The Government should put a total ban on imports of secondhand clothing (worn clothing), Rahul Mehta, president of the Clothing Manufacturers Association of India (CMAI) said. The government has placed imports of secondhand clothing (worn clothing) on the restricted list with 15% import duty calculated on the weight of the garment.
?Importers are importing fresh clothing in the garb of worn clothing, since such clothing are discarded after being used once or twice. Such clothing are not necessarily damaged or frayed at the edges,? Mehta said. According to a rough estimate, a total import of around Rs 600 crore is coming in annually of such clothing from around the world but mainly from the Far and Middle East, he said.
?The import duty is 15% per kg on value (for fresh garments – the duty is on value), and the estimated price accepted by customs is 0.43 cent per kg. With about 3-4 garments coming in a kg, it amounts to a duty of roughly Rs 2.40 per garment, as opposed to Rs 30-40 per fresh garment,? he said.
This is a huge difference, resulting in a massive influx of imported garments, which is adversely affecting the industry, particularly the small businesses that typically make cheaper garments, he said.
?In addition to the financial aspect, one also needs to bear in mind the potential health hazard, as there is no control on the condition of the clothes or its original wearer, before they are dumped on to unsuspecting consumers in India,? he said. On behalf of CMAI, Mehta has also requested the government to reduce import duty on all machinery for use in the garment industry and accessories and to exclude garments from the standard of eights and measures act.