Textile and Apparel: Speed-To-Market Scheme to boost exports to EU

Textile and apparel exporters are to get new lifeline from government following the potential adverse impacts of the Brexit vote. The United Kingdom being one of the country’s main export markets, it has become necessary for the government to roll out measures to mitigate any spillover effect.

The Air Freight Rebate Scheme for textile and apparel known as the ‘Speed-to-Market’ Scheme (STMS), as announced in the Budget Speech 2016/17 by the Minister of Finance and Economic Development, will be launched this month after consultations with the various stakeholders.

STMS aims at developing the ‘Speed-to-Market’ textile and apparel export segment in the wake of Brexit. It will also allow Mauritian textile and apparel exporters to become more competitive vis-à-vis other countries exporting via air freight to Europe. Another objective is to enhance the competitiveness of Mauritian exports in the European market, especially in terms of speed of delivery while at the same provide support to the textile and apparel enterprises facing difficulties in the wake of Brexit.

The STMS, which will be applicable to the textile and apparel manufacturing companies only, will, among others, provide a 40 % refund on air freight cost to exporters to Europe including UK; be time-bound for 2 years; and will be operated and managed by Enterprise Mauritius. The refund will be applicable for exports as from 1st April 2017.