Bangladesh’s apparel exporters have called on the government to introduce a 5 percent tolerance in yarn count during customs clearance for export-oriented readymade garment (RMG) units. They have also demanded simplification of temporary bond transfer procedures between factories inside Export Processing Zones (EPZs) and those located outside, along with tax reductions on bonded warehouse racking systems.
The demands were raised during a recent meeting with National Board of Revenue (NBR) Chairman Mosharraf Hossain Bhuiyan, attended by leaders of the country’s major textile and apparel bodies, including BGMEA President Rubana Huq, BKMEA Acting President Mohammad Hatem, and BTMA President Mohammad Ali Khokon, according to local media reports.
Exporters said they have faced penalties and unnecessary harassment during customs clearance when minor deviations were found in the count and composition of imported yarn and fabric.
Industry Seeks Tolerance Margin and Faster Inter-Bond Transfers
RMG exporters stressed that minor deviations in yarn count and composition are unavoidable, often caused by weather conditions or supplier inconsistencies. To address this, they formally demanded:
- 5 percent tolerance for cotton yarn count
- 10 percent tolerance for viscose yarn
They argued that without such flexibility, exporters are unfairly penalized despite the technical realities of textile production.
Another key issue raised was the lengthy approval process for inter-bond transfers, which is required for subcontracting work with EPZ-based factories. Exporters explained that while buyers impose strict delivery deadlines, obtaining approval from the Customs Bond Commissionerate remains time-consuming and bureaucratic.
To resolve this bottleneck, exporters urged the government to empower the BGMEA to issue inter-bond transfer approvals directly between EPZ and non-EPZ factories, a move they believe would protect the competitiveness of the RMG sector.
High Import Duty on Racking Systems Raises Cost Pressures
Apparel manufacturers also criticized the 58.60 percent duty imposed on the import of racking systems for bonded warehouses, calling the current tax structure financially unviable.
They demanded a tax waiver or significant duty reduction, arguing that modern rack-supported warehouses:
- Maximize space utilization
- Improve product preservation
- Enable faster identification and handling of goods
- Support higher export volumes
According to industry leaders, easing these restrictions would directly enhance Bangladesh’s capacity to secure larger international export orders.
Bangladesh’s apparel sector, the backbone of the country’s export economy, continues to press for regulatory reforms to maintain global competitiveness amid rising costs and operational challenges. The outcome of these demands is expected to have a significant impact on the future efficiency and sustainability of the country’s RMG industry.
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