Bangladesh Bans Yarn Imports Via Land Ports, Exporters Protest
The Bangladeshi government has halted the import of yarn through land ports, citing concerns over undervaluation and inadequate infrastructure to properly classify different yarn categories.
The Ministry of Commerce, in a notification issued on March 27, stated that investigations based on information from the Bangladesh Textile Mills Association (BTMA) confirmed significant undervaluation of yarn imports compared to those cleared at Chittagong Customs House.
The decision, aimed at protecting domestic manufacturers, has drawn sharp criticism from apparel exporters, who warn of rising costs and declining competitiveness in global markets.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem called the move “suicidal” for apparel exporters, questioning whether the National Board of Revenue (NBR) was admitting to customs failures by accepting BTMA’s allegations of misdeclared imports.
Former BGMEA Senior Vice-President Abdullah Hil Rakib echoed concerns, warning that forcing exporters to rely solely on domestic yarn suppliers could stifle industry growth and hurt small and medium enterprises (SMEs).
BTMA has long argued that land ports lack the necessary infrastructure to scrutinize raw material imports and has advocated for routing all yarn shipments through seaports. In a letter to Finance Adviser Salehuddin Ahmed in January, BTMA President Showkat Aziz Russell highlighted concerns over partial shipments and alleged misuse, warning that continued yarn imports via land routes could harm local mills, increase import dependency, and lead to job losses in the textile sector.
The decision has put the country’s apparel industry at a crossroads, as the ready-made garment (RMG) sector contributes over 80% of Bangladesh’s total exports. While textile mill owners support the move as a protective measure, apparel exporters fear rising production costs and reduced global competitiveness.
Industry stakeholders are now calling for urgent policy revisions to balance the interests of domestic textile manufacturers and apparel exporters.
