The National Board of Revenue (NBR) has announced a ban on the import of yarn and several other products through Bangladesh’s land ports, responding to persistent requests from local textile millers. The gazette notification was issued on 15th April, replacing a previous directive from 27th August 2024.
The new regulations prohibit the import of yarn through all designated land ports, including Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari. However, other goods can still be imported through these ports without restrictions, and importers are permitted to bring in yarn via seaports and airports.
This move follows a request from the Bangladesh Textile Mills Association (BTMA) in February, urging the Government to stop Indian yarn imports via land routes due to concerns about under-invoicing that threaten the domestic textile industry.
The Commerce Ministry had previously directed the NBR to take action against yarn imports through land ports, citing significant discrepancies between the declared values of imported yarn and the prices established at the Chattogram Customs House. These price differences have made it increasingly challenging for local yarn manufacturers to compete, as Indian yarn is often available at lower prices due to being stockpiled in Kolkata warehouses before rapid shipment to Bangladesh.
Despite support from textile millers, the decision has raised concerns among apparel manufacturers. During a pre-budget discussion at the NBR, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), expressed that the ban could negatively impact small and medium garment industries by limiting their ability to import yarn quickly, thereby increasing costs. Hatem urged for a six-month extension of the current import facilities.
NBR Chairman Abdur Rahman Khan stated that the decision had already been finalized in a high-level Government meeting and could not be revisited. The decision comes amid reports that India has recently revoked its transshipment facility for Bangladesh in light of the country’s new restrictions on yarn imports through land ports.
