The current CET rates for yarns and fabrics are as follows:
MMF Cotton Wool
Yarn
11%
12%
5%
Fabrics
16%
14%
13%
2.5.
3.
3.1.
3.2.
Although seemingly straightforward and sensible, the UK drawback systems presents certain practical difficulties. In effect, unless the exporter of cloth also re-imports the garments (i.e. outward processes) it is difficult to claim drawback. We understand that the Belgian government has recently introduced a simplified drawback system which has resulted in a significant increase in cloth exported for subsequent re-importation in garment form.
Although the current position in these bulk commodity yarns and fabrics needs to be re-examined in detail, there appears to be little immediate prospect for the UK industry in this field.
The best opportunities would therefore appear to lie among the premium, speciality textiles either at the up-market end of the main exporting sectors, or in categories where bulk use is relatively small.
Further opportunities may emerge from a study of total HK trade data for all destinations.
The Littlewoods Organisation does not have extensive experience in these speciality fields. However, buyers have been able to identify the following fabrics which might have a market in HK if developed.
woven polyester 'Palace' finish, with high sheen, silk handle. The present source is Japan.
stretch denim and corduroy.
colour woven shirtings in competition with Japan which has good design capabilities and small 'batch' production on a cottage industry base.
The industry might also be able to market 12-13 oz. suitings for use in up-market mens outerwear garments. At present the HK garment industry concentrates on lighter fabrics.
The initiative of the U.S. Celanese Corporation
We understand from our Technical Services Department that a group of ten American textile organisations (led by the Celanese Corporation) has already taken the private initiative of setting up a Hong Kong Merchandising operation, designed to market and service the supply of fabrics to the H.K. garment industry.
They have already developed a composite range for the Autumn of 1981 which they are due to present in Hong Kong and in the capital cities of major importing countries during September of this year. The Littlewoods Organisation has received an invitation to the London presentation in early September. See Telex ___________
4