The textile industry asks for more control against smuggling

Ecuadornews:

The largest amount of products seized by Customs corresponds to textiles. Industry spokesmen spoke about the affectations. Representatives of the textile sector of the country once again alert the authorities about the losses caused by smuggling in their activity and request more controls.

In 2018, textiles represented the largest item of seizures of the National Customs Service of Ecuador (Senae) equivalent to $ 10 million in an approximate of 589,000 units. In total, all goods seized by the Senae during the past year are valued at $ 36 million, according to the latest report of accountability of the entity.

However, in Ecuador illicit trade persists and generally moves close to $ 2,000 million, said Javier Díaz, executive president of the Textile Industries Association of Ecuador (AITE). He added that at the regional level the figure increases to $ 150,000 million.

The illicit trade in the country in the textile area occurs in two ways: technical and open contraband. Only in the first case, which occurs through undervaluation, invoices with false data or tax evasion, Ecuador lost $ 40 million in 2018, said the AITE.

Charles Dávila Bond, president of the association’s board of directors, explained that this practice implies that a product enters the country with a cheap cost of importation and that the products generally come from China. While for open contraband, which refers to those goods entering through border crossings or airports, the damage is calculated between $ 150 million and $ 250 million.

Added to this problem is the informal sale, added the manager of the AITE, because there is local production that does not meet the legal requirements, falsifies products and brands, or are people who sell items on the streets or through social networks without issuing invoices. “The street sale is huge and that’s contraband.

We try as a private company to give work, continue with our production and we are tied to an imported product at a lower cost of the raw material that we import, “said Dávila Bond. For the Aite, it is necessary to attack this problem with state policies articulated with all control entities.

Labor changes This branch of industry supports labor flexibility. Díaz participates in the labor reforms already discussed in the National Labor and Wages Council, such as changes in hiring methods, distribution of the working day and changes in the rules on dismissals, evictions and employer retirement.

“Jobs must be made more dynamic; Alternatives are needed to generate sustainable jobs. ” Díaz stressed that the State and the textile industry must reach long-term agreements that include the unemployed and underemployed.

He recalled that in the country, six out of 10 Ecuadorians do not have employment. Challenges of the industry In 2018, textile activity showed a slight recovery, although not yet with the expected results. The low productivity is the most serious problem that the industry has, said the representative of the AITE, since the industry fails to overcome the barrier of $ 6,000 in labor productivity.

At the international level, the industry is developing at a better pace thanks to investment in research and creation of new products. “Our advantage is that we have greater response capacity, specialized production lines, which in some way makes us different from the world’s competitors,” said the businessman.

It suggests, then, that a cluster be developed in Ecuador, that is, that the entire productive chain be united to promote competition and encourage the exportation of clothing. The sector, moreover, is waiting for the signing of trade agreements with Mexico, the United States and Canada. Also of the increase of the public purchase. (I)

Source:  https://www.eltelegrafo.com.ec/noticias/economia/4/contrabando-perdidas-textileras-ecuador