Bangladesh’s Ministry of Commerce has put on hold its earlier ruling to scrap the bond facility covering imports of 10-30 count cotton yarn, alongside a requirement that importers lodge bank guarantees, while the matter undergoes fresh scrutiny.
In a communication sent to the Chairman of the National Board of Revenue (NBR) on September 13, the ministry confirmed the ruling had been shelved pending additional deliberation.
Only days earlier, September 7, the ministry had instructed the NBR to lift the bond facility for 10-30 count cotton yarn imports, a move intended to shield domestic millers whilst still ensuring genuine exporters could access necessary raw materials.
Mahmud Hasan Khan Babu, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), responded favourably to the reversal, noting that his organisation would shortly convene with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Textile Mills Association (BTMA) to thrash out a way forward.
“I am hopeful we shall arrive at common ground and settle matters under the commerce ministry’s guidance, for the wider benefit of the nation,” he remarked.
This pause forms part of a wider standoff between textile manufacturers and garment exporters concerning curbs on imported inputs.
Authorities had earlier blocked knit fabric imports relied upon by knitwear exporters under the newly introduced Import Policy Order, stirring unease within the apparel trade that such limits might dent export performance.
Both the BGMEA and BKMEA had petitioned the commerce minister calling for the provision to be scrapped. The ministry then entered into consultations on the matter.
According to the ministry, domestic manufacturers now possess sufficient capability to satisfy the bulk of the knitwear sector’s raw material requirements, though certain specialist imports remain unavoidable.
Garment exporters counter this view, contending that Bangladesh lacks the capacity to manufacture every knit fabric variety domestically, and that certain premium, buyer-specified, or more affordable imported fabrics must continue to be sourced overseas to preserve competitiveness.
Textile mills, meanwhile, insist domestic mills already possess ample capacity to serve knitwear producers’ needs, and argue that import restrictions would curb buyers’ influence over sourcing decisions.
Bangladesh’s apparel exports total roughly $39 billion annually, with knitwear products contributing more than half of that figure.
