Textile quotas had been eliminated amongst WTO participants at the first day of 2005 in accordance with the Agreement on Textiles and Clothing (ATC). However, resistance to quota removal unfold within the US and EU. Subsequently, China reached agreements with the EU and the US in June and November 2005 respectively. The China-US agreement, powerful from January 2006, governs the exports of a complete of 21 businesses regarding 34 categories of Chinese textiles and apparel products to the US in the course of 2006-2008. The China-EU agreement, effective from June 2005, covers 10 categories of Chinese textiles and apparel exports to the EU during 2005-2007.
On the opposite hand, the mainland and Hong Kong agreed in October 2005 to similarly liberalise the mainland market for Hong Kong groups underneath the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Along with other products of Hong Kong starting place, the mainland agreed to offer all products of Hong Kong foundation, along with apparel items, tariff-unfastened treatment beginning from 1 January 2006. According to the stipulated approaches, products which haven’t any present CEPA policies of origin, will revel in tariff-loose treatment upon wholesale clothing platform applications by using local producers and upon the CEPA rule of origins being agreed and met.
Hong Kong garb groups are legit for ODM and OEM production. They are able to supply satisfactory garb articles in short lead time, as foreign importers and stores request clothing suppliers to tighten up supply chain control to make certain the ordered merchandise reaching the store floor at the right time. Increasingly, Hong Kong garb groups, the hooked up ones mainly, have proven enthusiasm for emblem promotion.
Hong Kong’s total exports of apparel rose year-on-yr by means of 9% in the first eleven months of 2005. While Hong Kong’s re-exports of apparel rose by 20%, domestic exports fell through 14%. In the primary eleven months of 2005, Hong Kong’s apparel exports to the United States and EU rose with the aid of 11% and 18% respectively. While Hong Kong’s apparel exports to Japan levelled off, those to the Chinese mainland declined by eleven%.
The apparel industry is a prime manufacturing region of Hong Kong. Its gross output is one of the maximum among all production sectors, amounting to HK$35.9 billion in 2003. It is the most important manufacturing employer in Hong Kong, with 1,673 establishments hiring 28,752 workers as of June 2005. It is likewise the main earner in terms of domestic exports, taking over 40% of the whole within the first eleven months of 2005.
Hong Kong’s geographic boundary has never limited the improvement of the forward-searching clothing enterprise. The majority of garb manufacturers have set up offshore manufacturing facilities in an try and reduce operation fees. Relocation of production centers offshore has but led to a steady decline inside the variety of garb producers in Hong Kong.
Hong Kong is not simplest a leading manufacturing centre however also a hub for clothing sourcing globally. Companies doing garment exchange in Hong Kong are skilled in fabric procurement, income and advertising and marketing, excellent control, logistic arrangements, garb designs and global and national policies and policies. The professionalism that they command and the combined services offered aren’t easily matched someplace else. With a complete of 15,190 institutions hiring 95,889 employees, they form the most important group concerned in import-export exchange in Hong Kong.
Performance of Hong Kong’s Exports of Clothing
Hong Kong’s overall exports of apparel rose 12 months-on-year with the aid of nine% in the first 11 months of 2005. While Hong Kong’s re-exports of garb rose with the aid of 20%, domestic exports fell via 14%. The contrasting overall performance of Hong Kong’s re-exports and domestic exports turned into basically ascribed to the growing relocation of garment manufacturing to the Chinese mainland, attributable to the elimination of quotas underneath WTO’s Agreement on Textiles and Clothing (ATC). But the declining fashion of domestic exports has been reversed particularly in recent months, due to the re-imposition of quantitative restraints on mainland-made textiles and clothing by means of the United States and EU.
Retail sales within the US held company inside the first eleven months of 2005, rising by almost 6% from the same period in the preceding 12 months. In the primary eleven months of 2005, Hong Kong’s garb exports to the USA rose year-on-yr with the aid of 11%.
In the first eleven months of 2005, Hong Kong’s overall apparel exports to the EU surged year-on-year via 18%. Clothing exports to primary EU markets like France, Germany and Italy recorded growth quotes in excess of 20%.
On the other hand, Hong Kong’s clothing exports to Japan levelled off within the first eleven months of 2005 in part because of the fashion of direct cargo. On the lower back of the rising income however, Japanese purchasers generally tend to resume their spending spree on top class apparel objects. Meanwhile, Hong Kong’s clothing exports to the Chinese mainland dropped with the aid of eleven% within the first 11 months of 2005, as compared with the same length last year.
Product-sensible, Hong Kong’s exports of woven wear rose by using 12% inside the first 11 months of 2005. While woven put on for women/girls grew with the aid of thirteen%, the ones for men/boys recorded a growth of eight% from the identical duration within the previous yr. Knitted wear grew with the aid of 2%, with ladies/women and men/boys rising by means of 1% and six% respectively. While garb add-ons declined through 3%, other clothing articles, for his or her component, accelerated by using thirteen%.
Hong Kong’s garb manufacturers have solid strong relationships with their clients. They are capable of recognize and cater for the options of very vast client bases. Exporters additionally have suitable expertise of international and country wide regulations and regulations governing garb exports, consisting of guidelines of beginning, quota restrictions, tariff fees and documentation necessities. C