Apparel-makers seek NBR’s help for simplifying business
Apparel-makers say reaching the government set export target will be impossible if they are disturbed by a fault-finding attitude
Garment sector entrepreneurs have sought the intervention of the National Board of Revenue (NBR) to curb numerous duty issues and harassment in raw materials and accessories import.
In a meeting with the revenue board Wednesday, they raised a number of issues such as missing the export lead time due to raw materials and accessories stuck up at port, unrealistic wastage rates for knitwear-making from yarn and a lengthy supervision by revenue officials of cutting at factories.
Representatives of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) raised the issue at a meeting with NBR Chairman Abu Hena Md Rahmatul Muneem, according to sources.
Keep updated, follow The Business Standard's Google news channel
Garment entrepreneurs said most of the applications by export-oriented industries seeking their raw materials to be enlisted with the harmonised system code are not accepted, putting the exporters in trouble.
According to apparel-makers, they need to import new types of raw materials that are not the NBR's harmonised list owing to a constantly changing market.
They demanded the release of the imported raw materials without any bank guarantee or duty if the harmonised system code of the product is mentioned in the utilisation declaration by the BGMEA or the BKMEA.
Except for the prohibited goods, BGMEA also proposed issuing bond licences and providing a harmonised system code upon application by the exporters and their concerned association.
Meanwhile, knitwear garment exporters sought raising the permissible wastage rates to 38%-55% – up from the ceilings proposed by a commerce ministry committee.
Md Shahidullah Azim, acting president of BGMEA who was present at the meeting, told The Business Standard that the government has set a $50 billion apparel export target. Therefore, business activities need to be simplified.
"We will not be able to reach that goal if we are disturbed by a fault-finding attitude. We often run out of export lead time to settle the HS code issues and get the orders cancelled eventually. We want business to be easy."
He said talks with the NBR have been fruitful, and the association is hopeful about getting the issues resolved soon.
