Bangladesh’s businessmen were facing the same problem of denial of import of textile raw material from India through land route. However now the government of Bangladesh has allowed its apparel sector to import Indian yarn in partial shipments through land routes.

The partial shipments now could be cleared through Benapole, Bhomra, Sonamasjid, and Banglabandha land ports. An official notification in this regard has also been issued. The facility however would be available to export-oriented industries having licensed bonded warehouses. The importers would be required to show that the yarn was consumed in producing exported garments only. They will maintain a record that can be checked by the authorities. Earlier apparel exporters were allowed to import yarn through two land routes but partial shipment was not allowed.

The apparel makers have since long been demanding the government to allow the import of raw materials, like cotton, yarn, and fabrics in partial shipments through all the land ports between Bangladesh and India. Partial shipment, however, was allowed through the seaport of Chittagong port. All textile exporting associations have been and partial shipment of yarn on all the land ports. They contended that domestic yarn price was higher than global rates which impacted the competitiveness of their products.

Meanwhile, the spinning industry of Bangladesh has protested against this permission. They say that it would hurt local yarn producers. In a letter to the National Bureau of Revenue, the representative association of spinners has opposed the decision. They apprehend that several shipments would take place against one letter of credit. They fear an additional quantity of products would enter the country without paying taxes. This would be injurious to the local mills.

Source : textalks