DUBAI EXPO 2020 - Apparel Export Promotion Council

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I OCTOBER 2021 100

YR 21 ISSUE 10

Merchandise exports may top $400 bn this FY

DUBAI EXPO 2020India features as a Rising Economic Force

PLI TO HERALD NEW AGE FOR TEXTILES SECTOR

VANIJYA SAPTAH: AZADI KA AMRIT MAHOTSAV

Showcasing Haryana’s

exporting prowess

APPAREL | CHAIRMAN’S MESSAGE

September 2021 will go down in the history of Indian apparel industry as a major turning point with the government approving Production Linked Incentive

(PLI) scheme for MMF segment and technical textiles. It will help India regain its dominant position in textiles.

The investment-oriented PLI scheme of Rs 10,683 crore will be a game changer for the Indian textile industry. It will encourage domestic production of man-made fibre (MMF) fabrics and apparels, and technical textiles. Both have massive potential for growth.

I am grateful to Hon’ble Prime Minister Shri Narendra Modi, Hon’ble Minister of Finance Smt Nirmala Sitharaman and Hon’ble Minister of Commerce and Textiles Shri Piyush Goyal for accepting our recommendation to initiate the PLI scheme for MMF sector.

The month was also marked by the weeklong Vanijya Saptah, initiated by the Ministry of Commerce and Industry as part of ‘Azadi Ka Amrit Mahotsav’ to showcase India as a Rising Economic Force. While AEPC head office showcased the strengths of Haryana, the regional offices organized Vanijya Utsav and Exporters Conclaves in their areas.

The event has injected new energy in the exporting community across India, which is now feeling very confident of achieving the $400 billion merchandise export target this financial year. With the kind of measures being taken by the government, India is surely on the path of realizing Hon’ble Prime Minister’s vision of Aatmanirbhar Bharat soon.

On 3 September 2021, Shri Goyal held a meeting with textile related Export Promotion Councils (EPCs) where issues faced by apparel exporters were raised and the Hon’ble Minister gave his assurance of resolution. I sincerely thank him for working towards an early conclusion of FTAs with the UK and the UAE. He expects textile exports to triple from the current $33 billion to $100 billion in a short period of time.

I am confident we can grab a larger share of international trade particularly with the US banning import of cotton from China’s Xinjiang region. We have already shared with you the details of the top 20 cotton garment products exported by China to the USA.

The government must be commended for the steps taken to support its vision of making India the factory for the world. ECLGS extension till 31 March 2022 and

Dear Friends,

capital infusion in ECGC Ltd are crucial decisions to bring MSMEs back into business and encourage small exporters to bag bigger export orders. Another significant step was the launch of the National Single Window System. It will benefit investors, businesses and startups and protect them from running to government offices for approvals and registrations.

The decision to release Rs 56,027 crore for clearing all pending export incentives is a major stimulus just ahead of the festive season. Even the announcement of correcting the inverted duty structure from 1 January 2022 will go a long way in boosting the MMF segment by reducing the tax burden on MMF fabrics and garments.

I am extremely delighted that the government has been heeding to our various requests and I am sure that our member exporters will take the best advantage of the emerging scenario and help India become the Rising Economic Force that it deserves.

Dubai Expo 2020, which has started, will serve as a great platform for the Indian exporters to showcase their products and services to the world during the next six months. The Indian Pavilion is looking great and is attracting a lot of attention and respect.

As India takes great strides, AEPC commits itself to working round the clock for your and country’s benefit. Please share your precious suggestions at [email protected]

Wishing you the best festive season in recent times!

Dr A Sakthivel Chairman, AEPC

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | OCTOBER 2021 / 01

APPAREL | EVENTS CALENDAR

EVENTS CALENDAR

WHO’S NEXT PARIS, FRANCE

21-24 January 2022

INTERNATIONAL SOURCING EXPO AUSTRALIA (ISEA)

23-25 November 2021

PURE LONDON (PURE ORIGIN), UK

13-15 February 2022

SOURCING AT MAGIC, LAS VEGAS, USA

13-16 February 2022

DETAILS OF EVENTS FOR THE FINANCIAL YEAR 2021-2022

INDIA TEX TREND FAIR(ITTF), TOKYO, JAPAN

28-30 March 2022

02 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | OCTOBER 2021

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I OCTOBER 2021 100

YR 21 ISSUE 10


DUBAI EXPO 2020India features as a Rising Economic Force


VANIJYA SAPTAH: AZADI KA AMRIT MAHOTSAV

Showcasing Haryana’s

exporting prowess

YR 21 | ISSUE 10 | OCTOBER 2021 | Pages 60

01 | CHAIRMAN’S MESSAGE02 | EVENTS CALENDAR04 | KEY STATISTICS

• RMG exports grow 14% in August 2021

• Textile manufacturing up 25% in July

06 | UPFRONT• Vanijya Utsav showcases

Haryana’s exporting prowess

08 | GLIMPSES OF VANIJYA UTSAV

10 | COVER STORY• PLI to herald new age for textiles

sector

16 | SPECIAL FEATURE• Genderless Fashion: Transforming

wardrobes, respecting diversity

18 | COUNCIL AFFAIRS • Tamil Nadu holds exports conclave, eyes $100 billion exports by 2030 • Vanijya Saptah: Exporters conclave held in Tirupur • Maharashtra’s export potential showcased at Vanijya Saptah • Exporters conclave at Madurai • Exporters conclave at Coimbatore • AEPC Chairman joins Vanijya Saptah celebration • SEPC celebrates Vanijya Utsav • Dues clearance to help exporters grab festive market • Early conclusion of FTAs with UK, UAE to increase exports • AEPC wants to partner in STITCH programme • Correction of inverted duty structure to bring relief • Investors’ meet on PLI scheme • Principal Commissioner discusses GST related issues • Union Textile Secy gives presentation on PLI scheme • FDI promotion in textile sector

30 | ATDC DIGEST • ATDC Pro-Up: A solution

provider to apparel industry

• ATDC Director gets PMKVY Kaushalacharya Award

34 | INDIA NEWS • IBSA forum to promote trade, investment • India to feature as rising economic power in

Dubai Expo • India, UAE launch CEPA negotiations • India, UK to launch FTA negotiations by

Nov 1 • Jaypore celebrates timeless crafts • Paradip port installs MXCS to boost trade • Louis Philippe opens its first outlet in

Dharmapuri • Work together to strengthen multilateral

system: Shri Goyal • 1,565 artisans benefited under Samarth

scheme • Allen Solly launches stores in Vellore,

Dharapuram

42 | GLOBAL NEWS • Burberry launches Autumn/Winter 2021

campaign • Dorchester Industries launches

experimental design lab • H&M unveils Autumn 2021 recycled denim

collection • Lululemon, Genomatica to roll out Bio-

Nylon products • Over 90 brands sign International Safety

Accord • Tommy Hilfiger initiates ‘Make it Possible’

programme • Abercrombie & Fitch Co’s Net Sales

grow 24% • Abercrombie appoints Michael Lopez

as Sr VP • American Eagle’s revenue up 35% in Q2 • BGMEA urges AAFA to promote

Bangladesh apparel • Camille Miceli becomes Artistic Director

of Maison Pucci • Designer Nensi Dojaka wins LVMH prize • H&M Studio’s AW21 collection unveiled • Renewed Uniqlo Ginza reopens in Tokyo

53 | CIRCULAR54 | GST UPDATE58 | NOTIFICATIONS60 | MEDIA COVERAGE

Printing Press Royal Press, New DelhiEmail: [email protected]

Content & Design Vanman Communications Pvt LtdEmail: [email protected]

CHAIRMAN AEPCDr A Sakthivel

CHAIRMAN EPMr Sudhir Sekhri

Secretary General, AEPCDr LB Singhal

ADVISOR AEPCMrs Chandrima Chatterjee

PUBLISHERApparel Export Promotion CouncilApparel House, Sector-44,Institutional Area, Gurugram,HARYANA – 122003.Phone: 0124-2708000www.aepcindia.com


APPAREL | CONTENTSAPPAREL | EVENTS CALENDAR

EVENTS CALENDAR

APPAREL TEXTILE SOURCING, CANADA(VIRTUAL EVENT)

14-16 Sep 2021

SOURCING AT MAGIC, LAS VEGAS, USA(DIGITAL TRADE SHOW)

1 Aug - 30 Sep 2021

INTERNATIONAL SOURCING EXPO AUSTRALIA (ISEA)WHO’S NEXT PARIS, FRANCE

Sep 2021 23-25 Nov 2021

SOURCING AT MAGIC, LAS VEGAS, USA

PURE LONDON (PURE ORIGIN), UK

Sep 2021 13-16 Feb 2022

PROPOSED EVENTS FOR FINANCIAL YEAR 2021-2022

02 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | SEPTEMBER 2021

APPAREL | CONTENTS

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I SEPTEMBER 2021 100

ISRAELFOCUS COUNTRY

YR 21 ISSUE 09

US ban on Xinjiang cotton opens opportunity for Indian apparels

AEPC holds 42nd AGM


MAKE IN INDIAfor the World

YR 21 | ISSUE 09 | SEPTEMBER 2021 | Pages 60

01| CHAIRMAN’S MESSAGE02 | EVENTS CALENDAR04 | KEY STATISTICS

• RMG exports grow 30% in July • Textile manufacturing up 75% in June

06 | UPFRONT• $1,893 million FDI in India’s textile

sector since April 2016

08 | COVER STORY• Make in India for the World

14 | SPECIAL FEATURE• US ban on Xinjiang cotton opens

opportunity for Indian apparels

16 | FOCUS COUNTRY• Israel likely to grow 5.5% in 2021

22 | COUNCIL AFFAIRS • Indian apparels to help achieve $400 bn export target: AEPC Chairman • RoSCTL extension first step by Hon’ble PM towards $400 bn export target: AEPC • FTAs to remove tariff disadvantages faced by Indian apparels: AEPC Chairman • Removal of anti-dumping duty on VSF to help MMF sector take off: AEPC • AEPC highlights exporters’ issues at Tuticorin Port • AEPC seeks EDPMS details to avoid Custom notices • IOE holds meeting on social protection of garment workers • National Handloom Day • Glimpses of Key Meetings

34 | ATDC DIGEST • ATDC gets ‘Excellency Award’ for

PM-DAKSH skilling programme

36 | INDIA NEWS • Centre notifies RoDTEP scheme guidelines and rates

• Centre to set up 10 more handloom DRCs• NHDC holds ‘My Handloom My Pride’

Expo• Start-up revolution to make India an

innovation hub• CBIC launches Compliance Information

Portal• Khadi launches babywear• Shri Piyush Goyal reviews ONDC

progress• Traders are backbone of country’s

economy

42 | GLOBAL NEWS • AE initiates ‘Future Together. Jeans

Forever’ campaign• Levi Strauss acquires Beyond Yoga• H&M ties-up with Indian brand Sabyasachi• LVMH’s 75 Maisons sign ‘We for Me’ pact• Uniqlo to open its flagship store in Beijing• Tommy Hilfiger rolls out Tommy x Romeo

collection• A&F earns Great Place to Work

certification• H&M to unveil new collection with Toga• Pune unveils new third kit for 10

European clubs• H&M joins Netflix for campus inspired

collection• Prada kicks off ‘Feels like Prada’ campaign• Ralph Lauren’s revenue up by 182% in Q1• Theory partners with Lucas Ossendrijver

• Under Armour’s Q2 revenue climbs 91%

52 | ADVANTAGES OF AEPC MEMBERSHIP

54 | GST UPDATE56 | NOTIFICATIONS58 | CIRCULAR60 | MEDIA COVERAGE

Printing Press Royal Press, New DelhiEmail: [email protected]

Content & Design Vanman Communications Pvt LtdEmail: [email protected]

CHAIRMAN AEPCDr A Sakthivel

CHAIRMAN EPMr Sudhir Sekhri

Secretary General, AEPCDr LB Singhal

ADVISOR AEPCMrs Chandrima Chatterjee

PUBLISHERApparel Export Promotion CouncilApparel House, Sector-44,Institutional Area, Gurugram,HARYANA – 122003.Phone: 0124-2708000www.aepcindia.com

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | SEPTEMBER 2021 / 03

RMG EXPORTS GROW 14% IN AUGUST 2021

APPAREL | KEY STATISTICS

India’s RMG Export to World

Month

(In US$ Mn.) MoM Growth (%)

2019-20 2020-21 2021-222020-21 2021-22 2021-22

Over Over Over2019-20 2019-20 2020-21

April 1408.8 126.3 1297.3 -91.0 -7.9 927.1May 1530.1 516.6 1106.7 -66.2 -27.7 114.2June 1233.5 803.4 1001.6 -34.8 -18.8 24.7July 1365.8 1065.7 1388.4 -22.0 1.7 30.6

August 1261.9 1083.5 1236.9 -14.0 -2.0 14.2 September 1080.6 1192.9 10.4

October 1108.9 1180.0 6.4 November 1058.5 1047.0 -1.1 December 1409.5 1196.9 -15.1 January 1453.5 1296.2 -10.8 February 1477.9 1349.1 -8.7

March 1120.5 1425.6 27.2 Total 15509.4 12283.1 6030.9 -20.8 -11.3 67.7

Source: DGCI&S, Kolkata, 2021

Note- Sum of Apr-August, 2019-20 is USD 6800.1 mn. and Apr-August, 2020-21 is USD 3595.4 mn.

For more Details on India’s RMG Exports data, please visit AEPC’s website>Resource Section>Export Statistics


India’s Ready-Made Garment (RMG) Export Update for the month of August of the FY 2021-22RMG exports were to the tune of USD 1236.9 million in August, 2021 showing a positive growth of 14.2% against the corresponding month of August, 2020 and a decline of -2.0% against August, 2019. Cumulative RMG exports for the period Apr-August, 2021-22 is USD 6030.9 mn. showing a positive growth of 67.7% against the period Apr-August, 2020-21 and a decline of -11.3% against the period Apr-August, 2019-20.

In rupee terms, RMG exports were to the tune of INR 9175.7 crore in August, 2021 showing a positive growth of 13.4% against the corresponding month of August, 2020 and a positive growth of 2.3% against August, 2019.

India’s Textile & Ready-Made Garment (RMG) Update for Index for Industrial Production (IIP) for the month of July of the FY 2021-22

TEXTILE MANUFACTURING UP 25% IN JULY

Manufacturing of Textiles Index for the month of July, 2021 is 117.5 which has shown a positive growth of 25.1% as compared to July, 2020. Manufacturing of Textiles Index for the financial year Apr-July, 2021-22 is 112.3 which has shown a positive growth of 115.5 % as compared to the financial year Apr-July, 2020-21. Manufacturing of Wearing Apparel Index for the month of July, 2021 is 115.1 which has shown a positive growth of 2.3% as compared to July, 2020. Manufacturing of Wearing Apparel Index for the financial year Apr-July, 2021-22 is 107.1 which has shown a positive growth of 47.3% as compared to the financial year Apr-July, 2020-21.

