The New Nation - Internet Edition

BSS, Dhaka

The duty free export of readymade garments (RMG) to India is picking up quickly with the volume reaching 0.3 million pieces from early June to the middle of this month.

The Export Promotion Bureau (EPB) has so far issued allocation letters to local exporters for more than 2.0 million pieces as of July 15, out of a total of 8.0 million pieces for the current calendar year. Sources with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) also confirmed the figure saying they are hopeful of achieving the targets within December next. Although the 8.0 million pieces are for the whole year, the delivery of the goods started only in early June.

But given the pace of booking of the export orders, one source said, exporters might even outpace the targets within the stipulated time. "The Indian market has accepted Bangladesh made apparels very positively," he said pointing to its continued stride in the global market as well.

Explaining the process of garment export, one EPB source said, exporters are given allocation letters on the basis of first come first serve basis. He said they are working on the export shipment of the already permitted apparels while the EPB is working on new allocation letters.

He said Indian importers place L/Cs to exporters following clearance by textile committees located in Delhi and Kolkata. They also put on record the import once it cross the Indian customs.

Here in Bangladesh on receipt of the L/Cs, exporters place them to EPB for issuance of the allocation letter. The agency also issue tariff rated quota certificate and the SAFTA certificate to exporters to facilitate the export which is permissible duty free under a special offer of the Indian government.

About half a dozen big Indian business houses are so far taking the bulk of the exports while more buying houses are in the process of placing order with the local manufacturers, the sources informed.

A source in the ministry of commerce said, the RMG export is so far picking up smoothly without any impediment . He said both sides have set up mechanism to implement the scheme and address the problems if any comes up ever on the way.

So far, the delivery is taking place to the satisfaction of both sides, he observed.