Lack of agreement delays new textile incentive scheme

Industry concern over abuse and import dumping LEONARD NEILL THE REVISED textile export incentive scheme drawn up by the Department of Trade and Industry (dti) will not be implemented officially until all sectors of the industry are satisfied with its contents. This was the message from Trade and Industry Minister Mandisi Mpahlwa who ended considerable speculation and uncertainty last week following the March 31 expiry date of the previous duty credit certificate scheme. The new interim clothing and textile industry development programme was to have replaced it on April 1, but dti had not completed implementation arrangements by that date. Now, says Mpahlwa, he cannot sign off any new scheme without ‘reaching agreement on what we are going to do next.’ In this he was clearly responding to the call made by the Southern African Clothing and Textile Workers’ Union to ensure that any new scheme was devoid of clauses which encouraged abuse and assisted in eroding the domestic market by allowing dumping of cheaper imported goods. The Union’s secretary, general Ebrahim Patel, told FTW recently that while the previous scheme helped to promote exports, it also gave a window to exporters to increase the level of imports into this country, including finished garments. A duty certificate in its present form also opened the door to fraud, he stated. The Union was calling for an exports only incentive scheme, he said.