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Textile industry & traders mug brunt of smuggling

10 Oct '06
2 min read

In Jakarta's Tanah Abang and Mangga Dua retail market smuggled textiles and garments are dominating.

Over the past three years, illegally imported textiles and garments have been flooding the retail markets either through airports or seaports.

Out of 80 percent of textiles on sales in Tanah Abang retail market, 30 percent have entered the country illegally.

In the Mangga Dua retail market about 40 percent of garments and 60 percent of textiles on sales consist smuggled goods.

Textiles entering the country through airports usually get away with a nominal charge of import duty of Rp70 thousand per kg whereas textiles that entered the country through seaports, usually unloaded at sea and reloaded on small boats, carry them to various cities such as Surabaya, Dumai, Jambi and Pangkal Pinang.

Smuggled textiles came from China, South Korea, India and Thiland and as a result, textiles and garments produced at home face difficulties to compete in the local market.

Government must make stringent action even to control illegal textiles and garments imported, intended for re-export.

Unless, government takes steps seriously to curb smuggling, textile industries at home will go bankrupt and traders at home to face short of supplies and compelling them to sell smuggled products.

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