Home / Knowledge / News / Textiles / Brazil's textile sector plans new measures for 2012
Brazil's textile sector plans new measures for 2012
31
Dec '11
Brazil's textile industry is planning to initiate new measures next year, in its effort to halt the import of low-priced items, particularly from China.

The Brazilian Textile and Apparel Industry Association (ABIT) has prepared a report with inputs from textile manufacturers associations in Mexico and the United States.

Based on the study, ABIT is planning to initiate a request for "compensatory measures" (fines and compensation) against China, citing the Government of China's support to its exporters by introducing 27 various schemes to provide subsidies to them.

The request for compensatory measures has been rarely approved by the World Trade Organization (WTO) against unfair subsidies to exports.

Brazilian textile importers have also criticized the recent announcement by Guido Mantega, Minister of Finance, to substitute the import tax regulation for textiles and garments.

The Minister said he intends to replace existing tariffs "ad valorem" (percentages of the value of products) by specific rates "ad rem" (values in dollars applied to each kilo of goods).

Criticizing the step, the Brazilian Association of Textile Retail Sector (ABVTEX) said it will mean low-priced products that are normally purchased by middle-and lower-income groups, would have to spend a proportionately higher amount of tax than luxury items.

Since the tax ad rem will be equal on all products in the same tariff classification, a suit of the Italian brand Armani, for instance, will be taxed at the same value as other made of low quality material, although the prices of both are very different, it explained.

On the other hand, the Minister justified his decision to tax ad rem to deter imports of items like suits into the country at very low prices.

Industry experts find the Minister's argument strange as the Government can monitor and issue license for import of a textile product only if the import prices are above a certain limit.

They say the worst distortion in textile import policy can be seen in ten Brazilian States, which grant tax incentives in the Circulation of Goods and Services (ICMS) for imported products as a way to attract business to their ports.

The policy has resulted in an increase of 1,500 percent in textile imports since 2001 in eight of these States, including Parana, Santa Catarina, Goias and Alagoas.

ICMS offers a price advantage with the discount between 6-11 percent and this has resulted in the ten States accounting for 44 percent of the volume of total textile imports of Brazil.

However, imported apparel sales constitute only 8 percent of Brazil's total apparel sales. Hence, import of apparels is not a big threat to the country's domestic industry.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Ashok Desai
Bombay Textile Research Association

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X