BGMEA, BKMEA oppose 20pc safeguard duty on imported cotton yarn

The country's two leading apparel trade bodies, BGMEA and BKMEA, have strongly opposed the Bangladesh Trade and Tariff Commission's proposal to impose a 20 per cent safeguard duty on imports of cotton yarn up to 30 counts. In separate letters sent to the Tariff Commission on January 6, both associations voiced their concerns, alleging that the proposal was made without consultation with them although they relies heavily on imported yarn for exportable garment production. The Tariff Commission held discussions only with the Bangladesh Textile Mills Association (BTMA) prior to making the proposal, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The associations also alleged that the Tariff Commission did not follow procedures mandated by the World Trade Organisation (WTO) in making the proposal, such as consultation with yarn-exporting countries, filing of complaints, organising public hearings, and sending notification to the WTO. The proposed safeguard duty targets 100 per cent cotton yarn ranging from 10 to 30 counts. Sources said the Tariff Commission held a meeting with BTMA on January 5, but BGMEA and BKMEA were not invited for consultation. Following the protests from the two trade bodies, the Tariff Commission will sit with BGMEA and BKMEA today (Thursday), they added. The BGMEA and BKMEA also made an appeal to the Tariff Commission not to impose any safeguard duty on the imported yarn. Munni_fe@yahoo.com