Textile millers warn closure if bond facility stays

Textile millers said they would shut down their spinning mills from February 1 if the government fails to implement the commerce ministry’s recommendation to withdraw the duty-free import facility for 10-30 count cotton yarn within this month.

Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), made the announcement at a press conference in Dhaka today.

Earlier, the commerce ministry recommended that the National Board of Revenue (NBR) suspend the bond facility on imports of 10-30 count yarn to protect local spinning mills.

Under the NBR’s bond facility, export-oriented industries are allowed to import raw materials duty-free on the condition that the finished goods are exported.

Russell said the withdrawal of the duty-free facility would not amount to imposing a new tariff. Importers would still be able to claim duty drawbacks from the government, he added.

He also mentioned that the Bangladesh Trade and Tariff Commission (BTTC) recently recommended the commerce ministry withdraw the bond facility on imports of 10-30 count yarn, following a proposal from the BTMA.