Garment makers want incentives on garments made with imported yarn
Garment entrepreneurs demanded cash incentives to export garments made with imported yarn.
They have also asked the government for permission to import yarn through land ports outside Benapole as part of the removal of existing barriers to the import of yarn from neighboring countries.
In addition, ready-to-wear manufacturers demanded that the government allow partial shipment of goods against a letter of credit.
Leaders of Bangladesh Garment Manufacturer and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturer and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and Bangladesh Terry Towel and Linen Manufacturer and Exporters Association (BTTLMEA) presented these demands at a meeting. with Commerce Minister Tipu Munshi on Thursday.
Currently, only garment exporters who purchase raw materials from local textile mills receive incentives.
BTMA leaders demanded that capacity building in inland ports and proper facilities to test imported goods be ensured before allowing yarn to be imported through inland ports outside Benapole.
BTMA Chairman Mohammad Ali Khokon told The Business Standard: “Adequate infrastructure has not yet been developed at the Bhomra land port. Other ports do not have adequate equipment either. It would not be fair to allow importation without building port capacity. .”
BTTLMEA Chairman, Shahadat Hossain Sohel, who was present at the meeting, told TBS: “The Minister of Commerce assured us that he would send a letter to the relevant offices, including the Ministry of Finance, to remove the barriers. to yarn imports”.
Leaders at the meeting also demanded that incentives be calculated directly on the export price, rationalization of depreciation or wastage rate of raw materials in garment manufacturing, and elimination of harassment in the process. payment of VAT and customs duties.
BKMEA Executive Chairman Mohammad Hatem told TBS that calculating incentives directly on export prices would reduce the risk of any irregularities committed by exporters and the incentives provided.
Garment manufacturers have made these demands as discussions are underway to increase the price of yarn in the local market in view of the increase in the price of cotton, the yarn’s raw material, in the international market.