Brandix India plans Domestic Tariff Area for its global clients
Touted as India’s biggest apparelcentric industrial park, Brandix India Apparel City Pvt. Ltd. (BIAC) plans to soon introduce a Domestic Tariff Area (DTA) to facilitate some of its international clients such as Victoria’s Secret, Calvin Klein, etc. to sell their apparels in the country’s market. Located in Vizag, Andhra Pradesh, BIAC, which is a part of Colombo, Sri Lanka-based Brandix Lanka, is a designated 1,000-acre duty-free enclave established under Special Economic Zone (SEZ) scheme that enjoys a foreign territory status for trade operations, duties and tariffs. It is one-of-its-kind vertically-integrated ‘Fibre to Store’ concept that encompasses spinning, fabric production, apparel manufacturing, accessories, finishing, warehousing and logistics as well. According to Indian trade laws, the units set up under SEZ, EPZ or EOU schemes are permitted to carry out their activities only within a custom bonded area, while DTA is outside of it. As of now, BIAC is pursuing no objection certificate (NOC) from the Andhra Government to launch its DTA operations. Subsequently, the proposal will be submitted to the Central Ministry of Commerce and Industry for their approval, Brandix Lanka’s Indian partner Dora Swamy reportedly said. The Government’s nod to the DTA will allow the industrial park’s client partners to market up to
25% of their production in the Indian market.
BIAC, established in the year 2007, employs 18,000 people and almost 88% of the current workforce comprises women, who produce an intimate garment like a brassiere every six minutes. As per Dora Swamy, almost one lakh bra pieces are churned out daily for Victoria’s Secret alone. In fact, roughly 60% of the brand’s products retailed in the US are manufactured by BIAC, which also is the leading manufacturer of panties, producing 5 lakh pieces a day. The apparel produced at BIAC from different buyers is delivered to the client’s desired overseas locations by air as well as sea route, he further apprised.