Due to higher duty, longer lead-time, and lower price Bangladesh garment shipment to the US, the country’s single largest export destination, declined 7.47 per cent year-on-year to $5.2 billion in 2016-17 . Exporters also blame the appreciation of local currency against the American dollar, loser imports by US retailers and inefficient port operations in Bangladesh as other reasons behind the decline in garment exports.

Bangladeshi apparel exports face 15.62 per cent duty to the US markets, whereas Vietnam, Turkey, China and India are subjected to 8.38 per cent, 3.57 per cent, 3 per cent and 2.29 per cent duty respectively. Longer lead-time is another major problem for Bangladesh whereas competitors are sending their products to the US in shorter time.

Bangladesh imports raw materials such as cotton and then spins them locally before making the finished products. Till now Bangladesh needs to import some key raw materials like woven fabric, some accessories and other related things. Bureaucratic red tape causes many delays in government and customs related activities. Imports and exports operations are taking longer time now-a-days than before. Less management and worker efficiency at small and medium-sized factories make things very difficult for them to take orders to cater to retailers within such a short time.

As per Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the country’s garment sector was hit by 15 per cent price cut in the last two years. Reduction of price of the US buyers is making things further difficult for Bangladeshi manufacturer. As European buyers give better price many manufacturers prefer EU buyer over US buyers.