The New Nation - Internet Edition

UNB, Dhaka

Bangladesh Textile Manufacturers' Association (BTMA) strongly opposes the government decision about relaxation of conditions on import of yarn through Benapole land port for the 100 percent export-oriented knitwear industry enjoying bonded warehouse facility.

The measure came into effect on Tuesday (July 1).

BTMA president Abdul Hye Sarker at a press conference yesterday alleged that the government took the decision to make a certain quarter happy. "The government should suspend the new system until having dialogue with sub-sectors," he said.

The BTMA president said the decision has gone against the interest of the yarn sector, causing piling up of thousands of tons of yarn in the gowdowns of mills across the country.

Yarn import through the land port remains almost standstill due to procedural complexities despite withdrawal of a ban two years ago.

There have been procedural problems relating to customs, bond license and chemical tests despite withdrawal of the ban on use of the land port for yarn import.

In February 2006, the government imposed some conditions on import of yarn through Benapole land port.

The imports were subject to examination of the count of yarn and chemical test. Such tests require at least seven days before the release of yarn from the port involving higher cost.

The National Board of Revenue (NBR) has issued an order to the Benapole port authority removing the complexities.

Knitwear exporters now can import yarn complying with only three conditions that include the import of yarn within the allowable annual limit, against back-to-back letter of credits (L/Cs) and import should be coordinated against utilisation of declaration (UD).