Govt halts yarn imports via land ports
The order, dated 13 April, was made public today (15 April)
The National Board of Revenue (NBR) has issued an order to stop the import of yarn through land ports, following longstanding demands from local textile mill owners.
The order, dated on 13 April, was made public today (15 April).
While the decision has been welcomed by textile mill owners, it has drawn criticism from readymade garment (RMG) exporters.
Keep updated, follow The Business Standard's Google news channel
At a pre-budget discussion held at the NBR today, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the move to halt yarn imports through land ports would negatively impact small and medium-sized garment industries.
"Stopping yarn imports through land routes will deprive small and medium garment industries of the opportunity to import yarn within a short lead time, which will further increase their costs," he said.
He demanded that the opportunity to import yarn by land route be extended for another six months.
However, NBR Chairman Abdur Rahman Khan said the matter had already been finalised at a high-level government meeting, and the board could not revise the decision.
Most yarn imported through land ports enters via Benapole, mainly from India.
Textile mill owners have long alleged irregularities in yarn imports through land routes, claiming that poor monitoring and limited capacity at land ports allow misuse of the system, putting local mills at a disadvantage. To prevent these, they had suggested yarn should be imported only via seaports.
Earlier in a notice issued on 27 March, the commerce ministry, after reviewing requests from textile mill owners, had instructed relevant authorities to take action regarding the matter.
BTMA welcomes the move
The textile mill owners thanked Chief Adviser Muhammad Yunus, the Commerce Adviser, the NBR Chairman, and the Chairman of the Trade and Tariff Commission for their decision to suspend yarn imports via land ports, safeguarding the interests of the local textile industry.
In a statement issued today, the Bangladesh Textile Mills Association (BTMA) said that this move will hopefully place full control of yarn imports through sea ports under NBR, resolving a key issue of the sector.
It will strengthen backward linkage industries, save foreign currency, boost value addition, curb hundi-based money laundering, and significantly increase government revenue, they hoped.
Meanwhile, amid Bangladesh's move to restrict yarn imports via land ports, India has recently withdrawn its transshipment facility for Bangladesh.
