Home / Knowledge / News / Textiles / 'US procurement law hits Indian textile exports'
'US procurement law hits Indian textile exports'
02
Jan '16
American legislation for federal procurement, which stipulates sourcing of raw materials from the designated countries or domestic suppliers, is hitting India's textile exports, the Federation of Indian Chambers of Commerce and Industry (Ficci) has said.

In a representation to the Ministry of Textiles and Ministry of Commerce and Industry, Ficci has requested the Government to take up the issue either bilaterally or multilaterally with the US government to resolve the issue amicably.

Indian textile exporters have reported that the buyers or companies based in the US supplying to their government departments and agencies have halted sourcing raw materials from countries like India, which are not part of the General Services Administration (GSA) Schedule Contract, according to an agency report quoting the Ficci representation.

The GSA is responsible for supporting several federal agencies in the US with basic functions, including procurement services.

Pursuant to the Buy American Act, the US federal acquisition process is based on preferential treatment of US-made products. Manufacturers are considered as US products if manufactured domestically and the cost of local components is more than 50 per cent of the overall cost of all components.

Under certain conditions however, the Buy American Act may be waived. The Trade Agreements Act of 1979 (TAA) gives the President authority to waive Buy American Act requirements for certain procurements. So far it has been waived for eligible products in acquisitions covered by the WTO Government Procurement Agreement, some relevant free trade agreements (FTA), as well as for least-developed countries.

As per the TAA, all products listed on the GSA Schedule Contract be manufactured or "substantially transformed" in a "designated country".

The designated countries, according to the GSA Schedule, consist of WTO Government procurement agreement countries, countries having free trade agreement with the US, least developed countries and countries based in the Caribbean-Basin.

As India does not fit into any of these criteria, the US-based buyers have stopped their sourcing from our textile manufacturers immediately, impacting the order books and the production lines of some of the major exporters, Ficci said. (SH)

Fibre2Fashion News Desk - India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Ashok Desai
Bombay Textile Research Association

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search