Textile workers launched mass protests against job losses in the industry in 2005, resulting in Chinese imports being curtailed in 2007, but the limitations were lifted in 2009 and the sector keeps haemorraging jobs. © Steve Kretzmann/WCN
South African fashion and clothing industry experts are deeply concerned about the increasing volume of cheap clothing imports, counterfeit clothing and other fraudulent activities.
“We are very concerned about illegal activity. We worry when we compete against people who are able to bring their clothes into the market far cheaper than we can because they are importing illegally,” said Michael Lawrence, executive director of the National Clothing Retail Federation.
The market for fake brands of designer wear is growing in South Africa and there has been a surge in clothing imports from Asian countries such as China, Bangladesh and Vietnam.
SARS and customs officials have confiscated more than R219 080 000 worth of counterfeit World Cup-related goods, including more than 366 000 jerseys, since November 2009, said SARS Customs Communications Officer, Sibabalwenathi Mfabe. And in 2008/9, customs officials made 731 seizures of counterfeit goods (including clothing) worth R379 622 919.
According to the US-based National Council of Textile Organisations website, up to 30 million jobs globally could be lost if China continues to dominate and monopolize the clothing and textile trade.
According to statistics produced by Cape Clothing Association and reported by Business Report in 2009, almost 10 000 jobs in the clothing and textile industry are lost each year due to the flood of cheap Asian imports and to trade and policy imbalances between China and South Africa.
To curb the huge volume of Asian clothing imports into South Africa, the government introduced a two-year quota system in 2007. Although the move was successful in terms of limiting the influx of goods from China and other countries, it did not provide the local industry with sufficient time to restructure itself and to increase its production, said researcher, author, and fashion design lecturer, Renato Palmi.
China also has a history of renaging on deals. In 2005, the EU and China signed an agreement limiting Chinese imports but China later reneged by transshipping its goods.
In transshipping, the clothing manufacturer in the sending country exports the clothes to its destination country via a third country. The sending country manufactures the items and pays the third country a fee to provide labels stating the clothing was made there. In some cases, unscrupulous manufacturers partially manufacture garments and sew labels indicating the garments were made there. According to Palmi, the South Africa clothing industry is a victim of this practice.
Although the Department of Trade and Industry has introduced measures to protect the clothing industry, insiders believe that not enough is being done.
“We are not up to world standards. Chinese manufacturers get huge government incentives and subsidies…we therefore need greater efficiency and greater support for our local manufacturers,” said Lawrence.
And South Africa has one of the highest clothing tariffs in the world, which could create incentives for fraudulent activity, said Lawrence, such as international companies under-invoicing their consignments to pay lower custom levies.
There needs to be greater enforcement of laws and regulations, said Lawrence. “People get fined but we don’t know who these people are. We need to make it difficult for them to repeat the offense,” he added. – Fadela Slamdien, West Cape News
Copyright 2010 West Cape News
