March 2014, emerging economies saw about
US$30 billion in equity outflows, which was twice as much
as the total outflows for the whole of 2013 (Reuters, 2014a
and 2014b).1 This latest turmoil occurred only a few months
after emerging economies were battered by sudden capital
reversals, caused by the Chair of the United States Federal
Reserve hinting (in May 2013) that the Federal Reserve
would begin reducing quantitative easing. This has come as
a surprise to many observers and analysts who had, since the
36
APPAREL INDIA
News
financial crisis of 2008, suggested that emerging economies
had “decoupled” from trends and policies in advanced
economies. The worry now is that having missed the warning
signs, emerging economies will be on the receiving end of the
wrong diagnosis if there is a more dramatic turn for the worse,
with inappropriate remedies likely to follow.
Since the end of the Bretton Woods system, developing
countries have been subject to a series of financial shocks and
crises associated with boom-and-bust cycles in private capital
flows. Booms are generally driven by an increased global
appetite for risk and low interest rates in source countries. Thus
asset bubbles and interest-rate differentials attract liquid and
short-term capital flows which initially reinforce confidence
in the stability of the exchange rate. The newly deregulated
banking sector expands into new areas of domestic business,
and domestic firms borrow abroad to take advantage of lower
interest rates, thereby exposing themselves to exchange-rate
risks. With growing economic imbalances come heightened
financial fragility and uncertain expectations. In the bust
phase triggers tend to be varied, but a change in the policy
stance in source countries has often been involved. This leads
to a rapid outflow of capital and increases the probability of a
severe crisis as a result of a falling exchange rate and rising
interest rate which threatens corporate bankruptcies and the
solvency of domestic banks.
A prominent feature in the current cycle is the rising share
of external debt denominated in foreign currency held by the
non-government sector. This shift creates new vulnerabilities
for emerging economies. On the one hand, it can limit the
ability of the Governments of emerging economies to provide
effective responses when financial crises arise, but on the other
hand, it does not preclude Governments from having to absorb
the losses of systemically important institutions. A second
feature is the willingness of foreign investors to hold emerging
economy government and corporate bonds denominated in the
local currency, with non-residents holding on average 27% of
such emerging economy bonds, but reaching as high as 60%
(Peru) and above 30% even in some of the larger economies
(Indonesia, Turkey and South Africa) (World Bank, 2013).
While this helps reduce the exposure of emerging economies
to foreign exchange risk, it makes international investors more
sensitive to expectations about currency devaluation. A third
feature is the increased frequency of shocks and the narrowing
amplitude of the current cycle, taking away from emerging
economies the necessary time to fully recover and rebuild
buffers.
Some economies have witnessed sharp currency devaluation,
prompting higher domestic interest rates. Between the
beginning of tapering of bond purchasing announced on 18
December 2013 and 10 March 2014, the Argentine peso lost
20% of its value against the United States dollar, the Turkish
lira lost 8% and the South African rand, 6%.2 Furthermore,
there is considerable risk that policy responses may bring
countries closer to the full-blown economic crisis they are
meant to avert. Argentina’s short-term interest rates shot up by
more than 10 percentage points and Turkey’s, by more than 4
percentage points.
Interest rate rises may only temporarily contain the outflows,
but they tend to weaken domestic demand and the appetite of
long-term investors. Likewise, to the extent that Governments
end up rescuing sectors of systemic importance, they will
eventually be under pressure to sacrifice their long-term policy
goals, including the need to support infrastructure investments
which, again, will alienate long-term foreign investors.
More worryingly still is that the crisis may also affect some
of the poorest countries in sub-Saharan Africa, which have
only recently gained access to international capital markets.
Recently, Ghana has imposed foreign exchange controls to
contain currency depreciation.
International Monetary Fund (IMF) agreed that the it should
intensify its surveillance of financial sector issues and capital
flows, giving particular attention to policy interdependence and
risks of contagion, and ensure that it [was] fully aware of market
views and perspectives.
INDUSTRY
Policy recommendations
• At the international level, effective surveillance of the policies
of the major industrial countries, especially with respect to their
effects on capital flows and exchange rates of developing countries,
needs to be undertaken more systematically.
• There is an urgent need to have in place a framework on sovereign
debt workouts to support orderly debt resolution and rapid
recovery in countries facing a debt crisis – the eurozone crisis is a
further reminder of this need.
• At the regional level, new initiatives should be undertaken to
expand existing regional reserve funds, such as the Chiang Mai
Initiative of the Association of Southeast Asian Nations Plus
Three and the Latin American Reserve Fund, and create new
ones, for example for Africa, in addition to cross-regional funds
such as the one proposed by the Governments of the `BRICS –
Brazil, the Russian Federation, India, China and South Africa.
These funds have the potential to play an important role in the
future in protecting and supporting countries facing shocks.
• At the national level, Governments must take steps to reduce
their vulnerability to external financial shocks meaningfully
and durably and, to this end, draw on a number of tools such as
capital account management and adopt stronger macro prudential
financial regulation.
• There is an urgent need for policymakers to explore stronger,
wider and more permanent controls on unruly capital flows both
for entry and exit, despite the adoption of precautionary measures
in some developing countries referred to above.
• As in previous crises, Governments of developing countries have
to play a central role in mitigating the economic and social damage
caused by financial crises in ways that do not generate excessive
costs for the State. This requires a crisis resolution approach that
focuses on systemically important institutions and that ensures
that, among those institutions that are rescued, new management
practices are adopted to avoid a repetition of past mistakes.
Source: Division on Globalization and Development
Strategies, UNCTAD
APPAREL INDIA
37
INDUSTRY News
News
Turkey’s textile exports rise 10.4% in
Feb’14: TIM
Textile and raw materials exports from Turkey, excluding apparel, during the month of
February 2014, amounted to US$ 716.9 million, indicating a rise of 10.4%, compared
to the same month last year, as per the data released by the Turkish Exporters’ Assembly
(TIM)...
According to the February 2014 Export Data of TIM, Turkey
exported textiles and raw materials worth US$ 716.9 million
during February, compared to the US$ 649.4 million exports of
textile and raw materials made during the same month last year.
Textiles and raw materials exports during February accounted
for 5.9% of the overall exports made from Turkey during the
month.
During the month of January 2014, the country exported textiles
and raw materials worth US$ 769.21 million, recording a rise of
12.8% compared to the same month in 2013. Textiles and raw
materials exported during the month of January accounted for
6.4% of the overall exports made from Turkey during the month.
In 2013, Turkey exported textiles and raw materials worth US$
8.39 billion registering a rise of 7% year-on-year.
Textiles and clothing are one of the most important sectors of
the Turkish economy, being the driving force behind Turkey's
Japan’s textile yarn & fabric imports jump
35.8% in Jan’14
In January 2014, Japan imported ¥ 86.6161 billion of textile yarn and fabric, registering a
sharp increase of 35.8% year-on-year, according to the trade statistics released by the Ministry
of Finance...
Region-wise, Japan’s textile yarn and fabric imports from Asia
surged up by 39.4% year-on-year to ¥ 77.959 billion, during the
month. Of this, China accounted for ¥ 50.984 billion, while the
Asean countries contributed ¥ 15.419 billion and the Middle East
region ¥ 383 million.
Japan’s yarn and fabric imports from the EU also grew by 23.1%
year-on-year to ¥ 5.194 billion in the first month of the current
year. However, the country’s imports from the US dropped 6.1%
year-on-year to ¥ 1.848 billion.
In January 2014, Japan exported ¥ 40.522 billion of textile yarn
and fabric, showing a rise of 5% year-on-year, as per the data.
While Japan’s textile yarn and fabric exports to the US increased
by 29.3% year-on-year to ¥ 3.469 billion during the month, its
exports to the EU rose by 22.2% year-on-year to ¥ 4.683 billion.
Japan supplied ¥ 28.458 billion worth of textile yarn and fabric to
Asian countries, recording a growth of 1.4% year-on-year. Of this,
38
APPAREL INDIA
Plans to improve conditions in Bangladeshi
textile factories following inspections
The first building and fire safety inspections
have been carried out at textile factories in
Bangladesh, under the agreement signed by
an increasing number of garment companies.
