Govt seeks necessary steps to stop yarn import thru’ land ports

Muhammad Ayub Ali :

Aiming to protect the domestic yarn industry the Ministry of Commerce directed the concerned authorities to take necessary measures to stop the import the item (yarn) through land ports.
This information was revealed in a notification signed by the Ministry’s Deputy Secretary Maksuda Khandaker on Thursday.
Earlier, the Bangladesh Textile Mills Association (BTMA), an organization of yarn and textile mill owners, demanded a ban on yarn import through land ports in a letter to Finance Advisor Dr. Salehuddin Ahmed recently.
The letter, signed by BTMA President Shawkat Aziz Russell, was also given to the National Board of Revenue (NBR) mentioned that the previous government allowed yarn imports through land ports through policy changes.
Due to the lack of necessary infrastructure, yarn count measuring equipment, skilled manpower and proper control by the concerned authorities at Benapole, Bhomra, Sonamasjid, Banglabandha and other land ports or customs houses, import and export trade is not being managed properly to a large extent.
However, these land ports do not have the necessary infrastructure or technical capacity to verify the quality of yarn and collect customs duties.
Although only partial import was allowed, it is being widely misused which is affecting local yarn mills.
In addition, the letter states that in the import of yarn through land ports, textile mills are facing unequal competition due to the widespread marketing of unauthorized yarn through false declarations, and at the same time, the government is being deprived of fair revenue.
Since the suicidal decision to allow partial shipment in the case of yarn import is in place, this opportunity is being misused and more yarn is being intruded under the same LC than is approved multiple times.
The notification said that information provided by the Bangladesh Textile Mills Association, taking the opinions of stakeholders and necessary investigations have shown that yarn imports from land ports are significantly undervalued compared to the prices declared at the Chittagong Custom House in all types of yarn imports in Bangladesh.
The notification said that domestic yarn-producing companies are not able to compete with this undervalued price.