The commerce ministry has instructed the National Board of Revenue to take regulatory action to halt yarn imports through land ports.
The ministry noted significant possibility of under-invoicing, which is severely impacting the domestic textile industry.
In an official directive on Thursday, the ministry asked the NBR to issue a notification restricting such imports or amend the existing Statutory Regulatory Order to ensure fair competition.
The directive stated that, according to findings based on data from the Bangladesh Textile Mills Association, stakeholders鈥� feedback and necessary investigations, the declared value of yarn imported through land ports was significantly lower than prices set at Chattogram Customs House.
This price discrepancy has made it increasingly difficult for local yarn manufacturers to maintain competiveness.
Although the average price of yarn produced in China, Turkey, Uzbekistan and Bangladesh remains similar, the cost of yarn imported via land ports is notably lower.
Moreover, Indian yarn, stocked at Kolkata warehouses before swift shipment to Bangladesh, is entering the market at dumping prices, which has led to an increased preference for imported yarn over locally produced alternatives, placing the domestic textile sector at substantial risk.
In light of this situation, the commerce ministry has formally instructed the NBR to take necessary steps to halt yarn imports through land ports by issuing a new notification or making relevant amendments to existing regulations.
However, apparel manufacturers expressed concerns regarding such a decision. They said that small and medium-sized readymade garment exporters would now face difficulties as they rely on land ports to import yarn easily.
They also strongly criticised the government鈥檚 decision to halt yarn imports through land ports, labelling it a 鈥榮uicidal鈥� move for the country鈥檚 readymade garment industry.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, expressed shock over the commerce ministry鈥檚 decision.
He said that they met with the ministries just a few days ago; however, a notification just after that meeting is disappointing. He added that this decision would be suicidal for the apparel exporters.
The BTMA had previously alleged that customs officials were considering businesses importing multiple truckloads of goods under a single-truck letter of credit and bringing in higher-count yarn under LCs for lower-count yarn, he explained.
鈥楴ow the government is going to halt the yarn import through land ports, meaning the customs officials are accepting responsibility for their failure which the BTMA alleged them of doing for a long time,鈥� he added.
Former Bangladesh Garment Manufacturers and Exporters Association senior vice-president Abdullah Hil Rakib said that the government鈥檚 decision to halt yarn imports through land ports would force apparel manufacturers to buy yarn from the local market.
鈥業t will increase manufacturing costs and also impact their competitiveness. Most of the big players of the sector once were small and medium-level manufacturers, they grew gradually and came at their current position,鈥� he added.
He also said that this decision would make small and medium-sized enterprises dependent solely on the domestic market, which would threaten their survival.
According to textile millers, cotton yarn imports surged by over 39 per cent in 2024 estimated at $2.28 billion. Moreover, fabric imports by knitwear factories hiked by 38 per cent, worth $2.59 billion.
The BTMA claimed that the industry could supply nearly 100 per cent of the demand for export-oriented knit garments.
Recently, the BTMA, the apex trade body of the country鈥檚 spinners, requested finance adviser Salehuddin Ahmed, through a letter, to halt the yarn import through land ports.
