Garment makers want incentives on apparels made with imported yarn
RMG manufacturers also sought permission from the government to import yarn through land ports outside Benapole
The garment sector entrepreneurs have demanded cash incentives for exporting garments made with imported yarn.
They have also sought permission from the government to import yarn through land ports outside Benapole as part of removing the existing barriers in importing yarn from the neighboring countries.
Besides, the readymade garments makers have demanded that the government allow partial shipment of goods against a letter of credit.
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The leaders of Bangladesh Garment Manufacturer and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturer and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), and Bangladesh Terry Towel and Linen Manufacturer and Exporters Association (BTTLMEA) presented these demands during a meeting with Commerce Minister Tipu Munshi on Thursday.
At present, only the garments exporters who purchase raw materials from the local textile mills get incentives.
The BTMA leaders demanded that capacity building at the land ports and proper facilities for testing the imported goods be ensured before allowing import of yarn through land ports outside Benapole.
BTMA President Mohammad Ali Khokon told The Business Standard, "A proper infrastructure has not been developed at the Bhomra land port yet. Other ports also do not have adequate equipment. It would not be right to allow the import without building the capacity of the port."
BTTLMEA Chairman Shahadat Hossain Sohel, who was present at the meeting, told TBS, "The commerce minister had assured us that he would send a letter to the concerned offices, including the finance ministry, to remove the existing barriers to yarn imports."
The leaders at the meeting also demanded that the incentives be calculated directly on the export price, rationalisation of depreciation or wastage rate of raw materials in garment manufacturing, and elimination of harassment in the process of paying VAT and customs duty.
BKMEA Executive President Mohammad Hatem told TBS that calculating incentives directly on export prices would reduce the chances of all irregularities committed by the exporters and incentives providing.
The garment manufacturers came up with these demands as discussions are going on to increase the price of yarn in the local market in view of the increase in the price of cotton, raw material for yarn, in the international market.
