RMG makers seek duty-free import of garment waste

Bangladesh's garment and textile businesses yesterday sought to import apparel and textile waste, including clippings, on a duty-free basis in a bid to boost recycled fibre production.

The apparel makers also demanded waiving 7.5 percent value added tax (VAT) on sourcing of raw materials for the production of recycled fibres and another 15 percent VAT on the purchase of those fibres by spinning mills.

They also asked to adopt a Harmonized System (HS) for imports.

The HS is a standardised numerical method for classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics.

The proposals are aimed at retaining the growth in apparel exports and the country's competitiveness in the global market, said the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

BGMEA President Faruque Hassan placed the proposals during a pre-budget meeting with the National Board of Revenue (NBR) at the latter's headquarters in the capital's Agargaon.

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) also placed the same demands.

NBR Chairman Abu Hena Md Rahmatul Muneem welcomed the recycling initiative.

"We must provide support for recycling industries, namely garment scrap and plastic, which helps to clean the environment," he said.

However, the NBR chairman was apprehensive about benefits being misused.

Muneem explained that they frequently provide duty benefits to industries after careful consideration.

"But a section of dishonest businesses abuses such privileges due to a lack of strong mechanisms to detect them," he said.

That results in losses of a large amount of revenue for the state, he added.