Iran sees high level of illegal apparel imports

30 May '20

2 min read

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Iran suffers from a high level of illegal apparel imports, with about 90 per cent of foreign clothing being smuggled into the country, according to the Textile, Apparel and Leather Industry Organisation affiliated to the ministry of industries, mining and trade. Smuggled apparel are worth over $6.2 billion, says the Research Centre of Tehran’s Apparel Union.

A recent forum organised at the Tehran Chamber of Commerce, Industries, Mines and Agriculture attributed rampant apparel smuggling in the country to high prices, inattention to current fashion trends and neglect of branding.

According to Hassan Nilforoushzadeh, representative of the Association of Iran Textile Industries, domestic textile products are expensive, which is partly due to reliance on imported raw materials. He said 11.7 per cent of the end prices pertain to value added tax, according to an Iranian media report.

Iranian apparel companies meet 40 per cent of domestic demand. Its annual apparel demand stands at around 510,000 tonnes per year, while the country’s production capacity is about 300,000-320,000 tonnes.

Golnar Nasrollahi, advisor for textile, apparel and leather industries in the ministry, said told the forum that there are 1,500 clothing production units and 15,000-16,000 cooperative units in Iran, creating direct jobs for 500,000 people.

Iran’s domestic demand for cotton is 150,000 tonnes per year, while only 40,000 tonnes are produced in the country and the rest is imported.

Fibre2Fashion News Desk (DS)

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