The Bangladesh Garment Manufacturers and Exporters Association has urged its members to include the unit price of both imported raw materials and exportable readymade garment items when submitting utilisation declaration applications through its software, effective from September 1.
In a letter to its members issued on Sunday, the industry body stated that the decision was made to ensure greater transparency, maintain international standards, and uphold the trust of global buyers in Bangladesh’s RMG products.
In the letter, BGMEA stated that in many cases, UD applications were being submitted without specifying the unit price of raw materials, such as fabrics, and the finished apparel.
‘This practice has drawn concerns from international buyers, regulators, and particularly the National Board of Revenue, raising questions about accurate valuation of products,’ the letter read.
To keep the RMG sector competitive and credible in global markets, mentioning the unit price in UD applications is now essential,’ BGMEA stated.
‘The new requirement would help ensure better monitoring, smooth operation of the industry, and strengthen Bangladesh’s position in the global apparel supply chain,’ the letter added.
In Bangladesh›s garment industry, UD refers to a crucial customs document for RMG manufacturers and other export-oriented industries that import duty-free raw materials for production.
The UD confirms that these imported raw materials have been used to produce export goods, enabling the company to fulfill its export orders and claim benefits, such as cash incentives.
However, a manufacturer, requesting anonymity, said that mentioning the unit price could compromise their business privacy.
‘It only could possible if a two-factor or three-factor privacy system adopted, indicating a clear definition how many people and who can access the data,’ he added.
Meanwhile, Md. Shehab Udduza Chowdhury, vice president of the Bangladesh Garment Manufacturers and Exporters Association, told ¶¶Òõ¾«Æ· that they issued the letter with a view to identifying the value addition.
‘Once the database is completed, then they would suggest the members to focus more on value addition that volume,’ he added.
He also said that to fulfill the information, it is mandatory to include the FoB value with UD.
Regarding the privacy issue, he said that the value would added to the UD after placing the order, so there would not be any issues of privacy.
