Home / Knowledge / News / Textiles / Textile & clothing sector bags new incentives

Textile & clothing sector bags new incentives

27
Jan '10
In order to boost its crumbling textile and clothing sector exports, the South African government will shortly announce a new list of 10 textile and garment product categories which will be eligible for duty credit certificates.

The industry which has been hit by a string of closures and thousands of job-losses has woken the government to announce new incentives to help avoid workers lose more jobs, since it is a labour intensive industry.

The domestic and export textile and clothing sector has witnessed many challenges in the recent past, which include a deluge of cheap and mass produced apparels from Asia, illegal imports and inefficiencies in the production system.

Earlier in December 2008, the government had placed restrictions on the duty credit certificate scheme over allegations of abuse. The scheme entails duty-free imports of key raw-materials to be used for manufacturing products meant for exports.

It was learnt that export trading companies were hiving of the duty credit certificate incentives to domestic textile and apparel companies, other than which it was also not compliant with World Trade Organisation (WTO) rules.

Director in the Department of Trade and Industry for African multilateral economic relations, Mr Xolelwa Mlumbi-Peter said that the 10 products were all input items such as fabrics and yarn and did not include any finished items.

He added by saying that the 10 products on which consensus could be reached, care has been taken to ensure that the duty credit certificates do not undermine production within the customs union.

The scheme which anyway was up for closure in March 2010, in its first version covered 107 product categories and used to cost the government about R550 million annually. The government was contemplating a replacement in the form of a production incentive.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 1st Apr 2020

Five more brands not to cancel export orders to Bangladesh

Five more global fashion brands-three European and two North...

Pic: Martin Good / Shutterstock.com

Retail | On 1st Apr 2020

Ralph Lauren commits $10 mn to COVID -19 response efforts

Ralph Lauren Corporation recently committed $10 million to help its...

Pic: Venturelli Luca / Shutterstock.com

Retail | On 1st Apr 2020

H&M to take goods already manufactured, assures suppliers

Swedish retail giant H&M recently assured its garment suppliers of...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Sri Lanka has a good sustainable track record and strong stories to back it

Textile industry, Head honchos

Textile industry
Head honchos

Quality should be the #1 priority

Sanjay Desai & Ashish Mulani, True Colors

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Anupam Arya,

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Awanda Booth,

Awanda Booth

Held every year in New York City, Surtex is a global business-to-business...

Lukas Hartmann,

Lukas Hartmann

Intex Consulting GmbH is a completely integrated enterprise resource...

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

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

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

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

Leave your Comments


March 2020

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


Advanced Search