A Rain of Petitions from OTİAD to the Presidency of Economy!

OTİAD petitions the Ministry of Economy!

OTİAD applied to the Ministry of Economy with 447 petitions in order to make permanent the removal of the antidumping duty application, which has been up to 70 percent for 10 years on the imports of synthetic fabrics with GTİP, as of August 1. In the application petition, it is stated in detail why the removal of the antidumping duty should become permanent.

Osmanbey Textile Businessmen Association (OTİAD) President Ali Ulvi Orhan signed the petitions he collected in his campaign against the Anti Dumping Application in Products with HS 54.07... with an "additional letter" He sent it to the Ministry of Economy. Stating that antidumping duties of up to 70 percent have been applied for 10 years on the imports of synthetic fabrics with GTIP from Far East countries, and that this has blocked the sector in ruthless competition conditions, OTİAD President sent the letter he wrote together with 447 petitions they collected to Ankara. The following details were included in the letter:

First, determinations were made
"As you may be aware, with the communiqué registered in the relevant document, the antidumping measures that will expire in the second half of 2013 are pointed out and the relevant parties are requested to submit their opinions to the Ministry of Economy at least three months before the expiry of the said measures in order to initiate a review investigation regarding the measures.

In 2013, the second expiry date of the antidumping measures is August 1, 2013. The expiry date of the antidumping measures for China, Taiwan, South Korea, Malaysia, Philippines and Thailand is August 1, 2013.
First of all, when the history of the antidumping measure in question is examined, it is seen that the first investigation was opened on November 1, 2000 and the first antidumping measure was established on February 13, 2002, and then the second antidumping measure was initiated on August 1, 2008 with the final review investigation initiated on February 13, 2007 with the same product and country scope.

When the aforementioned antidumping measure is evaluated from the past, it is seen that this measure has been in effect for more than 10 years, and the existence of the same dumping and alleged damage caused by dumping in such a long period causes hesitation by the garment and apparel sector.

In addition, when the import trend of the products covered by the measure is analyzed, it is seen that imports, which were 193.7 million dollars in 2002, when the first measure was established, maintained a normal upward trend except for 2006, 2008 and 2009, when sectoral production decreased by %2.9, %9.8 and %8.7 rates due to macroeconomic reasons, and increased to 484 million dollars as of 2012.

Antidamping önlemi uygulanan ülkelerden yapılan ithalat eğilimine bakıldığında ise, önlemin ilk tesis edildiği 2002 yılında 131 milyon dolar olan ithalat düzeyi 2003 ve 2004 yıllarında %20’lerin üzerinde artış eğilimi sürdürürken 2010 ve 2011 yılları hariç diğer yıllarda negatif bir eğilimi içinde olmuş ve 2012 yılında %10,5’lik düşüşle 106 milyon dolar olarak gerçekleşmiştir.

Demand is always alive
Looking at the import trend expressed in numbers above, it is seen that the need and therefore the demand for such fabrics is always lively as they include both the fabrics that are the basic auxiliary materials of the ready-to-wear and apparel sector such as lining and the basic raw materials of artificial-synthetic woven clothing made for the recently developing markets, especially Russia.

Excluding those used as lining and exported as part of a garment, Turkey's exports of ready-to-wear garments and apparel made of artificial-synthetics are over 4 billion dollars and these figures include exports from Laleli-Osmanbey, where such garments are mainly made, which are not reflected in official export figures. When the exports from this region are taken into account, it is seen that the exports or exports of ready-made garments and apparel using the fabrics covered by this measure are of a significant size.

Therefore, it is obvious that any trade policy measures such as antidumping and safeguard measures to be taken in order to regulate imports of these products defined as synthetic filament woven fabrics with 5407 GTIP will disrupt the competitive structure of the garment and apparel sector in general, since the demand for such products will always be alive depending on the production and export sales of the garment and apparel sector.

Nitekim hazır giyim ve konfeksiyonda toplam girdi maliyetlerinde ipliğin payı %20-25, kumaşın ise % 40-45 olup kumaş maliyetlerinde ticaret politikası araçları kaynaklı artışlar sektörün girdi maliyetlerini yükselterek uluslararası pazarlarda sipariş kayıplarına yol açmaktadır.

Additional customs duty applies

Moreover, the imports of the aforementioned products originating from China, Taiwan, South Korea, Malaysia, Philippines and Thailand are subject to antidumping measures as well as additional customs duty imposed by the Council of Ministers Decree published in the Official Gazette dated September 15, 2011.

It is considered that there is no need to extend the antidumping measures applied to certain countries for imports of the products in question, which are already protected by additional customs duties, for another period.

In addition; 54.07... "Fabric Fiber Detail Declaration" for the verification of the accuracy of the material value by the manufacturer company abroad before entering free circulation for about 10 years in the import of products with GTIP The REFERENCE PRICE based on Turkey's current prices is applied and the existing customs duties and VAT are charged on these reference prices. Even this practice is seen as an important factor in avoiding the imposition of dumping duties and the need to take any safeguard measures.

On the other hand, in addition to the evaluation made by the Board of Directors and the Ready-to-Wear Sector Board of the Istanbul Ready-to-Wear and Apparel Exporters' Association (İHKİB), at the sectoral evaluation meeting held on 11 April 2013 under the organization of İHKİB with the participation of OTİAD and all related associations, it was determined that the production of synthetic woven fabrics under HS 5407, "whose weft and warp are made of filament, especially with a weight of 110 grams/m2 or less", is extremely limited in Turkey and not feasible in terms of investment.

In line with this determination, such fabrics, which have limited production opportunities in Turkey, should not be included in the antidumping investigation and should not be subject to any antidumping or safeguard measures.

Bu çerçevede, 16,1 milyar dolarlık ihracatı ve istihdamda %13,3’lük payı ile ülkemiz ekonomisi içinde önemli bir yeri olan, ayrıca katma değerli ihracatta Mücevher ve Savunma Sanayii ile birlikte üç sektör arasında yar alan Hazırgiyim ve Konfeksiyon Sektörü’nün 2023 yılı için belirlenmiş olduğu 60 milyar dolarlık ihracat hedefine ulaşabilmesini de teminen 5407 GTİP’inde yer alan giysilik sentetik filament kumaşların ithalatında var olan antidamping önleminin artık devam ettirilmemesi büyük önem arz etmektedir.

Conclusion: complete repeal

As Osmanbey Textile and Ready-to-Wear Enterprises trying to carry out our production and marketing activities within the framework of globalizing economic world conditions and ruthless competition conditions;

Yaklaşık 10 yıldır yürürlükte olan, özellikle Bayan Hazırgiyim imalatımızın en önemli ara mallarından olan 54.07…GTİP’li sentetik kumaşların Uzakdoğu ülkelerinden (ÇHC, Tayvan, G.Kore, Malezya, Tayland) ithalatında %70’e varan ANTİDAMPİNG vergisi uygulamasının sona erme tarihi olan 01.08.2013 tarihi itibarıyla uzatılmaksızın tamamen yürürlükten kalkmasını talep ediyoruz.

Çünki; hemen hemen aynı ülkelerden aynı ürünün ithalatında yaklaşık 1 yıldır yürürlükte olan %20 ek vergi uygulamasının da devreye girmesiyle sektörümüzün eli kolu bağlanmış daralan rekabet koşullarımızın önü daha da tıkanmıştır.

As representatives of a sector that provides significant added value, employment and net foreign currency inflows to the national economy, we believe that we deserve to breathe a sigh of relief and therefore we demand the repeal of all antidumping and additional duty practices in order to open up our narrowed and blocked competition conditions."

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