In every factory inspected so far, safety
was found to be inadequate. According to
Lilianne Ploumen, Minister for Foreign
Trade and Development Cooperation, the
inspection results confirm how urgent the
situation is.
‘It is great that the inspections have got going and that
problems are being tackled, but it all needs to happen
much faster. Bangladesh has over 4,000 textile factories,
so we still have a long way to go. Meanwhile, the women
exports and one of the country's key employers. The industry
recently embarked on a project to promote and market its own
brand names.
exports to China decreased by 11.8% year-on-year to ¥ 11.572
billion, but exports to Asean nations increased by 15.4% year-onyear to ¥ 9.15 billion.
Last year, Japan’s yarn and fabric imports grew at 19% year-onyear to ¥ 849.785 billion, while its exports increased by 6.9%
year-on-year to ¥ 657.313 billion.
Japan’s textile yarn & fabric imports jump
35.8% in Jan 2014
• ¥ 86.6161 billion of textile yarn and fabric, registering a sharp
increase of 35.8% yoy
• Asia up by 39.4% yoy to ¥ 77.959 billion, during the month
- China accounted for ¥ 50.984 billion
- Asean countries contributed ¥ 15.419 billion
• Middle East region : ¥ 383 million
INDUSTRY
who make our T-shirts and trousers are still risking their
lives every day,’ said the minister. Plans of improvement
have been drawn up for every factory inspected. These
dictate, for instance, less intensive use of the building, new
electrical wiring and the installation of fire alarm systems.
The results of all inspections have been published online
at www.bangladeshaccord.org. The first ten reports have
already been issued and inspection is still in progress at
about 250 factories. The aim is for 1,500 textile factories in
Bangladesh to have been inspected by October.
In New York yesterday, Ms Ploumen addressed the United
Nations General Assembly on the subject of decent wages for
textile workers. Governments, businesses, trade unions and
NGOs met to see what needs to be done to ensure that textile
workers throughout Southeast Asia earn a living wage.
Canadian textiles get improved access to
Korean market
Canada and the Republic of Korea have concluded negotiations for a bilateral free trade
agreement (FTA) that will significantly boost trade and investment ties between the two countries.
The negotiations were concluded during the visit of Canadian Prime Minister Stephen Harper to
South Korea this week, where he met South Korean President Park Geun-hye...
Upon entry into force, the Canada-Korea Free Trade Agreement
will significantly improve market access opportunities for Canada’s
textiles and apparel sector by eliminating tariffs on almost all of
Canada’s exports. Upon the FTA’s entry into force, 99.8% of tariff
lines will be duty-free (current duties up to 13%); these lines
include high-tenacity yarn (current tariff of 8%), cotton wadding
(current tariff of 8%) and textiles for technical uses (current tariff
of 8%), according to Canada’s Department of Foreign Affairs,
Trade and Development.
In 2012, Canada’s textiles and apparel exports to South Korea were
worth CA$ 18.2 million. Between 2010 and 2012, South Korean
imports of textiles and apparel goods from around the world were
worth an average of CA$10.7 billion annually. So, the FTA will
provide additional export opportunities for Canadian textiles and
apparel producers. The FTA with Korea is Canada’s first with
an Asian market, and is expected to provide level playing field
for Canadian companies competing with Korea’s other trading
partners, including the United States and the European Union,
who already have free trade agreements with Korea.
On the other hand, Canadian consumers will benefit from a greater
variety of goods at lower prices, as the FTA covers virtually all
aspects of Canadian-Korean trade: goods and services, investment,
government procurement, environment and labour cooperation,
and other areas of economic activity.
Korea is currently Canada’s seventh-largest merchandise trading
partner and its third-largest in Asia, after China and Japan.
APPAREL INDIA
39
INDUSTRY News
News
Extension of Validity Period of SEZ Projects
In addition to Seven Central Government Special Economic Zones (SEZs) and 12 State/
Private Sector SEZs set up prior to the enactment of SEZ Act, 2005, formal approval has
been accorded to 574 proposals out of which 391 SEZs presently stand notified. A total
of 175 SEZs have commenced export. A list showing State-wise distribution of formally
approved, notified and operational SEZs is at Annexure-I...
Some SEZ developers have sought extension of validity period of the
letter of approval granted to them for the execution of their projects
stating reasons including adverse business climate due to global
recession, delay in approvals from statutory/State Government
bodies, delay in environmental clearance, lack of demand for
space in SEZs, changed fiscal incentive regime for SEZs etc. After
deliberations and taking into account the facts and circumstances
of each case, the Board of Approval for SEZs has granted
approval for extension of validity of approval in the case of several
developers for the execution of their projects. The State wise
position of extension of validity of approvals granted for developers
from 1.4.2012 till 30.11.2013 is given as per Annexure-II.
Annexure-I
State-wise distribution of SEZs (As on 05.12.2013)
State
Formal Approvals
Notified SEZs
109
78
40
Chandigarh
2
2
2
Chhattisgarh
2
1
1
Delhi
3
0
0
Dadra & Nagar Haveli
2
1
0
Goa
7
3
0
Andhra Pradesh
Gujarat
43
30
18
Haryana
45
34
5
Jharkhand
1
1
0
Karnataka
61
40
22
Kerala
29
24
8
Madhya Pradesh
19
9
2
Maharashtra
101
65
20
Manipur
1
0
0
Nagaland
2
2
0
Odisha
10
5
1
Puducherry
1
0
0
Punjab
8
2
2
Rajasthan
10
10
5
Tamil Nadu
67
53
34
Uttar Pradesh
31
21
9
Uttarakhand
2
1
0
West Bengal
18
9
6
574
391
175
GRAND TOTAL
40
Operational
(Exporting) SEZs
APPAREL INDIA
INDUSTRY
Annexure-II
State-wise details of number of SEZ Developers granted extension of validity of their
Approvals for setting up SEZ (w.e.f. 1.4.2012 to 30.11.2013)
State-wise distribution of SEZs (As on 05.12.2013)
Sl. No.
No. of SEZ Developers granted
extension of Approvals
State
1
Andhra Pradesh
13
2
Gujarat
10
3
Haryana
9
4
Jharkhand
1
5
Karnataka
12
6
Kerala
15
7
Madhya Pradesh
2
8
Maharashtra
18
9
Nagaland
3
10
Odisha
5
11
Tamil Nadu
16
12
Uttar Pradesh
6
13
West Bengal
5
115
GRAND TOTAL
Source: CIA World Facbook, 2014
The information was given by the Minister of State in the Ministry of Commerce and Industry
Dr. E.M. Sudarsana Natchiappan in Rajya Sabha in the last session.
Dry run on International North-South
Transport Corridor
India conducted a dry run study in March
2014 on International North-South Transport
Corridor (INSTC), through Nhava Sheva
(Mumbai)- Bandar Abbas (Iran)- TehranBandar Anzali (Iran)-Astrakhan(Russia).
The announcement figured in the protocol signed after the 3rd
meeting of the Inter Governmental Commission on Trade and
Economic, Science and Technology Cooperation between India
and Azerbaijan by Dr. E.M.S. Natchiappan, Minister of State
(Commerce & Industry) and Mr. Huseyngulu Baghirov, Minister
of Ecology and Natural Resources from Azerbaijan, here today.
“The two countries have the requisite momentum to take the
relationship to next level. Completion of the corridor will lead to
mutually beneficial connectivity between the two regions,” said
Dr Natchiappan. During the meeting, both side reviewed the
status of the construction of Gazvin-Rasht-Astara (Iran)-Astara
(Azerbaijan) railway route for connecting the railway lines of
International North-South Transport Corridor. The Azerbaijani
side informed about the meeting between Iran and Azerbaijan in
November 2013 at which it was decided to conduct technical and
financial feasibility study and discuss it in the next meeting of the
INSTC Coordination Council. India also called for investment in
the field of hotel industry tourism and infrastructural development
as India allows 100% foreign direct investment (FDI) in hospitality
sector on automated basis.