APPAREL | KEY STATISTICS

Manufacture of TextilesMoM

Growth Rate (In %)

Manufacture of Wearing Apparel

MoM Growth Rate (In %)

Month 2020-21 2021-22 2021-22/2020-21 2020-21 2021-22 2021-22/2020-21

April 11.0 113.2 # 9.7 136.1 #May 40.2 106.6 165.2 62.6 120.4 92.3June 63.1 110.7* 75.4 105.9 132.7 25.3July 93.9 117.5* 25.1*# 112.5 115.1* 2.3*#

Cumulative Index

(Apr-July)52.1 112.3 115.5 72.7 107.1 47.3

Source: CSO,2021 * Figures for July 2021 are Quick Estimates # The growth rates over corresponding period of previous year are to be interpreted considering the unusual circumstances on account of COVID 19 pandemic since March 2020


w

APPAREL | UPFRONT

Haryana Director General of Industries and Com-merce Dr Saket Kumar said that the country’s fifth largest exporting state is well prepared to

significantly contribute towards realizing the nation’s vision of Aatmanirbhar Bharat.

Speaking as the Chief Guest of Vanijya Utsav, a two-day event to celebrate 75 years of independence at Apparel Export Promotion Council (AEPC) in Apparel House on 21 September, Dr Saket Kumar said the state is giving all assistance to promote industry and exports.

“With joint efforts of the Government of India and the

well-meaning state government along with the industry department and captains of industry, I am sure Haryana can contribute significantly to make India an industrial and export powerhouse.

“We have various incentives that are lined up for investors coming to Haryana. Apart from the incentives, it is how the government facilitates that is of equal im-portance for business growth. We are trying to provide all assistance from the government side so that any new need or service request that arises could be processed on priority. We can easily achieve the goal of Aatmanir-

VANIJYA UTSAV

SHOWCASES HARYANA’S EXPORTING PROWESS


w

APPAREL | UPFRONT

bhar Bharat,” Dr Kumar said. Dr Kumar gave a detailed presentation elaborating

the government policies, business performance and prospects in Haryana. The state contributes about 4% of India’s total exports. Exports from Haryana grew 152% from Rs 69,284 crore in fiscal 2014-15 to Rs 1,74,572 crore in 2020-21, he said. Apparels contributed 10.19% of Haryana’s total merchandise exports, while it was 20.64% for handloom and handicraft in 2020-21.

Mr Abhimaniu Sharma, Joint DGFT, Ministry of Commerce, Government of India, urged the industry captains, especially from Haryana, to look into how they could take advantage of the Production Linked Incentive (PLI) scheme.

“When we see Haryana, it’s a diverse mix of indus-tries especially apparel export, engineering, pharma-ceuticals, agro-processing and automobile. Haryana ranks fifth among the states in terms of exports from the country. Thanks to the Haryana government for making policies for the ease of business,” Mr Sharma said.

AEPC Chairman Dr A Sakthivel said, “We are really thankful to the Hon’ble Prime Minister for initiating this kind of event to commemorate 75 years of India’s inde-pendence and highlight the progress made in exports and manufacturing in different states and UTs.

“We’re glad that AEPC has got the opportunity to conduct this event for the state of Haryana. Industries that were keen to import from China are now shifting to India. We have grown very well under the leadership of our dynamic PM Shri Narendra Modi in the past few years. He is the only Prime Minister since independence who has a focus on the export sector with a vision to quadruple exports from India,” Dr Sakthivel said.

The inaugural day of the event, part of week-long ‘Vanijya Saptah’ being observed by the Ministry of Commerce to commemorate ‘Azadi Ka Amrit Mahotsav’, had a huge gathering of exporters and business leaders from both within and outside the state. Panel discus-

sions and exhibitions were held at the two-day event to promote and facilitate exports from the state.

Exhibitions showcased products manufactured and exported from Haryana. These products were from various sectors like textiles and apparels, automobile, Basmati rice, agriculture products, engineering goods, footwear, handmade carpets and handloom.

The inaugural day was attended by key represen-tatives of important stakeholders like Customs, Direc-torate General of Foreign Trade (DGFT), Export Credit Guarantee Corporation of India (ECGC), State Bank of India (SBI), Agricultural and Processed Food Products Export Development Authority (APEDA), Engineering Export Promotion Council (EEPC) and various other industry associations.

On the second day of Vanijya Utsav, a training session for budding exporters was organized. Dr LB Singhal, Secretary General, AEPC enlightened the exporters on PLI scheme, which is an export facilitative instrument. Prof MP Singh and Prof Harkirat Singh, guest speak-ers from Indian Institute of Foreign Trade (IIFT), also addressed the session.

The training session was followed by a panel discus-sion on ‘Export Opportunities and Challenges: Sector Specific Issues’. It had representatives from Okhla Garment & Textile Cluster, APEDA, Jindal Basmati Pvt Ltd, EEPC, BCCI Bahadurgarh, Sampla and Rohad Industries Association, and Handloom Manufacturing Association, Panipat.

The Department of Commerce observed ‘Vanijya Saptah’ (Trade & Commerce Week) during 20-26 September 2021. A slew of programs and events were organized across the country highlighting Aatmanirbhar Bharat, showcasing India as a rising economic force and Green & Swachh SEZs besides organizing handholding sessions focusing on ‘From Farm to Foreign Lands’ and exporter conclaves, ‘Vanijya Utsav’, covering all 739 districts of the country.


APPAREL | GLIMPSES OF VANIJYA UTSAV

GLIMPSES OF VANIJYA UTSAV at Head Office in Apparel House, Gurugram


APPAREL | GLIMPSES OF VANIJYA UTSAV


APPAREL | COVER STORY

Textile sector brims with confidence as apparel exports likely to grow


Govt approves PLI scheme worth Rs 10,683 cr for MMF and Technical Textiles

The scheme to help India regain its historical dominance in global textiles trade


The government is not leaving any stone unturned to give a fillip to the country’s man-made fibre (MMF) segment and technical textiles sector. Be it schemes like Rebate

of State and Central Taxes and Levies (RoSCTL) and clearing all dues of exporters under different export promotion schemes, a slew of measures have been announced recently for the fast growth of the Indian textiles industry. Latest being the ambitious Production Linked Incentive (PLI) scheme for man-made fibre (MMF) and technical textiles.

India’s textiles sector, which is second largest employer after agriculture and accounts for 2.3% of the GDP, is gearing up to regain its historical dominant status in global textiles trade and domestic manufacturing with the help of the newly introduced PLI scheme for MMF and technical textile segments.

Taking forward Hon’ble Prime Minister Shri Narendra Modi’s vision of an ‘Aatmanirbhar Bharat’, the Union Cabinet on 8 September 2021 approved the PLI scheme for MMF apparels, MMF fabrics and technical textiles with a budgetary outlay of Rs 10,683 crore, which will be disbursed over a period of five financial years. The related notification was issued on 27 September 2021.

THE SCHEMEThe PLI scheme for textiles is part of a wider announcement made earlier during the Union Budget 2021-22 for 13 sectors with an outlay of Rs 1.97 lakh crore. The prime objective of the scheme is to make manufacturing in India globally competitive by removing




“Through the PLI scheme in textiles, India seeks to emerge as a hub for global textiles manu-facturing. The PLI scheme will further women empowerment and accelerate progress in the

aspirational districts”

– Hon’ble Prime Minister Shri Narendra Modi


sectoral disabilities, creating economies of scale and ensuring efficiencies. It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains.

The scheme is expected to attract global investments, generate large scale employment opportunities and enhance exports substantially. It will also help Indian firms to grow into global champions. It is likely to bring a paradigm shift in the textiles sector, as it will boost production of high value MMF fabric, garments and technical textiles in the country and encourage industry to invest in fresh capacities in these segments.

The PLI scheme for MMF apparels, fabrics and technical textile products comprises two segments. Scheme Part - 1: Any person including a firm or company investing a minimum of Rs 300 crore in plant, machinery, equipment and civil works, excluding land and administrative building cost, to produce notified products will be eligible to get incentive when they achieve a minimum of Rs 600 crore turnover. Scheme Part - 2: Those investing a minimum of Rs 100 crore to produce products of notified lines will become eligible for the incentive when they achieve a minimum of Rs 200 crore turnover. However, in both the cases applicants will have to form a separate company before commencement of investment under this scheme. The participating company is expected to achieve this required turnover after a gestation period of two years (2022-23 and 2023-24), that is in fiscal year 2024-2025.

In the first scheme, 15% incentive will be provided in the first year after attaining required turnover and thereafter the incentive will be provided on achieving a minimum additional incremental turnover of 25% over the immediate preceding year’s turnover up to year 5. However, the incentive will be reduced by 1% every year till 11% in the fifth year. Similarly, in the second scheme, the first year will fetch 11% on turnover and will keep reducing by 1% till 7% in the fifth year. The scheme will be valid up to 2029-30. It covers 40 HS Codes at 6 digit

level and 50 at 8 digit level of MMF Apparel besides MMF Fabrics and Technical Textile Products.

BENEFITS TO THE SECTORThe government is expecting that PLI scheme will create additional 7.5 lakh jobs and several lakhs more for supporting activities in the textiles sector. It will create large scale employment, especially for the women. The sector directly employs 45 million and 60 million indirectly.

States like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana and Odisha are expected to reap major benefits from the scheme. Hon’ble Minister of Commerce & Industry and Textiles Shri Piyush Goyal said, “Priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas and due to this priority industry will be incentivized to move to backward area.”

Aimed at enabling the setting up of a widespread supplier base for the global champions established under the PLI scheme, it will help bring scale and size in key sectors. It will create and nurture global champions. All the units put together would help India to generate massive primary and secondary employment opportunities.

VIEWS OF AEPC CHAIRMANWelcoming the Production Linked Incentive (PLI) scheme for MMF segment and technical textiles, AEPC Chairman Dr A Sakthivel said that it will be a game changer for the Indian textile industry and will transform India’s growth story.

“I thank Hon’ble Prime Minister Shri Narendra Modi, Hon’ble Minister of Commerce & Industry and Textiles Shri Piyush Goyal and Hon’ble Minister of Finance Smt Nirmala Sitharaman for accepting our recommendation to initiate the PLI scheme for MMF. The investment-oriented scheme of Rs 10,683 crore for MMF and technical textiles will be a game changer for the sector,” Dr Sakthivel said.



He said that the scheme will result in fresh investment of gigantic proportions, expand manufacturing capacities and enhance exports multifold. It will make India a key player in the global textile value chain with focus on high value MMF products. Besides, it will promote industrial development in backward regions of the country, he added.

PUSH FOR MMF SEGMENTIn a bid to ensure incremental production, the incentives will be provided in 40 MMF based garments, 14 MMF based fabrics and 10 categories of technical textiles. PLI scheme will give a major push to the high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade.

The scheme is expected to increase India’s share in global MMF-based readymade garments (RMG) and other trades through strengthening the domestic textile industry and by incentivizing the manufacturing and exporting of specific textile products made of MMF.

According to the Government of India, PLI scheme for textiles will lead to fresh investment of over Rs 19,000 crore over the period of five years and cumulative turnover of over Rs 3 lakh crore will be achieved under the scheme.

Even though India is the second largest producer of man-made fibre (MMF) in the world, this competitive edge is missing when it comes to fabrics and apparels. India lags in MMF based RMG global trade.

According to a recent CRISIL report, though MMF-based RMG constitutes 65-70% of the global trade, it accounts for 35-40% of the market in India. “India’s share in global MMF-based RMG trade stands at a mere 2% despite it being second-largest MMF producers, whereas China, Bangladesh and Vietnam accounted for 38%, 9% and 6%, respectively, in calendar 2019,” the report said.

Primary reason behind India lagging in MMF-based

garment exports is the cost competitiveness and trade agreements between rival countries and export destinations such as the US and the EU. The report observed, “Vietnam and Bangladesh are offering better incentives to RMG manufacturers in the form of cash incentives, zero import duties on raw material/ material, tax relief, or incentives on investment.

“In the US, despite similar import duties, Bangladesh and Vietnam are offering products at 34% and 19% lower price as compared to India, whereas in the UK, the largest MMF garments importer in the EU, Bangladesh is offering at 33% discounted price. This has led to rapid growth in the share of Bangladesh in US- and EU-bound trade and helped Vietnam to gain share in US.”

CHALLENGES FOR MMF SEGMENTIndia’s share in global MMF based garments remained range bound due to limited processing capability of manufacturing of MMF-based fabrics. The biggest challenge faced by the sector is its scale size. Around 80% of units in textile sector in India are small sized units, while China, Bangladesh and Vietnam are having over 80% large enterprises. The small units suffer from lack of capacities and use old technology.

High freight cost is also posing a serious problem. This kind of cost escalations are not absorbed by buyers that impact the cost of the product. Besides, high domestic transport time is a major hurdle to India becoming a preferred sourcing destination. Transportation gap in India is around three weeks, while the same for China, Vietnam and Bangladesh is 7-10 days. Logistics cost worldwide is around 10% whereas it is 14% in India.

Increased wages and overvalued Rupee are some other factors hindering the growth of apparel sector. Wage cost is increasing by 10-12% due to Variable Dearness Allowance (VDA), which increases product cost by 3.5%.

Overall productivity and efficiency levels of labour as well as technology have also been observed lower in apparel sector in India compared to China, Bangladesh, Turkey and others. Reports suggest that the productivity levels of labour in India are approximately 33% less than China and 26% less than Vietnam, creating a cost disadvantage of 5%.

The PLI scheme, however, expected to remove disabilities of major players of textiles sector in the country and enable them to achieve size and scale so as to become globally competitive and turn into global champions.

Expectations from India to do well in MMF segments are also high amid the changing global dynamics. With US distancing from China, Indian exporters see a big opportunity in the US market. The US has recently banned imports of all cotton, cotton products, garments and apparels originating from Xinjiang Uyghur Autonomous Region (XUAR) of China. The decision will also impact other segments of the apparel including MMF.



in developed countries.With an aim to make India a global leader in technical

textiles, Hon’ble Prime Minister Shri Narendra Modi-led government launched a National Technical Textiles Mission (NTTM) in February 2020 with a total outlay of Rs 1,480 crore.

The Mission aims at an average growth rate of 15-20% per annum to increase domestic market size to $40-50 billion by the year 2024; through market development, market promotion, international technical collaborations, investment promotions and ‘Make in India’ initiatives.

Technical textiles emerged as a sunrise sector for India during the Covid-19 pandemic when global manufacturing came to a standstill. Prior to Covid-19, India was an importer of personal protective equipment (PPE) kits. However, India became the second largest manufacturer of PPE kits after China within two months of country-wide lockdown in March 2020. Now, India produces around 4.5 lakh PPE kits and 1.5 crore masks a day.

GOING FORWARDIndia has an abundant supply of MMF fibre and yarn but quality MMF fabric is lacking. The PLI scheme will strengthen the Indian manufacturing capacity of MMF fabric and will thus increase the share of MMF based garments going forward. With increase in MMF segment, the Indian apparel exports will double in next three years.

PLI scheme for textile along with RoSCTL, RoDTEP and other measures could help India to achieve $100 billion textile exports target at the earliest from the current export value of $33 billion. Along with an effective PLI scheme, provision of raw materials at competitive prices and skill development will herald a new age in textile manufacturing and help India achieve its past glory in global textile trade.

ITEMS COVERED UNDER PLIAs per the notification issued by the Ministry of Textiles on 27 September 2021, 40 HS Codes (at 6 digit) of MMF Apparels and 14 HS Codes (at 6 digit) of MMF Fabrics are under the PLI scheme. It also covers 10 categories of technical textiles. The notification with details of all these products including description, segments and 8 digit HS Codes can be accessed at this link: https://www.egazette.nic.in/WriteReadData/2021/229974.pdf

AEPC RECOMMENDATIONSAEPC has recently recommended several measures to make the PLI scheme for textiles more fruitful. The Council has identified additional 22 products of MMF garments with high market potential and requested for their inclusion in the PLI scheme.

