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Israel launches plan to strengthen fashion industry

Source: Xinhua| 2018-09-20 20:58:57|Editor: xuxin
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JERUSALEM, Sept. 20 (Xinhua) -- Israel has launched a national plan to strengthen clothing and fashion industry with 22 million new shekels (6.14 million U.S. dollars) investment, Israeli Ministry of Economy announced on Thursday.

According to the plan, temporary exemption from customs duties imposed on clothing will not be extended by the end of 2018. For major products, customs duties will return to standard rate of 12 percent.

A total of 10 million new shekels will be invested in upgrading and promoting plans with the Israeli Innovation Authority.

The money will be used to grant 30 to 50 percent of the R&D expenditures of programs approved for fashion manufacturers.

An additional 9 million new shekels will be allocated to promote export activity through an internet portal and free guidance by the Israel Export Institute.

Another 3 million new shekels will be allocated to promote online trading in small and medium businesses.

In addition, manufacturers will be able to receive export support of up to 200,000 new shekels each.

"The fashion industry is facing challenge of increasing competition with the world, and the assistance tools provided by the program can help manufacturers compete locally and penetrate new markets worldwide while improving productivity and innovation," Israeli Economy Minister Eli Cohen said.

The Israeli clothing and fashion industry has suffered financing difficulties and cash flow in recent years due to a significant increase in online trade, purchases abroad, low production costs in the Far East and cancellation of customs duties.

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