The government has relaxed conditions on import of yarn through Benapole land port for 100 per cent export-oriented knitwear industry enjoying bonded warehouse facility.
The measure came into effect from Tuesday (July 1).
Yarn import through the land port remains almost standstill due to procedural complexities despite withdrawal of a ban two years ago.
It will be easier from now on, officials said.
There have been procedural problems relating to customs, bond licence and chemical tests despite withdrawal of the ban on use of the land port for yarn import.
In February 2006, the government imposed some conditions on import of yarn through Benapole land port.
The imports were subject to examination of the count of yarn and chemical test.
Such tests require at least seven days before the release of yarn from the port involving higher cost.
The National Board of Revenue (NBR) has issued an order to the Benapole port authority removing the complexities.
From the current fiscal, knitwear exporters could import yarn complying with only three conditions that include import of yarn within the allowable annual limit, against back-to-back letter of credits (L/Cs) and import should be coordinated against utilisation declaration (UD).
Knitwear manufacturers repeatedly demanded for simplification of procedures in yarn import from India through Benapole land port amid rising prices of the item in the local market.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) sources said Bangladesh's position as a knitwear exporting country would be strengthened in the international market with the relaxation of procedures for import of yarn using Benapole land port.
Talking to the FE, BKMEA vice president MA Baset said: "It is a positive decision for knitwear exporters. Exporters earlier felt discouraged to import yarn through Benapole port due to the complex procedures."
He said the exporters could import yarn through Chittagong port without any limitation of capacity, which is still enforced in the Benapole port.
He demanded complete withdrawal of the limitation on capacity to boost export of knitwear of the country.
Knitwear exporters said they will get competitive price if availability of yarn is ensured.
Bangladesh Textile Mills Association (BTMA) president Abdul Hai Sarker said: "With the relaxation of import procedure, the government should keep close watch on misuse of bond facility to save the local spinning mills."
As there is lack of adequate infrastructure facility at Benapole port, the government will have to check import documents properly, he said.
Yarn is the main raw material for production of knitwear that shares around 60 per cent of export value.
The knitwear export alone fetched US$ 4.5 billion in fiscal 2006-07.
Conditions on yarn import through Benapole relaxed
Doulot Akter Mala | Published: July 02, 2008 00:00:00 | Updated: February 01, 2018 00:00:00
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