AEPC’s INITIATIVES FOR MMFThe Apparel Export Promotion Council (AEPC) has taken up several initiatives to promote MMF fabrics and garments. It carried out a detailed identification of HS code wise MMF products, potential markets, competitors, sources for MMF fabrics and investors to leverage the opportunity created by US-China tussle and for overall export growth.

The Council also provided details of the machine manufacturers and MMF HS Codes for identifying investment opportunities and investors to improve MMF garment base in India. It hired a dedicated resource and set up a cell for facilitation. The cell has contacted various MMF fabric manufacturers based in South Korea, Taiwan, Vietnam and China for initiating joint ventures for manufacturing these fabrics in India.

AEPC has also initiated collaboration with RIL and Grasim Industries for manufacturing MMF fabrics which are not produced in India. Fabric samples have been collected from the relevant MMF exporters and sent to RIL for manufacturing the fabrics for the benefit of the exporters and the development of the MMF segment.

SCOPE FOR TECHNICAL TEXTILESTechnical textiles, a futuristic segment of textiles, are used for various applications ranging from agriculture, roads, railway tracks, sportswear and health, besides for making bullet proof jackets, fire proof jackets, high altitude combat gear and space applications. The PLI scheme is expected to attract high investment in the new age textile segment.

India’s technical textiles segment is estimated at $16 billion, which is about 6% of the $250 billion global technical textiles market, as per an official statement. The penetration level of technical textiles is low in India varying between 5% and 10% against the level of 30-70%



List of Identified 22 Products of MMF Garments for inclusion in PLI Scheme

S. No. HS Code PRODUCT DESCRIPTION

1 610323 Men’s or Boys’ Ensembles of Synthetic Fibres, Knitted or Crocheted (Excluding Ski Ensembles And Swimwear)

2 610333 Men’s or Boys’ Jackets And Blazers of Synthetic Fibres, Knitted or Crocheted (Excluding Wind-Jackets And Similar Articles)

3 610423 Women’s or Girls’ Ensembles of Synthetic Fibres, Knitted or Crocheted (Excluding Ski Ensembles And Swimwear)

4 610520 Men’s or Boys’ Shirts of Man-Made Fibres, Knitted or Crocheted (Excluding Nightshirts, T-Shirts, Singlets And Other Vests)

5 611130 Babies’ Garments And Clothing Accessories of Synthetic Fibres, Knitted or Crocheted (Excluding Hats)

6 620323 Men’s or Boys’ Ensembles of Synthetic Fibres (Excluding Knitted or Crocheted, Ski Ensembles And Swimwear)

7 620413 Women’s or Girls’ Suits of Synthetic Fibres (Excluding Knitted or Crocheted, Ski Overalls And Swimwear)

8 620423 Women’s or Girls’ Ensembles of Synthetic Fibres (Excluding Knitted or Crocheted, Ski Overalls And Swimwear)

9 620444 Women’s or Girls’ Dresses of Artificial Fibres (Excluding Knitted or Crocheted And Petticoats)

10 620640 Women’s or Girls’ Blouses, Shirts And Shirt-Blouses of Man-Made Fibres (Excluding Knitted or Crocheted And Vests)

11 620822 Women’s or Girls’ Nightdresses And Pyjamas of Man-Made Fibres (Excluding Knitted or Crocheted, Vests And Negliges)

12 621143 Women’s or Girls’ Tracksuits And Other Garments, nes of Man-Made Fibres

13 621440 Shawls, Scarves, Mufflers, Mantillas, Veils And Similar Articles of Artificial Fibres

14 61099010 T-Shirt Etc of SynFibres

15 61099020 T-Shirt Etc of Artificial Fibres

16 62079990 Men’s or Boys’ Singlets,Bathrobes And Dressing Gowns of Man-Made Fibres (Excluding of Cotton, Knitted or Crocheted, Underpants, Nightshirts And Pyjamas)

17 62149060 Shawls /Mufflers Etc of Manmade Fibre

18 61171040 Shawl, Scarves, Muffler Etc of Man-Made Fibres

19 62121000 Brassieres

20 620459 Womens, girls’ skirts of material nes, not knit.

21 621050 Womens, girls garments nes, of impregnated fabric – ponchos

22 621149 Womens, girls garments nes, material nes, not knit – jumpsuits, Rompers


APPAREL | SPECIAL FEATURE

Fashionistas around the world are promoting a new age of freedom in the way people dress by breaking down the wall between different genders. The new era of genderless fashion is

all set to spice up the world of fashion for one and all.American retail clothing brand Pacific Sunwear of

California (PacSun) launched its first fully dedicated gender-neutral brand – Colour Range, a collection of all eco and sustainable clothing, on 10 September 2021.

The collection, which includes adults and kids catego-ries, features a range of cotton-based relaxed staples, including t-shirts, sweatpants, cargo and slim-fit pants in solid colors and tie-dye prints, according to the com-pany.

Alfred Chang, CEO of PacSun, said, “Gender-neutral is a growing category for us, reaching more than 20% of our offerings. And with Gen Z, our primary consumer, seeking more fluid fashion options, we wanted to give them more options through Colour Range, proving our continued dedication to producing products that are devoted to a more sustainable future.”

American singer Willow Smith, who performed at PacSun Color Range launch, said, “Anyone can find something in the collection that can reflect their innermost self in an elevated way and still feel comfort-able, without gender in mind, and I think that is really important.”

Though the idea of genderless fashion has been around for some time, it gained momentum with current generation showing interest in gender-neutral dressing. Now, gender-free retail shops are opening in different countries and several fashion brands are getting over-whelming response for such clothing.

In March 2018, the Phluid Project, founded by Robert Garett Smith to make gender-free apparel and acces-sories available worldwide, apparently opened world’s first gender-neutral store in New York City. Then, PacSun came up with Gender-Neutral Shop in Septem-ber 2020.

Fashion brands are now gearing up for change break-ing traditional fashion sense through their products and digital efforts.

Louis Vuitton, brand known for its innovation, has also been supporting genderless fashion. The brand re-

leased a video on YouTube where Australian actor Cody Fern could be seen trying various outfits and telling the viewers ‘why fashion shouldn’t be defined by gender’.

In the video, Cody Fern, talking about Nicolas Ghes-quiere designed clothes at the Louis Vuitton Women’s Fashion Show, said, “This is womenswear but when you looked at the clothes he designed, anybody can wear them. They are clothes for everybody.”

Designers have been working tirelessly to drive out

GENDERLESS FASHION: TRANSFORMING WARDROBES,

RESPECTING DIVERSITY



GENDERLESS FASHION: TRANSFORMING WARDROBES,

RESPECTING DIVERSITY

the stereotypes in the fashion industry. They believe in the potential where attires could be worn irrespective of their tags.

Certain clothing brands have changed their brand label in support to genderless fashion. American fashion designer Norma Kamali, who is known for her innova-tive designs, endorses unisex clothing. Several fashion brands and designers including Nicopanda and Charles Jeffrey are among those that support genderless fash-ion.

The induced urge of comfort clothing in recent times due to the introduction of ‘work from home’ culture has given a boost to genderless clothing. The ultimate goal of fashion has majorly shifted towards comfort and no gender would be minding sweatpants if it provides comfort.

Also, genderless fashion is gradually proving to be a tool of great help to human existence as it has been doing the back-end work to massively support the LGBTQ+ community.

Renowned brand Tommy Hilfiger created nine limit-ed-edition gender-neutral items to be sold as a part of their commitment to celebrate LGBTQ+ community. Calvin Klein partners with a number of organizations

including The Trevor Project and Transgender Legal Defense & Education fund.

Fashion industry has potential to contribute in mak-ing the world a peaceful place to be in. One other fine example of how this can be done is a UK based unisex clothing brand – Refuse to Conform.

Refuse to Conform promotes gender neutral fashion contributing to the idea of equality. Company’s owner Charlie Moss says, “The name ‘Refuse to Conform’ embodies everything that I stand for and the brand has grown into a hugely supportive community over the years that embraces absolutely everyone, no matter who they are or what they identify as.”

GFW that stands for ‘Gender Free World’, a clothing company working in the field of genderless fashion for several years, is a British clothing company that runs along with the tagline ‘Clothing Without Labels’. The company operates in support of the LGBTQ+ communi-ty expressing empathy towards gender diversity.

Change in attitude of fashion enthusiasts and Gen Z people with bold approach can potentially bring accep-tance and empathy through fashion. Genderless fashion is a growing trend that can bring massive changes boosting inclusiveness.



TAMIL NADU HOLDS EXPORTS CONCLAVE,

EYES $100 BILLION EXPORTS BY 2030

Hon’ble Chief Minister of Tamil Nadu Shri MK Stalin inaugurated the Exports Conclave, organized by the departments of state and

central government to commemorate 75 years of India’s Independence at Chennai on 22 September 2021.

As part of the event, Hon’ble Chief Minister released Tamil Nadu Exports Promotion Policy (TNEPP) and MSME Exporters Handbook.

The Tamil Nadu government also signed Memorandum of Understanding (MoU) for 24 projects worth Rs 2,120.54 crore, eying $100 billion exports by 2030.

“The state will adopt a two-pronged approach of export promotion and export diversification, a key aspect of the TNEPP. The government has also planned developing two Export Enclaves at Manallore and Tuticorin with world class infrastructure and amenities for exporters,” Hon’ble CM said.

The Tamil Nadu government has identified 10 export

hubs and would strengthen export related common infrastructure projects in these places by reimbursing 25 per cent of the project cost, subject to a ceiling of Rs10 crore per hub.

Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel had made representations to the Tamil Nadu Government for strengthening the infrastructure and institutional mechanism under the State’s Export Promotion Strategy and the representations made were accepted in the Tamil Nadu Export Promotion Strategy (TNEPS) 2021.

The TNEPS 2021 has several initiatives for enhancing apparel exports, improving infrastructure and ease of doing business.

The Hon’ble Chief Minister also inaugurated ‘Export Exhibition’ at Kalaivanar Arangam to showcase the strengths of Tamil Nadu in exports. The Exhibition saw the participation from various exports units, export promotion centres and government departments.

APPAREL | COUNCIL AFFAIRS


VANIJYA SAPTAH: EXPORTERS CONCLAVE

HELD IN TIRUPUR

As part of weeklong Vanijya Saptah, an ‘Exporters Conclave’ was organized to strengthen the exports of Tamil Nadu at IKF Complex, Tirupur,

on 24 September 2021. Hon’ble Minister for Information and Publicity,

Tamil Nadu, Shri MP Saminathan inaugurated the event and said that state government is committed for development of Tirupur and apparel industry.

The Hon’ble Minister said certain benefits such as 4% tax exemption for banians has been given to the apparel industry, issue of dyeing was sorted out and an amount of Rs 320 crores has been disbursed to the Tirupur garment industry with the state and central contribution for constructing Common Effluent Treatment Plant (CETP).

Shri Saminathan also assured to facilitate and issue orders one by one for the development of Tirupur apparel industry.

He further added that setting up of separate Commercial Tax Division for Tirpur has also been considered by the Hon’ble Chief Minister of Tamil Nadu and it will be announced soon.

Apparel Export Promotion Council (AEPC) Chairman

Dr A Sakthivel attended the conclave as special guest, while Tirupur South legislator Shri K Selvaraj, Tirupur District Collector Dr S Vineeth and other dignitaries were also present at the event.

Speaking at the function, AEPC Chairman thanked the Hon’ble Tamil Nadu Chief Minister for his announcement to consider Council’s request to constitute State Export Promotion Committee under the chairmanship of the Chief Secretary of Tamil Nadu to further strengthen the exports of the State.

He lauded the Chief Minister’s swift action on release of Tamil Nadu Export Promotion Policy on Council’s request. Dr Sakthivel also appreciated Shri Saminathan for his dedication and commitment for the development of Tirupur apparel industry.

Appreciating Tirupur South legislator for extending his highest cooperation and support to the development of apparel industry, the Chairman also congratulated Tirupur District Collector for his stringent action to restrict the Covid cases below hundreds and passing necessary guidelines during pandemic period which was very much helpful to Tirupur exporters for smoothly running their business.




MAHARASHTRA’S EXPORT POTENTIAL

SHOWCASED AT VANIJYA SAPTAH

A two-day event was organised as part of Vanijya Saptah at World Trade Centre, Mumbai, on 21 September 2021 to showcase Maharashtra’s

potential in exports.The Hon’ble Union Minister of State for Railways,

Coal & Mining Shri Raosaheb Patil Danve attended the function as chief guest, while Hon’ble Minister for Industries, Mining and Marathi Language, Maharashtra, Shri Subhashji Desai inaugurated it.

Shri Desai thanked the Centre for conducting such a big event, where all the trade bodies came together for the first time on common a platform to showcase strength of Maharashtra in exporting of various products.

He further said, “It is very good opportunity for all to coordinate with each other for achieving the target of $400 billion merchandise export as projected by the Prime Minister of India.”

A panel discussion was also organized on subject of Textile, Apparel and Leather on the second day of the function.

Regional Deputy Commissioner of Textiles, Mumbai, Mr Ajit Kumar Sasavde, Managing Director of GIMATEX Industries Ltd Mr Prashant Mohota, Director of Ken

Enterprises and TEXPROCIL Fabrics Committee Chairman Mr Nikunj Bagadia, Managing Director of Ram Fashion Exports Mr Naresh Bhasin and Member Exporter of Apparel Export Promotion Council (AEPC) Mr Samir Bhuta were the prominent panelists.

Explaining about the importance of the textile industry, Mr Saswade said that almost five crore people are involved with this industry. He said only 20% of the textiles are exported and the rest is consumed domestically. Hence, we need to focus on increasing the share of exports.

Mr Saswade further explained about the various schemes of the Maharashtra government especially about the electricity charges. He also detailed about the Maharashtra Industry, Trade and Investment (MAITRI).

Talking about the challenges for the Indian apparel industry, Mr Samir Bhuta said, “We are facing big competition from Bangladesh, Vietnam, Myanmar, as majority of big players have invested huge amounts in these countries. They are getting a lot of subsidies and incentives from local Government.”

Despite tough situation in the country, RMG exports were to the tune of $1388.4 million in July 2021 showing a positive growth.

EXPORTERS CONCLAVE AT MADURAI



EXPORTERS CONCLAVE AT MADURAI

EXPORTERS CONCLAVE AT COIMBATORE

Hon’ble Minister for Commercial Taxes & Registration of Tamil Nadu Shri P Moorthy and Hon’ble Minister for Fi-nance & Human Resources Management of Tamil Nadu Dr Palanivel Thiagarajan jointly inaugurated the ‘Exporters Conclave’ at Madurai on 25 September 2021. The event was organized on theme of ‘India’s Rising Export Potential in Global Market’. Exhibition and conference were also organized on the occasion. AEPC Tirupur office also partici-pated in the Conclave.

