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The Financial Express

RMG exporters can import Indian yarn in partial shipment

BGMEA hails the NBR's move


| Updated: January 10, 2023 12:52:37


RMG exporters can import Indian yarn in partial shipment

The government has allowed apparel exporters to import yarn from India in partial shipment through Benapole, Bhomra, Sonamasjid and Banglabandha land-ports.

The National Board of Revenue (NBR) issued an office order in this regard on Sunday.

According to the NBR order, the export-oriented industries having valid bonded warehouse licence are allowed to enjoy the facility on conditions.

They have to import yarn through back-to-back letters of credit (LCs) and have to follow the annual import entitlement - issued by the Customs Bond Commissionerate offices.

The importers must follow the utilisation declaration and should maintain the actual quantity in the customs process, according to the NBR.

Meantime, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) informed its members about the development through a letter on Monday.

When asked, BGMEA President Faruque Hassan welcomed the move and said it would help the exporters to import yarn according to their requirement, as partial shipment has been allowed.

Previously, the RMG exporters could import yarn through Benapole land-port under the bonded warehouse facility, but they were not allowed to make partial shipment.

A partial shipment facilitates an importer to receive the imported goods in more than one delivery, and it was allowed through Chattogram Port.

Apparel and terry towel exporters were demanding to allow them import and partial shipment of raw materials, including cotton, yarn and fabrics, under the bonded warehouse facility through all the land-ports between Bangladesh and India.

The Bangladesh Textile Mills Association (BTMA), however, then opposed the apparel makers' plea.

The BTMA argued that the approval for partial shipment of yarn import would be suicidal. Several shipments would take place against one LC, and additional quantity of products would enter into the country through dodging taxes, which might create an uneven competition for the local mills, it added.

The BTMA president could not be reached for comment until filing the report at 8:45 pm on Monday.

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