Bangladesh's garment exports to Japan rose 14.02 per cent in fiscal 2014-15 partly due to relaxed rules of origin for Bangladeshi knitwear. Knitwear exports in 2014-15 grew 10.43 per cent from the previous year. Relaxation in Japanese rules of origin means exporters will get duty-free access to Japan even if the items are made with imported fabric. Exports of woven garment rose 16.89 per cent.

Rules of origin are a set of conditions that determine the source of a product, and are important in determination of duties and restrictions that often vary according to each product's origin. Before the relaxed rules of origin, Bangladeshi knitwear exporters to Japan could only get duty-free access for items made with locally spun fabric. Bangladeshi exporters were already getting almost zero duty benefit on knitwear exports as local spinners met about 90 per cent of the sector's raw material requirements.

Bangladesh can benefit from Japanese market by promoting non-cotton garments, which have a higher demand in Japan. Since 2008, Japan has moved away from dependence on China. It has induced local retailers to look for other suppliers such as Bangladesh, Vietnam and Cambodia. Even now, Japan’s garment imports mainly come from China. Earlier, Bangladesh was relatively unknown to Japanese customers, but its visibility has increased significantly as Bangladesh opened up to Japan’s outsourcing needs.