Garment makers in Bangladesh have demanded cash incentives for exporting garments made with imported yarn. At present, only garment exporters who purchase raw materials from local textile mills get incentives. They also want incentives to be calculated directly on export price, rationalization of depreciation or wastage rate of raw materials in garment manufacturing, and elimination of harassment in the process of paying VAT and customs duty. Calculating incentives directly on export prices is expected to reduce the chances of all irregularities committed by the exporters.
Garment manufacturers came up with these demands as discussions are going on to increase the price of yarn in local market in view of the increase in the price of cotton, raw material for yarn, in the international market. Garment manufacturers have also sought permission to import yarn through land ports outside Benapole as part of removing the existing barriers in importing yarn from the neighboring countries. They want capacity building at the land ports and proper facilities for testing the imported goods be ensured before allowing import of yarn through land ports outside Benapole. Besides, readymade garments makers have demanded that the government allow partial shipment of goods against a letter of credit.