An Exporters Conclave was organized at Coimbatore on 23 September 2021. Hon’ble Member of Parliament, Coim-batore, Shri PR Natarajan inaugurated the event in the presence of Coimbatore District Collector Dr GS Sameeran. AEPC Tirupur office also took part in the event and put up a stall. The dignitaries visited AEPC stall. AEPC TirupurJoint Director Mr C Eswarasundar explained about Council’s activities and services rendering to the trade



AEPC CHAIRMAN JOINS VANIJYA SAPTAH CELEBRATION

SEPC CELEBRATES VANIJYA UTSAV

Apparel Export Promotion Council Chairman (AEPC) Dr A Sakthivel joined the Vanijya Saptah celebrations organised by Tamil Nadu Government to commemorate 75 Years of Independence at Chennai. He shared his views about the exports sector in Tamil Nadu, its prosperity and future needs.

Services Exports Promotion Council (SEPC) in coordination with the Government of Karnataka celebrated Vanijya Utsav at LaLiT Ashok, Bengaluru, on 21 September 2021. Hon’ble Union Minister of State for Agriculture & Farmers Welfare Sushri Shobha Karandlaje addressed the gathering. Joint Secretary at Ministry Commerce & Industry of Government of India Mr Darpan Jain spoke about importance of the event. Earlier, SEPC Chairman Mr Maneck E Davar welcomed the gathering.


Welcoming the government’s decision to release Rs 56,027 crore pending tax refunds to exporters, Apparel Export Promotion Council

(AEPC) Chairman Dr A Sakthivel said that it will help apparel exporters bag additional export orders for the coming festive season and thus help India achieve its merchandise export target of $400 billion.

“I am grateful to Hon’ble Prime Minister Shri Narendra Modi, Hon’ble Minister of Commerce & Industries and Textiles Shri Piyush Goyal and Hon’ble Minister of Finance Smt Nirmala Sitharaman for releasing Rs 56,027 crore to pay all pending export incentives to exporters. It will help exporters commit to bigger export orders and thus help achieve the ambitious target of $400 billion merchandise exports,” Dr Sakthivel said on 9 September 2021.

The Chairman also expressed gratitude to the government for accepting the Council’s recommendations in this regard. The decision will provide a major boost to exporters, as it will benefit more than 45,000 exporters across the country and most of them are small exporters in the MSME category, he added.

“The government has made a smart move by deciding to release Rs 56,027 crore against pending tax refunds

to exporters in the current financial year itself. Apart from supporting exporters that are struggling to meet their working capital needs, the extra cash in hand will enable them to commit to bigger export orders.

“It will be extremely beneficial to the apparel exporters in particular as there is healthy recovery in international demand for apparels ahead of the festive season. I expect a robust growth in apparel exports this fiscal going well above the pre-Covid levels.

“The government has provided a massive relief to the exporters. It will help them come out of the ill effects of the pandemic and thus help save lakhs of jobs,” Dr Sakthivel said.

The amount of Rs 56,027 crores of arrears is for different export promotion and remission schemes: MEIS (Rs 33,010 crore), SEIS (Rs 10,002 crore), RoSCTL (Rs 5,286 cr), RoSL (Rs 330 crore), RoDTEP (Rs 2,568 crore), other legacy Schemes like Target Plus etc (Rs 4,831 crore).

This amount is over and above duty remission amount of Rs 12,454 crore for the RoDTEP scheme and Rs 6,946 crore for RoSCTL scheme already announced for exports made in FY 2021-22, as per the Ministry of Commerce and Industry.


DUES CLEARANCE TO HELP EXPORTERS GRAB FESTIVE MARKET



EARLY CONCLUSION OF FTAs WITH UK, UAE TO

INCREASE EXPORTS

Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel thanked Hon’ble Minister of Commerce & Industry and Textiles

Shri Piyush Goyal for working towards an early conclusion of FTAs with the UK and the UAE, and for his assurance to resolve concerns of Indian apparel exporters.

“I specifically thank the Hon’ble Minister for an early conclusion of FTAs with the UK and the UAE. Indian apparels currently face duty disadvantages and FTAs will help increase exports from the country,” Dr Sakthivel said in a meeting called by the Hon’ble Union Minister with textile related Export Promotion Councils (EPCs) on 3 September 2021.

The Chairman also expressed his gratitude to the Hon’ble Minister for his assurance that the government will examine and try to resolve all the issues raised by the various stakeholders at the meeting organized by the Ministry of Textiles with the theme: ‘Local Goes Global – Make in India for the World’.

“I thank the Hon’ble Minister for taking key initiatives like RoSCTL, RoDTEP, ECLGS, PLI and FTAs for protecting and promoting the textile and apparel sector,” Dr Sakthivel said, adding that the US ban on import of cotton from China’s Xinjiang region throws up opportunities for Indian cotton garments provided there is stability in raw material prices.

“AEPC has identified the top 20 cotton garment products exported by China to the USA. We have shared the list with our members for them to fill the vacuum created in the US market after the ban,” he said. However, he expressed concern over the volatile prices of cotton and cotton yarn that is affecting the garment exports from India.

He requested the Hon’ble Minister for policy initiatives like incentivizing value-added exports and disincentivizing exports of raw materials. He also suggested that the CCI should make available 70% of the cotton to local manufacturers helping increase value-added exports, investment and employment.

• Hon’ble Commerce and Textiles Minister holds meeting with textile EPCs• AEPC Chairman hails Hon’ble Minister for his assurance to resolve issues



Dr Sakthivel said that apparel lines should be included in the early harvest deals being negotiated with the EU and the UK. Compared to zero duty for apparels from Turkey, Bangladesh, Cambodia and Pakistan, Indian apparels face a duty disadvantage of 9.6% in these regions, he said and added that other FTAs need to be fast tracked as well.

The Chairman also raised the crucial issue of sky rocketing freight cost and sought the government’s intervention in helping remove the major supply side constraint faced by the Indian apparel exporters. He sought immediate resolution of the issue in view of the upcoming Christmas season.

“To achieve this, some steps might be taken such as import of one lakh containers to ease the supply of containers, fixation of floor price for stability and transparency in the freight cost, and provision of

support mechanism to exporters to tide over the high cost. The Shipping Corporation of India or any other agency may also be advised to take big size containers on lease for use by exporters,” he said.

Dr Sakthivel further sought amendment in the proposed Production Linked Incentive (PLI) scheme to make it more effective and accessible. He wished that the Ministry of Textiles expand the current list of 40 MMF garment products under the PLI to include additional 23 high potential MMF items. He requested lowering the incremental growth target for brownfield projects to 25%, at par with Greenfield projects, from the proposed 40% for getting the PLI benefits. Besides, he also suggested consideration of growth in the MMF segment alone, and not the overall growth in turnover.

FTAs PROGRESSING FAST ON MANY FRONTS: SHRI GOYAL

Addressing leaders of Indian textiles industries in a meeting on 3 September 2021, Hon’ble Minister for Commerce & Industry and Textiles Shri Piyush Goyal said that Foreign Trade Agreements (FTAs) are progressing fast on many fronts.

“I have personally been interacting with different nations to expedite FTAs/PTAs (UK, EU, Australia etc.). It will provide new avenues to build a loyal customer base,” Shri Goyal said. Setting a target to increase textile exports three times from the current export value of $33 billion to $100 billion at the earliest, the Minister stressed upon enhancing the domestic production to $250 billion. “We must all collectively resolve to reach the target of $44 billion of exports for textiles and apparel including handicrafts in 2021-22,” Shri Goyal said.

Shri Goyal added that India is showing signs of robust economic recovery as the GDP in Q1 of 2021-22 grew by a phenomenal 20.1% and 90% growth was seen in total FDI inflow in first three months of the current fiscal as compared to same period last year.




AEPC WANTS TO PARTNER IN STITCH

PROGRAMME

Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel appreciated the efforts of Ethical Trading Initiative (ETI) for addressing

the concerns of the apparel industry with regard to listing of apparel products in TVPRA list, besides other issues taken up during the meeting held with Fair Wear Foundation and BEWG members on 6 September 2021.

“I am happy to note the initiative being taken under the STITCH programme and the proposed initiative of the ETI platform,” Dr Sakthivel said.

In a letter to ETI’s South Asia Regional Director Mr Rana Alok Singh on 7 September 2021, Dr Sakthivel highlighted the suggestions made during the meeting.

AEPC Chairman suggested to invite Fair Labour Association (FLA) for the future discussion on removal of Indian apparel from TVPRA list. “We look forward to more participation from US brands in the discussion through FLA,” he said.

Prime objective of the Trafficking Victims Protection Reauthorization Act (TVPRA) list is to raise awareness about child labour and forced labour in production of goods in the countries listed and promoting efforts to

eliminate forced labour. Dr Sakthivel said that AEPC would like to be a

partner in the STITCH programme of Fair Wear Foundation and contribute towards more suppliers’ participation in the programme, especially with regards to supplier capacity building activities. Led by the foundation, STITCH (Sustainable Textile Initiative: Together for Change) programme aims to create a global garment industry that contributes to an equal and just society by respecting human rights in the world of work. Fair Wear has joined forces with the British Ethical Trading Initiative (ETI), Centre for Development and Integration in Vietnam (CDI), labour organization—Cividep India and Dutch trade unions—CNV International and Mondiaal FNV.

With regard to studies on the apparel units, Dr Sakthivel requested that units should also be made part of such studies, so that the perspective of the manufacturers is also captured in the study. “So far, most of the studies have been one sided leading to non-reporting of the developments and good initiatives taken by apparel exporters over the years,” he said.

Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel on 18 September 2021 welcomed the government’s decision to correct

the inverted duty structure in the apparel industry from next year saying it will be a big breather to the industry.

“I am extremely thankful to Hon’ble Finance Minister Smt Nirmala Sitharaman and the GST Council for granting our request and agreeing to correct the inverted duty structure from 1 January 2022. The revision will be a big breather for the industry as it will lessen the tax burden on manmade fibre (MMF) fabrics and garments,” Dr Sakthivel said.

He said that the inverted duty structure has been an

issue with the apparel industry and that the Council had made recommendations to the government for the elimination of this anomaly that has been resulting in input tax credit accumulation blocking crucial working capital for businesses.

“Inputs into the MMF fabric segment (fibre and yarn) attract a GST rate of 18% and 12% whereas the GST rate on the MMF fabric is 5% and that for the finished goods apparel is 5% and 12%. It creates a tax structure where the rate on inputs is higher than that on the outputs. This increases the effective rate of taxation of MMF fabrics and garments and violates the principle of fiber neutrality,” Dr Sakthivel said.

The Chairman also welcomed the GST Council’s decision to extend the validity of GST exemption on transport of goods by vessel and air from India to outside India till 30 September 2022. It will partially help soften the impact of the current exorbitant freight costs, he said.

Dr Sakthivel further thanked the Hon’ble Finance Minister and the GST Council for taking measures to streamline various compliances in GST including mandatory Aadhaar authentication of registration for claiming refunds and for revoking cancellation of registration.

GST on textile value chain:

S. No. Product Rate1 Synthetic Fibre 18%2 Synthetic Yarn 12%3 MMF Fabric 5%4 Dyes 18%5 Buttons 18%

6 Finished Goods Apparel 5% and 12

(S. No. 1 to 5 are raw materials for the garment industry)


CORRECTION OF INVERTED DUTY STRUCTURE TO

BRING RELIEF



INVESTORS’ MEET ON PLI SCHEME

PRINCIPAL COMMISSIONER DISCUSSES GST RELATED ISSUES

A preliminary investor’s meet on Production Linked Incentives (PLI) scheme for textiles was organized by the Re-gional Office of the Textile Commissioner at Hotel Taj Connemara, Chennai, on 14 September 2021. A detailed pre-sentation was given on the PLI scheme on the occasion. Hon’ble Minister for Handlooms and Textiles, Government of Tamil Nadu, Thiru R Gandhi attended the programme as Chief Guest. Additional Secretary at Union Ministry of Textiles Mr Vijoy Kumar Singh, officials from Handloom &Textiles Department of Tamil Nadu Government and other association Heads and representatives were also present at the event.

Principal Commissioner of GST & Central Excise Mr ARS Kumar held an interactive meeting with trade bodies to understand the issues and address them accordingly. Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel also attended the meeting that held at Coimbatore on 30 August 2021. The Chairman took up several GST related issues such as option to revise the GST returns at least once, introduction of e-wallet, refund of CVD/SAD, denial of refund of input tax credit in some cases and requested to offer an opportunity to the taxpayer before disallowance of input tax credit.He also highlighted the issue of scroll rejection due to PFMS and suggested to develop a robust system for the integration of EDPMS data between RBI and Customs instead of testing the exporters. The Chairman also brought the issue of Risky Exporters to the notice of the Principal Commissioner and highlighted the inability and time consuming factor in the handling of Risky cases and due to which many exporters are facing severe cash flow problems. Considering the tough process, he reiterated that to refund at least 80% of the GST payable amount so that the exporters or assessees could survive and continue to do the business. Otherwise small exporters will go out of the business, he said. The Principal Commissioner heard all the industry issues pertaining to GST, Customs and Risky. He assured to take up the issues with higher authorities and work out some mechanism for safeguarding the exporters or assessees.



UNION TEXTILE SECY GIVES PRESENTATION ON PLI SCHEME

FDI PROMOTION IN TEXTILE SECTOR

Union Textiles Secretary Mr UP Singh gave a detailed presentation on Production Linked Incentives (PLI) scheme in an outreach programme with textile industries held on 17 September 2021. The event was organized by the Cen-tral Silk Board (CSB), Bengaluru, at The Taj West End. Principal Secretary of Commerce and Industries Depart-ment of Government of Karnataka Mr Pankaj Kumar Pandey, Commissioner for Handloom & Textile Development of Government of Karnataka Mr Upendra Pratap Singh and Member Secretary of Central Silk Board Rajit Ranjan Okhandiar were also present during the interaction.

A virtual meeting of High Powered Committee (HPC) to promote Foreign Direct Investment (FDI) in textiles sector held under the chairmanship of Union Textiles Secretary Mr UP Singh on 6 September 2021. Speaking on the occa-sion, Apparel Export Promotion Council (AEPC) Chairman Dr A Sakthivel said that focus on foreign investments in textiles sector will provide an immense boost to domestic manufacturing and prepare the industry for making a big impact in global market in sync with the spirit of Aatmanirbhar Bharat. Dr Sakthivel suggested identifying states for starting Mega Textiles Parks and including lines of MMF fabric under PLI scheme of textile sector. “We need heavy investments in world class manufacturing plants towards MMF processing units,” he said.


Padma Shri Dr A Sakthivel, Chairman of Apparel Export Promotion Council (AEPC) and Apparel Training & Design Centre (ATDC), is playing a

vital role in shaping up the apparel industry through his visionary projects.

ATDC Pro-Up (Professional Upgradation) is one such project envisaged by him that aims to support the apparel industry in achieving global competitiveness.

Keeping this visionary project in mind, ATDC Vice-Chairman Mr Rakesh Vaid has created a new vertical to address the challenges and hurdles faced by the apparel manufacturing organizations in achieving enhanced productivity and efficiency.

ATDC Director Ms Roopali Shukla, alumni (GMT-1994) NIFT, Delhi, is heading the ATDC Pro-Up initiative and has established a division for providing intensive upskilling customized training programmes. ATDC Pro-Up has already expanded the services across the country.

With an aim to detail more about the Pro-Up project, Ms Shukla replies to major queries regarding the initiative and how it can be a solution provider.

