Govt reinstates decision on import of 10 to 30 count yarn under bond

The government has suspended the decision to withdraw the zero-duty import facility under bond for 10 to 30 count cotton yarn, as garment exporters complained about the decision.

The commerce ministry, in a circular today, said that the government will further review the decision and, for the time being, has withdrawn the previous decision.

Tap here to add The Daily Star as a trusted source

Md Kamal Hosain, spokesperson of the commerce ministry, confirmed the latest development and shared the circular in the WhatsApp group of journalists who cover commerce ministry-related news.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said the previous decision was taken unilaterally without consultation with garment exporters.

Welcoming the latest decision, Hatem said the decision should be taken in consultation with all parties involved, such as the Bangladesh Textile Mills Association (BTMA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and BKMEA, so that everybody benefits.

Earlier, the National Board of Revenue (NBR), on September 7, withdrew the zero-duty import facility for 10 to 30 count yarn, aiming to protect the local textile sector.

The NBR published a gazette notification on September 7, allowing garment manufacturers to import cotton yarn of these counts against a bank guarantee instead of the previous zero-duty facility.

Nearly 80 percent of Bangladesh's annual yarn consumption is in the 10-30 count range, industry insiders said.

The demand is concentrated mainly in knitwear fabric production, and local spinners can currently supply more than 90 percent of the yarn required by the export-oriented knitwear sector.

Textile millers have for years complained that cheap imported yarn, as well as yarn entering through informal channels from neighbouring countries, is hurting the $25 billion textile sector, which includes spinning, weaving, dyeing, finishing and printing.

But the decision was protested by leaders of the BGMEA and BKMEA.