Home / Knowledge / News / Apparel/Garments / New EU rules likely to promote RMG exports from Bangladesh
New EU rules likely to promote RMG exports from Bangladesh
Nov '10
Europe's relaxed rules, which are meant for the least developed countries (LCDs), under generalized system of preferences (GSP) in case of textile trade, are likely to promote the garment exports from Bangladesh.

The new rules of origin (RoO), which have been accepted by the European Union is expected to be implemented from 1st January.

One of the major changes that is likely to be permitted in case of several RMG units is that, they can go for single-stage processing or manufacturing readymade garments directly from fabric in place of the two-stage processing, where the manufacturing starts from the yarn stage and passes through the fabric stage to reach the ultimate product.

Most of the garment items, exported from LDCs, are likely to enjoy duty-free access to the European Union. It is not going to take into consideration the place of origin of the raw materials. Usually, the duty imposed for readymade apparels is 12 percent in the European Union.

The generalized system of preferences is a trade agreement which permits low or zero duty on imports from developing nations. The rules of origin find out whether the imported products are originally derived from the countries covered under GSP or not.

Once the new rules of origin are enforced, the exporters, using the imported fabrics for producing readymade garments in Bangladesh and then exporting them to the European Union, are likely to avail the GSP benefits.

A large number of woven apparel exporters import the required fabric from China as the backward linkage sector is not as dominant as the knitwear sector. The backward linkage sector within the country is expected to confront some competition as many producers of readymade garments import the fabrics from countries like China.

Fibre2fashion News Desk-India

Must ReadView All

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Textiles | On 8th Dec 2016

R&D is key to textile industry’s growth: Kavita Gupta

Research and development is the key to the growth of the textiles...

Textiles | On 8th Dec 2016

Taiwan’s Everest Textile to invest $18.5 mn in US

Everest Textiles USA, a unit of Taiwan based Everest Textile Company, ...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search