THE government has granted a one-year rebate on an assortment of imported materials used in the manufacturing of garments locally in a major boost for the ailing clothing industry The development came at a time when the clothing sector is facing stiff competition from cheap imports.
Business Reporter
A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed.
According to statutory Instrument 15 of 2013 cited as Customs and Excise (Clothing manufacturer) rebate gazetted on February 8, the Ministry of Finance granted a one year reprieve ending December 2013 as part of efforts to boost the operations of local producers.
“These regulations shall come into effect on 1st January 2013 and shall be valid for a period of twelve months to 31st December 2013,” reads the notice in part.
Treasury said applicants should be registered with a national employment council and belong to a clothing manufacturers association for them to be eligible for the rebate.
“On receipt of an application in terms of this section the proper officer shall, before the application consideration by the commissioner, inspect the applicants premises and machinery and report his/her findings to the commissioner,” the notice says.
The list of manufacturers to benefit from the reprieve include Playtime Manufacturers, Carousel, Enbee Stores, Archer, James North, Faith Wear, Paramount Export, Rolling Stones, Bravette Manufacturing, JJ Benatar and CohCoh Manufacturers.
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Materials eligible for the rebate include cotton sewing thread containing 85% or more by weight of cotton, cotton sewing thread, denim, plain weave weighing more than 100g per square metre, sewing thread of man-made staple fibres, not put up for retail sale, woven fabrics of polyester staple fibres, chenille fabrics, tulles and other net fabrics.
Other materials that would benefit from the rebate are shoulder pads, press fasteners, snap fasteners, press-studs.
Last year, the country’s sole manufacturer of knitting yarn — Karina — applied to the High Court for provisional liquidation following in the footsteps of David Whitehead that was put under judicial management last year.
