Pakistan s value-added textile exports to China on a growth trajectory

Transcription

1 April, 2011 DESTINATION: CHINA Pakistan s value-added textile exports to China on a growth trajectory Research Department Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA)

2 Highlights: Pakistan s value-added textile exports to China witnessed tremendous growth during the last fiscal year However, the value and quantities exported were still a minor fraction of total exports. China lowered its customs tariffs for Pakistan in 2010 under Pak- China Free-Trade Agreement (FTA) but duties on woven and knitted garments are still averaging around 10%. Import duties on most home textiles are however, at 0% on average. China with its population of more than 1.3 billion people and an economy growing at more than 7% represents an increasingly attractive market for Pakistan s value-added textiles exporters in contrast to the saturated markets of USA & EU. Despite no import duties on home textiles, Pakistan s exports to China under this category (chapter 63 of HS codes), grew to US$ 9.4 million in FY in comparison to US$ 7.02 million in FY , representing an increase of about 35%. This means that advantages of Pak-China FTA are still not fully known to the home textile exporters where Pakistan has a definite edge. Pakistan s garment and home textile exporters need to devise an aggressive and focused strategy focusing on increased participation in Chinese domestic trade fairs, opening of offices in China and reaching out to Chinese importers and wholesalers. Overcoming language barrier and learning Chinese way of doing business is of extreme importance in order to gain advantage in this important market. As import duties come down further, this represents an opportunity for Chinese textile manufacturers as well, to shift some of their production to Pakistan thus benefiting from lower costs. 1 P a g e

3 Woven Garments (Chapter 62): Overall, woven garments under 36 categories where exported to China during the years In FY , garments worth approx. US$ 998,000 were exported, in contrast to US$ 390,000 in the preceding year, showing a growth of 156% but representing only 0.09% share in Pakistan s total exports under the woven garments category. Quantity exported also increased to 19,800 dozens in FY from 15,000 dozens in the preceding year, showing a growth of 32%, but representing only 0.08% share in quantity exported from Pakistan in this category. Overall, exports in 10 new categories of woven garments were done during FY , whereas exports under 11 categories were discontinued. Overall, 10 woven categories, namely, men s cotton suits, men s shorts and similar articles of cotton and of other textile materials, women s cotton suits, women s cotton overalls and similar articles and of other textile materials, women s cotton dressing gowns, men s swimwear, shawls etc and gloves showed an increase over preceding year. 4 items, namely, men s as well as women s suits of other textile materials, skirts and women s other garments recorded a decline over preceding year. 2 P a g e

4 Item wise details: S. No. H.S.# Description / Custom Duty Jul-Jun Jul-Jun US$ 000 US$ / Doz US$ 000 US$ / Doz 1 Women's or girls' overcoats, raincoats, carcoats, capes, cloaks and similar articles, of cotton, not knitted or crocheted 13.9% Pakistan's exports to the world 1, , Pakistan's exports to China Exports to China as percentage 0.02% 0% 2 Women's or girls' overcoats, raincoats, car-coats, capes, cloaks and similar articles, of other textile materials Pakistan's exports to the world 2, , Pakistan's exports to China Exports to China as percentage 0% 0% Women's or girls' anoraks, wind-cheaters, wind-jackets, and similar articles, other than those of heading No.62.04, of cotton 13.9% Pakistan's exports to the world , Pakistan's exports to China Exports to China as percentage 0% 0.47% Men's or boys' suits, of cotton, not knitted or crocheted 11.7% Pakistan's exports to the world 8, , Pakistan's exports to China Exports to China as percentage 0.09% 0.11% Men's or boys' suits of other textile materials, not knitted or crocheted 11.7% Pakistan's exports to the world 2, , Pakistan's exports to China Exports to China as percentage 0.02% 0.04% Men's or boys' ensembles of cotton, not knitted or crocheted 15.2% Pakistan's exports to the world 25, , Pakistan's exports to China Exports to China as percentage 0.04% 0% Men's or boys' jackets & blazers of synthetic fibres, not knitted or crocheted 11.7% Pakistan's exports to the world 7, , Pakistan's exports to China Exports to China as percentage 0% 0.06% Men's or boys' jackets & blazers of other textile materials, not knit Pakistan's exports to the world 20, , Pakistan's exports to China Exports to China as percentage 0% 0.04% 3 P a g e

