Home textile millers again seek yarn import at concessional rates

Home textile and terry towel makers have again demanded import of yarn at a concessional rate of duty for those exporters having no bond licence to maintain the export orders amid the growing yarn crisis.

The Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) again wrote to the National Board of Revenue (NBR) and the commerce ministry, finance ministry seeking permission to import yarn count 6s-20s at concessional tariffs.

Earlier, the organisation sent separate letters to the two ministries and National Board of Revenue, demanding import of yarn at the reduced rate of tax.

The letter, signed by BTTLMEA President M Shahadat Hossain Shohel, has requested for the authorisation of the import of 6 to 20 count yarn, the import of yarn at a discounted or reduced rate, imports by sea, land and rail, including other land ports.

It was also demanded to allow partial shipment of yarn against the same letter of credit (LC).

Exporters without any bond licence currently have to pay a 37% duty to import yarn.

About 90 % of the country's home textile exporters do not have bond licenses as most of them have relatively small capital. Due to this, they are not able to import due to high tariffs even in the current yarn crisis, said the people concerned.

"The statement made by the local textile mill owners that the price of yarn in our country is reasonable and normal compared to other countries is not logical," the letter reads.

The letter mentioned the comparative prices of the same count of yarn in Bangladesh, India, Pakistan and Turkey.

It also noted that Bangladesh's textile mill owners are in a better position than other countries in terms of electricity and gas prices and labour wages. However, local textile mill owners are misusing the facilities during the yarn crisis.