BGMEA demands simplification of HS code inclusion in bond licences
The core focus of the discussion centered on making customs processes fast, simple, and harassment-free, which is crucial for retaining the apparel industry's competitive edge.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged authorities to simplify the process of adding new raw materials and accessories under bond licences for apparel exporters.
At the same time, they called for overall simplification of customs procedures in import and export, particularly annual audits, maintaining bond registers through the Customs Bond Management System software, procedures for importing raw materials on a Free of Cost (FOC) basis, and easier access to raw materials for non-bonded exporters.
They also demanded that raw materials or fabrics imported under duty-free facilities not be subjected to "cutting supervision" merely on grounds of suspicion.
Keep updated, follow The Business Standard's Google news channel
A BGMEA delegation led by director Faisal Samad met with the commissioner of Customs Bond Commissionerate, Dhaka (North), today (23 September) and raised these demands, according to a BGMEA press release.
Exporters in Bangladesh are entitled to import raw materials duty-free under bond licences, which require them to keep imported raw materials in designated warehouses known as bonded warehouses. When obtaining a licence, the list of required raw materials must be specified by HS code, which is the unique identification number for each product.
For years, apparel manufacturers have complained that when new purchase orders require raw materials not listed in their licences, they face complications in importing them. Industry owners have also alleged that they are forced to incur "extra costs" at customs bond offices to include new items in their licences.
On the other hand, there are allegations that some importers under the bond facility sell duty-free raw materials in the open domestic market instead of exporting them, which harms local manufacturers of similar goods by creating unfair competition and causes revenue losses for the government.
Efforts have long been underway to bring the entire customs bond management system under automation to solve these issues, but progress has been slow. As a result, exporters' associations and customs often blame each other for the problems.
At the meeting, BGMEA requested the reconstitution of a joint working committee to address both short-term and long-term challenges in the garment industry.
Mia Md Abu Obaida, commissioner of Customs Bond Commissionerate, Dhaka (North), said several important steps are being taken to ease apparel export procedures and ensure a more business-friendly environment.
He noted that instructions had already been issued to relevant officials to make customs services faster and simpler, and assured that any problems would be resolved through dialogue.
