Without 'Customs Duties', Imports Exceeded 40 Billion Dollars

The textile industry publicized a statement regarding the subsequent discussions following the increase in 'Additional Customs Duties' on textile and ready-made clothing imports.

  01 December 2023 08:25 Friday
Without 'Customs Duties', Imports Exceeded 40 Billion Dollars

In the statement which publicized, “With the increased IGVs ‘Additional Customs Duties’, the textile and garment sectors were safeguarded against unfair competition, and unfair import pressure on producers was tried to be reduced. IGV is a measure taken to prevent unfair imports, which have increased tremendously in the last period, and to secure the employment provided by the sector, not to bring profitability to the textile industry. Due to the Customs Union, customs duties in Turkey are in line with the EU. The EU is one of the most liberal economies in the world, and that we can talk about just a few textiles and ready-made clothing investment in the EU. The purpose of introducing Additional Customs Duties in 2011 was to take additional measures against very low customs duties. If IGVs did not exist, textile and garment imports would have exceeded 40 billion dollars since 2011. Textile and garment workforce, which was around 600 thousand in 2011, would not have exceeded 1.2 million. This would be a period in which only 3-5 importers, not millions of employees, whom are investing and producing for the country, and provide employment. We express our thankfullness to our Minister of Commerce Prof. Dr. Ömer Bolat and all our Ministry bureaucrats, especially to our President Recep Tayyip Erdoğan whom are supporting the employment of our producers, exporters and Turkey by increasing the Additional Customs Duties in the textile and ready-made clothing sectors.’’

Regarding the increase in the 'Additional Customs Duties' (IGV) imposed on textile imports, the leading stakeholders of the textile industry; Union of Chambers and Commodity Exchanges of Turkey (TOBB) Turkey Textile Industry Assembly President Adil Sani Konukoğlu, Adana Chamber of Industry (ADASO) President Zeki Kıvanç, Adıyaman Chamber of Commerce and Industry (ATSO) President Mehmet Torunoğlu, Mediterranean Textile and Raw Materials Exporters Association (ATHİB) President Fatih Doğan, Anatolian Lions Businessmen Association (ASKON) President Orhan Aydın, Bursa Chamber of Commerce and Industry (BTSO) President İbrahim Burkay, Ceyhan Chamber of Commerce President Şeref Can, Diyarbakır Commodity Exchange President Engin Yeşil, Diyarbakır Chamber of Commerce and Industry (DTSO) President Mehmet Kaya, Gaziantep Chamber of Industry (GSO) President Adnan Ünverdi, Gaziantep Chamber of Commerce (GTO) President Mehmet Tuncay Yıldırım, Southeastern Anatolia Textile and Raw Materials Exporters Association (GATHİB) President Ahmet Fikret Kileci, Istanbul Textile and Raw Materials Exporters Association (İTHİB) President Ahmet Öksüz, Kahramanmaraş Commodity Exchange President Mustafa Narlı, Kahramanmaraş Chamber of Commerce and Industry (KMTSO) President Mustafa Olmatu, Kayseri Chamber of Commerce (KTO) President Ömer Gülsoy, The Garment Accessory Manufacturers Association (KYSD) President Murat Özpehlivan, Niğde Chamber of Commerce and Industry President Şevket Katırcıoğlu, Osmaniye Chamber of Commerce and Industry (OTSO) President Devrim Murat Aksoy, Tekirdağ Chamber of Commerce and Industry President Cengiz Günay, Turkish Cotton Textile Industrialists Association (PTSB) President Abdulkadir Konukoğlu, Turkish Textile Finishing Industrialists Association (TTTSD) President and Istanbul Chamber of Industry (ICI) Board of Members Vehbi Canpolat, Uludağ Textile Exporters Association (UTİB) President Pınar Taşdelen Engin and Zeytinburnu Textile Industrialists' Businessmen Association (ZETSİAD) President Uğur Çakar made a joint statement. In the statement which publicized, it was shared that with the increase in IGVs, textile companies will not make more profits and that the aim will be to prevent unfair competition in imports.

Released a Foreign Trade Surplus of 175 Billion Dollars

In the publicized statement, it was pointed out that the textile industry, together with the ready-made clothing industry, achieved a production of 82.4 billion dollars, and said, “We are the fifth largest supplier in the world and the second largest supplier in the European Union. While Turkey's overall exports currently can access only 1 percent share of world exports, the textile sector gets a 3.5 percent share. While the textile and ready-made clothing sector provides employment to 1.2 million people, this figure even exceeds 2 million when retail is also considered. Textile and ready-made clothing sectors are parent industries. Ready-made clothing is not a reality without textiles, and the textile industry is not achievable without ready-made clothing. The total annual production of both sectors is worth 82.4 billion dollars. 50.2 billion dollars of this production is controlled by the textile sector and 32 billion dollars by the ready-made clothing sector. The ready-made clothing industry is an exporting industry. A significant part of these exports are converted into ready-made clothing in Turkey as a result of the marketing activities of our textile enterprises and are provided in a more value-added way. Textile and ready-made clothing sectors are the sectors that provide the highest foreign exchange inflow to Turkey, with a foreign trade surplus of 18 billion dollars annually. In the 12-year period following the IGV introduced in 2011, the textile and apparel sector released a total foreign trade surplus of 174.8 billion dollars. There is no any other sector that provides such a foreign trade surplus, creates employment and added value to the Turkish economy. The main sector that accounts for this success is the textile and raw materials sector, which is both an exporter and also the main supplier of the ready-made clothing industry. ‘’What would happen if there were no 'Additional Customs Duties' (IGV) in an industry of such size?’’ A projection was prepared to answer the question. Accordingly, if IGVs had not arrived in 2011, textile and ready-made clothing imports would have exceeded 40 billion dollars by the end of 2022. With İGV, the textile and garment sectors were safeguarded against unfair competition and balance was established in the supply chain. The problems in production costs, which are the main issues of our two distinguished sectors and even the manufacturing industry sectors, are actually the main topics that we need to come together and talk about. We must find methods to find solutions to the exchange rate pressure and increase in energy and labor costs that our sectors face, in cooperation with our state and all of our sectors.’’


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