BGMEA wants easy rules to import raw materials to cater for increased work orders

    Garment manufacturers have urged the government to ease the conditions for importing yarn, cotton and textiles as an increasing number of work orders come to Bangladesh from international retailers and brands.

    “We have a lot of work orders from international retailers and brands. We need ready-made raw materials such as yarn, cotton and textiles,” said Farouk Hassan, president of the Bangladeshi Garment Manufacturers and Exporters Association (BGMEA).

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    The number of work orders from international retailers and brands is so large that local raw material suppliers are also struggling to ensure a timely supply of goods, Hassan said.

    That is why Hassan sent a lengthy letter to Commerce Minister Tipu Munshi on Saturday demanding a relaxation of the rules for importing yarn from India by removing various non-tariff barriers and improving inland port infrastructure. areas.

    In the letter, he also called on the government to allow the import of yarn, cotton fabrics and other raw materials through other land ports, particularly through Bombra and Sonamashid, under the facilitation of bonds.

    “It is not possible to import yarn without a bond,” said Mohammad Ali Hawkon, president of the Bangladesh Textile Association.

    “The local industry will face challenges if all the ports are opened and the government loses a lot of revenue. Therefore, it is not possible to import yarn without bonds.”

    “Garment manufacturers want to import bond-free yarn, which is very dangerous for the local industry,” he said.

    At present, importers can import yarn, cotton and textiles from India only through the land port of Benapole from India under the bond facility, as there is a warehousing and storage facility in the port.

    The BGMEA has also asked the government to allow a partial shipment facility through land ports, including the land port of Benapole.

    Partial shipment of imported raw materials is only allowed through the country’s leading seaport to Chattogram now.

    Partial shipment allows the import and unloading of part of the entire shipment by letter of credit (LC).

    Entrepreneurs opt for partial shipment mainly for timely use of raw materials and to reduce the cost of storage and storage of imported goods.

    Suppose, despite opening an LC to bring 100 tonnes of yarn from other countries, an importer can now use 50 tonnes of yarn.

    So he wants to import 50 tons at the moment and he will import the rest later when it suits him.

    However, importers have the scope of partial shipment of raw materials only through the port of Chattogram.

    Thus, businesses must enter the entire shipment at once, if they do not land on the Chattogram port.

    “Partial shipment is very important for us as we also need to reduce storage and storage costs. The government should also build more storage facilities in the land port areas so that the goods can be stored well,” Hassan told The Daily Star on the phone.

    Newsvibe24 Source