The New Nation - Internet Edition

Staff Reporter

Country’s plastic goods manufacturing and exporting industry is facing immense difficulties and heading towards closure as the import of raw materials become impossible due to a new directive of the National Board of Revenue (NBR).

In the budget for fiscal year 2007-08 the government has set a condition of importing raw materials for the industry with labeling “ imported under bond, not for sale” on the packet

But the suppliers informed the plastic factory owners that they are unable to supply raw materials following the new rules of the NBR as no supplies are being packed for any particular countries. As a result nearly 231 plastic good manufacturing factories and 140 corrugated carton and accessories manufacturing factories, which produces accessories for readymade garment factories, reached to a position of shuting down within the next few days.

The Government set the new rules following plea of Bangladesh Polymar Importers Association where they alleged that plastic factory owners sell the raw materials in the local market after importing those free of duty under bond facilities.

They alleged that plastic goods manufacturers are dodging nearly Tk 400 crore of import duty to the government using the bond facilities and selling the imports in the local market

However, President of the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) Jashim Uddin said, “If applicable, the total duty on raw material import for the industry stand at Tk 270 crore… how come we dodge Tk 400 crore as some news report mentioned being inspired by the Bangladesh Polymar Association leaders?”

Goods or raw materials imported for 100 per cent export oriented industries or for supplying to such industries are entitled for duty free import under bond facilities.

Jasim said they are not geting raw materials for the last couple of months, as the suppliers are unable to do the same following the new condition of the NBR. Most of the factories will be shut down within next few days.

“We are trying to reach NBR Chairman but he is not responding despite several atempts and sending him leters,” he said.

Jasim said he is trying to get an appointment of Chief Adviser to get a solution of the problem of the Tk 1500 crore industry, which is about to be destroyed.

Vice president of the BPGMEA Shahedul Islam Helal said if this backward linkage industry was destroyed, country’s RMG sector might have to face tough situation.

The Ministry of Finance, the NBR and the Bangladesh Polymer Importers Association has to sit together to resolve the problem immediately to save the industry, he said.

Managing Director of BASF, one of the major suppliers of the raw materials for the plastic industry, Faria Sadique told The New Nation that production in their factories is a continuous process. “Our factory does not produce any goods for any specific country… so it is impossible for us to supply goods labeling anything in the package,” he said.

He said, “If the NBR does not lift the condition the plastic factories will get closure due to shortage of raw materials and our business will also fall in problem.”

Executive Director of another raw materials supplier ACI Trading Ltd Ajmal Hossain said his company produces hundreds of thousands of bags for global customers. “Our company has already informed me that it is not possible to produce goods for any specific country with extra care or extra labeling,” he said.