The total trade between India and Azerbaijan rose from US$
565.98 million in 2011-12 to US$ 608.55 million in 2012-13.
APPAREL INDIA
41
INDUSTRY News
News
Spanish textiles sector loses 7,000 jobs
in 2013: CITYC
Portuguese Jan textile & apparel exports
best in 12 years
The Spanish textile and clothing sector ended last year with a loss of 7,000 jobs and
shutdown of 400 companies, as per the data released by the Center of Information of Textile
and Apparel (CITYC) of Spain...
January 2014 turned out to be the best month in the last 12 years for the Portuguese textile
and apparel exports, which grew by 14% year-on-year to €411 million, Textile and Apparel
Association of Portugal (ATP) said...
According to the CITYC data, despite the increase in exports of
textile and clothing from the country during last year, the sector
ended the year with a total of 8,471 enterprises, indicating a
decline of 4.6% compared to 2012.
During 2013, the number of employees working in the clothing
and textile sector also declined by 5.5% year-on-year to 128,600.
As per the CITYC data, the Spanish textile and clothing sector
closed last year with a turnover of €9.36 billion, registering a fall
of 3.5% compared to 2012.
Meanwhile, Spanish textile and garment production witnessed a
positive trend during 2013, with production of textiles increasing
by 1.1% year-on-year, and production of apparel rising by 3.6%,
compared to 2012.
In 2013, textile and apparel exports from Spain amounted to
€12 billion, indicating a rise of 12.4% year-on-year, as per the
Spanish Ministry of Economy and Competitiveness data.
According to the Ministry’s data, textile exports from the country
Exports from Portugal increased in all product categories, with
exports of knitted garments growing at 18% year-on-year and
exports of fabric increasing by 14%, the ATP said in a statement.
The exports of made-up textile articles, including home textiles,
recorded a growth of 7% year-on-year, in January 2014. The
exports of textile raw materials from Portugal increased by 10%
year-on-year, of which, the exports of synthetic or man-made
fibres grew 19%, of special and tufted fabrics by about 17%, and
of impregnated, coated or covered and other textiles for technical
textiles by 11%, during the month. Portugal’s textile and apparel
exports to the EU rose by 16% year-on-year, with some countries
showing remarkable growth, especially Austria, Poland and France
where exports grew by 40.3% year-on-year, 36.6% and 29.2%,
respectively. According to the ATP statement, Portugal’s textile and
garment exports to Denmark, Sweden, the UK, the Netherlands,
Spain and Germany also increased by 22.1% year-on-year, 21.4%,
20.2%, 18.9%, 15.2% and 10.2%, respectively.
In addition, Portuguese textile and clothing exports to Angola and
China soared by 78% year-on-year and 44%, respectively, the
statement said. John Costa, president of ATP, expressed optimism
totaled €3.4 billion during last year, whereas exports from the
garment sub-sector touched €8.6 billion.
Turkey to halts order for US cotton as
prices surge
Turkish and Vietnamese cotton buyers have canceled a large number of otton orders from the
United States this season, as soaring prices have dampened demand amid a fall in production
Cotton buyers in Turkey and Vietnam, two of the top consumers of natural fiber, have canceled
orders for some 35,000 bales of fiber, U.S. government data showed, the latest sign that soaring
prices have crimped demand...
Data for the week to March 6, 2014 showed Turkey and Vietnam
accounted for the bulk of the 35,000 bales of cancellations stoking
fears about contract defaults for traders still reeling from a wave of
reneging during the price volatility of 2011.
Benchmark prices on ICE Futures U.S. finished the day down,
stemming a three-day rally, under pressure from the export sales
report. The total marked the biggest net cancellations in a month
and came after prices jumped toward August highs near 94 cents
a lb amid concerns about depleting domestic supplies.
Turkey, the largest buyer of U.S. cotton so far this season,
dropped at least 19,300 bales, the country’s largest cancellation
since October. The orders may be delayed or rolled forward in
anticipation of lower prices, market sources said. Traders said
42
INDUSTRY
APPAREL INDIA
the cancellations were likely of on-call sales, which are booked
but priced at a later date. Mills who have on-call contracts are
suffering right now. Some might think that cancellation of the
contract is a better option then fixing (prices) at these levels, said
one Turkish trader.
that the strong growth seen in January would lead to another year
of growth in 2014. In 2013, Portuguese textile and garment exports
increased by 3.5% year-on-year to € 4.3 billion. The Portuguese
textile and apparel sector accounts for about 155,000 direct jobs.
NY Now 365 creates 10,500 home textile
trade leads
NY Now 365, the image-based online directory for GLM’s NY Now trade show, has generated
10,500 leads between buyers and suppliers since its launch 10 months ago, according to a GLM
statement...
Designed to promote and enhance NY Now, the site now has more
than 58,000 products from almost 1,500 NY Now exhibitors.
To date, the statement said, 24,867 retailers have registered on
NY Now 365 to source products and to “like” and “pin” product
information to their own product boards for future reference. Site
users can also request more information from the exhibitors,
create “walking lists” to use at the show and save favorites from
their own collection of image boards.
Products from more than 20 categories - including contemporary
design, home textiles, handcrafts, gourmet housewares, decorative
accessories, personal care and wellness, and home furnishings are displayed on NY Now 365. Christian Falkenberg, GLM senior
vice president and director of NY Now, said, “Use of NY Now
365 has evolved from its start as a retailers’ sourcing portal to
become an active lead-generation site for suppliers.”
APPAREL INDIA
43
INDUSTRY News
News
US textile & apparel imports grow 4.22%
in Jan’14
The United States imported textiles and apparel worth US$ 9.017 billion in January
2014, registering an increase of 4.22% over imports of US$ 8.652 billion made in the
corresponding month last year, according to the latest Major Shippers Report, released by
the U.S. Department of Commerce...
With US$ 3.682 billion worth of goods supply, China accounted
for 39.85% share of all US textile and garment imports in the first
month of the current year.
Segment-wise, the US apparel imports during the year were
valued at US$ 6.842 billion, while non-apparel imports stood at
US$ 2.175 billion.
In the apparel category, Vietnam’s exports to the US jumped by
16.18% year-on-year to US$ 784.544 million, whereas exports
from India climbed 6.2% year-on-year to US$ 291.302 million.
However, the US clothing imports from Indonesia fell by 8.75%
year-on-year to US$ 455.812 million.
In the non-apparel category, Pakistan’s exports to the US rose by
11.63% year-on-year to US$ 152.039 million during the month,
while India’s exports grew by 10.8% to US$ 274.741 million.
However, the US imports from Japan and Canada dropped by
sharp 17.84% and 17.07%, respectively, to US$ 27.13 million
and US$ 61.817 million.
Of the total US textile and apparel imports of US$ 9.017 billion,
cotton products accounted for US$ 4.47 billion, while man-made
fibre (MMF) products were worth US$ 4.088 billion, followed by
US$ 268.555 million of wool products and US$ 189.536 million of
products from silk and vegetable fibres.
Made up of more than 2,500 red, white and blue towels, La
Quinta volunteers formed a 26,390 square foot U.S. flag.
All of the towels used during the event were then donated
by Standard Textile and La Quinta to Fisher House – Tripler
Army Medical Center in Honolulu. “The Fisher House is
a great cause, and La Quinta is a valuable partner for us.
It was fun to be a part of this record-setting event,” said
Greg Eubanks, Standard Textile’s Group Vice President,
Hospitality Sales & Marketing.
44
APPAREL INDIA
New Market Research Report: Machinery
for Textile & Apparel Production in
Brazil: Industrial Report
Euromonitor International's Industrial reports provide a 360 degree view of an industry.
The Industrial market report offers a comprehensive guide to the size and shape of the
Machinery for Textile and Apparel Production market at a national level...
It provides the latest retail sales data, allowing you to identify the
sectors driving growth. It identifies the leading companies, the leading
brands and offers strategic analysis of key factors influencing the
market - be they new product developments, packaging innovations,
economic/lifestyle influences, distribution or pricing issues. Forecasts
illustrate how the market is set to change.
