BTTC backs BTMA's plea to raise tariff value

The Bangladesh Trade and Tariff Commission (BTTC) has backed a plea of local textile millers who demanded refixation of tariff value of imported fabric.
The millers have also demanded the setting unit of fabric in meter instead of kilogram.
The commission's support came as the millers have been failing to compete with imported fabric whose tariff value is reportedly set at lower than global prices.

"…the local traders are 'misusing the duty support' and importing fabric as their tariff value is set at lower than international market price," opined the BTTC.
If the tariff value is set taking into consideration local production costs and international market prices, it said, the protection of local mills will be ensured.
Presently, there is 89.32-per cent duty on fabric import and tariff value is set at various rates in different types of fabric.
A BTTC analysis finds that the price of imported fabric which is brought without duty and through bonded system is higher than that of the fabric imported with duty.
"The local millers are facing an uneven competition due to low tariff value," the commission noted.
There are an estimated 500 spinning mills, 500 weaving mills, and 300 dyeing and printing mills in Bangladesh.
The annual production capacity is 3.2-billion kilogram of yarn, 6.5-billion meters of fabric while the fabric processing capacity is 7.5-billion meters.
Quoting Bangladesh Textile Mills Association (BTMA) data, the BTTC said the country's annual demand for fabric is 6.5-billion meters now.
The demand can be met by local production, it cited.
The commission said the measuring unit of fabric in the international market is set in terms of meter, but it is calculated in terms of kilogram in Bangladesh.
In line with the BTMA's demand, it suggested a change in the calculation method.
BTMA president Mohammad Ali Khokon told the FE on Tuesday that they are yet to get a positive response from commerce ministry to this regard.
"We're pursuing the matter," he said, hinting the holding of a press meet on this issue soon.
Bangladesh Knitwear Manufactures and Exporters Association first vice-president Mohammad Hatem admitted that local fabric production costs are higher than the imported one when compared to the Chinese one.
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