India may ban the import of knitwear from China!

 

 

The Indian textile industry is currently facing the dual pressures of slowing export demand and a massive influx of imported fabrics and garments. According to the All India Knitting Association, imported supplies are eating into domestic demand.

 

According to a survey by the association, undervalued synthetic knitted fabrics imported from China cause losses of $685 million each year.

 

In a letter to the Prime Minister's Office, the association explained that synthetic knitted fabrics imported under HSN code 60063200, accounting for 74% of the total synthetic knitted fabrics, were priced at an average of $1.41 per kg during the April-August 2023 period. In comparison, the domestic production cost in India currently hovers at $4 per kg.

 

 

Polyester yarn is traded at a premium to the landed cost of imported fabric. The domestic production cost of $4 per kg includes $1.50 per kg polyester yarn price, $0.37 average spandex markup, $0.43 knitting cost, $1.22 dyeing, printing and finishing cost, $0.24 weight loss during processing and $0.24 nominal profit per kg.Therefore, any imports below the cost of production should not be allowed into the country.

 

The association said the domestic industry was losing market share due to unfair competition and, more importantly, low-priced imports were eating into domestic demand.

The agency called on the government to take immediate action.Restriction on imports of synthetic knitted fabrics from China at prices below costIt recommended that the government immediately impose anti-dumping duties (ADD). It also recommended imposition of quality control order (QCO) on finished products instead of raw materials like fibres and yarns. This will promote value addition through domestic manufacturing in line with the Prime Minister's 'Make in India' policy. The association requested an early meeting of the Prime Minister's Office to discuss this urgent matter.

 

 

Indian textiles and apparel have always been highly competitive in the woven sector, but a recent report by research consultancy Wisedge pointed out that Indian knitwear will show a double-digit growth trend in the future, and the industry will play a more important role in India's textile and apparel industry. In 2021, the output value of the domestic textile and apparel industry was US$152 billion, with a compound annual growth rate of 12%, and will reach US$225 billion by 2025.

 

If India agrees to impose anti-dumping duties on China, it may lead to an increase in the export price of Chinese textiles and reduce their competitiveness. On the other hand, it can also promote the transformation and upgrading of enterprises: although anti-dumping duties will have a certain impact on the domestic textile industry, it can also encourage enterprises to strengthen technological innovation and management innovation, improve product quality and market competitiveness, and cope with more intense international market competition.

 

 

 

The yuan has surged this week

 

Over the past week, USD/CNY has been hovering around 7.3, and this week it began to break downward, with the RMB continuing to rebound. One of the recent catalysts is that the Fed paused its rate hikes in November, and believed that the rise in yields has replaced the rate hikes to achieve a tightening effect. Institutions such as Goldman Sachs predict that the rate hike cycle has ended.

 

In October, all regions and departments resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, adhered to the general working tone of seeking progress while maintaining stability, fully, accurately and comprehensively implemented the new development concept, accelerated the construction of a new development pattern, and solidly promoted high-quality development. Macroeconomic control policies continued to exert force and show results, production and supply were stable and rising, market demand continued to improve, employment and prices were generally stable, and transformation and upgrading were steadily promoted.The national economy continues to recover and improve.

 

 

In October, the national industrial value added of enterprises above designated size increased by 4.6% year-on-year, 0.1 percentage point faster than the previous month; it increased by 0.39% month-on-month.

 

In October, the national service industry production index increased by 7.7% year-on-year, 0.8 percentage points faster than the previous month.

 

In October, the total retail sales of consumer goods was 4,333.3 billion yuan, a year-on-year increase of 7.6%, 2.1 percentage points faster than the previous month; and a month-on-month increase of 0.07%.

 

From January to October, the national fixed asset investment (excluding farmers) was 41,940.9 billion yuan, a year-on-year increase of 2.9%, down 0.2 percentage points from January to September.

 

In October, the total import and export volume of goods was 3541.7 billion yuan, up 0.9% year-on-year. Among them, exports were 1973.6 billion yuan, down 3.1%; imports were 1568.1 billion yuan, up 6.4%. After deducting imports from exports, the trade surplus was 405.5 billion yuan.

 

In October, the national urban survey unemployment rate was 5.0%, the same as the previous month. In October, the national consumer price index (CPI) fell by 0.2% year-on-year and 0.1% month-on-month.

 

Overall, in October, the national economy continued to recover and improve, major indicators continued to improve, and economic operations were generally stable.However, we must also see that there are still many external unstable and uncertain factors, domestic demand is still insufficient, and the foundation for economic recovery still needs to be consolidated.

 

It is reported that after the economic data was released, the offshore RMB rebounded against the US dollar during the day, and the onshore RMB exchange rate also rose sharply.Wind data showed that as of 11:03, the onshore RMB exchange rate against the U.S. dollar was 7.2510 yuan, up 423 basis points from the previous closing price, with a high of 7.2460 yuan during the session.