Product coverage: Dyeing and Finishing Machinery, Industrial and
Household Sewing Machines, Machinery Parts, Attachments and
Accessories, Spinning, Weaving and Knitting Machinery.
Data coverage: market sizes (historic and forecasts), company shares,
brand shares and distribution data.
Euromonitor International has over 40 years' experience of publishing
market research reports, business reference books and online
information systems. With offices in London, Chicago, Singapore,
Shanghai, Vilnius, Dubai, Cape Town, Santiago, Sydney, Tokyo and
Bangalore and a network of over 800 analysts worldwide, Euromonitor
International has a unique capability to develop reliable information
resources to help drive informed strategic planning.
Last year, the US textile and apparel imports increased by 3.76%
year-on-year to US$ 104.724 billion.
Standard Textiles' largest Towel Mosaic
breaks World Record
The company, Standard Textiles partnered
with La Quinta to create the world’s largest
Towel Mosaic, breaking a Guinness World
Record...
INDUSTRY
India woos Chinese FDI in textile sector
Chinese investors were wooed to invest in India’s promising textile sector at a half-day seminar
on “Investing in India’s Textile Sector” in Shanghai...
The seminar was well received by the delegates, a top Cotton
Textiles Export Promotion Council of India (TEXPROCIL).
TEXPROCIL in association with China National Textiles
and Apparel Council (CNTAC) and the Indian Embassy in
China hosted the seminar which was attended by around
80 Chinese delegates from the Chinese textile and garment
industry.
The main idea behind hosting the seminar was to showcase
Indian textile sector as an investment destination, as
exporters would like to see more of finished goods being
exported from India, rather than just cotton, yarn or fabrics.
Since costs are going up in China and the Chinese are
looking for other overseas destinations. The seminar urged
the Chinese investors to take advantage of the projected
growth of Indian textile industry which is expected to reach
US$ 220 billion by 2020, which will require additional
investment of around US$ 68 billion in the entire textile
supply chain.
APPAREL INDIA
45
INDUSTRY News
News
Enabling Trade Report 2014 of World
Economic Forum and India’s position
As part of the Bali Package, WTO members adopted the Trade Facilitation Agreement,
which contains provisions for faster and more efficient customs procedures through
effective cooperation between customs and other appropriate authorities on trade
facilitation and customs compliance issues...
It also contains provisions for technical assistance
and capacity building. Since the success in Bali,
trade facilitation has been high on the agenda of
governments, businesses and development partners. The
heightened interest represents a window of opportunity
for policymakers, especially in developing countries,
to push through trade-enabling measures. As the
conclusion of the full Doha Development Agenda remains
a distant prospect and in absence of real progress in
market access negotiations, these measures represent
a way of reaping important benefits of trade. In this
context, The Global Enabling Trade Report provides
a tool for the international trade community to monitor
progress on implementing these measures. The measures
include not only those related to market access, such
as tariffs and nontariff barriers, but also those that
facilitate trade at the more practical level, with more
efficient border administration, better infrastructure
and telecommunications and improved regulatory and
security regimes that secure property rights and reduce
transactions costs. The empirical literature offers ample
evidence of the importance of these factors. For instance,
research suggests that the quality of logistics, connectivity
and border administration plays an equally, if not more
important role than tariffs in determining bilateral trade
costs. Reducing trade barriers enables trade and thereby
contributes to prosperity and welfare through various
channels. It is one of the objectives of this Report to convey
this important message. After much debate, the nexus
between trade and growth, and in turn between growth and
poverty reduction, is now widely accepted. For the United
Nations’ Open Working Group tasked with formulating
the post-2015 sustainable development agenda, trade
represents an important means of eradicating extreme
poverty and achieving sustainability (United Nations,
2014). Since 2008, throughout the Great Recession
and in its aftermath, trade has contributed to averting
a deeper crisis, as countries around the world have
resisted protectionism. Today, as the world is grappling
with economic uncertainty, geopolitical upheaval, social
tensions and humanitarian crises, trade remains a vector
of peace, development, prosperity and opportunity.
46
APPAREL INDIA
Swiss International Airlines Ltd, Transnet SOC Ltd, UPS
and Volkswagen AG. The Enabling Trade index provides
a reminder of the fundamental attributes that govern a
nation’s ability to benefit from trade. Since its introduction
in 2008 it has become a widely used reference, forming part
of the toolbox of many countries in their efforts to benefit
from trade and helping companies with their investment
decisions. The Enabling Trade Index 2014 rankings have
kept India on 96th position.
INDUSTRY
The ETI assesses the extent to which economies have in
place institutions, policies, infrastructures and services
facilitating the free flow of goods over borders and to
their destination. These sets of trade-enabling factors
are organized in four main categories (or subindexes):
market access, border administration, and infrastructure
and operating environment. Thus, the scope of the ETI is
much broader than trade facilitation as conceived by most
international organizations.
The Enabling Trade Index
The Global Enabling Trade Report (GETR) series has
been published by the World Economic Forum since 2008,
initially on an annual basis, and biennially since 2010.
From the beginning, the assessment has been based on
the Enabling Trade Index (ETI). The index was developed
within the context of the World Economic Forum’s Enabling
Trade program, with the help of leading academia and
partner organizations and companies, including A.P. Möller
Maersk, AB Volvo, Agility, Brightstar Corp., Deutsche Post
DHL, DNB ASA, Emirates Group, International Container
Terminal Services Inc., Royal Vopak, Stena AB,
Table 1: Estimates of the gains by 2020 brought about
by improved trade facilitation
Country/Region
GDP gains*
Percent US$ billions
Export gains
Percent US$ billions
Australia and New Zealand
1.29
7
8.00
8
Brazil
0.37
5
4.38
Canada
1.41
22
5.00
7
20
China
1.45
124
8.83
187
Egypt
2.24
8.83
European Union
2.04
5
348
10.60
629
India
0.91
21
9.56
Japan
-0.12
-6
2.10
35
15
2
Korea, Rep.
2.18
29
8.18
52
Mexico
2.47
33
11.79
49
Middle East
5.66
30
13.66
22
North Africa
4.44
15
11.21
14
Other Africa
Other Asia
7.28
7.97
47
283
22.28
46
16.18
Other Europe and Turkey
Other Latin America
and the Caribbean
3.75
36
15.04
211
49
3.07
2.83
40
35
16.20
7.88
25
United States
3.36
0.55
13
90
17.93
3.90
16
61
Total
1.78
1,177
8.23
1,488
Russian Federation
South Africa
40
Sources: Zaki (2014), CEPII (2010) and World Bank (2013).
Note: All US$ amounts expressed in 2005 prices.
*Zaki (2014) reports welfare gains, which include net income transfers, rather than GDP
gains. The two are close for most countries.
Dollar export gains are calculated based on 2012 merchandise exports to GDP ratios
from the World Development Indicators. The figure include intra-regional exports,
where applicable
APPAREL INDIA
47
INDUSTRY News
News
INDUSTRY
Researchers develop fully textile wave
guide antenna using a metamaterial
inspired unit cell
Researchers at Katholieke Universiteit Leuven and Universiti Malaysia Perlis are the first to
have developed a fully textile waveguide antenna using a metamaterial inspired unit cell that
is also used in composite right/left-handed transmission lines. The antenna is compact, robust
and can be used for 2.45 and 5.4 GHz dual-band WLAN applications...
Different by design
The integration of wireless sensing and communication into
clothing is a very attractive solution in many sectors; for example,
in the medical monitoring of hospitalised or home-bound patients,
or by emergency personnel in search and rescue missions,
particularly in hazardous environments. Wearable, fabric-based
antennas are light-weight, low-cost and unobtrusive compared
to the usual rigid antenna structures. They have been in use for
several years in the military sector but research is still ongoing
worldwide in order to bring them into large scale consumer
product use.
