Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded implementation of government’s directive on 12 per cent waste for making fabrics from yarn for the deemed knitwear exporters to make the export-import business easier and enhance the capacity.
As per the government directive, the waste rate for making fabrics from yarn is 12 per cent for the country’s export-oriented knitwear deemed exporters.
BGMEA sent a letter to the National Board of Revenue (NBR), urging them to implement the revised wastage rate in production of fabrics from yarn, and clothes from fabrics in case of export-oriented knit industrial establishments.
In the letter, BGMEA President Faruque Hassan requested the NBR chairman to issue necessary instructions to the bond commissionerates concerned so that garment industries can conduct the export activities and increase the export capacity as well as the country’s forex reserves.
He said that in the case of knit garments, the Ministry of Commerce revised the rate of wastage in the production of clothes from yarn, and later the revenue board issued a directive to carry out the production activities as per the revised rate of wastage.
However, the bond commissionerates concerned issued UP at pre-fixed wastage rate in producing fabrics from yarn from the duty exemption and drawback office (DEDO) as there is no directive from the revenue board that the revised wastage rate will be applicable to shadow exporters, the organisation is informed by its some members.
“As a result, the export activities are severely hampered and the companies suffer financial losses and lag behind in their export capacity,” the letter reads.
The commerce ministry clearly mentioned that the previous wastage rate in manufacturing fabrics from yarn and clothes from fabrics for knit garments is cancelled and it will be applicable to the revised rate.
Bangladesh’s export earnings rose by 15.26 per cent to $4.59 billion in July, the first month of the current fiscal year (FY24), riding on the clothing items.
In July FY23, export growth was $3.98 billion, according to Export Promotion Bureau (EPB) data. Out of the total export earnings, $3.95 billion came from RMG products. The sector posted a 17.43 per cent growth against $3.36 billion earnings in July last year.
Knitwear products earned $2.26 billion, up by 22.24 per cent, which was $1.85 billion last year. Woven items shipment rose by 11.54 per cent to $1.51 billion.
