NBR bans yarn import through land ports

The National Board of Revenue (NBR) has declared a ban on yarn import through all land ports in the country.

However, import of yarn via seaports or other means will be allowed.

The customs wing issued a gazette notification on Tuesday in this regard.

The notification was an amended one of the earlier issued on August 27, 2024.

The notification, signed by NBR Chairman Md. Abdur Rahman Khan, said the import of yarn through all land ports- including Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari- is now prohibited.

However, the import of other products through these ports will continue as usual, according to previous directives.

Earlier, in February this year, the Bangladesh Textile Mills Association (BTMA) demanded a halt to Indian yarn import via land routes.

The association claimed that the entry of Indian yarn at relatively low prices was causing significant financial losses to local yarn producers.

In March, the Bangladesh Trade and Tariff Commission sent a letter to the NBR chairman, recommending a temporary suspension of yarn import through the land ports to protect the domestic textile industry.

According to the Tariff Commission, land ports in the country still lack the necessary infrastructure to determine and test yarn counts according to international standards. In light of this, they advised allowing yarn imports only via seaports.

According to various sources, yarn produced in northern and southern regions of India is first stockpiled in warehouses in Kolkata and then exported to Bangladesh. This yarn primarily entered the country through land ports and was relatively cheap in price. As a result, local yarn manufacturers in Bangladesh were struggling to sell their own products.

Although the prices of yarn from China, Turkey, Uzbekistan, and local Bangladeshi sources are similar, the yarn coming from India via land routes is significantly cheaper-even cheaper than the officially declared prices at Chattogram Customs House.

BTMA president Showkat Aziz Russel welcomed the decision, hoping that import of yarn through seaports would help the NBR check irregularities.

"This decision resolves one of the many existing problems in the country's textile sector."

It will strengthen the textile industry, particularly the backward linkage industries, leading to savings in valuable foreign currency and increased value addition, he said.

In addition, it will help prevent the illegal outflow of money through hundi and significantly boost government revenue, he added.

"It is worth mentioning that in 2002, under the leadership of the then Finance Minister M. Saifur Rahman, a similar decision was taken and it resulted in remarkable progress in the country's primary textile industry," Mr Russel said.

Mohiuddin Rubel, former director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Additional Managing Director of the Denim Expert Ltd, said the ban would affect the small and medium exporters who used to import yarn through the land port at lower costs to meet lead time.

"Competitiveness of small and medium sized exporters would be challenged," he said, suggesting that the government frame survival strategies for cushioning the loss due to the latest ban.

doulotakter11@gmail.com