Commerce ministry suspends 10-30 count yarn import restriction
In a letter to the National Board of Revenue (NBR) chairman today (13 September), the ministry said it had suspended the decision for further consideration.
The Ministry of Commerce has suspended its decision to withdraw the bond facility for imports of 10-30 count cotton yarn and require importers to submit bank guarantees, pending further review.
In a letter to the National Board of Revenue (NBR) chairman today (13 September), the ministry said it had suspended the decision for further consideration.
The ministry had asked the NBR on 7 September to withdraw the bond facility for imports of 10-30 count cotton yarn in a move aimed at protecting local industries and facilitating access to raw materials for genuine exporters.
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Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan Babu welcomed the latest decision, saying the BGMEA, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and the Bangladesh Textile Mills Association (BTMA) would meet shortly to discuss the issue and work towards a solution.
"I hope we will reach a consensus and make a decision under the leadership of the commerce ministry, in the interest of the country", he added.
The suspension comes amid a broader dispute between textile millers and apparel exporters over restrictions on imported raw materials.
The government previously halted the import of knit fabrics used by knitwear exporters under the new Import Policy Order, prompting concerns in the apparel sector that the restriction could hurt exports.
The BGMEA and the BKMEA had sought withdrawal of the provision in a letter to the commerce minister on 1 September. The Commerce Ministry subsequently held discussions on the issue.
The ministry had said local industries had developed the capacity to meet most of the knitwear sector's demand for raw materials, although some specialised imports were still necessary.
Exporters, however, argue that Bangladesh does not produce every type of knit fabric and that some high-value-added fabrics, buyer-specified materials and cheaper imported inputs need to be sourced from abroad to remain competitive.
Textile millers, on the other hand, maintain that local mills have sufficient capacity to meet the knitwear sector's demand and that restrictions on imports would reduce buyers' ability to dictate where raw materials are sourced.
Bangladesh exports around $39 billion worth of apparel products annually, with more than half coming from knitwear.
