Zimbabwe govt grants 1 year rebate to clothing and textile industry

At the time when Zimbabwean clothing sector is facing stiff competition from cheap imports that have flooded the market, making locally manufactured clothing uncompetitive. The government has granted a one-year rebate to the clothing and textile industry which will allow 52 manufacturers to import textile materials duty-free.

Rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed.

The Ministry of Finance granted a one-year reprieve ending December 2015 as part of efforts to boost the operations of local producers, according to statutory Instrument 32 of 2015 cited as Customs and Excise (Clothing manufacturer) rebate Regulations gazetted on March 6,

These regulations may be cited as the Customs and Excise Clothing Manufacturer Rebate Regulations 2015. These regulations shall be deemed to have come into effect on January 1 2015 and shall be valid for a period of twelve months to December 31 2015.

Treasury said that the rebate duty shall be granted on material referred to in the second schedule imported or taken out of bond by a manufacturer for use in the manufacture of clothing.

Materials eligible for the rebate include cotton sewing thread containing 85% or more by weight of cotton, cotton sewing thread, denim, plain weave weighing more than 100g per square metre, sewing thread of man-made staple fibres, not put up for retail sale, woven fabrics of polyester staple fibres, chenille fabrics, tulles and other net fabrics.

Companies that will qualify to import raw materials under the rebate include Archer Clothing, James North Zimbabwe, Enbee Stores and Carousel (Private) Limited among others.

Last year, government in partnership with the private sector launched the cotton-to-clothing strategy as part of efforts to revive the sector.

The textile and clothing industry at its peak used to employ at least 35 000, but the figure has since plunged to about 8 000 due to a number of problems bedevilling the industry.