BTMA requires duty-free importation of all types of fibers
A file photo shows workers picking up spools of thread at a textile factory on the outskirts of Dhaka. The Bangladesh Textile Mills Association demanded that the government allow duty-free importation of all types of fibers to ensure product and market diversification, as different types of fibers along with cotton are used in the primary textile sector for produce yarns according to global buyers. request.â Photo New Age
The Bangladesh Textile Mills Association demanded that the government allow duty-free importation of all types of fibers to ensure product and market diversification, as different types of fibers along with cotton are used in the primary textile sector for produce yarns according to global buyers. request.
BTMA chairman Mohammad Ali Khokon, in a December 14 letter to the National Revenue Board, imposed four-point requirements, including a value-added tax equal to the rate of Tk 3 per kilogram on sales of all kinds of yarn on the basis of the certification of the trade body.
From now on, VAT Tk 3 is applicable to each kilogram of cotton yarn.
In addition to cotton, the importation of viscose staple fibers, polyester staple fibers, tencel, modal and bottled fibers enjoy tax advantages, but many other fibers are used in the manufacture of yarns, but the spinners must pay high tariffs on fiber imports, the letter mentioned.
He also said that many other new fiber variants will also be used in the coming days due to buyers’ demands and the government is expected to extend duty-free import facilities for all types of fibers.
The trade body proposed that the government set up a permanent oversight committee to examine the importation of yarns through three land ports – Benapole, Bhomra and Sonamasjid – and opposed the partial importation of yarns via land ports.
Before allowing the import of wires through the land ports of Benapole, Bhomra and Sonamasjid, the BTMA asked the government to guarantee the required infrastructure with the installation of wire measuring equipment and a labor force. skilled work to effectively manage the import activities of raw materials in ports.
Now, textile and clothing exporters can import raw materials like cotton, yarns, fabrics and others through bonded warehouse via Benapole, while partial imports are only allowed in the port of Chattogram.
The BTMA also demanded a 1 percent import duty on spare parts used in spinning, fabric and dyeing, printing and finishing plants.
The letter said that although the government allowed the garment and textile industries to import equipment machinery at a 1 percent duty, import duties of up to 104 percent were imposed on machine spare parts.
Due to high import duties on spare parts, the textile sector is losing its competitiveness and the Cree government is calling to allow importation at a 1 percent tariff, the letter said.