Garment units upset by second hand imports

The ever increasing import of the 'second hand clothing' under various guises into Kandla Special Economic Zone (KASEZ) in Gujarat and Khidirpore dock in Kolkata has become a source of concern to the Indian garment and textile sectors.

All types of clothing were being imported and resold in the home market, or domestic tariff area (DTA).

Kandla port was getting over 6,000 tonnes of such garments every month from neighbouring and east Asian countries.

"The industry is concerned because this is unfair competition to the garment industry of the country. Importers buy second hand or factory rejected garments by the kilogramme and sell on per piece basis without paying any duty," alleged Premal Udani, president of the Clothing Manufactures Association of India (CMAI).

Garment manufacturers, along with spinning, weaving, processing and garment processing units, have started complaining of falling demand for domestic products.

Accessory producers making trims, buttons, threads, zippers, pocketing materials and cartons have started feeling the pinch as well.

The imports were duty free and this was hurting domestic units the most. Indian garment makers used inputs, all of which are subject to central excise duty, state sales tax and municipal levies like octroi and entry tax.

"We have represented the matter to the textile ministry for quite some time and belief that considering the seriousness of the matter the minister will take prompt and quick action against these increase of second hand clothing," said Udani.