Bangladesh’s two leading apparel bodies, BGMEA and BKMEA, have called on the government to reverse a Commerce Ministry move to scrap the bond (duty-free) facility on cotton yarn imported from India, arguing the step would raise input costs, erode competitiveness, and deepen an ongoing export slowdown.
At a joint press conference in Dhaka’s Sonargaon Hotel, BGMEA acting president Selim Rahman said the recommendation—advanced by the Bangladesh Trade & Tariff Commission (BTTC)—was taken “unilaterally” and overlooked apparel sector interests, despite exporters being the primary buyers of locally spun yarn. He further contended the decision breaches WTO Safeguards Agreement Articles 3 and 4, noting that no transparent, neutral injury investigation has demonstrated “serious harm” to domestic spinners.
Rahman argued the spinning industry needs capacity upgrades, productivity gains, reliable energy, and targeted incentives, not “artificial protection” via tariffs. He warned that adding duty costs now would deter orders: RMG exports fell 2.63% year-on-year in July–December FY2025–26, with December alone down 14.23%.
The associations pressed for alternatives to a tariff hike:
- Direct cash support/special incentives for textile producers instead of import duties;
- Assured gas and power, fuel price rationalization, corporate tax relief for export-oriented yarn makers, and concessional finance to cut spinning costs.
Leaders present included BGMEA senior vice-president Inamul Haque Khan, vice-president Shihab Uddowza Chowdhury, BKMEA president Mohammad Hatem, and executive president Fazle Shamim Ehsan.
Since the 1980s, Bangladesh has allowed duty-free yarn imports under bond to keep the RMG sector competitive. Local spinners have recently pushed back, citing cheaper Indian supplies and industry strain. BTTC backed the spinners’ position, and the Commerce Ministry has decided to withdraw the bond benefit for Indian cotton yarn—a step the apparel bodies say would ripple through export-oriented sub-contractors and smaller factories as well.