BTMA urges data-driven policy to protect spinning industry

The Bangladesh Textile Mills Association (BTMA) has said that withdrawing the bond facility for importing 10-to-30-count cotton yarn does not mean an import ban or impose any new duty.
In a statement issued on Sunday, the association called for a data-driven policy to protect the country’s primary textile sector, particularly spinning, while ensuring fair competition and export competitiveness.
BTMA said the National Board of Revenue (NBR), following a decision by an inter-ministerial committee, had issued an order imposing no new duty or tax. Imports remain permitted against bank guarantees equivalent to the applicable duties and taxes.
According to the association, banks usually issue such guarantees against their non-funded exposure, meaning importers’ working capital is unlikely to be squeezed.
The arrangement is not intended to obstruct legitimate imports or exports, but to prevent misuse of the facility, protect government revenue and ensure fair competition between domestic and imported yarn, it said.
$32b investment at stake
BTMA said the spinning industry represents an investment of US$32 billion, backed by extensive production infrastructure and a large workforce.
Restoring the sector’s production and financial capacity could help reopen closed and partially closed spinning and weaving mills, preserve existing jobs and create new ones, it said.
Normal factory operations would also improve bank loan recovery and ease the burden of defaulted loans, the association added.
BTMA said the issue extends beyond a single industrial sector, involving investment protection, financial-sector stability and the national economic interest.
Two-point appeal to govt
BTMA has placed two proposals before the Prime Minister and relevant government authorities.
First, it urged the government to retain the decision to withdraw the bond facility for 10-to-30 English-count (Ne) cotton yarn, equivalent to approximately 16.93-to-50.80 metric count (Nm), while continuing the bank-guarantee-based import system for genuine exporters.
Second, it proposed reinstating the 30% local value addition requirement for raw materials imported by non-bonded industries against bank guarantees.
Considering World Trade Organization (WTO) provisions, rules of origin and two-stage transformation requirements ahead of Bangladesh’s graduation from least developed country (LDC) status, BTMA also called for a policy framework to progressively achieve a minimum of 40% to 60% local value addition after graduation.
Implementing the proposals would help preserve the spinning industry’s investment and production capacity, create jobs, improve bank loan recovery and foster an environment conducive to export growth, the association said.
BTMA called for a transparent, balanced and long-term policy framework developed through constructive discussions with all stakeholders.
It said the domestic spinning and garment industries complement each other, adding that coordinated efforts to strengthen their capacity and competitiveness could provide a firm foundation for Bangladesh’s long-term industrial development, employment and export growth.