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How will FoC cap removal impact the Bangladesh RMG industry?

04 Dec '25

4 min read

How will FoC cap removal impact the Bangladesh RMG industry?

Pic: Shutterstock

Insights

Bangladesh plans to scrap FoC import quotas, aiming to boost competitiveness, reduce production costs, and attract more global buyers.
Some industry insiders project an export surge of $*-** billion, as quota removal allows for smoother sourcing.
However, there are some concerns among textile and accessory makers, who fear that increased FoC imports may curb demand for local inputs.

Last month, the Investment Coordination Committee (ICC) made a bold move that could reshape the future of Bangladesh’s export-oriented industries. The committee announced that it would eliminate the quota on ‘Free of Charge’ (FoC) imports for *** per cent export-oriented enterprises—a decision that was expected to be integrated into policy in the following weeks.

The shift is seen as part of a broader effort to foster an investment-friendly environment in the country, with a focus on mutual accountability and improved implementation. According to the Chief Adviser for International Affairs’ Special Envoy, the goal behind the move is to create a more competitive business landscape that will not only benefit the industry but also attract more foreign investment.

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