Ease rules for export, import
Textile and garment makers and exporters yesterday urged the government to quickly simplify the country's export-import procedures as work orders are in a rising trend despite the ongoing coronavirus pandemic.
Besides, they aim to expand their operations in a bid to cater to the rising demand.
Garment manufacturers sought the simplification of the import of yarn, cotton, industrial raw materials and chemicals through land ports to save time and money.
"We requested the commerce minister and the commerce secretary to take immediate actions to resolve the crises as we have a lot of work orders from international retailers and brands," said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
"We need a lot of raw materials like yarn and fabrics as we are getting a lot of work orders from buyers. It is very difficult to release goods from the ports, especially from land ports and airports, to be used in the industries," he added.
The rules of business need to be simplified so that manufacturers can easily import goods and comply with the strict lead-time set by international retailers and brands.
This is an opportunity for Bangladesh as international retailers and brands have been coming up with more work orders with the improvement of the pandemic and reopening of economies worldwide, especially in the West, Hassan said.
"Usually, such an opportunity does not come for any nation in a time of crisis," he added.
For instance, international retailers and brands are now placing a lot of work orders for garments made from man-made fibre.
However, local suppliers can only meet about 14 per cent of the demand for man made fibre. As a result, garment makers have to import such fabrics from countries like China.
However, importing from China has become difficult now for various reasons.
"So, the government should look after this seriously so that the supply chain between Bangladesh and China smoothens," Hassan said.
Similarly, spinners have been investing a massive amount of money in the primary textile sector but are also facing a lot of challenges that the government needs to resolve, he added.
These comments came during an unofficial meeting hurriedly arranged by the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association with the commerce minister and secretary at the Secretariat in Dhaka.
Leaders of the BGMEA, Federation of Bangladesh Chambers of Commerce and Industry, Bangladesh Knitwear Manufacturers and Exporters Association, Bangladesh Textile Mills Association (BTMA) attended the meeting.
Apart from the industry leaders, senior officials of the commerce ministry, Bangladesh Bank, National Board of Revenue (NBR), and other other ministries and government agencies also attended.
Mohammad Ali Khokon, president of the BTMA, said that apart from investment related challenges, the primary textile sector needs to solve its VAT and sales tax related problems as soon as possible.
"NBR officials harass textile millers when paying incentives on export," he said, adding that the tax administration needs to stop harassing businessmen in this regard.
Khokon went on to say that the government should also improve the infrastructure before allowing yarn imports through land ports as there is a possibility of evading tax.
Comments