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Central Bonded Warehouse (CBW): The Winning Strategy for Ready-made Garment Industry of Bangladesh
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By
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Dr. Rakib I. Habib
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Abstract
After Abolition of quota 2005, ready-made
garment (RMG) in Bangladesh has faced stiff competition to export garment in
world apparel market. The central bonded warehouse (CBW) facility, a key demand of
garment manufacturers to support lead time. In global apparels
market, international buyers will place an order where lead time is the major
considerations by consumers when buying cloths. End of multi fiber arrangement
(MFA) means is no more quota facility for Bangladeshi garment and in regard to quality
Bangladeshi garment measures as low to medium category where they're not much
option left to face the MFA consequence. But still major of the key areas left
for Bangladesh are price competitiveness, short lead-time in respect of free
trade apparel market. For Bangladesh, lead-time is fast emerging as a serious
bottleneck. CBW is playing major part of a garment industry to reduce lead time
and also keep product price competitive. First this paper will briefly discuss CBW
and back ward linkage, the back ground of CBW, taken steps to allow CBW,
disagreement and export processing zone (EPZ) expansion in the RMG sector. This
paper will briefly discuss lead time, process of short lead time, lead time get
important issue for apparel marketing and CBW will influence on cost-plus
pricing in the ready made garment industry in Bangladesh.
Key words: Central Bonded Warehouse, Export Processing
Zone, Backward linkage, Lead time of the ready-made garment industry of Bangladesh.
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