The importation of sarees, lehengas, and other garments from India and Pakistan has become a worrying trend in Bangladesh as the desire for traditional clothing rises in the run-up to Eid. According to investigations, companies are avoiding customs charges by claiming prices for these products that are much lower than their market value.
A recent report from the Bangladesh Trade and Tariff Commission (BTTC) highlighted that high-quality sarees, which are being sold for over Taka 100,000 in shops, are being imported with declared values as low as Taka 60 per piece. Similarly, exquisite lehengas are reported to have been declared at just Taka 105 to Taka 120. This discrepancy raises suspicions about the integrity of customs declarations and the impact on local markets.
Dr. Moinul Khan, chairman of the BTTC, confirmed the findings of the report, stating that the volume of legally imported garments is alarmingly less than what is available in local markets. He urged customs authorities to conduct physical examinations of imported goods to combat the issue of false declarations and recommended that taxes be collected on imported fabrics and clothing in accordance with existing regulations.
A clothing shop owner from Bashundhara City Shopping Mall, who imports garments from India and Pakistan, expressed confusion over how such low prices are declared for high-quality clothing. The report underscores that the annual demand for clothing in Bangladesh is approximately 800 crore meters, with only a small portion being met by local production.
The BTTC’s report further revealed significant figures regarding clothing imports: in the last two fiscal years (FY23 and FY24), sarees worth Taka 13,000 crore and Taka 13,635 crore were imported, with a substantial portion coming from India. Additionally, three-piece suits and lehengas worth Taka 2,179.84 crore and Taka 1,531.56 crore were also imported during the same period.
The volume of two- and three-piece sets and lehengas imported from India has increased, yet the average declared prices are alarmingly low compared to the market rates. The BTTC noted that the rampant smuggling of foreign clothing and fabrics into Bangladesh is detrimental to local industries.
As Eid approaches, the call for stricter enforcement of customs regulations and accurate price declarations grows louder, with hopes of protecting local businesses and ensuring fair market competition.