 

 

 

New pilot policy for 3C certification of imported information technology equipment

 

The State Administration for Market Regulation and the General Administration of Customs recently issued an announcement to adjust the requirements for compulsory product certification (CCC certification) for imported information technology equipment in pilot areas (scope of application: Shanghai, Guangdong, Tianjin, Fujian, Beijing Free Trade Pilot Zone and Hainan Free Trade Port). For information technology equipment within the scope of CCC certification imported into the pilot areas, the certification client can use a self-declaration evaluation method to prove that the product complies with the CCC certification electromagnetic compatibility standard when applying for CCC certification.

 

Original announcement:

https://www.cnca.gov.cn/zwxx/gg/lhfb/art/2023/art_8e57674ae0e64258a3ef8f9679cfa1ee.html

 

 

 

EU releases carbon border adjustment mechanism (CBAM) guidelines

 

The Carbon Border Adjustment Mechanism (CBAM) is an environmental policy tool that aims to impose carbon emission costs and climate and environmental management fees on imported products at the level of carbon trading prices in the European Union (EU) market, in order to reduce the so-called "carbon leakage" risk in the EU.

 

Under the CBAM, in the final (post-transition) phase, EU authorised declarants acting on behalf of importers of certain goods will purchase and surrender CBAM certificates for the embodied emissions of their imported goods. As the price of these certificates is derived from the EU ETS allowance price, and as the Monitoring, Reporting and Verification (MRV) rules are designed based on the EU ETS MRV system, this will equalise the carbon price between imported goods and goods produced in facilities participating in the EU ETS.

 

This guidance is part of a series of guidance documents and electronic templates provided by the European Commission to support the harmonized implementation of the CBAM during the transition period (1 October 2023 to 31 December 2025). It introduces the CBAM and the concepts used to report embodied emissions on goods imported into the EU. This guidance does not add mandatory requirements to the CBAM, but is intended to help with proper understanding to facilitate implementation.

 

In addition to the CBAM Guidance, the EU has also published the CBAM: CHECKLIST FOR EU IMPORTERS to help importers of goods covered by the Customs Border Control Regulation ensure they understand and comply with the new rules.

 

 

 

Indonesia imposes import taxes

 

Indonesia has imposed additional import taxes on four categories of goods through the Ministry of Finance Regulation No. 96/2023 on customs, excise and tax provisions for the import and export of consignment goods.Cosmetics, bicycles, watches and steel products have been subject to import tariffs from October 17, 2023.The new tariffs on cosmetics are 10% to 15%; the new tariffs on bicycles are 25% to 40%; the new tariffs on watches are 10%; and the new tariffs on steel products can be as high as 20%.

 

The new rules also require e-commerce companies and online suppliers to share information on imported goods with the General Administration of Customs, including the names of companies and sellers, as well as the categories, specifications and quantities of imported goods.

 

The new tariffs are in addition to the trade ministry's tariff rules introduced in the first half of the year, which imposed import duties of up to 30 percent on three categories of goods: footwear, textiles and handbags.

 

It is reported that Indonesia's move is intended to protect its domestic market from excessive impact of foreign goods, while promoting the healthy development of local industries and improving the competitiveness of local industries.

 

 

 

Indonesia to formulate whitelist for e-commerce imports

 

The Indonesian government recently included four categories of goods, including books, movies, music and software, in the e-commerce import whitelist, which means that even if the price of the above-mentioned goods is less than US$100, they can be traded across borders through e-commerce platforms.

 

According to Indonesia's trade minister, although the types of goods on the white list have been determined, the government will re-evaluate the white list every six months.

 

Recently, under the chairmanship of Indonesia's Coordinating Minister for Economic Affairs, relevant government departments held a coordination meeting to tighten the inflow of imported goods and discussed the procedures for import trade.

 

In addition to drawing up a white list, the government has also stipulated that thousands of commodities that were previously able to be traded directly across borders must now be subject to customs supervision, and the government will reserve one month as a transition period.

 

Previously, the new e-commerce law promulgated by the Indonesian government had six major focuses:

 

First, social commerce platforms cannot directly conduct transactions of goods or services, but can only provide sales and promotion functions for goods and services.

 

Second, the minimum price of foreign manufactured products sold directly to Indonesia by merchants through e-commerce platforms shall not be less than US$100 per piece.

 

Third, the Indonesian government will formulate a white list of e-commerce imported goods.

 

Fourth, goods imported into Indonesia will be treated the same as domestic goods, for example, food must have halal certification, and beauty products must have a cosmetics distribution license from BPOM.

 

Fifth, e-commerce platforms are prohibited from acting as commodity producers, which means that e-commerce platforms are prohibited from selling commodities they produce themselves.

 

Sixth, the Indonesian government has strengthened data supervision on e-commerce platforms to ensure that user data will not be abused.

 

 

 

Source: Focus Vision, Textile Fabric Platform, Internet, etc.

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