ATDC PRO-UP: A SOLUTION PROVIDER TO APPAREL INDUSTRY

APPAREL | ATDC DIGEST

Q: Apparel industry has been hugely impacted due to the unprecedented challenges posed by Covid-19 pandemic. What do you think are the persistent problems being faced by Indian apparel industry?A: Covid-19 acutely impacted every industry, and the apparel industry was no exception. The key challenges faced are the lack of operational excellence, manpower enrichment negligence and below average production across the value chain from cut to ship. The key reason for this is the gap between the expectation of the industry and actual productivity of their human resource on the shop floor. The gap is caused due to the lack of understanding of concepts such as SAM, skill matrix, Non-Productive Time (NPT) and other technicalities by the workforce. This gap can be bridged by ATDC Pro-Up.

Q: What is the objective of ATDC Pro-Up?A: The objective is to enhance the optimum utilization of resources in factories (machines and human resource), help in identification and reduction of wastages and losses occurring throughout the


factories by providing ‘customized training solutions’ for the factory workforce across all departments in the organizations. This immediately brings the saving and improves productivity index.

Q. Do we need only experienced persons in factory to attend these programs?A: No prior experience is required. The ‘Diagnostic Study’ is conducted by the ATDC Pro-Up team to identify and ascertain the skill gaps before the start of the training. The training contents are developed according to the actual need of the factory.

Q: How do you meet the organization’s training expectations?A: The highly experienced and academically qualified Pro-Up team, comprising of Pro-Up experts across various job roles develop modules that are exclusively customized to the needs of the factory and provide tangible real time benefits and skill upgradation to the factory personnel.

Q. Which are the areas where ATDC Pro-Up has been a ‘Solution Provider’?A: ATDC Pro-Up aims to enhance productivity and efficiency across the manufacturing value chain. Some of the customized skill upgradation programs that have gained traction from the industry are: Sewing



Machine Operators, Machine Maintenance (basic and advanced machines), Sewing Supervisor Upgradation, Quality Assurance/ Quality Control Training, Production Planning & Control, Industrial Engineering (Tools and Techniques), Merchandising & Production Planning Management, Soft Skills, English and Digital Literacy, Computerized Pattern Making (CAD), Pattern Making techniques (Manual), Cutting Room Efficiency, Fabrics and Accessories, and other customized programs.

Q. How is ‘Pro-Up training’ helpful for the skill enhancement of the experienced supervisors?

A: Supervisors are one of the most important components of manufacturing in any organization and are the propellers for effective and efficient manufacturing. ‘More skilled the supervisors, better will be the performance of the factory’. Hence, it is imperative for any organization to keep its supervisors well equipped with the best practices in the industry. Some of the areas of supervisory upskilling are:

- Orientation to IE (Industrial Engineering) concepts & tools- Understanding, identification and removal of NPT (Non-Productive Time)- Concepts and tools of work-study, method study and motion study- SAM (Standard Allowed Minutes) calculation and capacity planning- Skill Matrix (to map operator’s skills with operations)- Reduction of style changeover loss- Improving first hour line output

Q. How can factories contact Pro-Up?A: It’s simple and swift. Send an email on [email protected] and say ‘ATDC Pro-Up’. We will provide step-by-step guidance to ensure that factory benefits at most affordable prices.

ATDC DIRECTOR GETS PMKVY KAUSHALACHARYA

AWARD


Hon’ble Minister of Skill Development and Entrepreneurship Shri Dharmendra Pradhan conferred PMKVY Kaushalacharya Award to

Apparel Training & Design Centre (ATDC) Director Ms Neera Chandra for her outstanding contribution to the PMKVY skilling ecosystem in apparel sector.

‘Kaushalacharya Award’ is given to honour excellence amongst trainers and master trainers under Pradhan Mantri Kaushal Vikas Yojana (PMKVY). The Awards felicitate Kaushal Gurus who have consistently achieved outstanding and meritorious performance, setting benchmarks for others to emulate.

The awards for year 2021 was conferred by the Hon’ble Minister on 17 September 2021.

Ms Chandra received the award under Category-2

of Group-2. She has 27 years of experience which is a combination of academics, industry experience and training in the skill eco-space. She has been associated with skill eco-space since 2016 onwards and has done the exemplary work in Training of Trainers (ToT).

Through this award Ministry of Skill Development and Entrepreneurship, National Skill Development Corporation (NSDC) and Apparel Made-ups and Home Furnishings Sector Skill Council recognized the importance of ‘training the trainers’ for imparting quality into skill development and vocational trainings.

ATDC ToT Academy is one of the NSDC recognized Academy for this purpose and operates under the leadership of Ms Neera Chandra.


In a bid to promote trade, understand trade barriers and facilitate investments through collective efforts, India-Brazil-South Africa (IBSA) forum recently conducted its sixth conference.

Inaugurating the tri-nation virtual conference, Micro, Small and Medium Enterprises (MSME) Secretary Mr BB Swain said that IBSA forum plays an important role in creating awareness about the strengths, opportunities and challenges of MSMEs. It helps to create markets for finished products and provide hand-holding support to it through capacity building trainings, exchange of practices and technologies.

He said that the conference was held with an objective to promote trade, understand trade barriers and facilitate investments through collective efforts towards better collaborations amongst the three nations.

The conference was hosted by the Ministry of MSME in association with the National Small Industries Corporation Ltd (NSIC), Brazilian Micro and Small Business Support Service (SEBRAE), Department of Small Business Development (DSBD) and Small Enterprise Development Agency (SEDA), South Africa.

IBSA is a unique forum that brings together India, Brazil and South Africa, three large democracies and major economies from three different continents, facing similar challenges.

Chairman-cum-Managing Director of NSIC, Mr Vijayendra, said that the main theme of the conference was ‘democracy for demography and development’. He stressed on mutual sharing of technological, environmental and financial support.

Director of Administration and Finance of (Brazilian Micro and Small Business Support Service) SEBRAE, Brazil, Mr Eduardo Diogo said that SMEs are reinventing and generating employment despite the challenges faced due to the pandemic. He also said that IBSA needs to work towards their sustainable development.

Mr Lindokuhle Mkhumane, Director General of DSBD, South Africa, said that skilled youth and women have potential to promote inclusivity. He also said that issues like poverty, inequality and unemployment, can be driven away by promoting MSMEs.

SME Joint Secretary Ms Mercy Epao spoke about contribution of MSME sector in India’s socio-economic development and Government of India’s policies to help the growth of MSMEs in India.

The speakers said that such conference is an integral initiative to enhance mutual co-operation between the participant nations in MSME sector. Based on the deliberations made during the sessions, a roadmap will be drawn to overcome challenges and to strengthen MSMEs.

IBSA FORUM TO PROMOTE TRADE, INVESTMENT

APPAREL | INDIA NEWS


The India pavilion at Expo 2020 Dubai is all set to showcase a resurgent India’s march to becoming a $5 trillion economy in the post-Covid world. The six-month Expo is starting from 1 October

2021 and will run up to March 2022.The Expo will feature top Indian industries, corporate,

start-ups and different Indian states, and it is expected to give fillip to Indian business in a big way.

India Pavilion, which is a technology marvel, will not only capture the vibrant Indian culture and its past but also the capabilities and opportunities that it presents as a global economic hub to the domestic as well as the foreign investors.

The Pavilion will see participation from a number of Indian states displaying their culture, tradition and business potential along with eminent corporate groups and public sectors from India.

Commerce & Industry Secretary Mr BVR Subrahmanyam said, “India Pavilion at Expo 2020 Dubai will showcase resurgent India’s march to becoming a $5 trillion economy, India’s exceptional fight back against Covid-19 and the country’s emergence as a global business hub presenting huge opportunities for the world.”

He said that the Pavilion is ready to showcase the face

of an India rising on the pillar of sustainability along with opportunity and mobility — a nation ready to lead the world’s future.

One of the largest pavilions at the Expo 2020 Dubai, the India Pavilion will feature an innovative kinetic façade made up of 600 individual colourful blocks. Mosaic of rotating panels will depict different themes while rotating, representing the theme ‘India on the move’.

The Pavilion will exhibit the country’s cultural diversity, ancient treasures, achievements, and leading opportunities with cutting-edge technologies. Its focus will be discussions on leadership, international trade conferences and seminars to explore opportunities with other participating nations.

It will also mirror celebrations of Amrit Mahotsav, launched by Hon’ble Prime Minister Shri Narendra Modi, to bring to the world the New India through many activities and cultural extravaganzas.

Large number of prominent ministers, officials and celebrities from India will visit India Pavilion during the six months of the Expo. Visitors at the Expo will get a chance to witness star-studded nights, multiple cultural shows, and Indian festival celebrations while relishing Indian delicacies.


INDIA TO FEATURE AS RISING ECONOMIC POWER IN

DUBAI EXPO


Dubai Expo 2020: (L to R) CGI Dubai Dr Aman Puri, President FIEO and Chairman AEPC Dr A Sakthivel, Hon’ble Commerce & Industry and Textile Minister Shri Piyush Goyal,

Hon’ble Minister of State for Foreign Trade, UAE, Dr Thani bin Ahmed Al Zeyoudi, UAE Ambassador to India Dr Ahmed Abdul Rehman Al Banna and DG & CEO, FIEO, Dr Ajay Sahai at the

inauguration of India Pavilion Dubai Expo 2020

India and United Arab Emirates (UAE) formally launched negotiations on the India-UAE Comprehensive Economic Partnership Agreement (CEPA) with an aim to improve bilateral economic

relations, including expanding the existing trade and investment relationship.

A bilateral meeting between Hon’ble Minister of Commerce & Industry and Textiles Shri Piyush Goyal and Hon’ble UAE Minister of State for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi, who travelled to India along with a high-level UAE delegation, happened on 22 September 2021.

The first round of CEPA negotiations took place on 23-24 September 2021.

Looking to build on the progress made by both countries under the Comprehensive Strategic Partnership signed in 2017, both Ministers expressed desire to reach a mutually beneficial economic deal.

“Both sides will aim to conclude negotiations by December 2021 and sign a formal agreement in March 2022 after the completion of internal legal procedures and ratification,” said a joint statement issued after the meeting.

The Ministers of two countries emphasized that concluding CEPA negotiations quickly and constructively will further strengthen the deep trade and economic ties between the two nations.

They also stressed that CEPA will create new jobs, raise

living standards, and provide wider social and economic opportunities in both countries.

“A new strategic economic agreement is expected to increase bilateral trade in goods to $100 billion within five years of the signed agreement and increase trade in services to $15 billion,” the statement said.

The UAE is currently India’s third-largest trading partner with bilateral trade in 2019-2020 valued at $59 billion. The UAE is also India’s second-largest export destination after the US with exports valued at about $29 billion in 2019-2020.

India was the UAE’s second-largest trading partner in 2019, with bilateral non-oil trade valued at $41 billion. The UAE is the eighth-largest investor in India, having invested $11 billion between April 2000 and March 2021, while investment by Indian companies in the UAE is estimated to be over $85 billion.

Shri Goyal wished his counterpart for Expo 2020 Dubai, which begins on 1 October 2021 and expressed confidence that India’s participation will help boost bilateral trade and investment.

He also confirmed that he will co-chair the ninth UAE-India high level joint task force on investments with Sheikh Hamed bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council.

Al Zeyoudi thanked the Government of India for its support during the pandemic, which included keeping supply chains open.


INDIA, UAE LAUNCH CEPA NEGOTIATIONS



India and the United Kingdom (UK) plan to launch the negotiations on Foreign Trade Agreement (FTA) by 1 November 2021, Ministry of Commerce and Industry

said. Both the countries are looking for an Interim Agreement by March 2022 as a priority, which will be followed by a comprehensive agreement.

The details were discussed during a meeting on FTA held between Hon’ble Minister of Commerce & Industry and Textiles Shri Piyush Goyal and his British counterpart, Secretary of State Ms Elizabeth Truss.

The proposed FTA between India and the UK is expected to unlock extraordinary business opportunities and generate jobs. Both the nations have renewed their commitment to boost trade in a manner which benefits all.

Shri Goyal said, “There is tremendous interest in the business community in both countries (India and UK) about this FTA.”

He said that since the declaration on launch of Enhanced Trade Partnership, both countries have made substantial progress on various aspects of the partnership.

Throwing light on the keenness of both sides to have an early conclusion of negotiations for quick and early economic benefits to businesses, Shri Goyal said, “Substantial work has already been done and extensive

stakeholder consultations have been held involving industry/ business associations, export promotion councils, buyers/ sellers associations, regulatory bodies, ministries/ departments and public research bodies. The consultation paper was also made public for wider participation as well.”

Shri Goyal said that Bilateral Working Groups (BWGs) have been formed to facilitate accelerated progress during negotiations. The meetings of these BWGs are presently in progress, likely to be completed by September 2021.

The Minister further said that he was hopeful that these BWG discussions would help both sides in understanding policy regimes and would put India in a better position when both sides begin their joint scoping discussions, beginning on 1 October 2021 for finalizing the TORs (Terms of References) for launch of negotiations in November.

He also said that an Interim Trade Agreement, as first step of an FTA, would allow both the countries to get immensely benefited from early gains of the partnership.

In services, certain services of mutual interest might be included in the Interim Agreement through request offer approach wherein immediately deliverable priority sectors may be included as well.

INDIA, UK TO LAUNCH FTA NEGOTIATIONS BY NOV 1



Indian clothing brand Jaypore launched ‘Karigari Ki Kahaniyan’ campaign to celebrate five ancient crafts, their timeless traditions with slow-crafted collections and the work of artisans from different parts of India.

With an aim to bring the spotlight back on five exquisite handicrafts with a special craft edit of collectable shawls, stoles and dupattas, the campaign celebrates crafts such as Tangaliya from Gujarat, Kotpad from Orissa, Kasuti and Lambani from Karnataka, and Toda from the Nilgiris in Tamil Nadu.

Spotlight is being thrown as many of these crafts are fading away, leaving traditional artisans without a sustainable livelihood and also leading to cultural loss.

Business Head at Jaypore, Rashmi Shukla, said, “Karigari Ki Kahaniyan is an articulation of Jaypore’s identity as a storyteller of crafts and culture where these stories find expression in the products we sell. In this special craft edit, we will be showcasing a handpicked selection of shawls, stoles and dupattas in the timeless traditional handicrafts of Tangaliya, Toda, Lambani, Kasuti and Kotpad from different corners of the country. We intend to introduce many such customary Indian crafts at an exceptional value, for our patrons.”

The brand also unveiled limited edition festive collection – Gajgamini, inspired by the radiance of Ganesh Chaturthi. The collection celebrates many forms of Ganesha, hand-painted by skilled Kalamkari artisans.

The Gajgamini collection presents dupattas with intricate and complex designs of Kalamkari’s characteristic motifs and the diverse forms of Ganesha.

Each piece is one-of-its-kind with exquisite artistic details to elevate any traditional or contemporary look while celebrating Kalamkari skills and its rich history. The hand-painted products vary in color and design which are the hallmark of handcrafted products, making each product unique.

The Kalamkari art is ancient and dates back to the time when it was practiced by Chitrakars who traversed various towns telling tales of Hindu mythology through hand-painted imagery. Traditional artisans from the temple city of Tirupati, Andhra Pradesh, hold the manifestation of the Kalamkari craft.

Jaypore celebrates works of artisans and it works closely with artisans and craft persons to curate best weaves, embroideries and designs for the customers.

