Apparel accessories exports could top $12b by 2018***
Wednesday, 4 May 2011
Sonia H Moni
Overseas sales of garment accessories could top US$12 billion by 2018 on strong shipments of apparel items, says a leader of the backward linkage industry. Rafez Alam Chowdhury, president of Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association (BCCAMEA) the packaging and accessories manufacturers earned $1.8 billion in exports in 2009-10 fiscal year. "We're expecting to earn $2.4 billion at the end of this fiscal. And exports can reach $12 billion over the next seven years if we get the policy support," he told the FE in an interview. Exports of garment accessories are growing at an annual 10 per cent, with shipment going to Canada, Middle East, South Africa, and South Asian region. The backward linkage industry makes around 35 items including button, carton, package, elastic, drawstring, embroidery, interlining, label, padding, poly bag, sewing thread, zipper, plastic items, back board, neck board, gum tap, bar code and so on. The association chief said, "Once upon a time the country's readymade garments were totally dependent on imports of packaging and accessories. Now we can export after meeting our domestic demand." "10 to 12 years back, our clients used to give us one month to two months for the required delivery. Today, the situation is totally different. We can deliver order within one or two days and in case of emergency, we can supply any product from ready stock as per the client's requirement. " Mr. Chowdhury said local manufacturers are providing packaging solution to leather, pharmaceutical, and frozen fish industries besides the apparel sector. But he said the sector is facing problems such as complexities in bond license and transfer of Utilisation Processing (UP) certificate to BCCAMEA, withdrawal of bank guarantee for import of plastic raw materials, and non-availability of cash incentive and Export Development Fund. The association chief said the National Board of Revenue (NBR) should issue bond license for three years by keeping a certain amount. He said, "This will help the people get the raw materials faster from the domestic ports and it will not delay shipment. Otherwise, we have to wait for a long period to get the license renewal." He added that BGMEA (Bangladesh Garment Manufacturers and Exporters Association) and BKMEA (Bangladesh Knitwear Manufactures and Exporters Association) are getting UP facilities for importing raw materials. Mr. Chowdhury urged the government to reduce taxes at source from 0.50 per cent to 0.35 per cent and keep tax holiday facilities for five years more to encourage new entrepreneurs. He said the association had a meeting with Bangladesh Bank and the central bank agreed to provide some facilities like retention of certain amount of foreign exchange and timely payment of export bill. He also said the sector is suffering from high bank interest rates, which have risen to 16-17 per cent due to liquidity crisis. Mr Chowdhury said the government has a fund for export development, which can be disbursed in bulk size. The BCCAMEA has around 1000 members and half of them are involved in packaging for readymade garments. He urged the government to make an industrial park for the backward linkage industry of RMG and make an institute for skilled workers to increase productivity.
Overseas sales of garment accessories could top US$12 billion by 2018 on strong shipments of apparel items, says a leader of the backward linkage industry. Rafez Alam Chowdhury, president of Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association (BCCAMEA) the packaging and accessories manufacturers earned $1.8 billion in exports in 2009-10 fiscal year. "We're expecting to earn $2.4 billion at the end of this fiscal. And exports can reach $12 billion over the next seven years if we get the policy support," he told the FE in an interview. Exports of garment accessories are growing at an annual 10 per cent, with shipment going to Canada, Middle East, South Africa, and South Asian region. The backward linkage industry makes around 35 items including button, carton, package, elastic, drawstring, embroidery, interlining, label, padding, poly bag, sewing thread, zipper, plastic items, back board, neck board, gum tap, bar code and so on. The association chief said, "Once upon a time the country's readymade garments were totally dependent on imports of packaging and accessories. Now we can export after meeting our domestic demand." "10 to 12 years back, our clients used to give us one month to two months for the required delivery. Today, the situation is totally different. We can deliver order within one or two days and in case of emergency, we can supply any product from ready stock as per the client's requirement. " Mr. Chowdhury said local manufacturers are providing packaging solution to leather, pharmaceutical, and frozen fish industries besides the apparel sector. But he said the sector is facing problems such as complexities in bond license and transfer of Utilisation Processing (UP) certificate to BCCAMEA, withdrawal of bank guarantee for import of plastic raw materials, and non-availability of cash incentive and Export Development Fund. The association chief said the National Board of Revenue (NBR) should issue bond license for three years by keeping a certain amount. He said, "This will help the people get the raw materials faster from the domestic ports and it will not delay shipment. Otherwise, we have to wait for a long period to get the license renewal." He added that BGMEA (Bangladesh Garment Manufacturers and Exporters Association) and BKMEA (Bangladesh Knitwear Manufactures and Exporters Association) are getting UP facilities for importing raw materials. Mr. Chowdhury urged the government to reduce taxes at source from 0.50 per cent to 0.35 per cent and keep tax holiday facilities for five years more to encourage new entrepreneurs. He said the association had a meeting with Bangladesh Bank and the central bank agreed to provide some facilities like retention of certain amount of foreign exchange and timely payment of export bill. He also said the sector is suffering from high bank interest rates, which have risen to 16-17 per cent due to liquidity crisis. Mr Chowdhury said the government has a fund for export development, which can be disbursed in bulk size. The BCCAMEA has around 1000 members and half of them are involved in packaging for readymade garments. He urged the government to make an industrial park for the backward linkage industry of RMG and make an institute for skilled workers to increase productivity.