Home / Knowledge / News / Apparel/Garments / EU's withdrawal of derogation facility to hit RMG sector
EU's withdrawal of derogation facility to hit RMG sector
18
Dec '10
Garment industry in Nepal which largely depends on the European markets is surely going to be badly hit by the European Union's (EU) decision to amend its law on the rules of origin (RoO) and to end the special exemption facility promised to Nepal. The new rules will become effective from January 1, 2011.

This change is seen to have a direct effect on the garment exports from the country to the EU nations. Nepal now exports around three billion rupees worth of garments to the EU each year.

Nepal was conferred with a derogation facility by the EU, whereby the Nepali producers enjoyed zero-duty access to EU markets, even for the products prepared without using raw material from EU. Further, Cambodia and Laos too enjoyed similar facility.

The EU had made the announcement about its decision to amend its law and end the facility on November 19, but the government officers and other stakeholders in Nepal learnt about this change only when a high level delegation from EU paid a visit to Nepal, a few days back.

However, these amendments to the EU's RoO did not come up all of a sudden, and the government officials in Nepal were well aware about these changes taking place, for at least a year now.

The MoCS and GAN officials, particularly in view of the changing political structure of the country and the extra time that the traders would require to get adapted to the new system in an upholding pattern, were pressing their case for extension of the derogation facility further for two years.

As the facility is planned to be withdrawn in December, and the MoCS and GAN officials have been carrying out talks with the officials in charge at the EU headquarters through Nepali Embassy, to convince them to extend the facility for the last three months.

Nepal each year exports some $40 million worth of RMG products to EU markets which constitutes around two-third of country's overall garment exports.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: House of Fraser

Textiles | On 27th Apr 2017

House of Fraser's online sales up 16.1%

British department store group House of Fraser's online sales have...

Textiles | On 27th Apr 2017

Rieter completes 20 years of launching Com4 yarn

Rieter, the world's leading supplier of systems for short-staple...

Textiles | On 27th Apr 2017

Walmart releases 10th Global Responsibility Report

Walmart has released its tenth annual Global Responsibility Report,...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search