JAYPORE CELEBRATES TIMELESS CRAFTS

JAYPORE celebrates timeless crafts from India with five unique `Karigari Ki Kahaniyan’

~Tangaliya, Koraput, Kasuti, Lambani, Toda collectible shawls, stoles & dupattas in a Special Craft Edit: 8th –12th Sept. 2021~

Mumbai, 7th September 2021: The wealth of Indian arts and handicrafts is enchantingly diverse, and each one deserves to be celebrated for its enthralling beauty and cultural significance. Many of these crafts are fading away today, leaving traditional artisans without a sustainable livelihood and also leading to a cultural loss. JAYPORE, India’s leading destination brand for all things Craft and Artisanal is bringing the spotlight back on five such exquisite handicrafts with a Special Craft Edit of collectible shawls, stoles & dupattas scheduled to be held from 8th– 12th September 2021. The campaign titled ‘Karigari Ki Kahaniyan’ celebrates five ancient crafts and their timeless traditions with slow-crafted collections of Tangaliya from Gujarat, Kotpad from Orissa, Kasuti and Lambani from Karnataka, and Toda from the Nilgiris in Tamil Nadu, homespun by artisans.

Rashmi Shukla, Business Head, JAYPORE says, “JAYPORE as a brand has always been vocal about promoting India’s rich craft & textile heritage. Supporting artisans and adopting craft clusters from across the country is a core value of the brand and has become even more important now. 'Karigari Ki Kahaniyan' is an articulation of JAYPORE’s identity as a storyteller of crafts and culture where these stories find expression in the products we sell. In this special craft edit, we will be showcasing a handpicked selection of shawls, stoles and dupattas in the timeless traditional handicrafts of Tangaliya, Toda, Lambani, Kasuti and Koraput, from different corners of the country. We intend to introduce many such customary Indian crafts at an exceptional value, for our patrons.”




A Mobile X-Ray Container Scanning System (MXCS) has been set up by Paradip Port near Paradip International Cargo Terminal (PICT) in order to

boost export-import (EXIM) trade. The MXCS is installed at a cost of Rs 30 crore and aims to reduce physical examination and dwell time of containers at the Port.

The Scanner can scan up to 25 containers per hour, enabling the trade to directly move out their containers with upgrade security and zero hassle, according to a press communiqué of Ministry of Ports, Shipping and Waterways.

This move will also facilitate movement of unshredded metallic scrap materials in containers through the Port to meet the long standing requirement of hinterland industries.

The operation of the scanner is expected to boost the container volume at the Port as Paradip Port Trust is making continuous efforts to reduce the logistic cost to help the EXIM trade; being in line with the government’s Ease of Doing Business (EoDB) initiative.

After successful trial run of the MXCS, the Atomic Energy Regulatory Board (AERB) issued license to Paradip Customs for its regular operation.

PARADIP PORT INSTALLS MXCS TO BOOST TRADE

LOUIS PHILIPPE OPENS ITS FIRST OUTLET IN DHARMAPURI

India’s premium menswear brand Louis Philippe (LP) inaugurated its first brand outlet in Dharmapuri, Tamil Nadu.

The outlet is located in the heart of the city on Salem Main Road and offers a wide and remarkable range of wardrobe options for men.

The 1,334 sqft LP outlet promises premium fashion with unmatched prices. The outlet is supposedly a one stop shop for all the fashion enthusiasts in the town.

The store exclusively features a broad range of contemporary designs with fresh styles in trousers, blazers and shirts. Apart from the formals of LP, wide range of denims and T-shirts will be available at the outlet to give casual aroma to customers.

Louis Philippe COO Farida Kaliyadan said, “We are delighted to announce the launch of our exclusive store in Dharmapuri, Tamil Nadu. With this launch we aim to strengthen our reach in Tier 3 and Tier 4 cities. This store launch will bring India’s leading premium menswear brand in smallest towns and make the brand more accessible at a sharper price in small cities.”

Louis Philippe launches its first store in Dharmapuri, Tamil Nadu

The new outlet will house an exclusive collection

Dharmapuri, September 13th, 2021: Louis Philippe, India’s leading premium menswear brand from Aditya Birla Fashion and Retail Ltd., has announced the launch of its maiden brand outlet in Dharmapuri, Tamil Nadu. Located in heart of the city, the store is situated in Salem Main Road, Dharmapuri and offers remarkable range of wardrobe options for men. With the promise of premium fashion with unmatched prices, the 1334 sq ft. Louis Philippe outlet is one stop for all the fashion savvy consumers in the town. This first shopping experience with Louis Philippe Dharmapuri store, will offer and exclusive range of collection of premium wardrobe solutions to the new fashion explores. With this launch, the brand plans to expand its offerings to consumers in the tier 3 and 4 cities. Exclusive collection at the Louis Philippe store features a broad range of contemporary designs and fresh styles in shirts, trousers, blazers. Apart from these, a stylish assortment of expressive


Hon’ble Minister of Commerce & Industry and Textiles Shri Piyush Goyal emphasised for the BRICS countries to work together for strengthening multilateral system, with WTO

at its core. He also stressed on the need for a balanced and inclusive outcome in the upcoming WTO Ministerial Conference keeping in mind the developmental needs of developing and least developed countries.

Shri Goyal was speaking at the 11th BRICS (Brazil, Russia, India, China and South Africa) Trade Ministers’ virtual meeting held on 3 September 2021. He highlighted the principles of ‘special and differential treatment’ and the ‘common but differentiated responsibility’.

Emphasising upon the need for a permanent, adequate and equitable solution to the Public Sector Holding programmes for food security purposes and adoption of emerging new technologies in a swiftly changing world, the Minister also urged to find solution to the challenges of data protection and cyber security, ensuring sustainable consumption and production patterns, besides early outcome of the TRIPS Waiver proposal for vaccines, therapeutics and diagnostics.

Referring to the impact of Covid-19, he talked about the various support measures taken by India, including the milestones reached in vaccination as well as the significant fiscal and monetary support extended to

overcome Covid-19 impact.Shri Goyal highlighted that India was successful in

building consensus for new areas of work and cooperation amongst BRICS countries. Common understanding amongst BRICS countries for the first time on those areas resulted in new declarations related to consumer protection, e-commerce, genetic resources and traditional knowledge.

BRICS countries endorsed the framework for cooperation in trade and professional services with the objectives of enhancing domestic capacity and global competitiveness, promoting participation in intra-BRICS mobility of professionals and enhancing trade.

For the first time, all BRICS members could reach a consensus for jointly working towards genetic resources protection, traditional knowledge and traditional cultural expressions.

India could successfully draw a common implementation roadmap for the BRICS countries in the field of trade and investment to meet the aspirations of the BRICS strategy of 2025.

The BRICS ministers appreciated India for its significant contributions. They also acknowledged the importance of strengthening intra-BRICS cooperation in achieving the common goal of making their goods and services further integrated in the global value chain.

WORK TOGETHER TO STRENGTHEN MULTILATERAL

SYSTEM: SHRI GOYAL



ALLEN SOLLY LAUNCHES STORES IN VELLORE, DHARAPURAM

Allen Solly, from the house of Aditya Birla Fashion and Retail Ltd (ABFRL), launched two new outlets in Tamil Nadu. The brand opened its outlets in

Dharapuram and Vellore.Both the newly opened stores feature a broad range of

revolutionary designs and fresh styles in shirts, trousers, blazers. The stores also feature expressive casual wear with a wide range of denims and T-shirts.

The 1,600 sqft maiden outlet of the brand at Vellore and 800 sqft store at Dharapuram provide customers with alluring experience. With launch of two outlets, the brand plans to expand its offerings and network to the customers in Tier 3 and Tier 4 cities to get one step forward.

Allen Solly COO Mr Anil S Kumar said, “We are delighted to launch the exclusive stores in Vellore and Dharapuram. At Allen Solly, our aim has been always to strengthen our reach for customers in Tier 3 and Tier 4 cities and to reach out to the fashion enthusiast. With these stores, we bring premium international fashion accessible to all our customers even in the smallest towns.”

As many as 1,565 artisans have been benefited from 63 training centres under Samarth scheme that aimed at capacity building in textile sector. The scheme is being

implemented by the Ministry of Textiles in order to meet the skill gap in the industry.

The scheme’s objective is to provide demand-driven and placement-oriented skilling programmes to supplement the efforts of the industry in creating employment in textile and related sectors. It covers entire value chain of textiles, excluding spinning and weaving in organised sector.

The Ministry adopted 65 clusters for overall development of artisans in a time bound manner by ensuring self-sustainment of the artisans of these clusters. For earning livelihood, technical and soft skill training is being provided to the handicraft artisans under the scheme.

The second batch in each training centre will benefit 1,421 artisans. Additionally, 65 new handicrafts training centers are being established to scale up the training program so that the maximum number of artisans can be benefitted.

1,565 ARTISANS BENEFITED UNDER SAMARTH SCHEME

Allen Solly launches its first store in in Vellore, Tamil Nadu

The new outlet will house an exclusive collection range starting from INR 999

Vellore, September 8th, 2021: Allen Solly, India’s pioneer brand in casual work wear from Aditya Birla Fashion and Retail Ltd., has announced the launch of its maiden brand outlet in Vellore, Tamil Nadu. Located in heart of the city, the store is situated at Officer’s Line, Vellore and offers a remarkable range of wardrobe options for men.

The 1600 Sq ft outlet of its kind, Allen Solly promises premium fashion at unmatched prices to the fashionable consumers in the town. With this launch, the brand plans to expand its offerings and network to the customers in Tier 3 and Tier 4 cities take one step forward.

The Allen Solly store features a broad range of revolutionary designs and fresh styles in shirts, trousers, blazers. A stylish assortment of expressive Denims and T-Shirts for a casual, yet eclectic style is also among the plethora of offerings are also available at the store.


APPAREL | GLOBAL NEWS

British fashion house Burberry unveiled its Autumn/ Winter 2021 campaign including collection by Riccardo Tisci bringing together

contrasting perspectives in a celebration of the season’s exploration of fluidity and the power of individuality.

The collection by Burberry Chief Creative Officer Riccardo Tisci explores the narrative of modern femininity and masculinity, re-writing the narrative with a sense of boldness and opportunity.

“This season is very much about freedom of expression and the importance of exploring creativity. And so, for the campaign, I really wanted to build on these notions and have the collection captured from two different creative perspectives.

“I collaborated with the incredible Katy England on the styling for the campaign to create a beautiful and powerful fluidity across both juxtaposing images, and I am so excited to have also worked with Mert and Marcus and Chris Rhodes to bring them to life through each of their unique lenses,” said Tisci.

Paying homage to the indomitable force of Mother Nature and the widespread British craft and outdoor movements of the early 20th century, the collections nod to those who daringly ventured into nature, breaking with convention in their journey towards building a better future.

Burberry’s womenswear collection named ‘Femininity’ sheds archetypes and readdresses preconceptions with unflinching pride and conviction. Re-inventing tradition, British tailoring classics are renewed with fresh purpose and confidence.

The collection returns to the animal kingdom – a house code – as trompe l’oeil prints and tactile faux furs play on the natural and the fashioned side with unexpected adornment on hoods and exaggerated pelt fringing.

Fluttering cape-sleeve dresses in colour block and animal print, and fluid unlined outerwear evoke a sense of freedom, as if moving in the wind, whilst bold and bright flag intarsias appear on silk satin and tulle skirts, alongside reconstructed silhouettes with geometric panels and prints.

Menswear collection named ‘Escapes’ gently challenges and subtly reinvents traditions, inviting freedom of expression. The collection itself is dynamic and young, vibrant and alive.

Clothes are engineered to reflect motion and activity – with pleats, panels and fringes – as if moving in the wind. Layered pieces morph unexpectedly on the body. Tailoring has a sense of twisted classicism, whilst Burberry’s quintessential house codes – the trench coat and Burberry beige – are evolved.

BURBERRY LAUNCHES AUTUMN/ WINTER

2021 CAMPAIGN


Dorchester Industries, a design and manufacturing arm of Theaster Gates Studio, in partnership with Rebuild Foundation and Prada Group launched

Dorchester Industries Experimental Design Lab.The design lab will act as a think tank that will

amplify the work of promising young designers of color in the areas of fashion, furniture, industrial and graphic design and the arts while providing a platform for exhibitions, performances and public dialogue.

The Experimental Design Lab is a three-year programme that aims at serving as a platform for artists of color, creating opportunities to amplify their work, investing in their development and exposing them to great organizations interested in working with diverse talents.

The Lab, built on Chicago’s South side, will have reach and relevance of the international level.

“I’m thrilled to collaborate with Prada Group to generate a new hub of design energy on the South Side by engaging a network of skilled designers, artists and intellectuals around our first cohort of awardees and their projects,” said Theaster Gates, founder of Dorchester Industries and Rebuild Foundation and

Co-Chair of the Prada Diversity & Inclusion Advisory Council.

The first cohort of awardees will be selected in October 2021. Award recipients will receive financial support as well as creative opportunities to foster relationships with leading global companies and their networks through annual activations and workshops in New York, Chicago and Los Angeles.

Lorenzo Bertelli, Prada Group Marketing Director & Head of CSR said, “The Dorchester Industries Experimental Design Lab is a critical step in the right direction to ensure that leading design companies have a pipeline of talented creatives who bring with them diverse experiences and backgrounds.”

Malika Savell, Chief Diversity, Equity & Inclusion Officer of Prada North America, said, “Prada is extremely pleased to be working together with artist and social innovator Theaster Gates to advance our shared goal of equipping the next generation of creative leaders and designers with the skills, network and support that will allow them to grow their artistic influence and professional development.”

DORCHESTER INDUSTRIES LAUNCHES EXPERIMENTAL

DESIGN LAB




H&M UNVEILS AUTUMN 2021 RECYCLED DENIM

COLLECTION

Swedish clothing brand H&M launched its Autumn 2021 recycled denim collection in continuation of its drive to make more sustainable clothes.

The collection is made of 100% recycled fabrics, threads, labels and pocketing, and is partly made out of recycled metal zippers and trims.

Inspired by the laidback coolness of the 1990s, H&M’s ten-piece collection contains baggy jeans, loose straight-leg jeans, a trucker jacket and an oversized overshirt along with a bucket hat and shopper.

Launched with selected pieces in stores and whole range online at hm.com from 9 September 2021, the collection focuses on patchwork details and 90s denim washes such as vintage light blue, normcore mid-blues, dark vintage blues, vintage blacks and cool grey.

The new denim collection is aimed at highlighting the possibilities of recycled materials and providing denim lovers even more choices in sustainability. Reusing from both production wastes and collected garments is a vital part of H&M’s ambition.

H&M’s another collection – Winter/ Autumn 2021 – hit its stores on 16 September 2021. This collection brings a twist of athleisure, function and tech to the wearer. In this, Gorpcore, an outdoor-inspired style, will be

meeting sartorial style.The foldable recycled polyamide waterproof anorak

can transform into a handy bag, while the recycled polyester jumpsuit and turtleneck bibs can be layered with any piece.

Other key pieces of the collection include black and orange stirrup leggings, the 100% recycled polyester padded vest and the oversized hooded pullover – contemporary but comfortable 90s street style.

Speaking on the new collection, Maria Östblom, Head of Design for Womenswear at H&M, said, “I love the duality of this collection; we wanted to bring the practical elements of outdoor gear to our trend-focused customers. Even with the charming nostalgic references, there’s a feeling of bold and newness.”

The collection champions conscious garments, as the vast majority of the clothing collection is made with more sustainably sourced materials, the company said in a press statement.

A spectrum of earthy green tones brings a natural freshness to the utilitarian feel, while the contrasting hits of orange and black capture an urban sensibility. Actors Precious Mustapha and Lily Newmark are the faces for the collection’s campaign.



