‘Ease yarn import process, cut duties’

Home textile and terry towel exporters have urged the government to ease the yarn import process to take advantage of work orders shifting from Pakistan.

Bangladesh Terry Towel and Linen Manufacturers and Exporters Association Chairman M Shahadat Hossain said it was necessary to continue production.

“We are completely dependent on domestic yarn for producing home textile and terry towel products. But the local spinning mills cannot meet our demand on time,” Hossain told The Business Post.

“On the other hand, the domestic yarn costs 50-60 per cent higher than the imported one,” he pointed out.

On Monday, he called for expediting the import process in separate letters to the finance and commerce ministries and the National Board of Revenue.

“We have enough work orders, but we can’t meet them due to supply shortage and higher prices of yarn,” the business leader said.

“That’s why we need import permission for all manufacturers, including those who are not entitled to bonded warehouse facilities,” said Hossain.

Currently, the import duty is 37 per cent on cotton yarn and 31 per cent on cotton-polyster mixed yarn for importers who don’t have bond licences.

He said they are seeking permission to import 6-20 count yarn for their members through the land, river and sea ports.

Bangladeshi manufacturers are receiving more work orders from buyers since the European Parliament announced to withdraw Pakistan’s Generalised Scheme of Preferences (GSP+) status last month.

“We need faster import of yarn to grab the opportunity,” he said.

In fiscal year 2020-21, Bangladesh earned $1.13 billion exporting home textile goods, which was 49.17 per cent higher than the previous year.