As Eid-ul-Fitr approaches, the Bangladesh Trade and Tariff Commission has issued a warning regarding the rising threat of textile smuggling and importation of garments, which poses a significant risk to the local textile industry. The commission’s concerns come amid a surge in demand for apparel during the country’s biggest shopping festival.
In a report released recently, the commission highlighted the urgent need for protective measures to shield the domestic textile market from the growing influx of imported garments. With an estimated Taka 170,000 crore in business anticipated ahead of Eid, and over Taka 37,000 crore earmarked specifically for clothing, local producers are increasingly vulnerable to competition from smuggled goods.
The Bangladesh Jamdani Manufacturers and Exporters Association (BJMEA) has voiced alarm over the influx of imported sarees, three-piece suits, lehengas, and other garments that threaten the livelihoods of local weavers and manufacturers. The tariff commission’s analysis indicates that a considerable volume of apparel is entering the market through both legal and illegal channels.
Statistics reveal that saree imports from India alone reached 3,300 tonnes in the fiscal year 2022-2023, valued at Taka 28.26 crore, before declining to 2,526 tonnes in FY ’24, valued at Taka 25.89 crore. Similarly, imports of three-piece dresses and lehengas surged to 37,676 tonnes in FY ’24, valued at Taka 1,531.56 crore, with 16,506 tonnes worth Taka 658.43 crore imported by 9th December of the current fiscal year.
The commission’s report pointed out that the average net price of imported garments appears significantly lower than local market prices. Some foreign sarees and “lehengas,” which should retail for over Taka 1 lakh in the local market, are being sold at prices well below that threshold, raising suspicions of possible duty evasion or smuggling.
To address these issues, the commission has recommended that the National Board of Revenue implement special instructions for garment imports at clearance stations, ensuring that all garment products undergo thorough inspection during customs clearance. This process should involve customs officers and third-party agencies to prevent false declarations and ensure compliance with regulations.
Additionally, the commission has urged the Ministry of Home Affairs to collaborate with the Directorate of Customs Intelligence and Investigation to enforce strict legal measures against smuggling and duty evasion. Special operations led by Border Guard Bangladesh, local police, and anti-smuggling task forces will be crucial in safeguarding the domestic market from illegal foreign textiles.
Bangladesh’s garment imports come from various countries, including India, Pakistan, China, Myanmar, Hong Kong, Vietnam, Thailand, and Japan, underscoring the need for vigilance as Eid festivities draw near.