Canadian-American athleticwear retailer lululemon announced a multi-year collaboration with sustainable materials leader Genomatica to bring

renewably-sourced, bio-based materials into lululemon’s products.

The collaboration represents lululemon’s first-ever equity investment in a sustainable materials company.

Lululemon and Genomatica have come together to create a lower-impact, plant-based nylon to replace conventional nylon, which is the largest volume of synthetic material currently used to make lululemon products.

Calvin McDonald, CEO of lululemon, said, “Our partnership with and investment in Genomatica demonstrates our commitment to be a leader in creating products that help build a healthier future for ourselves, for our communities and for our planet.”

“Genomatica’s bio-based innovations, along with their distinctive track record of successful commercial applications, will help us deliver on our Impact Agenda goals to make 100% of our products with sustainable materials and end-of-use solutions by 2030, as we move toward a circular ecosystem,” Donald said.

Collaboration with lululemon is Genomatica’s largest partnership within the retail industry.

Genomatica uses biotechnology and fermentation

to convert plant-based ingredients into widely used chemical building blocks that are further converted into pellets and yarns. The companies will be working closely with lululemon’s fabric supply chain to incorporate the bio material into future products.

“We are proud to partner with lululemon, a company that is taking meaningful action to help address our climate crisis,” said Christophe Schilling, CEO, Genomatica.

“The combination of biotechnology, fermentation and renewable feed stocks can provide a powerful means to disrupt the apparel industry through sustainable sourcing. This unique collaboration will help meet increasing consumer demand for more environmentally friendly products and set an example for consumer brand owners worldwide.”

Patty Stapp, Vice President of Raw Materials at lululemon, said, “Replacing the petrochemicals that make up many popular materials with more sustainable alternatives is a major step forward in reaching our Impact Agenda goals. By transitioning our nylon to renewable content, we will impact over half of the synthetic materials we use in our supply chain.”

Through this collaboration, the companies seek to create positive change within the $22 billion global nylon market by building more sustainable supply chains.

LULULEMON, GENOMATICA TO ROLL OUT BIO-NYLON

PRODUCTS


OVER 90 BRANDS SIGN INTERNATIONAL SAFETY ACCORD

Over 90 global brands and retailers have so far signed the new International Accord for Health and Safety in the Garment and Textile Industry

since the accord came into effect on 1 September 2021.More brands are expected to sign the 26-month

legally-binding agreement, which comes into effect as the Bangladesh Accord on Fire and Building Safety expired, according to press communiqué of UNI Global Union, a Swiss-based federation of unions across 150 countries and a signatory of the agreements.

The new signatories include the world’s biggest fashion retailers H&M, Inditex (Zara) and Uniqlo, as well as Next, C&A, Marks & Spencer and US brands Calvin Klein, Tommy Hilfiger and American Eagle, the Union said.

By signing the International Accord with UNI Global Union and Industrial Global Union, garment brands commit to the health and safety work already undertaken in Bangladesh and for the expansion of country-specific health and safety programmes based on the principles of the 2013 and 2018 Accord agreements. The new agreement is being implemented through the International Accord Foundation in the Netherlands.

UNI General Secretary, Christy Hoffman, said, “By signing the International Accord, brands and

retailers shore up their commitment to factory safety in Bangladesh and also agree to establishing badly-needed enforceable and transparent health and safety programmes in at least one other garment producing country. We are delighted that so many global retailers and brands have signed up to the International Accord and in doing so, are taking responsibility for garment worker safety in their supply chains. We look forward to welcoming more signatories to the International Accord as soon as possible.”

Japanese retail holding company Fast Retailing has also signed the newly introduced International Accord for Health and Safety in the Textile and the Garment Industry.

“Fast Retailing is very pleased to support the new Accord and to continue making workplaces safer for the people who help make our clothes,” said Yukihiro Nitta, Group Senior Vice President, responsible for sustainability at Fast Retailing.

American clothing company PVH Corp, a signatory to the new agreement, said, “Signing the new agreement reflects PVH’s ongoing commitment to health and safety across our supply chain, and our commitment to Bangladesh as a key sourcing country.”



TOMMY HILFIGER INITIATES ‘MAKE IT

POSSIBLE’ PROGRAMMEAmerican fashion brand Tommy Hilfiger

announced ‘Make it Possible’ program reinforcing the organisation’s commitment to

create fashion that ‘Wastes Nothing and Welcomes All’.

The brand’s sustainability program sets 24 ambitious targets around circularity and inclusivity, is outlined across four pillars towards 2030. The four pillars include Circle Round, Made for Life, Everyone Welcome and Opportunity for All.

Circle Round aims to make products to be fully circular and part of a sustainable loop, while Made for Life envi-sions operating with sensitivity to planetary boundaries. The third pillar, Everyone Welcome, looks forward to be a brand working for every Tommy fan, and Opportunity for All aims to create equal access to opportunity.

“It is in our nature to drive change, even in the most challenging of times, which is why we are announcing our ambitious Make it Possible sustainability program, outlining 24 targets towards 2030,” said Martijn Hag-man, CEO, Tommy Hilfiger Global and PVH Europe.

“Tommy Hilfiger has a decade’s long track-record for driving a more sustainable future, including pioneering low impact denim processes, championing water stew-

ardship, and creating more inclusive collections. Make it Possible is one way we will work together to make a meaningful and lasting contribution towards a better fashion industry,” Hagman said. He further added, “In these times of health, human, environmental and economic crises, we share a respon-sibility to find innovative solutions that will encourage inclusivity and build a more circular future.”

The brand’s program is powered by parent compa-ny PVH Corp’s Forward Fashion Strategy, a set of 15 priorities designed to reduce negative impacts to zero, increase positive impacts to 100% and improve over 1 million lives across the company’s value chain.

To date, more than 80% of Tommy Hilfiger designers have been trained on circular design strategies. In 2019, 72% of cotton used globally came from more sustainable sources. Additionally, two million pieces of denim have been finished in lower impact, reducing the amount of water and energy used, the brand said.

Each seasonal Tommy Hilfiger collection includes sustainable styles in its collections, as evidenced by the 50% more sustainable styles planned for Spring 2021, double of that from Spring 2020.



ABERCROMBIE APPOINTSMICHAEL LOPEZ AS SR VP

American lifestyle retailer Abercrombie & Fitch Co reported 24% growth in net sales in second quarter of the fiscal compared to last

year. Company’s net sales stood at $865 million.The brand’s gross profit rate improved 450 basis

points compared to last year’s Q2 results. Operating income stood at $115 million on a reported and $116 million on adjusted non-GAAP basis. Net income per diluted share was $1.69 on a reported and $1.70 on adjusted non-GAAP basis, respectively.

Abercrombie Chief Executive Officer (CEO) Fran Horowitz said, “Total net sales grew 24% year-over-year, or 3% from 2019. Our largest market, the US had healthy net sales growth of 31% on a one-year and 11% on a two-year basis. As customers returned to stores, digital net sales held steady to last year, and remained highly penetrated, representing 44% of total second quarter sales. Our gross profit rate expanded dramatically, rising 450 basis points from last year and 590 basis points from the second quarter of 2019, benefiting from double-digit AUR improvement.”


ABERCROMBIE & FITCH CO’S NET SALES GROW 24%

American apparel brand Abercrombie & Fitch Co appointed Mr Michael Lopez as its Senior Vice President, Environmental, Social and Governance

(ESG).In the newly created role, Mr Lopez will be responsible for

leading Abercrombie & Fitch Co’s sustainability, community giving and inclusion and diversity functions as the company looks to broaden these ongoing efforts and embed the ESG strategy into its business operations.

Mr Lopez, who earlier served Hewlett Packard Enterprise as its Chief Diversity Officer, has held various leadership positions in inclusion and diversity, government relations, public affairs, international relations and human resources across companies such as Goldman Sachs, Jefferies & Company, and Alcoa.

“We are thrilled to welcome Michael to Abercrombie & Fitch Co. His proven experience across ESG functions will be vital as we look to further expand and align the important efforts of our sustainability, community giving, and inclusion and diversity teams,” said Fran Horowitz, Chief Executive Officer at Abercrombie & Fitch Co.


American Eagle Outfitters (AEO) reported an all-time high second quarter revenue of $1.19 billion, 35% up against the revenue of 0.88 billion in the same period

of previous fiscal.Operating income reached a record high of $168 million in

the second quarter of the current fiscal.With gross margin expanding to 42.1%, AEO’s sub-brand

Aerie’s net revenue and operating income were up by 34% and 132%, respectively. American Eagle’s net revenue increased by 35% and operating income grew by 234%.

“It’s extremely gratifying to see significant growth across our business, as we delivered another quarter of record revenue and profitability. Results underscore the strength of our brands, outstanding product and a leading customer experience across selling channels,” said Jay Schottenstein, AEO’s Chief Executive Officer and Executive Chairman of the Board.

“American Eagle posted meaningful top-and-bottom-line increases with significant unlock still ahead. Despite external challenges, I believe we are on path to achieve $600 million in operating income this year, well ahead of our previous target.” he added.

BGMEA URGES AAFA TO PROMOTE BANGLADESH APPAREL

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan urged the President and CEO of the American Apparel

& Footwear Association (AAFA), Stephen Lamar, to promote Bangladesh as the safe and sustainable apparel sourcing destination.

Hassan along with BGMEA Vice President Miran Ali recently met Lamar in Washington in a bid to strengthen mutual co-operation and enhance business engagement between BGMEA and AAFA.

BGMEA President highlighted the unprecedented strides by Bangladesh’s RMG industry over the years in safety, sustainability and social compliance, which have earned global recognitions.

He urged AAFA to promote Bangladesh as the safe and sustainable apparel-sourcing destination among its members and encourage them to source more garments including non-cotton items.

Highlighting future prospects of the industry, Hassan stressed on the importance of industry upgrading in the areas of enhancement, technological upgrading and diversification of products, especially non-cotton.

He also urged US brands and buyers to collaborate with their suppliers to build capacities in manufacturing those apparel items having demand in the US market.

AMERICAN EAGLE’S REVENUE UP 35% IN Q2




French clothing brand LVMH appointed Camille Miceli as the Artistic Director of Maison Pucci. The appointment was announced by Sidney Toledano,

Chairman and CEO of the LVMH Fashion Group and a member of LVMH Executive Committee.

Since 2014, Camille has held the position of Accessories Creative Director at Louis Vuitton. Earlier in 2009, she was appointed as Creative Director for Fashion Jewelry and Creative Consultant for leather goods at Christian Dior Couture.

Toledano said, “I am delighted to welcome Camille Miceli as the Artistic Director of the Maison Pucci. She will begin a new chapter in the history of this Maison, which has a rich and unique heritage.”

Camille Miceli said, “I would like to thank Sidney Toledano for his trust and I am delighted to lead the Artistic Direction of the Maison Pucci, a Florentine brand that has been celebrating the joy and art of Italian living for over 70 years.”

Camille, who began her career in 1989 working in public relations at Chanel, joined Louis Vuitton as its RTW Communication Director in 1997.

DESIGNER NENSI DOJAKA WINS LVMH PRIZE

London based 27-year-old womenswear designer Nensi Dojaka has been awarded the LVMH Prize in the 8th edition of the LVMH Prize for Young Fashion

Designers that took place on 7 September 2021 at the Louis Vuitton Foundation.

The Albanian designer will receive a 300,000 euro endow-ment and will be mentored for one year by a team of LVMH experts.

Delphine Arnault, Louis Vuitton’s Director and Executive Vice President, said, “I am very happy that the 2021 LVMH Prize has been awarded to Nensi Dojaka. Her sensual and tailored fashion breaks with the conventions of womenswear, combining confidence and style.”

Given the incredible talent of the finalists, the jury decided to award the Karl Lagerfeld Prize to three designers – Colm Dillane, Lukhanyo Mdingi and Rui Zhou. All three winners received 150,000 euro with a year mentorship.

Moreover, three young fashion school graduates – Adam Kost, Franziska Simon and Eric Starc – were distinguished, who will receive 10,000 euro each. The recipients were also offered to join studios of three houses of LVMH Group for one year – Louis Vuitton menswear, Dior menswear and Dior womenswear.

The 9th edition of the LVMH Prize for Young Fashion Designers will take place in 2022.

CAMILLE MICELI BECOMES ARTISTIC DIRECTOR OF MAISON PUCCI



Global fashion brand H&M Studio’s AW 2021 collection hit some of its selected stores and brand’s online platform hm.com on 9 September 2021. The AW21

collection is made with more sustainably sourced materials such as recycled polyester, organic cotton and recycled polyamide.

Inspired by the idea of being fearless, brave and unafraid to make a statement, H&M’s Autumn/ Winter collection is full of regal style references that include a custom-designed “Queendom” print in a graffiti-style scrawl.

“It feels like the right time for a strong Studio collection designed to make you feel like a queen. Comfort is still key but we’ve amped up the attitude with empowering pieces in ultra-comfortable fabrics to make you look and feel confident,” said Ann-Sofie Johansson, Creative Advisor at H&M.

Concept designer for H&M Studio Linda Wikell said, “We are inspired by modern women who can command power in any situation, whether they’re wearing a pinstriped suit or lace underwear. We wanted to create versatile designs that you can style to suit your mood, but that always hit you in the solar plexus – these are statement making designs for confident women.”

RENEWED UNIQLO GINZA REOPENS IN TOKYO

Japanese apparel brand Uniqlo reopened the renewed Uniqlo Ginza store on 17 September 2021 in Tokyo.

A global flagship store that first opened almost 10 years ago is designed around the concept of “New Life, New Wear, New Ginza”.

The store is filled with special amenities and aesthetic sense across 12 floors, including artistic installations that express the LifeWear brand philosophy, special salons for women’s innerwear and suits, and a café, according to the company.

The stylish sales areas, expert staff, and high-quality services create a new global flagship store to enable customers experience Uniqlo’s aesthetic sense and commitment and making clothing, while they shop.

Uniqlo Ginza offers a comprehensive range of services and LifeWear experiences and it will sell T-shirts, tote bags and other items developed in collaboration with popular shops in Ginza.

On the opening day, first 3,200 visitors to the store received an adzuki-bean roll as a gift from Ginza Kimuraya. Customers shopping from the store are receiving special shopping bags.

H&M STUDIO’S AW21 COLLECTION UNVEILED


APPAREL EXPORT PROMOTION COUNCIL(Sponsored by Ministry of Textiles, Government of India)

Apparel House, Institutional Area, Sector-44,GURUGRAM –122 003 (HARYANA)

Phone - 0124-2708000 to 003

Application for Export Performance Certificate 2021-22

Reference is invited to the Notification No.2/2021-Customs dated 01.02.2021 of Government of India, Ministry of Finance (Department of Revenue) thereby making further amendments in the Principal Notification No. 50/2017-Customs dated 30.06.2017. AEPC invites applications from its members who are registered as manufacturer exporter & merchant exporter (tied up with supporting manufacturer of textile garments) having valid membership of the Council to avail the benefit of Export Performance Certificate (EPC) for import of items, permitted under S.No.288 (lining and inter-lining materials) for a value equivalent to 2% of the FOB value realized in Indian Rupees in the Financial Year 2020-2021. For Complete Details, may please download the circular along with relevant documents from the Council’s website i.e. www.aepcindia.com in the notification corner.

