BEPZA seeks lifting of ban on yarn import thru' Benapole
Wednesday, 25 November 2009
Doulot Akter Mala
The Bangladesh Export Processing Zones Authority (BEPZA) has sought relaxation of ban on import of yarn through Benapole landport for the textile industries located in EPZ, that remained banned since 2002.
It has urged the NBR to allow import of yarn through the landport for textile industries in EPZ that would reduce 70 per cent time of production.
The government imposed the ban in 2001 on import of yarn through Benapole port for all textile industries to salvage local millers. Later, import of yarn was allowed through the port in 2006 for only knitwear industries enjoying bonded warehouse facility.
"We have made the request following the demand of investors in the EPZ," said Executive Chairman of BEPZA Brig. General Jamil Ahmed Khan.
EPZ industries cannot import yarn through the landport although it is allowed for knitwear industries with bond facility, he said.
"BEPZA has requested the NBR to explore the possibility to allow import of yarn for both woven and knitwear industries in EPZ," he said.
The BEPZA executive chairman recently made the request to the National Board of Revenue (NBR) in a letter.
EPZ industries have been importing yarn through Chittagong sea-port after imposition of the ban in 2002.
"It takes 10-12 days to import yarn through Benapole port while EPZ industries have to wait 30-45 days to import the same via Chittagong port," the letter said.
EPZ industries are also facing storage problems as they have to import a huge quantity at a time to speed up production activities, it added.
"The government has re-opened yarn import through Benapole port in 2006 for knitwear industries only. Now, it can consider allowing the woven industries to enjoy the same facility," the BEPZA chief said in the letter.
The government banned yarn import through Benapole landport in March 2001 to prevent unscrupulous businessmen from importing or smuggling yarn by taking advantage of inadequate infrastructure facility at the landport.
In 2006, the government has withdrawn the restriction only for knitwear industries enjoying bond facilities following demand of exporters.
Talking to the FE, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Fazlul Haque said: "We are not opposing the matter. The government should open up the landport for all as the world is now adopting an open-market policy."
It is not logical to restrict yarn import for checking smuggling and other irregularities, he said adding that the government should address the loopholes rather than discourage yarn import through the port.
Asked about the issue, a senior customs official said the government has tagged a number of tough conditions as non-tariff barriers to discourage import of yarn through the port for the sake of local industries, said.
The official said: "But EPZ knitwear industries with bonded warehouse facility were subsequently allowed to import yarn through the landport. For this, the NBR had to incorporate the provision in the existing order."
There would be a level-playing field for knitwear industries inside and outside EPZ if the government allows the import, he added.
The Bangladesh Export Processing Zones Authority (BEPZA) has sought relaxation of ban on import of yarn through Benapole landport for the textile industries located in EPZ, that remained banned since 2002.
It has urged the NBR to allow import of yarn through the landport for textile industries in EPZ that would reduce 70 per cent time of production.
The government imposed the ban in 2001 on import of yarn through Benapole port for all textile industries to salvage local millers. Later, import of yarn was allowed through the port in 2006 for only knitwear industries enjoying bonded warehouse facility.
"We have made the request following the demand of investors in the EPZ," said Executive Chairman of BEPZA Brig. General Jamil Ahmed Khan.
EPZ industries cannot import yarn through the landport although it is allowed for knitwear industries with bond facility, he said.
"BEPZA has requested the NBR to explore the possibility to allow import of yarn for both woven and knitwear industries in EPZ," he said.
The BEPZA executive chairman recently made the request to the National Board of Revenue (NBR) in a letter.
EPZ industries have been importing yarn through Chittagong sea-port after imposition of the ban in 2002.
"It takes 10-12 days to import yarn through Benapole port while EPZ industries have to wait 30-45 days to import the same via Chittagong port," the letter said.
EPZ industries are also facing storage problems as they have to import a huge quantity at a time to speed up production activities, it added.
"The government has re-opened yarn import through Benapole port in 2006 for knitwear industries only. Now, it can consider allowing the woven industries to enjoy the same facility," the BEPZA chief said in the letter.
The government banned yarn import through Benapole landport in March 2001 to prevent unscrupulous businessmen from importing or smuggling yarn by taking advantage of inadequate infrastructure facility at the landport.
In 2006, the government has withdrawn the restriction only for knitwear industries enjoying bond facilities following demand of exporters.
Talking to the FE, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Fazlul Haque said: "We are not opposing the matter. The government should open up the landport for all as the world is now adopting an open-market policy."
It is not logical to restrict yarn import for checking smuggling and other irregularities, he said adding that the government should address the loopholes rather than discourage yarn import through the port.
Asked about the issue, a senior customs official said the government has tagged a number of tough conditions as non-tariff barriers to discourage import of yarn through the port for the sake of local industries, said.
The official said: "But EPZ knitwear industries with bonded warehouse facility were subsequently allowed to import yarn through the landport. For this, the NBR had to incorporate the provision in the existing order."
There would be a level-playing field for knitwear industries inside and outside EPZ if the government allows the import, he added.