The Cabinet of Ministers of Ukraine has approved a bill reducing the preferential imports duty on yarn (other than sewing thread) of synthetic staple fibers used for production of sewing thread from 4% to nil.
The bill amending the Customs Tariff of Ukraine was approved at a government meeting on Thursday.
According to the bill, the law will take effect in 45 days from the moment of its publication.
Nil rates are set for multiple (folded) or cabled yarn (Ukrainian Commodity Code 5509 22 00 00, as well as mixed mainly or solely with cotton yarn (5509 53 00 00). At present the preferential rate is 4% and the full rate is 15%.
According to the explanatory note to the document, the bill was designed pursuant to an order from the Cabinet of Ministers on the results of a meeting between the Prime Minister and the heads of light industry enterprises in Bohuslav in January 2018.
Today the work of light industry enterprises is more than 90% dependent on imports of raw materials, including cotton fiber, chemical fibers and threads, wool, yarn, fabrics, dyes that are not produced in Ukraine or are limited.
Over the past three years, imports of sewing threads only from synthetic staple fibers made of yarn mentioned in the draft and widely used by the population and more than 1,500 domestic enterprises producing clothing reached more than 1,100 tonnes worth $8.1. million, according to the document.
At the same time, more than 80% of volumes are imported from China (60%) and Turkey (20%) with a zero rate of duty.
At the same time, at the end of 2017, a new domestic facility producing sewing threads under the Barva trademark (the group of companies Textile-Contact) was created in Ukraine, and the raw materials for their production are subject to a 4% import duty.
The main suppliers of this yarn are China, India, and Indonesia.