APPAREL | CIRCULAR


APPAREL | GST UPDATE

The 45th GST Council meeting was held on Friday, 17th September 2021, at Lucknow, Uttar Pradesh, chaired by

Union Finance Minister Nirmala Sitharaman. The Council meeting was held physically for the first time after one and a half years of virtual meetings.

The GST Council took various decisions inter alia, including exemptions, rate rationalization, extension of relaxations to Covid supplies, exports, ITC, debit notes, late fees, inclusion of some goods / services in tax net and so on. Based on the recommendations of 45th GST Council meeting held on 17.09.2021, CBIC has issued three Clarifications / Circulars on 20.09.2021. Further the date for Amnesty Scheme for the taxpayers for non-furnishing of return in form GSTR-3B for the tax periods from July 2017 to April 2021 has already been extended up to 30th November 2021.

TRADE FACILITATION MEASURES FOR TAXPAYERSRelaxation in the requirement of filing FORM GST ITC-04Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:a. Taxpayers whose annual aggregate turnover in preceding financial year is

above Rs. 5 crores shall furnish ITC-04 once in six months;b. Taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.

Interest to be charged on Ineligible ITC availed and utilizedIn the spirit of earlier Council decision that interest is to be charged only in respect of net cash liability, section 50 (3) of the CGST Act to be amended retrospectively, w.e.f. 01.07.2017, to provide that interest is to be paid by a taxpayer on “ineligible ITC availed and utilized” and not on “ineligible ITC availed”. It has also been decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% w.e.f. 01.07.2017.

Allowance of transfer of Cash Ledger between Distinct PersonsUnutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards.

Measures for streamlining compliances in GST• Aadhaar authentication of registration to be made mandatory

for being eligible for filing refund claim and application for revocation of cancellation of registration.• Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.• Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.• Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.• Rule 36(4) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.

Implementation of Rule-59(6) on GST PortalRule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in filing of GSTR-1 in certain cases :

BY CA BALKISHAN CHHABRA

TRADE FACILITATION MEASURES AND CERTAIN CLARIFICATIONS UNDER GST



a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3Bfor preceding tax period;On implementation of the said Rule, the system will check that whether before the filing of GSTR-1/IFF of a tax-period, the following has been filed or not:a) GSTR-3B for the previous two monthly tax-periods (for monthly filers),ORb) GSTR-3B for the previous quarterly tax period (for quarterly filers), as the case may be. The system will restrict filing of GSTR-1/IFF till Rule-59(6) is complied with.This check will operate on clicking the SUBMIT button of GSTR-1 and the system will give an error message if the condition of Rule-59(6) is not met. It may be noted that records which have been saved in GSTR-1 will remain saved and filing of such records will be permitted after Rule-59(6) is complied with.Implementation of Rule-59(6) on the GST Portal will be completely automated, similar to the blocking & un-blocking of e-way bill as per Rule-138E and facility for filing of GSTR-1 will be restored immediately after filing of relevant GSTR-3B. No separate approval would be needed from the tax-officer to restore the facility for filing of GSTR-1.To ensure no disruption in filing GSTR-1/IFF, taxpayers who have not filed their pending GSTR-3B, especially from period November 2020 and afterwards may do so at the earliest.

On demand fetching of Bill of Entry details from ICEGATE PortalTo help importers of goods, and recipients of supplies from SEZ, search Bill of Entry details, which did

not auto-populate in GSTR-2A, a self-service functionality has been made available on the GST Portal that can be used to search such records in GST System, and fetch the missing records from ICEGATE.Usually it takes 2 days (after reference date) for BE details to get updated on GST Portal from ICEGATE. This functionality should, therefore, be used if data is not available after this period.Note: The reference date would be either Out of charge date, Duty payment date, or amendment date - whichever is later.Taxpayers can follow the below steps to fetch the requisite details:a. Login to GST Portalb. Navigate to Services > User Services > Search BoEc. Enter the Port Code, Bill of Entry Number, Bill of Entry Date and Reference Date and click the SEARCH button.d. If the BoE details do not appear in the Search results, click on the QUERY ICEGATE button, at the bottom of the screen, to trigger a query to ICEGATE.e. History of fetched BoE details from ICEGATE along with status of query is displayed after 30 minutes from the time of triggering the query.Taxpayers are advised to confirm correct details either from BE documents, or using ICEGATE portal.

COMPLIANCE CALENDAR FOR SEPTEMBER MONTH GST RETURNSAs September is the last chance to make compliance under various rules and regulations under the Goods and Service Tax Act in regard to FY 2020-21 so caution should be taken in relation to Inward supply and outward before the filing of GST Return for the month of Sept 2021.

Availment of Input Tax Credit for F.Y 2020-21As per Section 16(4), a registered person shall not be entitled to take ITC in respect of any invoice or debit note for the supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.

Therefore, if any ITC in relation to any invoice/debit note pertaining to F.Y 2020-21 has not been claimed by the taxpayer then the same should be claimed in the month of Sept-2021.

Reconciliation of ITC appearing in GSTR-2A/ 2B with Inward RegisterInput tax credit appearing in GSTR-2A/2B but not booked in purchase register should be identified and reconciled accordingly or in case the input tax credit has been availed in books of accounts but not reflected in GSTR-2A/2B should be reconciled and follow up for the same may be undertaken with the supplier so that it is reflected in GSTR-2A/2B. Also, the taxpayer shall ensure compliance with the limits specified under 36(4) for claiming ITC.

Apportionment of ITC as per Rule 42 & 43In case the taxpayer is engaged in exempt supply and taxable supply, input tax credit availed is required to be reversed in a proportion of exempt supply to total turnover under rules 42 & 43 while filing GSTR-3B. Such reversal shall be calculated finally for the financial year before the due date for furnishing of the return for the month of September following the end of the financial year to which such credit relates. However, if reversal made in GSTR-3B is short/excess then the same shall be reversed /claimed respectively.

Reversal of ITC as per Rule 37 (Non Payment of Consideration within 180 days)A registered person, who has availed of an input tax credit on inward supply, but fails to pay to the supplier thereof, the amount of value not paid and the amount of input tax credit availed of proportionate to such amount not paid to the supplier in immediately following the period of 180 days from the date of the issue of the invoice needs to be reversed. Accordingly, the taxpayer should ensure whether the payment in respect of all the purchases made up to 31st March 2021 has been made to the supplier.

Reconciliation of Outward Supply as per books of Accounts and GSTR-3B filed for the FY 2020-21



The taxpayer should reconcile the outward supply as per books of accounts and filed GSTR-3B so that any modification/rectification can be done till Sept-2021 i.e. if any sales have been short reported, not reported or excess reported as the case may be then the same shall be reported in the return for the month of Sept-21.

Amendment in GSTR-1If any amendment is to be done in relation to outward supply then such amendment can be done in Sept-21. For e.g. in case any B2B supply has been reported as B2C then the same can be amended in the return of Sept-21.

Issuance of Credit NotesAs per Sec 34(2) of the CGST Act, Credit notes pertaining to invoices issued in F.Y.2020-21 cannot be issued after filing the return for the month of Sept-2021. Therefore, any credit note for FY 2020-21 should be issued by the month of Sept 2021.

CLARIFICATION IN RESPECT OF CERTAIN GST RELATED ISSUESVarious representations have been received from taxpayers and other stakeholders seeking clarification in respect of certain issues pertaining to GST laws. The issues have been examined and clarified as under:

Circular no. 160/16/2021-GST dated 20th September 2021

ISSUE-1Which of the following dates are relevant to determine the ‘financial year’ for the purpose of section 16(4):-(a) Date of issuance of debit note, or(b) Date of issuance of underlying invoice.

CLARIFICATIONWith effect from 01.01.2021, in case of debit notes, the date of issuance of debit notes (not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of the CGST Act.

ISSUE-2Whether any availment of input tax credit, on or after 01.01.2021, in respect of debit notes issued either prior to or after 01.01.2021, will be governed by the provisions of the amended section 16(4) or the amended provision will be applicable only in respect of the debit notes issued after 01.01.2021?

CLARIFICATIONFor availment of ITC on or after 01.01.2021, in respect of debit notes issued either prior to or after 01.01.2021, the eligibility for availment of ITC will be governed by the amended provision of section 16(4), whereas any ITC availed prior to 01.01.2021, in respect of debit notes, shall be governed under the provisions of section 16(4), as it existed before the said amendment on 01.01.2021.

ISSUE- 3Whether carrying physical copy of invoice is compulsory during movement of goods in cases where suppliers have issued invoices in the manner prescribed under rule 48 (4) of the CGST Rules, 2017 (i.e. in cases of e-invoice)?

CLARIFICATIONThere is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules and production of the Quick Response (QR) code having an embedded Invoice Reference Number (IRN) electronically, for verification by the proper officer, would suffice.

ISSUE- 4Whether the first proviso to section 54(3) of CGST / SGST Act, prohibiting refund of unutilized ITC is applicable in case of exports of goods which are having NIL rate of export duty?

CLARIFICATIONOnly those goods which are actually subjected to export duty i.e., on which some export duty has to be paid at the time of export, will be covered under the restriction imposed under section 54(3) from availment of refund of accumulated ITC.



Circular No. 161/17/2021-GST dated 20th September 2021)ISSUEWhether the supply of service by a subsidiary/ sister concern/ group concern, etc. of a foreign company in India, which is incorporated under the laws in India, to the foreign company incorporated under laws of a country outside India, will hit by condition (v) of export of service as mentioned in sub section (6) of section 2 of IGST Act.

CLARIFICATIONIt is clarified that a company incorporated in India and a body corporate incorporated by or under the laws of a country outside India, which is also referred to as foreign company under Companies Act, are separate persons under CGST Act, and thus are separate legal entities. Accordingly, these two separate persons would not be considered as “merely establishments of a distinct person in accordance with Explanation 1 in section 8”.

Such supplies, therefore, would qualify as ‘export of services’, subject to fulfilment of other conditions as provided under sub-section (6) of section 2 of IGST Act.

Circular No. 159/15/2021-GST dated 20th September 2021

Clarification has been provided on doubts related to scope of “intermediary” as per Sec 2(13) of IGST Act. Primary requirements for the concept of intermediary services have been listed down which are as follows:• There should be minimum of 3 parties• There should be 2 distinct supplies – Main supply between 2 principals and an ancillary supply of intermediary services• Intermediary should have a character of an agent, broker or any other similar person• Intermediary does not include a person who supplies such goods or services or both or securities on his own account• Sub-contracting for a service is not an intermediary service

Advisory for Taxpayers regarding Generation of EWB where the principal supply is Supply of servicesRepresentations have been received from various trade bodies stating that they are not able to generate EWB bill for movement of those goods where their principle supply is classifiable as a service, since there is no provision for generating E-way Bill by entering SAC (Service Accounting Code-Chapter 99) alone on the E- way bill portal.To overcome this issue, the taxpayers

are advised as below:a) Rule 138 of CGST Rules, 2017, inter alia, states “Information to be furnished prior to commencement of movement of goods and generation of e-way bill.-(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees….” Thus, E way bill is required to be generated for the movement of Goods.b) Therefore, in cases where the principal supply is purely a supply of service and involving no movement of goods, the e-way bill is not required to be generated.c) However, in cases where along with the principal supply of service, movement of some goods is also involved, e-way bill may be generated. Such situations may arise in cases of supply of services like printing services, works contract services, catering services, pandal or shamiana services, etc. In such cases, e-way bill may be generated by entering the details of HSN code of the goods, along with SAC (Service Accounting Code) of services involved.

[The author is Senior Partner in M/s. CHHABRA B K & ASSOCIATES (Delhi / NCR). He can be reached at [email protected] and # 9810380489 / 9871630858]


APPAREL | NOTIFICATIONS

SUB – Important Information on New Advanced Cargo Information System – Egypt

Embassy of India in Cairo, Egypt have informed about the Advanced Cargo Information (ACI) System being im-plemented in Egypt. They informed that no item would be allowed to enter Egypt from 1st October 2021, with-out having the consignment details entered into the sin-gle window portal www.nafeza.gov.eg/en which aims to streamline the clearance of consignments entering Egypt. There would be no further extension and that the system is currently running on pilot basis with over 18000 trans-actions done on the platform since April 2021 and have encouraged exporters to adopt to the ACI system.

SUB - Last Date for Submitting applications for Scrip based FTP Schemes and validity period of Duty Credit Scrips

DGFT vide its Notification No. 26/2015-2020 dated 16.09.2021 has notified the last date for submitting appli-cations for Scrip based FTP Schemes and validity period of Duty Credit Scrips, in supersession of such provisions

in the Hand Book of Procedures, 2015-20.

The last date for filing applications for pending claims under schemes such as MEIS, RoSCTL and ROSL is now 31.12.2021. Further, the validity of any scrip issued under FTP from the date of this Notification have been notified to be 12 months from the date of issue, in super-session of validity provisions in the Handbook of Proce-dures, 2015-20.

SUB – Clarifications issued in respect of certain GST amendments

The Central Board of Indirect Taxes and Customs, GST Policy Wing has clarified the issues pertaining to GST laws vide Circulars having Numbers 159/15/2021-GST, 160/16/2021-GST and 161/17/2021-GST all dated 20.09.2021.

• In circular no. 159/15/2021-GST clarification has been provided on scope of “intermediary”

• In circular no. 160/16/2021-GST clarification

NOTIFICATIONS


APPAREL | NOTIFICATIONS

has been given for the purpose of section 16(4) and on availment of input tax credit, on or af-ter 01.01.2021. Also on prohibiting refund of un

•In circular no. 161/17/2021-GST clarification has been provided on whether the supply of service by a subsidi-ary/ sister concern/ group concern etc. of a foreign com-pany in India will hit export of service.

SUB – Extension in the Export Obligation period of specified Advance & EPCG Authorisations till 31.12.2021

Chairman AEPC had made representations to the Gov-ernment of India on extension of the Export Obligation period on various occasions. These requests have been accepted and the Directorate General of Foreign Trade (DGFT) has issued a Notification No. 28/2015-2021 dated 23.09.2021 regarding Extension in the Export Obligation period of specified Advance & EPCG Authorisations till 31.12.2021.

This notification would provide another option to avail extension in Export Obligation period till 31.12.2021 in case of specified Advance Authorisations and EPCG Au-thorisations is provided without any composition fees

subject to 5% additional export obligation on balance ex-ports to be fulfilled. This is in addition to EO extensions facility (upon payment of the composition fees) already provided in FTP/HBP.

SUB - Notifications on Electronic Duty Credit Ledger Regulations, 2021 and on manner to issue duty credit for goods exported under the Scheme for RODTEP

A. Vide notification no. 75/2021-Customs (N.T.) dated 23.09.2021, the Department of Revenue has notified the Electronic Duty Credit Ledger Regulations, 2021. They have detailed about Issuance of duty credit in the scroll, Creation of e-scrip in the ledger, Registration of e-scrip, Use and validity of e-scrip, Transfer of duty credit in e-scrip and Suspension or cancellation of duty credit.

B. Vide notification No. 76/2021-Customs (N.T.) dated 23.09.2021, the Department of Revenue has notified the manner to issue duty credit for goods exported under the Scheme for Remission of Duties and Taxes on Exported Products subject to specified conditions and restrictions. They have detailed the conditions for issuance of duty credit scrips, conditions for cancellation of duty credit, recovery of amount of duty credit where export proceeds are not realized or are in excess of what the exporter is entitled to.


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