Published : 14 Sep 2026, 05:35 AM
Updated : 16 Sep 2026, 11:50 AM
The commerce ministry has moved to put the brakes on new restrictions on duty-free yarn imports for export-oriented garment factories.
Its request to the National Board of Revenue (NBR) comes six days after the revenue authorities withdrew bond facilities for 10-30-count cotton yarn and made bank guarantees a condition for imports.
The ministry’s Export-8 branch sent the letter to the NBR acting chairman on Sunday, according to its public relations office.
“It is hereby requested to suspend the order concerning withdrawal of bond facilities for import of 10-30-count cotton yarn and import against submission of bank guarantees for further review,” the ministry said.
Under the new rules, yarn imported against a bank guarantee will be released only after export proceeds from products made with it enter Bangladesh.
Factories must also submit certification from the BGMEA, BKMEA or BTMA at customs.
The BTMA welcomed the restrictions, while garment exporters warned that bank guarantees could raise costs.
The affected yarn accounts for about 60 percent of Bangladesh’s total yarn imports. Imports were worth Tk 300 billion last year.
The restrictions followed years of work by the commerce ministry, Tariff Commission and other stakeholders to protect local industry and prevent “misuse” of bond facilities.
An inter-ministerial committee headed by the commerce minister first met on Aug 20 and decided to apply the new condition experimentally to 10-30-count yarn under HS codes 5205, 5206 and 5207.
The NBR then issued the order for immediate effect.
