Urgent need to stop re-export of Chinese textiles to US

12 Aug '08

2 min read

The domestic knitting and apparel industry is likely to face severe consequences from the US administration if the Government fails to stop Chinese textile and garment products being re-exported to US via Indonesia.

In order to bring a solution to this problem, the Government of Indonesia has planned to re-start the Electronic Visa Information System (ELVIS) which was used to transmit the visa data. Besides, it will not only adopt more stringent inspection measures before dispatching the shipments, but will also ensure that only the authorized trade department of Indonesia can issue the certificate of origin.

Six of the biggest export destinations of Indonesia's knitting cloth as well as finished clothes industry are US, Germany, England, Nigeria, Holland and France which account for 30, 7.2, 5.8, 4 and 3.4 percent respectively of the total exports.

Starting from 2004, export of knitting and finished clothes industry has gradually gone down since most of the buyers from US and the EU preferred buying products made in China, India and Vietnam.

However, since the time US has restricted imports from China, the textile industry of Indonesia has benefited considerably. Now, with the emergence of illegal trade and re-exports of goods, the sector may face grave consequences if these illegal shipments are not brought to a complete halt.

Fibre2fashion News Desk - China

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