Customs officials accuse 12 garment exporters of selling bonded textiles in the local market after neglecting to account for duty-free imports under the bond facility, amidst growing concerns over bond facility misuse.
Nine of these garment exporters have been discovered by the Customs Intelligence and Investigation Directorate (CIID), and three more have been highlighted by the Customs Bond Commissionerate, Dhaka North.
Additional anomalies are anticipated to come to light during ongoing audits of more exporters, according to officials from both agencies under the National Board of Revenue (NBR).
Under the bond facility, the government permits the duty-free importation of raw materials like yarn and textiles in order to encourage exports. These materials must only be used to make export items and kept in approved warehouses. Local sales of bonded fabrics are subject to taxes that range from 45% to 89%. Most export-oriented factories operate under bond licences, granting them duty-free import privileges. However, some bond-holding enterprises have long been accused by local textile mill owners of impeding fair competition by rerouting imported materials to the domestic market.
Speaking on condition of anonymity, a Director of the Bangladesh Textile Mills Association (BTMA) informed TBS that during the previous eight months, the import of fabric through bond misuse has increased by 65%.
Between mid-2024 and mid-2025, factory raids and cutting inspections revealed inconsistencies in the nine factories that CIID had warned. According to officials, legal action has already started. TBS got a copy of the list of the nine exporters, which has been forwarded to the NBR.
Before the factory begins cutting the fabrics and associated materials for production, Customs Bond officers physically inspect them during a cutting inspection.
“Recently, during our raids, we discovered misuse of bonded facilities in three garment factories,” Customs Bond Commissioner Mia Md Abu Obaida said in reference to the three factories that the Dhaka North Commissionerate had identified. “We’re still working to stop these kinds of infractions.”
Owners of textile mills contend that not much has been done to stop the abuse of bonded imports, even after numerous requests to the NBR. They claimed that despite their repeated notifications to the NBR Chairman and other high-ranking officials, no concrete action was taken, which upset them.
Due to customs officials’ disinterest and a 32% waste allowance for knitwear exporters, a significant amount of illegally imported yarn and fabrics are being marketed locally, making it impossible for domestic mills to compete, according to Khorshed Alam, Chairman of Little Star Spinning Mills.
He went on to say that local mills only sell US $ 7.5 billion worth of yarn and textiles a year, despite the fact that the domestic garment market is valued at over US $ 12 billion. “The remaining US $ 4.5 billion worth of materials are sold illegally, which is one of the main reasons local mills struggle to sell their yarn,” he stated. However, NBR officials insisted that efforts are still being made to reduce infractions. The Dhaka South Bond Commissionerate’s top official stated, “We are conducting audits and have not halted our activities.”
NBR Chairman Abdur Rahman Khan issued a warning earlier on 28th August that any business discovered to be selling bonded items on the open market will have its bond license immediately withdrawn.
