The leather industry, which recently held the Footwear and Leather Fair 2017, says it aims to use the GSP+ concession to penetrate European Union markets using Indian raw materials and product development expertise to improve quality and meet European standards.
Chairman of the Fair organizing committee, Rangith Hettiarachchy said recently that with the continued safety net the industry enjoys through CESS, it has made major savings in foreign exchange.
“The new hope we have is the GSP+ concession which the government is lobbying for. We intend to use it strategically by following the concept of Global Product Sharing (GPS) with India,” he said. “In combining India’s strength in supplying raw material and guidance in product development, along with our talent and value addition, we are hopeful of entering the world market and the European market in particular.” Chief Executive Officer of Ceylon Leather Products PLC, Sajeewa Ranasinghe said the benefit for the industry through receiving GSP + is not direct. “The recipient country will not have to pay the additional 17% duty levy when importing from us.”
“The industry will have to meet the standard of the European Union to receive this benefit, but there is no minimum value addition required,” he said.The next Footwear and Leather Goods Fair will be held from February 2 to 4, 2018.
The ninth annual Footwear and Leather Fair at the Sirimavo Bandaranaike Memorial Exhibition Centre was organized by the Sri Lanka Footwear and Leather Products Manufacturers, together with the Ministry of Industry and Commerce, Industrial Development Board of Ceylon, and the Sri Lanka Export Development Board.
This year’s fair hosted over100 local companies and 34 foreign companies, including six large industry stalwarts, 10 medium and over 70 SMEs, in addition to 125 sales outlets managed by the manufacturers.