NBR urged to withdraw UD submission requirement

Bangladesh Textile Mills Association (BTMA) has urged the National Board of Revenue (NBR) to withdraw the mandatory requirement of submitting Utilisation Declaration (UD) to obtain Utilisation Permission (UP) for a specific group of spinning mills.

The group includes mills that have the association’s valid bonded warehouse licence; manufacture yarn using special raw materials, including flax fibre, PSF, and VSF; and export that.

The BTMA has urged the NBR to consider back-to-back letters of credit (LCs) as an instrument of the condition for UP issuance instead. This should be done by revising the relevant directive in this regard, which was issued on February 19, 2009, said the association.   

The association recently sent a letter to the NBR, saying the mills are facing various difficulties in getting UP as the revenue administration is yet to change the UD submission condition.

It had earlier on September 26 last year urged the NBR to revise the directive.

The letter said the customs bond commissionerate should consider giving the mills UP that mix viscose fabrics or polyester yarn and that do not submit UD.

As the directive has not been revised, the mills manufacturing flax fibre are facing complexities in getting UP from the bond commissionerate, it also said.

The letter further said in line with the government’s call to create new export markets and goods, the spinning mills under the association manufacture and export yarn of man-made fibre, recycled fibre, viscose, flax fibre, and others. 

A huge number of spinning mills import man-made fibre, recycled fibre, and flax fibre with bond facility as the duties on these fibres are high, it also said.

The association asked the revenue board to revise the directive to ease the process of doing business and help exports grow by expanding into new markets.