The association said implementing the proposals would help protect investment and production capacity in the domestic spinning industry, create jobs, facilitate bank loan recovery, and support export growth.
The Bangladesh Textile Mills Association (BTMA), a platform representing the country’s textile millers, has called for maintaining the bank guarantee requirement instead of bonded warehouse facilities for importing 10-30 count cotton yarn, saying the measure would protect local spinning mills and prevent misuse of duty-free import facilities.
The association said implementing the proposals would help protect investment and production capacity in the domestic spinning industry, create jobs, facilitate bank loan recovery, and support export growth.
In a press release, BTMA urged the government to maintain the withdrawal of regular bonded warehouse facilities for 10-30 count cotton yarn and continue the bank guarantee-based import system for genuine exporters.
The measures would help preserve domestic spinning capacity, protect investment and employment, facilitate bank loan recovery and support export growth, the association said. However, garment manufacturers have opposed the move, warning that the requirement could put significant financial pressure on exporters, particularly small and medium-sized factories.
The yarn accounts for around 80% of Bangladesh’s total yarn imports and is mainly used in knitwear production, according to industry entrepreneurs.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, told TBS that requiring bank guarantees for such imports would create severe cash flow constraints for exporters and could force some factories out of business.
On 7 September, the customs wing of the National Board of Revenue issued a circular withdrawing bonded warehouse facilities for 10-30 count yarn imports and introducing a bank guarantee requirement, following an inter-ministerial decision.
The decision triggered concerns among garment exporters, with two industry associations warning that the change could hamper ready-made garment exports and calling for its withdrawal.
