‘Duty-free yarn import restricted to avoid misuse’

The government has taken steps to stop misuse of duty free import of yarn by shelving fresh permission for import by handloom weavers' cooperatives without paying duty. The measures were taken in the backdrop of growing allegations of irregularities over duty free import of yarns.
Chairman of Bangladesh Handloom Board, Md Shah Alam made the disclosure on Monday after a meeting with leaders of textile millers (BTMA) at his office on Monday.
He said, "We held discussion in the meeting on how we can stop misuse of import of yarns which the government permits at duty free to handloom weavers at the same time when weavers can also get their required yarns locally."
There are allegations that cluster based handloom weaving cooperatives import yarns showing false      documents and exaggerated demands and then sell it to local market using in reality only a certain amount of yarns. There is no existence of such cooperatives in many cases, the allegations said.
Alam said, "duty free import of yarn has almost stopped. Only few cooperative operators who got permission earlier can now import yarns for their business without paying duty."He said, "I have discussed the issue with the visiting textile millers who are also office bearers               of Bangladesh textile Mills Association (BTMA) and I have told them local yarns are always our first priority. We do not want to import with our hard earned foreign currency despite availability of such yarns locally."
He said, "It is a fact that few people are importing higher grade yarns than actually required grade for handloom weaving factories. We have been discussing to stop such imports, we are also committed to find out officials who provide permissions without checking the actual demands and overlook actual prices and amount mentioned in letter of credit."
When contacted Mohammad Khorshed Alam a former BTMA director who was also one among the visitors to Handloom Board chairman told the Daily Observer, "We have raised our voice and have told him about ongoing irregularities."
He said, "The chairman agreed with us that misuse is taking place. He ensured us that they will stop such imports and identify other loopholes that handloom cooperatives are exploiting to deprive the government from getting due revenue."
He said, "At field level investigation we have found that there is no existence of some handloom cooperatives importing yarns using fake names not existing and the L/Cs being processed quoting under value prices."
Former BTMA director Mohammad Khorshed Alam said, "Handloom weavers usually use low          count yarns to produce gamcha, lungi, shari and few other garments but currently the handloom board is permitting them to import higher count yarn at higher price."
He said even few handloom cooperatives are importing chemicals, moulds and many others which is not used in weaving factories.
According to market statistics currently more than 1300 weavers cooperatives (Taati Samity) are registered with the handloom board and every Samity can individually (cooperative) import yarn for maximum worth of Tk10 million without paying duty for use in their  factories.
A weaver at said, "I am affected by the ban on import permission. He said I don't know which member of my Samity is misusing or selling yarns to other parties. But I genuinely use them for my factory."
He said for some miscreants all the genuine weavers should not get punished.