5 9 Men's or boys' bib and brace overalls, breeches and shorts, of cotton, not knitted Pakistan's exports to the world 547, , Pakistan's exports to China Exports to China as percentage 0.11% 0.02% 10 Men's or boys' bib and brace overalls, breeches and shorts, of other textile materials, not knitted or crocheted Pakistan's exports to the world 81, , Pakistan's exports to China Exports to China as percentage 0.08% 0.08% Women's or girls' suits of cotton, not knit or crocheted 15.2% Pakistan's exports to the world 9, , Pakistan's exports to China Exports to China as percentage 0.16% 0% Women's or girls' suits of other textile materials, not knit or crocheted 11.7% Pakistan's exports to the world 5, , Pakistan's exports to China Exports to China as percentage 0.03% 0.20% Women's or girls' ensembles of cotton, not knit or crocheted 15.2% Pakistan's exports to the world 4, , Pakistan's exports to China Exports to China as percentage 0.95% 0% Women's or girls' jackets & blazers of cotton, not knitted or crocheted 13.9% Pakistan's exports to the world 5, , Pakistan's exports to China Exports to China as percentage 0.00% 0.09% Women's or girls' skirts & divided skirts of cotton, not knitted or croch 12.2% Pakistan's exports to the world 17, , Pakistan's exports to China Exports to China as percentage 0.05% 0.13% Women's or girls' bib and brace overalls, breeches and similar articles, of cotton, not knit or crocheted Pakistan's exports to the world 229, , Pakistan's exports to China Exports to China as percentage 0.05% 0.02% Women's or girls' bib and brace overalls, breeches and similar articles, of other textile materials, not knit or crocheted Pakistan's exports to the world 21, , Pakistan's exports to China Exports to China as percentage 0.34% 0.16% 4 P a g e

6 Men's or boys' baluchi kameez, of cotton Pakistan's exports to the world 2, , Pakistan's exports to China Exports to China as percentage 0.13% 0% Women's or girls' kurta, of cotton Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 0.15% 0% Women's or girls' kurta, of other textile material Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 1.13% 0% Men's or boys' Baluchi/Peshawari vest, of other textile material 9.4% Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 0.86% 0% Men's or boys' nightshirts & pyjamas of other textile material 9.4% Pakistan's exports to the world 6, , Pakistan's exports to China Exports to China as percentage 0.00% 0.13% Women's or girls' dressing gowns, panties and similar articles, of cotton 12.2% Pakistan's exports to the world 7, , Pakistan's exports to China Exports to China as percentage 0.02% 0.02% Babies' napkins (diapers) of cotton, not knit or crocheted 12.2% Pakistan's exports to the world 4, , Pakistan's exports to China Exports to China as percentage 0.00% 0% Babies' garments & clothing accessories of other textile material 9.4% Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 0.00% 0.84% Other women's or girls' garments of fabrics of 59.03, or Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 0.01% 0.19% Men's or boys' swimwear, not knit or crocheted Pakistan's exports to the world 4, , Pakistan's exports to China Exports to China as percentage 0.04% 0.05% 5 P a g e

7 Other garments, men's or boys', of cotton 13.9% Pakistan's exports to the world 7, , Pakistan's exports to China Exports to China as percentage 0% 0.01% Women's or girls' garments of wool or fine animal hair Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 0% 0.44% Women's or girls' sports wear of cotton 13.9% Pakistan's exports to the world 7, , Pakistan's exports to China Exports to China as percentage 0.0% 0% Shawls, scarves, mufflers, mantillas, veils and the like, of synthetic fibres 13.9% Pakistan's exports to the world 4, , Pakistan's exports to China Exports to China as percentage 0% 0% 32 Shawls, scarves, mufflers, mantillas, veils and the like, of other textile materials 12.2% Pakistan's exports to the world 7, , Pakistan's exports to China Exports to China as percentage 0% 0% Scarves, of other textile materials 12.2% Pakistan's exports to the world 1, , Pakistan's exports to China Exports to China as percentage 0.13% 0% Dupatta, of other textile materials 12.2% Pakistan's exports to the world 4, , Pakistan's exports to China Exports to China as percentage 0.04% 0% Gloves NA Pakistan's exports to the world 14, , Pakistan's exports to China Exports to China as percentage 0.09% 0.05% Other made up clothing accessories (like stocking, socks and sockettes) 12.2% Pakistan's exports to the world 1, , Pakistan's exports to China Exports to China as percentage 0% 1.58% 6 P a g e

