Between the sheets

Fraserlive



Just when bed linen importers were cackling with joy over paying no duty on finished products and local sheet makers were moaning about still paying duty on their sheeting fabric, abracadabra! Customs put the 15 per cent duty back on sheets again as of February 21st.

For those aghast at being compelled to pay back duty, it only applies from the date of the announcement which was April 26th. Customs will even be kind to those who may have had goods in transit during the now-you-see-it-now-you-don't period.
The reimposition of the duty was apparently influenced by a loud squawk from Bruck which was able to demonstrate that yes, it did make sheets although it only wanted the duty restored on plain sheets. Printed bed sheets remain duty free.
That reminds me of bygone days when there was duty free status for printed sheeting. Bartex - Philip Bart's ancestral company - set up a cute selvedge printer in the form of a little whizzing wheel which imparted a single colour motif that was hard for even the sharp-of-eye to see. But a print it was and a concession the Barts got.

China is at it again
Chinese prices are creeping up, not just because of rising raw material prices but because the Chinese Government plans it that way. As from July 1st, the government will reduce the export rebate by a further three per cent, dropping it from 13 per cent to 10. If Chinese exporters want to retain their margins they will have to increase prices by up to five per cent.
As usual there are no reasons given for the rebate drop but observers see a combination. One is that exports have grown like Jack's beanstalk in recent years and are now almost out of control, straining essential resources like water and power. Price rises will have a dampening effect on export growth while increasing currency earnings. Another reason is that Chinese exporters are fast reaching the point of not needing government help. Yet another is that reigning in exports will also curb inflation and stave off the day when the Yuan has to be floated against the US dollar.
Inside the Chinese Government's department of economics and trade there must be a lot of people with scales. They would be weighing up how much more they can get for their manufactured goods without being undercut by other Asian suppliers. Now that China has reached the position of the world's leading supplier in many manufacturing categories the government is undoubtedly realising that prices don't have to be so low.
Although the rises will not be a body blow to Australian clothing importers, it may encourage them to look at Mr Howard's 50 duty freebie countries. Word is that you can buy garments made in Bangladesh that bear a remarkable resemblance to those made in China but you don't pay the 17.5 per cent duty.

Showrooms are slowrooms
Showrooms are like harbour cruisers. They have to be maintained continually but they are only used for a small percentage of the year. For the rest of the time they just sit there. Nowhere is this more evident than at Nuovo, the importer/distributor company run by Harvey and Melanie Boots and Allen Dong.
They moved from the greige outlook of Kippax Street, Surry Hills last year to the former Women's Hospital building in Albion Street where they got rid of the petri dishes and old X-ray machines to refurbish two floors of splendid Victorian rooms. I don't see many showrooms these days but Nuovo would take a lot of beating, especially in space-scarce Surry Hills.
To be frank, I got a bit lost in the labyrinth, but there seemed to be at least five high ceilinged showrooms, with a nice waiting area in case of that terrible affliction, buyer appointment overlap. In addition to the showrooms there are offices, a meeting room, reception, balconies, ablutions department and a stationery storeroom you could live in.
Harvey's toying with the idea of short term letting his showrooms while he's digging spuds on his farm. Nuovo sales people are using the rooms in March, April, August, September and October. That leaves seven months of hibernation which could be used by somebody else.
While Nuovo occupies the ground and second floors, the first floor is coming up for leasing later in the year, offering even more real estate diversion for the company.
With tightening margins and more expensive hotel rooms, it makes sense for those with space that is only used during a certain selling season to try renting it out at other times. In the case of Nuovo, because it shows at different times to local manufacturers, its downtime is some body else's busy time.