No cause for alarm, says Clothing Federation
chief
Leonard Neill
US CUSTOMS authorities have created concern in the South African textile industry by deciding to slap duty on the first shipment of African clothing to arrive in the US after the implementation of the African Growth and Opportunities Act (Agoa)
But this will not be a major bombshell affecting the entire textile industry in this country, says Hassim Randeree, president of the Clothing Federation of South Africa.
The new regulations waive duty on clothing assembled in some African countries, which are made from fabric and yarn produced regionally or in the US.
US customs applied duty to a sample order of lamb's wool sweaters from Mauritius, using South African produced wool. Officials reasoned that the sweaters were not made of 'fabric' as interpreted from the wording of the act, and that lamb's wool was not a fabric as the act implied.
Immediate impressions in this country were that the textile industry in southern Africa would be severely affected and would not benefit to any extent from the new regulations. But, says Randeree, it is a temporary setback, certainly not a train smash and will not impact on garment manufacturers using approved fabrics.
He said that woollen garment knitters represented only a small portion of the industry - about 5% - and most exporters would be able to go ahead with duty-free exports as soon as South Africa's visa system had been approved.
But Martin Viljoen, director of the SA Textile Industry Export Council, is of the opinion that the customs' interpretation of the word fabric is strange. His concern is that this new hurdle has arisen at a time when South Africa is about to satisfy US authorities that it has regulations in place to prevent fraudulent benefit claims. The latest development, he says, is likely to add confusion as to who can take advantage of the act.
Benefits as seen in his council's interpretation of the act will accrue not only to local exporters of finished goods, but also to all suppliers of yarn and cloth to the regional apparel makers.
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