8 Knitwear (Chapter 61): Overall, knitted garments under 38 categories where exported to China during the years In FY , knitted garments worth approx. US$ 1.26 million were exported, in contrast to only US$ 133,544 in the preceding year, showing impressive growth of 840% but representing only 0.1% share in Pakistan s total exports under this category. Quantity exported also increased to 250,000 dozens in FY from 10,000 dozens in the preceding year, showing a growth of 2,334%, but this represents only 0.3% share in total quantity exported from Pakistan in this category. Overall, exports in 15 new categories of knitted garments were done during FY , whereas exports under 12 categories were discontinued. 5 knitted categories, namely, men s knitted cotton trousers, women s knitted cotton trousers, jerseys/pullover and women s socks showed impressive growth over the preceding year. Overall, 6 knitted categories, namely, men s cotton jackets, men s cotton shirts, women s dressing gowns, babies cotton garments, socks and gloves coated with rubber showed a decline over the preceding year. 7 P a g e

9 Item wise details: S. No. H.S.# Description / Custom Duty Jul-Jun Jul-Jun US$ 000 US$ / Doz US$ 000 US$ / Doz Men's or boys' ensembles of synthetic fibres, knitted or crocheted 18% Pakistan's exports to the world 1, , Pakistan's exports to China Exports to China as percentage 0.01% 0% Men's or boys' jackets & blazers of cotton, knitted or crocheted Pakistan's exports to the world 23, , Pakistan's exports to China Exports to China as percentage 0.00% 0.02% 3 Men's or boys' jackets & blazers of other textile materials, knitted or crocheted Pakistan's exports to the world 97, , Pakistan's exports to China Exports to China as percentage 0.00% 0.00% 4 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton, knitted Pakistan's exports to the world 28, , Pakistan's exports to China Exports to China as percentage 0.20% 0.00% 5 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of other textile materials, knitted/crocheted Pakistan's exports to the world 45, , Pakistan's exports to China Exports to China as percentage 0.16% 0.00% Women's or girls' suits of synthetic fibres, knitted or crocheted 18.0% Pakistan's exports to the world , Pakistan's exports to China Exports to China as percentage 0.06% 0% Women's or girls' suits of other textile material, knitted or crocheted 11.7% Pakistan's exports to the world 5, , Pakistan's exports to China Exports to China as percentage 0.68% 0% Women's or girls' ensembles, of other textile material, knitted/crocheted 11.7% Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 0.36% 0% 8 P a g e

10 9 Women's or girls' trousers, bib and brace overalls, breeches and shorts, of cotton, knitted Pakistan's exports to the world 48, , Pakistan's exports to China Exports to China as percentage 0.09% 0.00% Women's or girls' trousers, bib and brace overalls, breeches and shorts, of other textile materials, knitted or crocheted Pakistan's exports to the world 14, , Pakistan's exports to China Exports to China as percentage 0.02% 0% Men's or boys' shirts of cotton, knitted or crocheted 13.6% Pakistan's exports to the world 318, , Pakistan's exports to China Exports to China as percentage 0.00% 0.01% Men's or boys' shirts of man-made fibres, knitted or crocheted 11.7% Pakistan's exports to the world 10, , Pakistan's exports to China Exports to China as percentage 0.01% 0% Women's or girls' blouses, shirts and shirtblouses, of cotton, knitted or crocheted Pakistan's exports to the world 36, , Pakistan's exports to China Exports to China as percentage 0.00% 0.04% Men's or boys' underpants & briefs, of other textile material, knitted or crochetd 9.3% Pakistan's exports to the world 6, , Pakistan's exports to China Exports to China as percentage 0% 0.00% Women's/girls' slips and petticoats, of other textile material, knitted or crocheted 9.4% Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 0% 0.09% Women's or girls' nightdresses and pyjamas, of other textile material, knitted or crocheted 9.3% Pakistan's exports to the world 2, , Pakistan's exports to China Exports to China as percentage 0.01% 0% Women's or girls' dressing gowns and similar articles of other textile materials, knitted 9.3% Pakistan's exports to the world 1, Pakistan's exports to China Exports to China as percentage 0.01% 0.22% 9 P a g e

