The Bangladesh Textile Mills Association (BTMA) has accused apparel sector leaders of making misleading claims about yarn imports, saying statements made at a recent press conference do not reflect the actual policy position.
In a statement issued on Monday, BTMA President Showkat Aziz Russell said comments regarding the spinning sector and yarn imports were “not consistent with facts”.
He said the Bangladesh Trade and Tariff Commission (BTTC) prepared and submitted a report to the commerce ministry following an application from BTMA, after holding discussions with BTMA, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
After reviewing the report, the commerce ministry recommended that only 10–30 count yarns be kept outside the bonded warehouse facility, Aziz said.
“There has been no proposal for imposing any new duty, nor has any decision been taken to impose safeguard duties at this stage,” he said.
Aziz also argued that duty-free yarn imports under the bonded warehouse system do not benefit local garment manufacturers in practice, claiming that foreign buyers are the primary beneficiaries.
Domestic spinning mills, he said, are struggling despite billions of dollars in investment, citing competition from neighbouring countries where governments provide subsidies of about 50 cents per kilogram of yarn.
Against this backdrop, Aziz said the commerce ministry proposed to the National Board of Revenue that certain yarns be excluded from bonded facilities, specifically those for which local mills have full supply capacity.
He added that the recommendation followed several formal meetings between the government, apparel sector entrepreneurs and relevant officials, and said earlier informal discussions among BTMA, BGMEA and BKMEA leaders had agreed that yarns fully produced locally could be taken out of the bonded facility.
“Despite that understanding, the issue is now being portrayed as a unilateral decision, which is not desirable,” he said.
Aziz also referred to Bangladesh’s upcoming graduation from least developed country status, noting that exporters will need to ensure at least 40 per cent local value addition to qualify for trade benefits, with similar requirements applying to exports to the United States.
“In this context, protecting the domestic spinning and textile industry is essential,” he said, expressing hope that the government would take timely measures to safeguard local industries from growing foreign competition.
