Issue dated - 09 September 2004

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Checkmate

Are second-hand clothing imports justified?
‘India is well-equipped to manufacture and clothe its people’
Mr Premal Udani, president, Clothing Manufacturers’ Association of India (CMAI)

How can we justify second-hand clothing imports in a country which has a strong textile and clothing base, and can cater to every segment of the market? Countries like Sri Lanka, Bangladesh, Pakistan do not allow such second-hand clothing imports into their countries. While India permits such imports, the clothing industry is basically opposing the illegal imports. We know that this is allowed under OGL, and mutilated garments attract a five per cent duty, while non-mutilated garments attract 20 per cent duty. However, the whole modus operandi has been perfected by the Kandla units and in connivance with the Kandla port authorities, the goods come in without any duty payment, there is rampant misdeclaration. And the fumigation and quarantine laws are also flouted.

Moreover, if all this was legal, why have the Kandla port authorities maintained such a staunch silence on the issue. We have made a lot of representations to them, but they haven’t bothered to reply to any of these. And haven’t furnished us with any official data on imports of such clothing.

India is well-equipped to manufacture and clothe its people, from every strata of society. But how can the industry, especially the small, local, unbranded garment manufacturers compete with second-hand clothing imports, which are selling at prices as low as Rs 15-20? These are available outside various railway stations in Mumbai, though the bulk of these imports are sent off to Delhi. The industry can compete with legal imports, but this is ridiculous.

‘Second-hand apparel imports is organised, legal trade permitted by the government’
Surrinder S Sajdeh, managing director, Texool

The government has permitted imports of second-hand apparel under OGL now, and at Kandla, there are seven units that are into this business. Bringing this trade under OGL has given a big boost to the shoddy yarn industry. We are able to supply good quality blankets at reasonable prices to the domestic market, as also to the armed services. Are the Indian domestic manufacturers able to supply one blanket per person per year? And can the clothing manufacturers supply four garments per person per year? So, if the trade in second-hand apparel is being permitted, and fairly good quality garments are being made available to the lower sections of society, how is this wrong. This is today an organised trade. And these imports would be not even one per cent of the total garment imports coming into the country. So, how can these affect the domestic industry so much. A survey conducted in India and Pakistan by TexAid, a Swiss agency, revealed that the lowest prices at which shirts were being sold was around Rs 60 and trousers at Rs 80. There is no basis to the statement that shirts are selling for Rs 18-20, this is just not possible. Also, statements that fumigation rules are flouted is incorrect. The European countries follow these rules very strictly for second-hand garment exports, and if the consignments do not have the fumigation certificate, which is rare, the port authorities quarantine the same. The units in Kandla have got the sorting, washing and other facilities, and such imports can be made only by these units, which are identified by the European exporters. And again, are such imports taking place only at the Kandla ports? Why is the industry not talking about such imports from other ports?

(As told to Reena Mital)
 


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