11 T-shirts, singlets & other vests, of cotton, knitted or crocheted 9.3% Pakistan's exports to the world 258, , Pakistan's exports to China Exports to China as percentage 0% 0.00% T-shirts, singlets & other vests, of other textile materials, knitted or crocheted 9.3% Pakistan's exports to the world 27, , Pakistan's exports to China Exports to China as percentage 0.02% 0% Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted 0% Pakistan's exports to the world 16, , Pakistan's exports to China Exports to China as percentage 0.00% 0% Jerseys, pullovers, cardigans, and similar articles, of other textile material, knitted 0% Pakistan's exports to the world 32, , Pakistan's exports to China Exports to China as percentage 0.15% 0.02% Babies' garments and clothing accessories, of cotton, knitted or crocheted 12.2% Pakistan's exports to the world 18, , Pakistan's exports to China Exports to China as percentage 0.00% 0.01% Track-suits of cotton, knitted or crocheted Pakistan's exports to the world 5, , Pakistan's exports to China Exports to China as percentage 0% 0.03% Track-suits of other textile materials, knitted /crocheted Pakistan's exports to the world 3, , Pakistan's exports to China Exports to China as percentage 0% 0.04% Other garments of cotton, knitted or crocheted 13.9% Pakistan's exports to the world 13, , Pakistan's exports to China Exports to China as percentage 0% 0.00% Other garments of other textile material, knitted or crocheted 13.9% Pakistan's exports to the world 7, , Pakistan's exports to China Exports to China as percentage 0.58% 0.00% Socks 9.3% Pakistan's exports to the world 56, , Pakistan's exports to China Exports to China as percentage 0.00% 0.01% 10 P a g e

12 Other hosiery, (for example, stockings for varicose veins), knitted or croch 9.3% Pakistan's exports to the world 6, , Pakistan's exports to China Exports to China as percentage 0% 0.11% Womens socks 9.3% Pakistan's exports to the world 129, , Pakistan's exports to China Exports to China as percentage 0.50% 0.00% Other women's full-length or knee-length hosiery, measuring per single yarn less than 67 decitex 9.3% Pakistan's exports to the world 14, , Pakistan's exports to China Exports to China as percentage 1.85% 0% Gloves, mittens and mitts, knitted or crocheted, Impregnated, coated or covered with plastics or rubber 9.4% Pakistan's exports to the world 12, , Pakistan's exports to China Exports to China as percentage 0.03% 0.13% Gloves, mittens and mitts, knitted or crocheted, of cotton 9.4% Pakistan's exports to the world 29, , Pakistan's exports to China Exports to China as percentage 0% 0.00% Other gloves, mittens & mitts, of other textiles, knitted or crocheted 9.3% Pakistan's exports to the world 10, , Pakistan's exports to China Exports to China as percentage 0% 0.04% Shawls, knitted or crocheted 0.0% Pakistan's exports to the world 8, , Pakistan's exports to China Exports to China as percentage 0% 0% Shawls, scarves, mufflers, mantillas, veils and the like of wool, knitted 0.0% Pakistan's exports to the world 2, , Pakistan's exports to China Exports to China as percentage 0.02% 0% Dupatta, knitted or crocheted 0.0% Pakistan's exports to the world 1, , Pakistan's exports to China Exports to China as percentage 0.01% 0% 11 P a g e