There are several challenges in the creation of body-worn
antennas. The electromagnetic interaction between the human
body and the antenna is a serious issue as: firstly, the irradiation of
the human body over longer periods of time may present a health
risk; and secondly, the body may strongly affect the performance
of the antenna. The antenna's on-body behaviour, therefore, has
to be properly understood. In addition, the properties of the
textile materials used may not be readily available or may vary
by manufacturer, and the antenna designs also need to take into
account higher fabrication tolerances and show robustness against
positional and directional changes when being worn.
Cut from a different cloth
The electrical size of an antenna depends on its physical
dimensions and its operational frequency, and reducing the
antenna size usually increases its operational frequency. If a
metamaterial is used, its dispersion curve can be controlled by
the design of the metamaterial itself, and this enables the creation
of physically smaller radiators.
The essential feature of the antenna presented in this issue of
Electronics Letters is the metamaterial inspired single cell
embedded in the topology of the antenna, which allows the control
of the field distribution within the antenna while keeping the
overall design robust, simple and compact. The antenna, which
is mounted on a felt substrate, radiates with similar near-field
distributions and radiation patterns through two different modes
in two wireless frequency bands. Interference between the human
48
APPAREL INDIA
body and the antenna is reduced by the use of a ground plane
made from a commercially available shielding textile.
"This wearable textile antenna was developed within the framework
of a project aiming at an integrated solution for monitoring,
locating, alerting and communicating with senior citizens in an
indoor environment," said Sen Yan, a researcher at Katholieke
Universiteit Leuven and the first author of the Letter.
"The system is to be deployed in the form of a network of low-cost
wireless sensors within a home. For real-time alerting in the event
of emergencies it uses a stepped frequency continuous wave radar
concept, combined with dedicated signal processing capabilities.
The integration of an electronic module with the textile antenna,
which contains several vital-sign sensors, a microcontroller and
a wireless communication module, will complete the worn part of
this system."
Future systems
Technical textiles are continuing to advance and this, combined
with the rapid development of integrated circuit technology and
the corresponding miniaturisation of electronics, according to Yan,
makes it likely that wearable electronics and textile antennas will
be combined within the next decade to form complete miniaturised
wearable systems integrated into clothing.
"Sophisticated signal processing techniques, increased storage
capabilities and high quality wireless connections will allow the
design and manufacture of systems with unique high performance
properties," he said. "Besides being able to increase productivity in
specialised occupational segments, we would very much like to see
this technology being widely applied in the healthcare sector, where
it could result in an improved quality of life for many patients."
APPAREL INDIA
49
AEPC Export Performance
Export Performance
Apparel Export Growth remained high
in February 2013-14
Apparel exports were to the tune of US$ 1412 million in Feb. 2013-14 with increase of 15.5%
against the corresponding month of last financial year...
Export in dollar terms for April-Feb. of the FY 2013-14 has increased by 16.3% over
the same period of previous FY and reached to USD 13410 million.
In the FY 2012-13 exports in dollar terms declined by 6% from previous FY and totaled US$ 12,923 million in
April-March 2012-13.
India's RMG Export to World
Month
50
In US$ Million
FY (2012-13)
In US$ Million
FY (2013-14)
Month-on-Month
Growth In%
USA's Apparel Imports
Apparel imports of the United States witnessed increase of 3.9%
in the Jan. of 2014 from the previous year and amounted to 7.1
billion dollars. In the Jan. 2014, US imports of apparel from
India increased by 5.4% and reached to US$ 306 million against
AEPC
US$ 291 million in Jan. 2013. US imports saw increase from all
major suppliers in Jan. 2014 over the corresponding period of
last year except for Indonesia.
In Jan. 2014 India was at 5th position. India exported
US$ 306 million apparel in Jan. 2014, with increase of
5.4% over the same month of previous year.
Top Apparel Supplier Countries to US (Value of imports in US$ Mn.)
Imports in US$ mn.
2013
Jan – Jan
2013
Jan – Jan
2014
Jan
2013
%Change
Jan
2014
%Change
Jan-Jan 2014/ Jan 2014/
Jan-Jan 2013 Jan 2013
Total Apparel
Imports of US
83809.3
6967.87195.36967.87195.3
3.26
3.3
China
31660.6
2693.22816.32693.22816.3
4.57
4.6
Vietnam
8374.6
692.4802.6692.4802.6
15.91
15.9
April
1059
1150
8.59
Indonesia
5184.9
518.6485.8518.6485.8
-6.32
-6.3
May
1041
1171
12.49
Bangladesh
5046.3
472.1472.3472.1472.3
0.04
0.0
June
1106
1240
12.13
Mexico
3410.4
290.8306.4290.8306.4
5.37
5.4
July
1074
1279
19.14
India
3842.8
283.4287.3283.4287.3
1.37
1.4
Aug
993
1116
12.39
Sep
969
1114
14.96
Oct
909
1190
30.91
Nov
867
1053
21.45
Dec
1060
1244
17.36
Jan
1236
1451
17.42
Feb
1222
1412
15.54
April-Feb
11536
APPAREL INDIA
13410
(Source: U.S. Department of Commerce Office of Textile and Apparel, 2014)
16.33
APPAREL INDIA
51
AEPC Export Performance
Export Performance
Apparel Imports of EU and India’s
Position, 2013
EU’s apparel import accounted for US$ 93 billion for the Jan.-Dec 2013 with decline
of -12.9% registered over the previous year. India’s export to EU for the Jan-Dec 2013
amounted to US$ 5.5 billion with 14.4% decline compared to same period of previous
year...
For the period Jan-Dec 2013 China, Bangladesh, Turkey
and India had registered decline in the apparel export to
EU and China had registered highest decline during the
period among the top suppliers. among the extra-eu apparel
suppliers India was 4th largest supplier during 2013 with
6% share in 2013, while when compared including EU
members also India was 9th Largest suppliers with 3.4%
share I 2013.
Top Apparel Supplier Countries to EU (Value of imports in US$ Mn.)
Exporters
Jan-Dec.
2012
Jan-Dec.
2013
% Growth
World
106.8
93.0-12.9
China
43.8
35.6-18.5
Turkey
13.7
12.6-7.6
Bangladesh
13.0
11.4-11.7
Table 2: Clothing Import of EU with Intra-EU and Extra-EU Members, Value US$ Mn.
6.5
There has been tremendous shift in the trading pattern of EU, as
over a period of time intra-EU trade has gain more importance
compared to extra-EU trade specifically in the RMG trade. Below
in the table 2 composition of intra-EU and Extra-EU trade in RMG
for last three years in value terms is given. It can be inferred from
the table that gradually share of EU members in EU’s clothing
import from world has increased substantially. As per the eura-tex
it has been happening on the account of increasing unemployment
rate in the EU region. In 2009 EU member exported to EU around
US$ 49 bn which in 2013 had increased to US$ 68 bn. while
import other than EI members has decline from US$ 97 bn in
2009 to US$ 93.0 bn. in 2013.
CAGR in%
(2009-13)
68.4
38.1
8.5
106.8
93.0
-12.9
-1.0
43.8
35.6
-18.5
-4.4
2009
2010
Import from Intra EU Members,
US$ Bn.
49.3
48.9
56.5
49.5
Import from Extra EU Members,
US$ Bn.
97.0
102.5
118.1
Import from China US$ Bn.
42.6
46.0
50.9
Import from Bangladesh US$ Bn.
8.79.8 13.513.712.6 -7.6
Import from Turkey US$ Bn.
11.6
Import from India US$ Bn.
6.8
12.5
7.0
2011
13.6
8.0
2012
13.0
6.5
2013
11.4
5.5
9.7
-11.7
-0.3
-14.4
-5.0
Source: UN Comtrade, 2014
In the extra-EU members import of clothing in EU Turkey
and Bangladesh have registered huge increase in their
share in apparel import of EU from rest of the world than
EU members. As indicated below in the table 3 share
growth from Turkey and Bangladesh for last four years
are positive. On the other hand India’s share has declined
substantially in 2013 and is growing negatively since last
four years.
