Accra:The Bangladesh Textile Mills Association (BTMA) has appealed for the Prime Minister's intervention to protect investments, production capacity, and employment in the domestic spinning industry. This effort aims to maintain the competitiveness of the country's export-oriented readymade garment (RMG) sector.
According to Bangladesh Sangbad Sangstha, the BTMA has requested the retention of the decision to withdraw the existing bonded warehouse facility for imports of cotton yarn of 1030 English count. It also seeks the continuation of imports against bank guarantees and the reinstatement of the local value addition requirement.
The BTMA highlighted that the primary textile sector, especially the spinning industry, has attracted approximately $32 billion in investment, supporting substantial production infrastructure and employment. Restoring the production and financial capacity of the industry could lead to the reopening of closed or partially closed spinning and weaving mills, safeguarding jobs and creating new employment opportunities.
The association clarified that the removal of the bonded facility for cotton yarn imports is not seen as imposing new duties or a ban. Under a National Board of Revenue (NBR) order, such yarn imports are allowed against bank guarantees equivalent to applicable duties and taxes. This setup is believed to limit additional pressure on working capital.
The BTMA emphasized that maintaining the bank guarantee-based import mechanism would prevent the misuse of bonded facilities, protect government revenue, and ensure fair competition between domestically produced and imported yarn. It proposed that authorities should encash guarantees according to rules if importers do not provide evidence of authorized use of the imported yarn within the prescribed period.
Additionally, the association suggested releasing guarantees after verifying exports and repatriation of export proceeds. It stressed the importance of digital monitoring and risk-based audits to ensure transparency without disrupting legitimate export operations.
The BTMA has also called for the reinstatement of a 30 percent local value addition requirement for raw materials imported against bank guarantees by non-bonded industries. As Bangladesh prepares to graduate from the least developed country (LDC) category, the association proposed a policy framework to gradually increase local value addition to between 40 and 60 percent, considering World Trade Organization (WTO) rules and rules of origin.
The association believes such a policy would enhance domestic industrial capacity, boost local value addition, and help the country compete internationally post-LDC graduation. It urged policymakers to protect investment in the domestic spinning industry while ensuring a competitive supply of raw materials for export-oriented garment manufacturers through coordinated policy measures.
The BTMA requested the Prime Minister to review its proposals and issue necessary directives to support industrial development, employment, revenue protection, and export competitiveness.