RMG leaders urge Customs to end harassment, simplify bonded services
BGMEA said exporters continue to face unnecessary VAT-related complications when bonded garment factories outsource services such as washing, printing, dyeing and embroidery to non-bonded units.
Leaders of the ready-made garment (RMG) sector have urged customs authorities to simplify bonded services and eliminate VAT-related harassment, saying such reforms are essential to maintain the industry's global competitiveness.
A delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by Director Faisal Samad, met Mohammad Hasmat Ali, commissioner of the Dhaka South Customs Bond Commissionerate, yesterday to raise concerns over customs bottlenecks.
The delegation also included BGMEA directors Sumaiya Islam and Kazi Mizanur Rahman.
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In a press release yesterday, BGMEA said exporters continue to face unnecessary VAT-related complications when bonded garment factories outsource services such as washing, printing, dyeing and embroidery to non-bonded units.
BGMEA leaders discussed the need to simplify customs procedures, make them faster, and ensure they are free from harassment, the release said.
They also drew the commissioner's attention to simplifying the process of importing raw materials from buyers on a free-of-charge (FOC) basis; ensuring that the supply of goods and services from bonded indirect exporters to non-bonded direct exporters remains hassle-free; and easing subcontracting activities.
At the meeting, BGMEA leaders urged the commissioner to take urgent steps to reconstitute a joint working committee, similar to one formed previously, comprising representatives from all customs houses, bond commissionerates, the National Board of Revenue, the Customs Intelligence Department, and industry stakeholders, to address both short-term and long-term challenges of the garment industry.
According to the BGMEA release, Commissioner Hasmat Ali assured the delegation that instructions have already been given to relevant officials to make customs-related services faster and easier to ensure a business-friendly environment.
He also pledged to resolve any issue through dialogue at the earliest possible time and to extend full cooperation in streamlining procedures to help the RMG sector achieve its export targets.
