New troubles in textiles
Güncelleme Tarihi:
by Ayten Guven Kaya - Referans
OluÅŸturulma Tarihi: Ocak 17, 2009 00:00
ISTANBUL - Turkish companies operating in the retail clothing industry have been dealt a heavy blow by Russia. Orders received from Russian firms have declined sharply due to the strict policy of the customs enforcement officials.
The retail clothing industry has felt like something of a punching bag lately. As if the impact of the global turmoil on the industry was not enough, industry players have also been dealt some heavy blows by Russian customs enforcement.
There has been a 50 percent decline in Russian clothing companies’ demand for the spring products of the Turkish clothing firms as a "full count" policy by customs enforcement officials in the Russian Federation started last July.
The enforcement mechanism prolongs the period for Turkish clothing to pass through Russian customs from a week or two, to nearly 10 weeks.
A well-known Turkish clothing store, Ä°pekyol, owned by the Ayaydın Group, has been waiting for its products to pass through customs for the past month and a half. Due to the situation, the group is reconsidering its plans to open a branch in Russia.Â
As the result of several customs related issues, Turkey and Russia signed a protocol to simplify customs clearance procedures. However, the protocol does not seem to be effective. Many companies said that friction at customs had caused financial losses and damaged the prestige of the brands. A permanent solution to the customs issues is required.
As the shipped materials for the İpekyol store that was planned to be opened in Moscow have been stuck at Russian customs for the past month and a half, the company’s owner rightfully complained of the impact of customs procedures on his business. "Some 3,000 items that we sent over to Russia are still stuck at customs. They have not even been checked yet. Russia has really been dragging its feet and slowing us down. This issue has to be handled not by the bureaucracy, but at a higher level," said Yalçın Ayaydın.
Orders from Russian purchasers had declined, said Volkan Atik, owner of the Avva brand. Avva, which first entered the Russian market back in 2000, currently has 500 sales locations, he said. "However, as the period for customs clearance lengthens, some Russian chain stores that have business links to the company, have reduced their orders by 50 percent. Therefore, we had to take our own measures. To prevent any further delay, we sent over our spring designs a month earlier, in January instead of February. We still do not know when Russia will clear our shipment."
Late season opening
Balizza is another fashion group in Turkey that is suffering from customs trouble, as it also exports to mostly Russia, European countries and the United States. The company, which has 25 stores in Russia, where it obtains 80 percent of its total annual turnover, has not been able to ship its spring designs to Russia. The owner of the company Rutkay Çakırkaya said he was intimidated by the customs procedures, therefore has not yet sent over its products. He said he has sent a letter to the Prime Ministry requesting for this problem to be sorted out as soon as possible.
"The products I had sent in September, reached their destination in November, forcing us to open the winter season quite late. We have experienced financial losses. The situation has also overshadowed our prestige. "Fearing the same would happen again, I have been unable to ship over new season’s products," said Çakırkaya. "Meanwhile spring clothing had to be on display today," he added. "On one hand we are dealing with global financial crisis, on the other we are getting hit by the customs procedures. We are getting beat up from every which way."
Ramsey, which has 10 stores in Russia, is also among the companies that could not make its deliveries to the country. "Prior to the war in Georgia, the products were passing through the customs in 15 days. Now we waiting period can prolong as much as 50 days. We worry for our new season shipments." Adil Işık, which has 36 stores in the country, said it has waited 80 days for its products to be cleared by customs.
There has been a 50 percent decline in Russian clothing companies’ demand for the spring products of the Turkish clothing firms as a "full count" policy by customs enforcement officials in the Russian Federation started last July.
The enforcement mechanism prolongs the period for Turkish clothing to pass through Russian customs from a week or two, to nearly 10 weeks.
A well-known Turkish clothing store, Ä°pekyol, owned by the Ayaydın Group, has been waiting for its products to pass through customs for the past month and a half. Due to the situation, the group is reconsidering its plans to open a branch in Russia.Â
As the result of several customs related issues, Turkey and Russia signed a protocol to simplify customs clearance procedures. However, the protocol does not seem to be effective. Many companies said that friction at customs had caused financial losses and damaged the prestige of the brands. A permanent solution to the customs issues is required.
As the shipped materials for the İpekyol store that was planned to be opened in Moscow have been stuck at Russian customs for the past month and a half, the company’s owner rightfully complained of the impact of customs procedures on his business. "Some 3,000 items that we sent over to Russia are still stuck at customs. They have not even been checked yet. Russia has really been dragging its feet and slowing us down. This issue has to be handled not by the bureaucracy, but at a higher level," said Yalçın Ayaydın.
Orders from Russian purchasers had declined, said Volkan Atik, owner of the Avva brand. Avva, which first entered the Russian market back in 2000, currently has 500 sales locations, he said. "However, as the period for customs clearance lengthens, some Russian chain stores that have business links to the company, have reduced their orders by 50 percent. Therefore, we had to take our own measures. To prevent any further delay, we sent over our spring designs a month earlier, in January instead of February. We still do not know when Russia will clear our shipment."
Late season opening
Balizza is another fashion group in Turkey that is suffering from customs trouble, as it also exports to mostly Russia, European countries and the United States. The company, which has 25 stores in Russia, where it obtains 80 percent of its total annual turnover, has not been able to ship its spring designs to Russia. The owner of the company Rutkay Çakırkaya said he was intimidated by the customs procedures, therefore has not yet sent over its products. He said he has sent a letter to the Prime Ministry requesting for this problem to be sorted out as soon as possible.
"The products I had sent in September, reached their destination in November, forcing us to open the winter season quite late. We have experienced financial losses. The situation has also overshadowed our prestige. "Fearing the same would happen again, I have been unable to ship over new season’s products," said Çakırkaya. "Meanwhile spring clothing had to be on display today," he added. "On one hand we are dealing with global financial crisis, on the other we are getting hit by the customs procedures. We are getting beat up from every which way."
Ramsey, which has 10 stores in Russia, is also among the companies that could not make its deliveries to the country. "Prior to the war in Georgia, the products were passing through the customs in 15 days. Now we waiting period can prolong as much as 50 days. We worry for our new season shipments." Adil Işık, which has 36 stores in the country, said it has waited 80 days for its products to be cleared by customs.