Yarn imports under customs scanner at Benamole Land Port
January 09, 2006 - Bangladesh
The government reopened the Benapole Land Port (BLP)for importing knit yarn from December 15.
The National Board of Revenue (NBR) has suggested various steps to prevent revenue irregularities arising out of knit yarn imports through the country's Benapole land port.
They are listed below:
Customs commissionerate to ensure 100 percent export-oriented knitwear manufacturing units import yarn vide valid bond license.
Bond commissionerate to make sure imports of knit yarn take place through letters of credit (LCs).
The customs officials have to make physical verification of yarn and make their 'challans' on a random basis, the order reveals.
Prevent pilferage of items and ensure necessary steps to enter details in the register books.
The bond commissionerates have to check the consistency of information between Benapole land port authority and the concerned banks.
The Bangladesh Textile Manufacturers and Exporters Association (BTMA) and local textile manufacturers are against the government's move of opening of the BLP.
However, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) supports government move as import would be cheaper.
Price of one-kg Indian knit yarn is about $ 0.50 lower compared to local yarn, conveyed BKMEA President Fazlul Hoque.
About 1200 local knitwear units consume around 450 million kgs of yarn per annum of which 70 per cent yarn requirement is met by local textile industries, he added.
The country's knitwear sector earned about $ 1239 million during the first four months of the financial year, up 26 per cent over the last fiscal, he noted.