Table 3: Clothing Import of EU with Intra-EU and Extra-EU Members, Share
5.5-14.4
Source: UN Comtrade, 2014
% Change
2013/2012
Levels
Levels
India
AEPC
2009
2010
2011
2012
2013
% Change
2013/2012
CAGR in%
(2009-13)
Intra EU Trade share in total RMG
import of EU in%
33.732.3 32.331.742.4 33.1 -1.5
Extra EU Trade share in total RMG
import of EU in%
66.367.7 67.768.357.6 -15.8
Share of China in Extra-EU Import
of EU in%
29.130.4 29.228 22.1 -20.2 -1.0
Share of Bangladesh in Extra-EU
Import of EU i in%
6
6.5
7.7
8.7
7.8
-11.7
9.7
Share of Turkey in Extra-EU Import
of EU in%
7.9
8.2
7.8
8.3
7.1
-15.4
1.2
Share of India in Extra-EU Import of
EU in%
4.6
4.6
4.6
4.1
3.4
-15.2
-2.8
0.7
Source: UN Comtrade, 2014
52
APPAREL INDIA
APPAREL INDIA
53
Focus Country
Country
Japan: India-Japan CEPA may become
catalyst for increasing Apparel Exports
from India
Exports have often been a main source of growth for Japan's economy. Between
2002 and 2007, real GDP grew at an average annual rate of approximately 1.8%,
underpinned by exports, which grew at an average annual rate of over 9% during the
same period. In the aftermath of the global economic crisis in 2008, exports collapsed,
resulting in the Japanese economy contracting in 2008 and 2009. Recovery in 2010
was again export-led...
The earthquake and tsunami in 2011 resulted in sharp declines
in private consumption and stock building, and widespread
supply chain disruptions affecting production across the country,
particularly in export dominant sectors, such as automobiles
and electronics. Production was also affected by the shutdown of
nuclear power plants, while exports were impacted by the floods
in Thailand. Against this background, exports declined and the
economy contracted in 2011. The Japanese economy has rebounded
since then and real GDP growth is expected to be 2.2% in 2012.
Recent growth has not been driven by exports, but has come on
the back of reconstruction spending, consumer spending (helped
by government subsidies for environmentally friendly automobiles),
and inventory building in the wake of supply chain disruptions.
However, the recovery is fragile, with the Japanese economy being
susceptible to shocks in the global economic environment especially
in key trading partners such as the EU and China.
Detailed macro-economic indicator of Japan is given in table 1
Regional Trade Agreements Japan has an ambitious programme
for expanding its already relatively large network of 13 RTAs.
The authorities note that Japan's policy on RTAs is to pursue
high-level economic partnerships strategically and from several
perspectives, with a wide range of countries, such as major
trading partners. According to the Basic Policy on Comprehensive
Economic Partnerships, the Asia-Pacific region is of particular
importance for Japan, politically, economically, and with regard to
security. Japan will increase its efforts to promote and conclude
ongoing bilateral EPA negotiations, such as with Australia; it
will work towards the realization of the China-Japan-Korea FTA,
and the Regional Comprehensive Economic Partnership (RCEP)
among others. Further afield, it will expedite talks with the EU
to enter into negotiations and will work actively to strengthen
its economic partnerships with other Asian economies, newly
emerging economies, and resource-rich countries. Japan has
entered into consultations with the countries currently negotiating
the Trans-Pacific Partnership (TPP) Agreement, following an
announcement by the Prime Minister in November 2011. Japan
has made early announcements to the WTO of agreements under
negotiation with Australia, the Gulf Co-operation Council, and
Korea. According to the authorities Japan has also decided to
launch EPA negotiations with Canada, Colombia, and Mongolia.
Since its last Trade Policy Review in 2011, Japan has notified
the entry into force of two EPAs, with India and Peru, in addition
to its 11 previous RTAs (Table AII.3). Except for its agreement
with ASEAN, all of its RTAs include goods, services, and
investment, frequently with a separate chapter on the temporary
movement of natural persons (mode 4), which provides improved
temporary access to certain categories of natural persons.
Japan has negotiated broad-based agreements with most of its
partners, taking into consideration sensitivities in trade in certain
products. In certain agreements for which the WTO Secretariat
has prepared factual presentations (with Mexico, Chile, Malaysia,
Focus
Brunei, Indonesia, the Philippines), Japan's tariff liberalization
has in general been less than that of its trading partners by the
end of the implementation of the agreement, with agricultural
products tending to be excluded from liberalization or subject to
restricted liberalization through tariff rate quotas. Under its RTAs
that entered into force during the review period, with India, Japan
will liberalize 88.9% of its tariffs (59.6% of agricultural products
will be liberalized) corresponding to 97.5% of imports from India
during 2008-10, over a period of 10 years; with Peru, Japan will
liberalize 89.4% of its tariffs (61.6% of agricultural products will
be liberalized), corresponding to 98.9% of its imports during
2009-11 after 16 years.
Merchandise Trade
Total export of Japan stood US$ 715166.8 million in 2013 which
declined by 10.4% from 2012 while total import were to the tune
of US$ 833130 million in 2013 almost 6% lower than 2012. Japan
exported 1.2% of its total export to India while in its total import
from world India accounted for .8% share in 2013. India’s share
in Japan’s export remained stagnant in the last three years while
share in import has increased in 2013 compared to last year.
In Japan’s total export to world, apparel sector accounted for less
than .0.05% share while in import accounted for around 3.8% in
2013. Japan’s apparel export to world in 2013 stood for US$ 356
million which was 15% higher than 2012 and import stood for US$
31778 million which is .8% lower than 2012.
Japan’s import of knitted garment is higher than the woven
garment and in the last three years share of knitted garment in total
garment import has increased substantially. Import from India was
higher for woven garment compared to knitted garment and same
remained true for 2013 also. Overall apparel import from India has
declined by 6.8% in 2013 compared to 2012. Below in the table 2
segment wise import of Japan from world and India is given.
Table1: Key Macro-Economic Indicators of Japan
Details
Year
Figures
Population
(2013 est.)
127,103,388
Population Growth Rate
(2013 est.)
-0.13%
GDP (Purchasing Power Parity - PPP)
(2013 est.)
$4.729 trillion
GDP Growth
(2013 est.)
2%
Annual Rate of Inflation
(2013 est.)
0.2%
GDP Per Capita (PPP)
(2013 est.)
$37,100
Industry
(2013 est.)
25.6%
Major Ports
Chiba, Kawasaki, Kobe, Mizushima, Moji, Nagoya, Osaka, Tokyo, Tomakomai, Yokohama
Source: World Fact Book, CIA
54
APPAREL INDIA
APPAREL INDIA
55
Focus Country
Country
Table 2: Japan’s Import of Apparel From India and World, US$ million
Years
World
2005
21,166.6
Table 4: Japan's Top% RMG Imports from World and Share of Top 5 Suppliers and India's Share
India's Share in
Import in%
India
139
0.7
2012
32037.5
293.00.9
2013
31779.0
273.30.9
Rank in Product
2013
code
apparel supplier to Japan accounted for around 7.4% share
in total apparel import of Japan. Among the top 10 suppliers
all have registered positive growth from 2012 except for
China, India and USA and Cambodia has registered highest
growth among them. Apparel imports from India have grown
negatively by 6.8%.
Product label
Import Value in
2013, US$ Mn.
Growth
in%13/12
Share of Top 5 Suppliers
and India in%
'6110
Jerseys, pullovers, cardigans,
etc, knitted or crocheted
5253.6651.6
China (82.8%), Vietnam (4.9%),
Italy (2.6%), Indonesia (2.3%),
India (0.1%)
2
'6204
Women's suits, jackets,dresses
skirts etc & shorts
3987.772-1.1
China (75.4%), Vietnam (6.1%),
Italy (3.3%), Indonesia (2.2%),
India (1.8%)
3
'6203
Men's suits, jackets, trousers
etc & shorts
2916.388-3.3
China (63.6%), Vietnam (10.6%),
Bangladesh (4.6%), Indonesia
(4.5%), India (0.6%)
4
'6109
T-shirts, singlets and other
vests, knitted or crocheted
2365.2530.9
China (71.6%), Vietnam (11.6%),
Bangladesh (5.2%), Thailand
(2.2%), India (0.4%)
5
'6202
Women's
overcoats,capes,wind-jackets
etc o/t those of hd 62.04
1720.7891.7
China (78.2%), Myanmar (5.1%),
Vietnam (5.1%), Italy (3.1%),
India (0.2%)
1
Source: UN Comtrade, 2014
China is the top most apparel supplier to Japan. India is
the ninth largest apparel supplier after China, Vietnam,
Italy, Indonesia, Thailand, Bangladesh, Myanmar, Thailand
and Cambodia. China accounted for almost 75.8% share
in Japan’s total apparel import from world while India
accounted for .9% in 2013. Vietnam which is second largest
Focus
Below in the table 3 and Fig 1 top 10 apparel import partner of Japan and their relative position are shown:
Table 4: Major Apparel Suppliers to Chile
Value in US$ Mn.