13 Other accessories, knitted or crocheted 0.0% Pakistan's exports to the world 1, , Pakistan's exports to China Exports to China as percentage 0.04% 0% Parts of garments or clothing accessories, knitted or crocheted 0.0% Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 3.69% 0% 12 P a g e

14 Home Textiles: Overall, home textiles under different 40 categories where exported to China during the years In FY , home textiles worth approx. US$ 9.5 million were exported to China, in contrast to US$ 7.0 million in the preceding year, showing a growth of 35% but representing only 0.4% share in Pakistan s total exports under this category. Overall, exports in 9 new categories of home textiles were done during FY , whereas exports under 10 categories were discontinued. 14 home textiles categories, namely, knitted bedlinen and pillowcovers of cotton, embroidered cotton bedlinen, cotton bedcovers and pillowcovers, other cotton bedlinen, toweling coverlets, terry towels, curtains of cotton and other textile material, washcloths, prayer mats, cushion pillows showed growth over the preceding year. Overall, 7 home textile categories, namely, handloom embroidered pillowcovers, bedlinen, curtains of other textile material, other valances of cotton, PE sacks, knitted caps and other madeup articles showed a decline over the preceding year. 13 P a g e

15 Item wise details: S. No. H.S.# Description / Custom Duty Jul-Jun Jul-Jun US$ 000 AUP US$ 000 AUP Blankets (excluding electric blankets) & travelling rugs, of cotton 13.9% Pakistan's exports to the world 15, , Pakistan's exports to China Exports to China as percentage 0.05% 0% Bed linen, of cotton, knitted or crocheted 0% Pakistan's exports to the world 367, , Pakistan's exports to China Exports to China as percentage 0.01% 0% Pillowcovers, of cotton, knitted or crocheted 0.0% Pakistan's exports to the world 28, , Pakistan's exports to China Exports to China as percentage 0.02% 0.00% Printed cotton bed sheets, not knitted or crocheted (0%) 0% Pakistan's exports to the world 33, , Pakistan's exports to China Exports to China as percentage 0.33% 0% 5 Other embroidered cotton bed linen, mill made, not knitted,crocheted or printed 0% Pakistan's exports to the world 296, , Pakistan's exports to China Exports to China as percentage 0.30% 0.17% Bed covers, of cotton, mill-made 0% Pakistan's exports to the world 77, , Pakistan's exports to China 3, , Exports to China as percentage 4.25% 2.13% Pillow-covers, of cotton, mill-made 0% Pakistan's exports to the world 54, , Pakistan's exports to China Exports to China as percentage 0.18% 0.15% Other bed linen, of cotton 0% Pakistan's exports to the world 201, , Pakistan's exports to China 2, , Exports to China as percentage 1.13% 0.72% Cotton towelling coverlets, not knitted, crocheted, printed or embroidered 0% Pakistan's exports to the world 227, , Pakistan's exports to China Exports to China as percentage 0.07% 0.02% 14 P a g e

16 Embroiderd bedcovers of other textile material, mill made, not knitted, crocheted or printed 0% Pakistan's exports to the world 53, , Pakistan's exports to China Exports to China as percentage 0.08% 0% Embroiderd pillowcoversof other textile material, of handloom, not knitted, crocheted or printed 0% Pakistan's exports to the world 29, , Pakistan's exports to China Exports to China as percentage 0.04% 0.17% Embroidered bed linen of other textile materials, not knitted or crocheted or printed 0% Pakistan's exports to the world 143, , Pakistan's exports to China Exports to China as percentage 0.24% 0.39% Table linen of cotton, millmade, embroidered, not knitted or crocheted 0% Pakistan's exports to the world 10, , Pakistan's exports to China Exports to China as percentage 0% 0.06% Bath towels of cotton terry fabrics, millmade 0% Pakistan's exports to the world 628, , Pakistan's exports to China Exports to China as percentage 0.04% 0.02% Curtains & interior blinds; valances of synthetic fibres, knitted 0% Pakistan's exports to the world 1, , Pakistan's exports to China Exports to China as percentage 0% 0.75% Curtains & interior blinds; valances of other textile materials, knitted 0% Pakistan's exports to the world 10, , Pakistan's exports to China Exports to China as percentage 0.05% 0.11% Curtains & interior blinds; valances of cotton, millmade, not knit or croch 0% Pakistan's exports to the world 47, , Pakistan's exports to China Exports to China as percentage 1.18% 0.86% Other curtains & interior blinds; valances of cotton, not knit or crocheted 0% Pakistan's exports to the world 4, , Pakistan's exports to China Exports to China as percentage 0.24% 1.47% 15 P a g e

