Garment exporters in Bangladesh are set to benefit from a simplified sourcing regime for speciality fabrics used in items such as seamless activewear, intimate apparel and technical clothing, following a relaxation of the country’s import regulations by the authorities.
The Ministry of Commerce revised the Import Policy Order 2026-2029 via a circular published on September 20, with the updated rules coming into force straight away.
Under the revised framework, manufacturers will be permitted to bring in speciality fabrics and other inputs needed for particular garment categories provided the shipment is endorsed by either the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) or the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Industry observers say the reform should make it considerably easier for producers of specialist apparel to obtain materials that fall outside standard garment-sector supply chains.
The revision also strips out several bureaucratic hurdles that had been troubling exporters, according to BKMEA president Mohammad Hatem.
Mohammad Hatem explained that the reforms were chiefly intended to iron out anomalies and needless restrictions contained within the Import Policy Order 2026-2029.
Among the most significant changes is a shift in how fabric and yarn imports are handled.
Previously, importers were, in specific circumstances, obliged to secure sign-off from the Commerce Ministry before bringing in knitted fabric and yarn.
“There was little logic to that requirement, given that such imports were already governed by the utilisation declaration (UD) mechanism and sat within the broader import policy framework,” Hatem noted.
He added that the rule risked compelling firms to seek ministerial clearance for each individual letter of credit, piling extra bureaucracy onto the import process.
That stipulation has now been dropped under the revised order, he confirmed.
Authorities have additionally done away with a rule governing imports of replacement parts for factory machinery.
Under the earlier system, spending on imported spare parts was limited to 2% of a machine’s value during its first year of use, rising to 5% thereafter.
“Picture a machine going down. Where the necessary component exceeds the permitted threshold, the equipment could simply sit unused,” Hatem said. He confirmed that the cap has since been lifted.
Hatem noted that the revised order also resolved several further inconsistencies, including ambiguous and conflicting language found in the earlier version of the policy.
“These fixes will smooth import processes for businesses and cut down on the disruption caused by contradictions within the policy,” he said.
The timing of the reform is significant, given that Bangladesh’s clothing sector is increasingly moving away from basic, high-volume garments towards high value premium and technical product lines, spanning sportswear, underwear and functional apparel.
“The circular stops short, however, of offering any tariff relief or setting numerical thresholds for imports of these specialist materials. Instead, it lays out the criteria governing how such inputs may be brought into the country,” The Daily Star reported.
Hatem praised the government’s decision, arguing that the corrections would enable exporters to procure essential materials and equipment with considerably less red tape.
Image courtesy: Mafatlal
