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Bangla RMG firms want 5% tolerance in yarn count at ports

Jan '20
Pic: Shutterstock
Pic: Shutterstock
Bangladesh’s apparel exporters recently demanded 5 per cent tolerance in yarn count during the release of the item imported for export-oriented readymade garment (RMG) units and easing temporary bond transfer between factories in export processing zones (EPZs) and those outside. They also demanded tax waiver or reduction for importing racks for bonded warehouses.

Bangladesh Garment Manufacturers and Exporters Association president Rubana Huq, Bangladesh Knitwear Manufacturers and Exporters Association’s acting president Mohammad Hatem and Bangladesh Textile Mills Association president Mohammad Ali Khokon and others met National Board of Revenue chairman Mosharraf Hossain Bhuiyan recently to discuss the issue, according to Bangladesh media reports.

Exporters said that they had faced penalty and harassment during the release of imported yarn and fabric if minor deviation was found in count and composition of the items.

Exporters demanded 5 per cent tolerance for cotton yarn count and 10 per cent for viscos during the examination by customs, saying minor deviation in yarn count and composition might occur due to weather and suppliers’ faults.

They said approval for inter-bond transfer was required for the exporters to do sub-contract business with the EPZ factories. Getting approval for inter-bond transfer from customs bond commissionerate is a lengthy process, but exporters get limited time to export the products to the buyers, they said.

Exporters demanded empowering the BGMEA to issue approval for inter-bond transfer between the factories in EPZs and outside EPZs to protect the interest of readymade garment sector.

The present duty structure is high for the import of racking system and it would not be viable for the exporters to import the system with paying 58.60 per cent duty, they said.

Apparel makers demanded tax waiver or reduced tax rate on import of racking system, saying that the sector could gain more export orders by introducing the system as rack-supported warehouses help preserve maximum products within the shortest spaces separately and locate them easily.

Fibre2Fashion News Desk (DS)

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January 2021

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