17 Curtains & interior blinds; valances of other textile materials, not knit or crocheted 0% Pakistan's exports to the world 42, , Pakistan's exports to China Exports to China as percentage 0.55% 0.26% Bedspreads of other textile materials, not knitted or crocheted 9.4% Pakistan's exports to the world 27, , Pakistan's exports to China Exports to China as percentage 0.01% 0% Furnishing articles of other textile materials, not knitted or crocheted 9.4% Pakistan's exports to the world 9, , Pakistan's exports to China Exports to China as percentage 0.03% 0% Flexible intermediate bulk containers of man-made textile materials 13.9% Pakistan's exports to the world , , Pakistan's exports to China , Exports to China as percentage 9.49% 0% Sacks & bags, of polyethylene or polypropylene strip or the like Pakistan's exports to the world 1, , , , Pakistan's exports to China , , Exports to China as percentage 22.21% 32.54% Sacks & bags, used for packing goods, of other textiles materials 12.2% Pakistan's exports to the world , , , Pakistan's exports to China , Exports to China as percentage 0% 15.60% Tarpaulins, of synthetic fibres 0% Pakistan's exports to the world 8, , Pakistan's exports to China Exports to China as percentage 0% 0.00% Tents of cotton 0% Pakistan's exports to the world 28, , Pakistan's exports to China Exports to China as percentage 0% 0.41% Tents of other textile materials 0% Pakistan's exports to the world 8, , Pakistan's exports to China Exports to China as percentage 0% 1.21% Other camping goods, of cotton (excluding tents) 0% Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 0% 0.11% 16 P a g e

18 Washcloth 9.4% Pakistan's exports to the world 115, , Pakistan's exports to China Exports to China as percentage 0.05% 0.01% Barmops 9.4% Pakistan's exports to the world 71, , Pakistan's exports to China Exports to China as percentage 0% 0.03% Bathmats 9.4% Pakistan's exports to the world 11, , Pakistan's exports to China Exports to China as percentage 0% 0.12% Other cleaning cloth 9.4% Pakistan's exports to the world 66, , Pakistan's exports to China Exports to China as percentage 0.00% 0% Life-jackets and life-belts 12.2% Pakistan's exports to the world Pakistan's exports to China Exports to China as percentage 0% 0.28% Shopping bags, knitted 12.2% Pakistan's exports to the world 4, , Pakistan's exports to China Exports to China as percentage 0.00% 0% Prayer mats (Janamaz) 12.2% Pakistan's exports to the world 1, , Pakistan's exports to China Exports to China as percentage 31.02% 24.07% Caps (knitted) 12.2% Pakistan's exports to the world 1, Pakistan's exports to China Exports to China as percentage 0.04% 0.17% Cushion pillows 12.2% Pakistan's exports to the world 2, , Pakistan's exports to China Exports to China as percentage 0.07% 0.00% Other made up articles (including dress patterns) 12.2% Pakistan's exports to the world 15, , Pakistan's exports to China Exports to China as percentage 0.08% 0.12% 17 P a g e

19 Used/new rags, worn out scrap twine, cordage, rope, etc, sorted 12.2% Pakistan's exports to the world 3, , Pakistan's exports to China Exports to China as percentage 0.02% 0% Used/new rags, worn out scrap twine, cordage, rope, etc, of textile materials 12.2% Pakistan's exports to the world 11, , Pakistan's exports to China Exports to China as percentage 0.23% 0.11% Pakistan Readymade Garments Manufacturers & Exporters Association Shaheen View Building, 18-A, Block-VI, PECHS, Shahra-e-Faisal, Karachi Pakistan Tel # , Fax # prgmea@cyber.net.pk; research@prgmea.org Website: 18 P a g e