Rank in
2013
Exporters
2011
2012
2013
India-Japan CEPA has given tariff advantage to Indian apparel exporters to Japanese market as apparel import is duty
free in Japan from India. Earlier Japan used to apply 9.2% applied MFN AV on apparel imports now there is no duty on
imports of apparel from India
Share in%
% Change
2013/2012
2011
2012
2013
% Change
2013/2012
100
100
100
0.0
World
31110.932037.5 31779.0
1
China
25214.5 25086.924073.5 -4.0
2
Area Nes
1770.4 2089.92345.7 12.2
5.7
6.5
3
India
784.2
815.7835.5 2.4
2.5
2.5 2.6
4
USA
394.1
635.0 822.729.6
1.3
2.0
2.6
30.6
5
Viet Nam
349.5
486.2 563.916.0
1.1
1.5
1.8
16.9
6
Bangladesh
345.6
407.2 478.017.4
1.1
1.3
1.5
18.3
7
Peru
364.6
429.0452.4 5.4
1.2
1.3 1.4
6.3
8
Italy
154.2
190.7 294.054.1
0.5
0.6
0.9
55.4
9
Spain
271.4
293.0273.3-6.7
0.9
0.9 0.9
-6.0
10
Panama
153.2
173.8171.5-1.3
0.5
0.5 0.5
-0.5
4.2
4.5
Rest of the World
(RoW)
-0.8
1309.1 1429.81468.6 2.7
81.0
78.3
75.8
7.4
4.6
-3.3
13.2
3.3
3.5
Source: UN Comtrade, 2014
Competitive Picture of Indian apparel
export in Japan
Below in the table 4, competitive positions of top 5 suppliers for
56
APPAREL INDIA
top five RMG import items of Japan from world is given as these
top 5 items constitute more than 52% share in total apparel import
of Japan from world. China has been found the dominant supplier
followed by Vietnam. India remained at the lowest position for all
top 5 products.
APPAREL INDIA
57
AEPC
Notifications
Merchanting Trade Transactions - Revised Guidelines
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular
Nos.106 & 4 dated June 19, 2003 and July 19, 2003 respectively, containing directions relating to merchanting
trade transactions. Further, in terms ofA.P. (DIR Series) Circular No. 95 dated January 17, 2014 the existing
guidelines were reviewed in the light of the recommendations of the Technical Committee on Services/
Facilities to Exporters (Chairman: Shri G. Padmanabhan) to further liberalise and simplify the procedure.
 In view of suggestions received from merchanting traders and trade bodies, the guidelines
on merchanting trade transactions have been further reviewed. Accordingly, it has been
decided to issue revised guidelines as under:
• For a trade to be classified as merchanting trade following conditions should be satisfied ;
a. Goods acquired should not enter the Domestic Tariff Area and
b.The state of the goods should not undergo any transformation ;
• Goods involved in the merchanting trade transactions would be the ones that are permitted for exports
/ imports under the prevailing Foreign Trade Policy (FTP) of India, as on the date of shipment and
all the rules, regulations and directions applicable to exports (except Export Declaration Form) and
imports (except Bill of Entry), are complied with for the export leg and import leg respectively ;
• AD bank should be satisfied with the bonafides of the transactions. Further, KYC and AML guidelines
should be observed by the AD bank while handling such transactions ;
• Both the legs of a merchanting trade transaction are routed through the same AD bank. The bank
should verify the documents like invoice, packing list, transport documents and insurance documents
(if originals are not available, Non-negotiable copies duly authenticated by the bank handling
documents may be taken) and satisfy itself about the genuineness of the trade ;
• The entire merchanting trade transactions should be completed within an overall period of nine months
and there should not be any outlay of foreign exchange beyond four months ;
• The commencement of merchanting trade would be the date of shipment / export leg receipt or import
leg payment, whichever is first. The completion date would be the date of shipment / export leg
receipt or import leg payment, whichever is the last ;
• Short-term credit either by way of suppliers' credit or buyers' credit will be available for merchanting
trade transactions, to the extent not backed by advance remittance for the export lag, including the
discounting of export leg LC by an AD bank, as in the case of import transactions ;
• In case advance against the export leg is received by the merchanting trader, AD bank should ensure
that the same is earmarked for making payment for the respective import leg. However, AD bank may
allow short-term deployment of such funds for the intervening period in an interest bearing account ;
• Merchanting traders may be allowed to make advance payment for the import leg on demand made by
the overseas seller. In case where inward remittance from the overseas buyer is not received before
the outward remittance to the overseas supplier, AD bank may handle such transactions by providing
facility based on commercial judgement. It may, however, be ensured that any such advance payment
for the import leg beyond US$ 200,000/- per transaction, the same should be paid against bank
guarantee / LC from an international bank of repute except in cases and to the extent where payment
for export leg has been received in advance ;
• Letter of credit to the supplier is permitted against confirmed export order keeping in view the outlay
and completion of the transaction within nine months ;
*Detailed notification can be seen on the RBI website.
58
APPAREL INDIA
Notifications
AEPC
Rupee Drawing Arrangement - Increase in Trade
related Remittance Limit
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to Part (B) of Annex-I to
the A.P. (DIR Series) Circular No. 28 [A. P. (FL/RL Series) Circular No. 02] dated February 6, 2008 on
Memorandum of Instructions for Opening and Maintenance of Rupee/ Foreign Currency Vostro Accounts
of Non-resident Exchange Houses, as amended from time to time.
 On a review of the Permitted Transactions under the Rupee Drawing Arrangements (RDAs), it has
been decided to increase the limit of trade transactions from the existing Rs 2,00,000/- (Rupees Two
Lakh only) per transaction to Rs 5,00,000/- (Rupees Five Lakh only) per transaction, with immediate
effect.
 All other instructions issued vide A.P. (DIR Series) Circular No. 28 [A. P. (FL/RL Series) Circular No.
02] dated February 6, 2008, as amended from time to time, will remain unchanged.
 AD Category - I banks may bring the contents of this circular to the notice of their constituents
concerned.
 The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of
the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions
/ approvals, if any, required under any other law.
Export of Goods and Services: Export Data Processing
& Monitoring System (EDPMS)
Attention of Authorised Dealers is invited to A. P. (DIR Series) Circular No. 12 dated September 9, 2000
read with A.P. (DIR Series) Circular No.101 dated February 04, 2014 in terms of which a comprehensive
IT- based system called Export Data Processing and Monitoring System (EDPMS) has been developed
for better monitoring of export of goods and software and facilitating AD banks to report various returns
through a single platform. It has been further advised that the date of inception of the system along with
user credentials and web link for accessing the system would be communicated to the AD banks shortly.
 It is now advised that EDPMS has been operationalized with effect from February 28, 2014 and the
same would be available to AD banks with effect from March 01, 2014. Accordingly, AD banks are
advised to use web link https://edpms.rbi.org.in/edpms for accessing the system. The user credentials
for accessing the system have already been shared with the AD banks.
 Henceforth, the entire shipping documents should be reported in the new system and old shipping
documents would continue to be reported in the old system till completion of the cycle. Both the old
and new systems will run parallel to each other for some time before the old system is discontinued.
This will be advised to AD banks separately.
