Aiming to boost country’s exports and forex reserve, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government not to impose inspections of cutting supervision and other relevant conditions in the cases of raw material imports for the garment industry only on the basis of mere suspicion.
The Association also requested the revenue board to take necessary measures in this regard and instruct to all the customs houses including the Custom House, Chattogram. BGMEA President Faruque Hassan sent a letter to the National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem over the matter.
“Currently, during exports of raw materials including clothes and other accessories of the garment industry, the custom authorities including the Chattogram customs house release the shipments after completing cutting inspections based on suspicion. As a result, exporters face numerous complications in production process and it also hinders the growth of exports,” the letter reads.
The ready-made garment is a seasonal and fashion-dependent export industry. The foreign buyers have an obligation to import the raw material and export the manufactured garment within the lead time, it added.
“If the buyers fail to export the goods within the specified period, the exporters face the complications and financial losses such as discounts, cancellation of purchase orders, air shipment etc.”, it said.
“In many cases, these issues including cancellation of the purchase order cause significant financial damages and disrupt overall growth of the industry,” it added.
“Cutting supervision and other supervisions in coordination with the customs officials from the concerned bond comissionarate make the shipment release process much time consuming. The imposition of cutting controls and other control conditions severely interrupts and impedes the production process, making it difficult to produce products and complete the export process on time, subsequently, reducing the amount of overall exports”, it said.
Moreover, the industry fell into crisis due to the Russia-Ukraine war after it was revived through the cooperation of the government and the relentless efforts of the entrepreneurs in the post Covid period, the letter also said.
Due to the economic headwinds triggered by the war, foreign buyers are very cautious in placing purchase orders due to reduced demand for apparels globally and taking long time to clear payments after exports.
