Japan eases rules on knitwear shipments from LDCs
The Japanese government has relaxed the rules of origin for knitwear items from the least developed countries under the generalised system of preferences.
Bangladesh, being a member of 49-LDCs, will also enjoy exports of knitwear products to Japan, thanks to the latest move by Japan.
Woven garment exporters have been enjoying zero-duty benefits from Japan for long. The new rules came into effect from April 1, the Japanese Embassy in Dhaka said in a statement yesterday.
The Japanese government brought down the three-stage formulation to two stages in the imports of knitwear to give LDC members a duty-free access.
From now, knitwear makers will get zero-duty facility on exports to Japan even if the item is made of imported yarn but knitted and sewn in Bangladesh, the statement said.
Under the previous three-stage formulation, knitwear exporters had to make garments from the fabrics manufactured from locally spun yarn, although raw cotton was imported.
Earlier, the Japanese government imposed 17 percent duty on the imports of knitwear items to protect the age-old Japanese knitwear industry.
“The new move will expand opportunities for Bangladesh to further enhance economic relations between Japan and Bangladesh and thus accelerate her economic growth and industrialisation," the embassy said.