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Secondhand imports stifle textile business

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STAKEHOLDERS in the textile industry told Parliament yesterday that the influx of smuggled secondhand clothes had pushed most of them out of business

STAKEHOLDERS in the textile industry told Parliament yesterday that the influx of smuggled secondhand clothes had pushed most of them out of business and contributed to a rise in skin diseases among consumers.

BY VENERANDA LANGA SENIOR PARLIAMENTARY REPORTER

Sifelani Jabangwe, executive member of the Zimbabwe Clothing Manufacturing Association (ZCMA) told the Ray Kaukonde-led Parliamentary Portfolio Committee of Industry and Commerce that government should plug holes at the ports of entry to control importation of clothes.

“The problem is that we do not have a framework to highlight the materials that are harmful, just like the European Union which has a list of harmful dyes they do not want to be used on clothing materials imported into their countries,” said Jabangwe.

“We want Parliament to assist with policy interventions to address the situation,” he said.

ZCMA chairman Jeremy Youmans said several textiles and clothing factories had closed due to stiff competition posed by cheap imports.

“It is estimated that Zimbabwe is importing a value of at least $300 million clothing and textiles each year. At least 90% of this should be paying duty at 40%, but we are realising only $120 million in duty revenue due to under invoicing, abuse of trade agreements, corruption and dumping of secondhand clothing,” said Youmans.

Secretary of the Zimbabwe Textiles Association Raymond Huni said there was need for the Standards Association of Zimbabwe to do quality assurance on clothing material coming into the country, and that the government should remove duty on importation of raw materials and spare parts by local industries.

“The current state of the textiles industry requires short term measures like reduction of duty on raw materials and spare parts to 10% and increase of duty on imported readymade garments to 65%, which is $10 per kg because it is cheaper to bring cheap quality readymade fabric and clothes at the expense of local industries,” he said.

A committee member of ZCMA Deon Dunshan said there was need to look at how tender procedures were handled by the State Procurement Board as tenders for clothing like army uniforms were being awarded to foreign companies, especially from China.