 Authorised Dealers may bring the contents of this circular to the notice of their constituents
concerned.
 The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of
the FEMA, 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required
under any other law.
APPAREL INDIA
59
AEPC
Notifications
Notifications
Introduction of Online Export Obligation
Discharge Certificate (EODC)/Redemption for
Advance Authorization (AA) and Duty Free Import
Authorization (DFIA)
In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy, 20092014, the Director General of Foreign Trade hereby notifies amendment in procedure to be
followed in respect of Export Obligation Discharge Certificate / Redemption of Advance
Authorization (AAs) and Duty Free Import Authorization (DFIA) with effect from 1.6.2014
 Guidelines for Exporters / RAs:
Filing of applications for grant of EODC / Redemption
1
Physical Exports
[EDI Shipping Bills only]
For all Shipping Bills on or
after 01.04.2009
Online application/filing for EODC is mandatory.
For Shipping Bills prior to
01.04.2009
Online application/filing for EODC is not mandatory(because the
shipping bills may not have been transmitted to DGFT electronically)
II
Physical Exports
[EDI Shipping Bills only]
For all Non-EDI Shipping Bills manual filing will continue as these Shipping Bills have not been
transmitted electronically to DGFT
III
Deemed Exports
Details of Deemed Export Supplies to be fed in EODC System on-line on DGFT website.
Applications for EODC for cases at entry II and III in the table at para 2 above cannot be
made online as shipping bills are manual and records evidencing deemed exports supplies
are not transmitted online to DGFT. In respect of these cases applications will continue to be
in manual mode. Only after electronic transmission of these supporting documents to DGFT
is made possible, they will be brought within the ambit of on line EODC.
EODC / Redemption letter containing details of EDI / Non-EDI Shipping Bills will be
transmitted electronically to Customs / Authorization holder.
Effect of this Public Notice: Online system for EODC / Redemption for AA / DFIA is being
introduced with effect from 1.6.2014. This will reduce processing time and transaction cost.
Export Performance Certificate- 2014-15
Reference is invited to the Notification No. 05/2014-Customs dated 17.02.2014 of Government of India, Ministry
of Finance (Department of Revenue) thereby making further amendment in the Principal Notification No.
12/2012-Customs dated 17.03.2012. There are no changes made in the latest Notification dated 17.02.2014
as regards the 3% Export Performance Scheme applicable for readymade garment exporters.
Accordingly applications are invited from eligible manufacturer exporters & merchant exporters (having tied
up with supporting manufacturer of textile garments) for issuance of Export Performance Certificate (EPC) for
the purpose of importing eligible items as per the description of the goods given in the Notification for use in
manufacture of textile garments for exports. Applications will be received only from exporters who are registered
60
APPAREL INDIA
AEPC
as manufacturer exporter & merchant exporter (tied up with supporting manufacturer of textile garments) having
valid membership of the Council. The applications* in format at Annexure-I along-with prescribed documents
and fee may be addressed to Sr. Director & Secretary, Apparel Export Promotion council, Apparel House,
Institutional Area Sector-44, Gurgaon-122003. The application can also be submitted in Council’s offices at
Okhla (New Delhi), Naraina (New Delhi), Noida, Tirupur, Chennai, Bangalore, Kolkata, Mumbai, Ludhiana
and Jaipur. As per the Notification, the import of lining and inter-lining materials shall be restricted to 2% of
the FOB Value of the garments exported and value realized during 2013-14, within overall Export Performance
Certificate issued at 3% of the FOB value of the garments exported and realized during 2013-14.
Detailed circular containing application form is on the AEPC website i.e http://www.aepcindia.com/
Payment of Annual Subscription by Member &
Registered Exporters for the Financial Year 2014-15
The Annual Subscription for Financial Year 2014-15 by Member & Registered Exporters could be
deposited up to 31/05/2014. The details as below:
Particulars
Member Exporter having
registration no 1 to 10000 and
above 100000 and below 200000
Amount payable from 1st April,
2014 up to31.05.2014 (including
Service Tax @ 12.36%) (Rs.)
Annual Subscription for the
year, 2014-15 (1st April, 2014 to
31st May, 2014) Including service
tax (as applicable)
8989
Registered Exporter
Amount payable from 1st April, 2014
up to 31.05.2014 (including Service
Tax @ 12.36%) (Rs.)
8427
Subscription for Apparel India 275
Magazine
Including service tax (as applicable)
275
Total
8702*
9264*
*If paid after 31st May, 2014 but before 30th June 2014, then Rs 10388/- for Member Exporter & Rs 9826/for Registered Exporter is payable including charges - for Apparel India Magazine.
Note:
• The amount may please be sent by A/c payee Cheque/PO/Demand Draft in favour of “Apparel Export
Promotion Council” alongwith original RCMC, Cheque/DD/PO for amendment charges of Rs. 309/- &
valid factory license/SSI certificate in case of Manufacturer Exporter.
• The Annual Subscription for 2014 - 15 as detailed above can be paid upto 31st May 2014.Thereafter, it can
be paid up to 30th June, 2014 along with additional charges of Rs. 1,124/- (charges + service tax @
12.36%)
• Please quote your correct Registration Number on your covering letter and at the back side of DD/PO/Cheque
APPAREL INDIA
61
APPAREL INDIA
The official magazine of Apparel Export Promotion Council
APPAREL APPAREL
APPAREL
August 2012
Vol. 4 Issue 4 April 2012
August 2012
INDIA
INDIA
INDIA
Tex Trends
India 2012
Special Edition
Lead Council:
Shri Pranab Mukherjee
Carpet Export
Promotion Council
The Cotton Textile Export
Promotion Council
Export Promotion
Council for Handicrafts
Handloom Export
Promotion Council
Indian Silk
Export Promotion Council
National Jute Board
Powerloom Development &
Export Promotion Council
Synthetic & Rayon Textiles
Export Promotion Council
Wool & Woollen
Export Promotion Council
Wool Industry
Export Promotion Council
ADVERTISE NOW
Our Audience
APPAREL INDIA offers you the ability to reach your target market through our print as well as online
medium. We reach a total unique audience of over 1,00,000, through our monthly magazine and
a combined audience of over 5,00,000 through our events, only from India. The most influential
industry leaders, apparel manufacturers and exporters in India subscribe to APPAREL INDIA for
its exclusive information on government policies, decisions, developments and industry statistics.
Apparel India’s print circulation is controlled, ensuring we deliver to a targeted and well-defined
set of Indian retailers, brands, apparel manufacturers and other professionals in the industry.
Contact us for more info
Subscriptions & Membership Queries
Editorial & ADVERTISING queries
MR. ravish Srivastava
manager (Fairs & Exhibitions),
AEPC
Ms. annou iyer,
Executive editor,
Apparel india
T: +91 124 2708000-3, 2708162
E: [email protected]
M:+91 9899762388
E: [email protected]
Published by
Content & design
Apparel Export Promotion Council
Apparel House, Sector 44, Gurgaon, Delhi NCR, India
Tel: 91 124 2708000-03 Fax: 91 124 2708004-05 Website: www.aepcindia.com
Registered Address: B-5, Anupam Plaza, Sri Aurobindo
Marg, Hauz Khas, New Delhi- 110016, India
Apparel India is a publication of the Apparel Export Promotion Council (AEPC).
AEPC and APPAREL INDIA trademarks are owned by AEPC. All rights reserved worldwide.
takes over as President of India
INDIA INTERNATIONAL
GARMENT FAIR
Spring/Summer
14-16 July,
2014
2015
Pragati Maidan,
New Delhi, India
NEW FASHION VISTAS
TRENDY
INNOVATIONS
NOVELTY
Kid’s Wear
Fashion Accessories
Men’s Wear
Women’s Wear
Director, Fair & Exhibition Department, International Garment Fair Association, Apparel House, Institutional Area, Sector-44,
Gurgaon - 122003 (Haryana) India, Tel: + 91-124-2708027/8129 • Fax: +91- 124-2708004 • Mobile: 9899014590
Email: [email protected], Website: www.indiaapparelfair.com