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 20th Sep 2017

India needs to double cotton farmers’ income: top official

India needs to double the income of cotton farmers and non-farmers...

Apparel/Garments | On 20th Sep 2017

Egypt’s garment exports touch $941 million in 8 months

Egypt's garment exports touched $941 million in the first eight...

Apparel/Garments | On 20th Sep 2017

Botswana launches response strategy for US AGOA scheme

Botswana’s ministry of investment trade and Industry (MITI) recently...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler
Groz-Beckert

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

Silke Brand-Kirsch
Schlegel und Partner

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

September 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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

Yes No

Active Poll

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

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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

Yes No

Active Poll

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

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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

Active Poll

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

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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