The local garment factories in Myanmar plan to export their own branded garments, according to Myanmar Garment Entrepreneurs Association( MGEA). At present, these garment factories are |
exporting their products with the cutting, making and packaging( CMP) system.
“ We are not able to export our products with the Free-On-Board( FOB) system. Presently, we are
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trying to get tax exemption for the FOB system. We are discussing this with the US Government to get some tax relief on the products exported with the CMP system because the garment |
industry was not included in the reinstatement of the Generalized Scheme of Preferences( GSP),” averred U Myint Soe, Chairman, MGEA.
Cotton wear, in the US, is taxed 10 to 12 per cent and nylon wear is taxed 37 per cent. The Government collects 6 to 15 per cent tax on FOB system products. The Association, therefore, has submitted a proposal to the Ministry of Commerce and Ministry of Planning and Finance to get tax exemption for products exported with FOB system.
It is worth noting that the garment industry earns around 10 per cent of a garment’ s value. Currently, 33 per cent of local garment production is exported to Japan, 25 per cent to South Korea, 2.4 per cent to the US and 2.4 per cent to China.
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Discussion on‘ Future Textile Road’( Silk Road), with Xinjiang, China and Europe as participants, was organized by Italy-based Santex Rimar Group, one of the leading players in the world market of machine manufacturers for weaving, textile finishing, technical textiles, nonwovens, etc., and China Textile Information Centre( CTIC) at Urumqi in the Xinjiang Province of China recently.
“ We are here to open a new discussion between Xinjiang, China and Europe: Future Textile Road that stays for brand-new connections which are being established between different
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countries and regions. We want to continue to prove our commitment to the Chinese textile industry with this new important milestone in Xinjiang, which definitely represents a great opportunity for the global textile industry,” reportedly mentioned Ferdinando Businaro, President, Santex Rimar Group.
The key agenda behind organizing the event was to establish a unique platform for the future growth and development of the global high-end textile industry and the long-term construction of the cooperation system between different countries aligned with The Belt and Road initiative.
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Stefano Gallucci, CEO of the company said,“ Santex Rimar Group wants to join The Belt and Road initiative. We want to bring our knowhow and experience in providing solutions for the textile industry and help customers become successful.”
China mulls to resuscitate an ancient network of land and ocean silk trade routes of centuries and is prompting an infrastructure building boom across Central Asia to Europe to augment trade and improve transport logistics. The One Belt, One Road is a huge, wide-reaching project with many roads, railways, ports
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and maritime routes leading to development of new trade corridors while also reviving the old ones. The land-based projects are the belt. The road is the maritime route that will link China’ s southern provinces to south-east Asia and the east coast of Africa.
It may be mentioned here that Xinjiang is expected to become the largest cotton textile industry base of China and the most important garment export destination in Western China by the year 2023. With the construction of this belt, China would be able to see surge in its exports to a large extent.
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