Textile importers look into Chinese cost-cutting claims

ALAN PEAT
WHILE THE impact of the quota system is yet to filter though, the latest figures made available to FTW indicate that China still has a long lead as SA’s major source of clothing imports – while a local industry body claims that unfair price-cutting has gained it this pride of place.
According to figures released by Jack Kipling, executive director of Clotrade, imports of apparel for the period January to November 2006 totalled R6.11-billion, up 35.2% on the imports for the same period in 2005 - which was itself up 35.1% on 2004 imports.
“Imports from China increased 40,7% in value during last year,” he said, “and imports valued at
R4.74-bn gave it a 77.6% share of the total clothing import market.”
India, meantime, came in a poor second – with R263.9-million in imports only giving it a 4.3% share.
On the under-valuation issue, Kipling told FTW that an analysis of the average unit costs of imports from China had alerted the industry body to possible price-cutting.
Clotrade has asked members to do some costing exercises. “These,” he said, “to assist us to reinforce our claims of under-valuations.
“We are also seeking a high-level meeting with Sars customs in the near future to discuss various issues related to imports and exports.”