Fiji’s TCF Industry Gets Practical Assistance from Australia

4 February 2009

Fiji’s textile, clothing and footwear industry is being given a boost with a reduction in the local content requirements for all garments (excluding wool and wool-blend fabrics) exported to Australia under the SPARTECA-TCF Scheme.

Australia has agreed that from 23 February 2009, the Minimum Local Area Content (MLAC) requirement under the scheme will be reduced from 35 percent to 25 percent.

This will mean that all garment products (with the exclusion of wool and wool blend fabrics) which meet the 25 percent local content requirement can be exported duty-free to Australia under the SPARTECA-TCF Scheme.

Australia’s High Commissioner to Fiji, James Batley, says the reduction was good news for Fiji’s garment industry which is an important employer and export earner. He said government authorities, and Fiji’s TCF Council, had been advised of the decision last week.

Mr Batley noted that Australia was already providing assistance to the garment industry, through AusAID, to help improve its productivity and international competitiveness. “We remain committed to complementing the MLAC reduction with continued support, through AusAID, for the long-term sustainability of the industry,” Mr Batley said.

The reduction is subject to Fiji Customs conducting a minimum of four audits annually until the end of the SPARTECA-TCF Scheme in 2011. Australia will continue to sponsor relevant audit training for Fiji Customs officials.

The SPARTECA-TCF scheme commenced in March 2001. It allows for textile, clothing and footwear products from Fiji to enter Australia duty free under certain conditions, including meeting the minimum local content requirement.

**ENDS**