The Cámara Colombiana de la Confección y Afines has asked the government to extend Decree 1197 so that the 0% tariff on yarns, known as hilados, stays in place. The request is addressed to the government, the Ministry of Commerce, Industry and Tourism, and the Comité de Asuntos Aduaneros, Arancelarios y de Comercio Exterior.
Cost pressure on producers
The chamber says yarn is one of the main components of garment manufacturing cost. It can represent between 30% and 45% of the total. Taxing the input would raise production costs across the chain.
The chamber argues that domestic output is not enough to meet demand. Imported garments, it says, are growing their share of the local market.
Competitiveness argument
In the chamber’s view, competitiveness depends on easier access to raw materials rather than higher prices for them. Lower input costs, it says, would let Colombian firms add value, create formal jobs and enter new markets.
It makes no sense to raise input costs for producers in Colombia, the chamber said, while domestic sales face growing competition from imports.
Source: Cámara Colombiana de la Confección y Afines
