Bangladesh apparel accessories makers seek relief from HS code hassles

This is as per media reports, which underlined the demand was raised by the leaders of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association during a pre-budget meeting with the National Board of Revenue (NBR) in capital Dhaka recently.

The HS code, or the harmonised commodity description and coding system, serves as an internationally standardised system for classifying traded products.

Import taxes are collected by the NBR based on this code. However, manufacturers alleged customs subject them to unnecessary fines and delays over discrepancies in HS code declarations.

Rafez Alam Chowdhury, former president of the RMG accessories makers’ association, highlighted the issue, stating that even minor errors in the HS code declaration can lead to substantial fines imposed at the discretion of customs officers.

This inconsistency and lack of clarity are causing significant challenges for accessories manufacturers, making it difficult for them to remain competitive in the market.

The association also emphasised the need for utility declaration for the import of raw materials, which is currently managed by the Customs Bond Commissionerate. They argued that streamlining this process would alleviate the burden on manufacturers and facilitate smoother operations.

In addition to addressing HS code-related issues, the association presented various other demands to the NBR, including timely completion of bond audits, exemption from VAT for export-oriented manufacturers, and tax reforms to promote industry growth and competitiveness.

While the NBR chairman expressed willingness to support the industry, he underscored the importance of ensuring that such measures are not subject to misuse.

Fibre2Fashion News Desk (DR)